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HomeMy WebLinkAbout1.10A Air Quality PermitsAir Quality Permit Grand River Gathering LLC High Mesa Compressor Station OA Project No. 012-0732 826 21 ½ Road | Grand Junction, CO 81505 | TEL 970.263.7800 | FAX 970.263.7456 STATE OF COLORADO COLORADO DEPARTMENT OF PUBLIC HE ALT H AND ENVIRONMENT AIR POLLUTION CONTROL DIVISION TELEPHONE: (303) 692-3 150 CONSTRUCTION PERMIT PERM IT NO: DATE ISSUED : ISSUED TO: 08GA1199 JUL 3 ·1 2009 EnCana Oil & Gas (USA) Inc. Issuance 1 THE SOURCE TO WHICH THIS PERMIT APPLIES IS DESCRIBED A ND LOCA TED AS FOLLOWS: Natural gas compression facility, known as the H igh Mesa Compressor Station, located in SENW Section 36, T ownship 7S, Range 96W, in Garfield County, Colorado . THE S PECIFIC EQUIPMENT O R ACTIVITY S UBJECT TO THIS PERMIT INCLUDES THE FOLLOWING: Facility AIRS Equipment Point Description 10 One (1) Ca terpillar, Model G3516LE , Serial Number 4EK04857, natural gas-fired , turbo-charged , 4SLB reci procating internal HM01 013 combustion engine, si te rated at 1 ,208 horsepower at 1,400 RPM . This engine sh all be equipped with an oxidation catalyst and air- fuel ratio contro l. This emission unit is used for natural gas compression. This en gine may be replaced w ith another engi ne in accordance with the temporary engine replacement provision or with another Caterpill ar G351 6 LE engine in accordance with the permanent replacement provision of the Alternate Operating Scenario (AOS), included in this perm it as Attachment A. THIS PERMIT IS GRANT ED SUBJ ECT TO ALL RULES AND RE G ULATIONS O F THE COLORADO AIR QUALITY C ONTROL COMMISSIO N A ND THE COLORADO AIR POLLUTION PREVENTION AND CONTROL ACT C.R.S . (25-7-101 et seq), TO THOSE GENERAL TERMS AND C ONDIT IONS INCLUDED IN THIS DOCUMENT AND THE FOLLOWING SPECIFIC TERMS AND CONDITIONS: REQUIREMENTS TO SELF-CERTIFY FOR FINAL AUTHORIZATION 1 . T his construction permit represents f inal perm it approval and authorit y to operate this em iss ions source (Regulation 3 , Part B, Section II I.G.S). A IRS 10: 045/1046/01 3 Page 1 of 17 NGEngine Versi on 2008-1 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1199 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division EMISSION LIMITATIONS AND RECORDS 2. Emissions of air pollutants shall not exceed the following limitations (as calculated in the Division's preliminary analysis). (Reference: Regulation No. 3, Part 8, Section II.A.4) M h i L .. ont 1y 1m1ts: Fa cility AIRS Pounds pe r Month Equi pment 10 Po i nt NOx voc co Emission Type HMOI 013 2972 486 306 Point Monthly llm1ts are based on a 31-day month. Annual Limits: Facility AIRS Tons per Year Equipment 10 Point NOx voc co Emission Type HMOt 013 17 .5 2.9 1 .8 Point See "Notes to Perm1t Holder #4 for mformat1on on em1ss1on factors and methods used to calculate limits. During the first twelve (12) months of operation , compliance with both the monthly and yearly emission limitations sha ll be required. After the first twelve (12) months of operation , compliance with only the yearly limitation shall be required. Compliance with the synthetic minor status of this facility shall be determined by recording the facility's annual criteria pollutant emissions , from each emission unit, on a rolling (12) month total. By the end of each month a new twelve-month total is calculated based on the previous twelve months ' data. The permit holder shall calculate monthly emissions and keep a compliance record on site, or at a local field office with site responsibility, for Division review. This rolling twelve-month total shall apply to all emission units, requiring an APEN , at this facility. 3. This engine shall be equipped with an oxidation catalyst and air-fuel ratio cont rol. The selective oxidation catalyst shall be capable of reducing uncontrolled emissions of VOC and CO from the unit to the emission levels listed in Condition 2 , above . Operating parameters of the control equipment are identified in the operation and maintenance plan. (Reference: Regulation No.3, Part 8 , Section III.E.) PROCESS LIMITATI ONS AND RECORDS 4 . This source shall be limited to the following maximum consumption , processing and/or operational rates as listed below. Monthly records of the actual consumption rate shall be maintained by the applicant and made available to the Division for inspection upon request. (Reference: Regulation 3, Part 8 , II.A.4) Process/Consumpti on Limits Facility AIRS Annual Monthly Equ ipment Point Proces s Parameter Limit Limit (31 10 days) HM01 013 Consumption of natural gas as a 90.9 7 .72 fuel MMscf/yr MMscf/month AIRS ID: 045/1046/013 Page 2 of 17 ! EnCana Oil & Gas (USA) Inc. Permit No. 08GA1199 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division During the first twelve (12) months of operation, compliance with both the monthly and yearly consumption limitations shall be required. After the first twelve (12) months of operation, compliance with only the yearly limitation shall be required . Compliance with the yearly consumption limits shall be determined on a rolling twelve (12) month total. By the end of each month a new twelve-month total is calculated based on the previous twelve months' data. T he permit holder shall calculate monthly consumption of natural gas and keep a compliance record on site or at a local field office with site responsibility, for Division review. STATE AND FEDERAL REGULA TORY REQUIREMENTS 5 . Visible emissions shall not exceed twenty percent (20%) opacity during normal operation of the source. During periods of startup, process modification, or adjustment of control equipment visible emissions shall not exceed 30% opacity for more than six minutes in any sixty consecutive minutes. (Ref erence: R egulation No. 1, Section II.A.1. & 4.) 6. This source is subject t o the odor requirements of Regulation No. 2. (State only enforceable) 7. The permit number and AIRS ID number shall be marked on the subject equipment for ease of identification. (Reference: Regulation Nu mber 3 , Part 8 , III.E .) (State only enforceable) 8. This source is subject to the requirement s of: • Regulation No. 8, PartE, Subpart 11/.FFFF: National Emissions Standards for Hazardous Air Pollutants for Stationary Reciprocating Internal Combustion Engines (RICE) of 40 C.F.R. Part 63, Subpart ZZZZ, and • Regulation No. 8, PartE, Subpart I. A, National Emission Standards for Hazardous Air Pollutants for Source Categories: General Provisions, 40 CFR Part 63 including, but not limited to, the following: • Emission and Operating Li mitations o 63.6600(b) -If you own or operate a new or reconstructed 4SLB stationary RICE with a site rating of more than 500 brake HP located at major source of HAP emissions you must comply with t h e f ollowing emission limitations (Table 2a, Subpart Zll..Z to Part 63): • reduce CO emissions by 93 percent or more; or • limit concent ration of formaldehyde in the stationary RICE exhaust to 14 ppmvd or less at 15 percent 02. AIRS I D : 045/1046/013 Page 3 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1199 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division o 63.6600(b)-If you own or operate a new or reconstructed 4SLB stationary RICE with a site rating of more than 500 brake HP located at major source of HAP emissions you must comply with the following operating limitations (Table 2b, Subpart ZZZZ to Part 63): • • maintain your catalyst so that the pressure drop across the catalyst does not change by more than 2 inches of water at 1 00 percent load plus or minus 10 percent from the pressure drop across the catalyst that was measured during the initial performance test, and maintain the temperature of your stationary RICE exhaust so that the catalyst inlet temperature is greater than or equal to 450 oF and Jess than or equal to 1350 °F. • General Compliance Requirements o §63.6605(a)-You must be i n compliance with the emission limitations and operating limitations in this subpart that apply to you at all times, except during periods of startup, shutdown, and malfunction. o §63.6605(b) -If you must comply with emission limitations and operating limitations, you must operate and maintain your stationary RICE, including air pollution control and monitoring equipment, in a manner consistent with good air pollution control practices for minimizing emissions at all times, including during startup, shutdown, and malfunction. • Testing and Initial Compliance Requirements o §63.6610(a)-You must conduct the initial performance test or other initial compliance demonstrations in Table 4 to Subpart ZZZZ of Part 63 that apply to you within 180 days after the compliance date that is specified for your stationary RICE in §63.6595 and accordi ng to the provisions in §63.7(a)(2). o §63.6615 -If you must comply with the emission limitations and operating limitations, you must conduct subsequent performance tests semiannually (as per Table 3 of Subpart ZZ.ZZ to Part 63). After you have demonstrated compliance for two consecutive tests, you may reduce the frequency of subsequent performance tests to annually. If the results of any subsequent annual performance test indicate the stationary RICE is not in compliance with the CO or formaldehyde emission limitation , or you deviate from any of your operating limitations, you must resume semiannual performance tests. o §63.6620 -You must conduct performance test and other procedures in §63.6620 and in Tables 3 and 4 to Subpart ZZZZ of Pa rt 63 that apply to you . o §63.6625(b) -If you are required to install a continuous parameter monitoring system (CPMS) as specified in Table 5 of this subpart, you must install, operate, and maintain each CPMS according to the requirements in §63.8. AIRS ID: 045/1046/013 Page 4 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1199 Issuance 1 Colorado Department of Public Health and Environment A i r Pollution Control Division o §63.6630(a)-You must demonstrate initial compliance with each emission and operating limitation that applies to you according to Table 5 of Subpart ZZZZ to Part 63. o §63.6630(b) -During the initial performance test, you must establish each operating limitation in Tables 1 band 2b of Subpart ZZZZ to Part 63 that applies to you . o §63.6630(c)-You must submit the Notification of Compliance Status containing the results of the initial compliance demonstration according to the requirement s in §63.6645. • Cont inuous Compliance Requirements o §63.6635(b)-Except for monitor malfunctions, associated repairs , and required quality assurance or control activities (including , as applicable, calibrat ion checks and required zero and span adjustments), you must monitor continuously at all times that the stationary RICE is operating. o §63.6635(c)-You m a y not use data recorded during monitoring malfunctions, associated repairs , and required quality assurance or control activities in data avera ges and calculat ions used to report emission or operating levels. You must, however, use all t he valid data collected during all other periods. o §63.6640(a)-You must demonstrate continuous compliance w ith each emission limitation and o p erating limitation in T ables 1 a and 1 b and Tables 2a and 2b of subpart ZZZZ of Part 63 that apply to you according to methods specified in Table 6 of Subpart ZZZZ of P art 63. o §63.6640(b)-You must report each instance in which you did not meet each emission limitation or operating limitation in Tables 1 a and 1 b and Tables 2a and 2b of Subpart ZZZZ of Part 63 that apply to you. These instances are deviations from the emission and operating limitations in this subp art. These deviations must be reported according to the requirements in §63.6650. If you change you r catalyst , you must reestablish the values of the operating parameters measured during the initial performance test. When you reestablish the val ues of your operat ing parameters, you must also conduct a performance test to demonstrate that you are meeting the required emission limitation applicable t o your stationary RICE. o §63.6640(d)-Consistent w ith §§63.6(e) and 63.7(e)(1 ), deviations from the emission o r operating limitations that occur during a per iod of startup, shutdown, or malfunction are not violations if you demonstrate to the Administrator's satisf action that you were operating in accordance with §63.6(e)(1 ). For new, reconstructed, and rebuilt stat ionary RI CE, deviations from the emission or operating limitations that occur during t he first 200 hours of oper ation from engine startup (engine burn-in period) are not violations. AIRS ID: 045/1046/013 Page 5 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA1199 Issuance 1 Colorado Department of Public Health and Envi ronment Air Pollution Control Division o §63.6640(e)-You must also report each instance in which you did not meet the requirement s in Table 8 of Subpart ZZZZ to Part 63 that apply to you. • Notifications, Reports and Records o §63 .6645(a)-If you own or operate a stationary RICE with a site rating of more than 500 brake HP located at a major source of HAP emissions you must submit all of the notifications in §§63. 7(b) and (c), 63.8(e), (f)(4) and (f)(6), 63.9(b) through (e), and (g) and (h) that apply to you by the dates specified . o §63.6645(c)-If you start up your new or reconstructed stationary RICE with a site rating of more than 500 brake HP located at a major source of HAP emissions on or after August 16, 2004, you must submit an Initial Notification not later than 120 days after you become subject to this subpart. o §63.6645(g) -If you are requ ired t o conduct a performance test, you must submit a Notification of Intent to conduct a performance test at least 60 days before the performance test is scheduled to begin as required in §63.7(b)(1). o §63.6645(h)-If you are required to conduct a performance test or other initial compliance demonstration as specified in Tables 4 and 5 of Subpart ZZZZ to Part 63, you must submit a Notification of Compl iance Status according to §63.9(h)(2)(ii). • §63 .6645(h)(2) -For each initial compliance demonstration required in Table 5 of Subpart ZZZZ to Part 63 that includes a performance test conducted according to the requirements in Table 3 to this subpart, you must submit the Notification of Compliance Status, including the performance test results , before the close of business on the 60th day following the completion of the performance test according to §63.1 O(d)(2). o §63.6650(a)-You must submit each report in Table 7 of Subpart ZZZZ to Part 63 that applies to you. o §63.6650(b)-You must submit each report by the date in Table 7 of Subpart ZZZZ to Part 63 and according to the requirements in paragraphs (b)(1) through (5) of §63.6650. o §63.6650(c)-The Compliance report must contain the information in paragraphs (c)(1) through (6) of §63.6650. o §63.6650(e)-F or each deviation from an emission or operating limitation occurring for a stationary RICE where yo u are using a C M S to comply with the emission and operating limitations in Subpart ZZZZ to Part 63, you must include information in paragraphs (c)(1) through (4) and (e)(1) through (12) of §63.6650. AIRS ID: 045/1046/013 Page 6 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA1199 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division o §63.6655(a) -If you must comply with the emission and operating limitations, you must keep the records described in §63 .6655(a)(1) through (a)(3), §63.6655 (b)(1) through (b)(3) and §63.6655 (c). o §63.6655(d)-You must keep the records requ ired in Table 6 of Subpart ZZZZ of Part 63 to show continuous compliance with each emission or operating limitation that applies to you. o §63.6660(a)-Your records must be in a form suitable and readily available for expeditious review according to §63.1 O(b)(1 ). o §63.6660(b)-As specif ied in §63.10(b)(1), you must keep each record f or 5 years following the date of each occurrence, measurement, maintenance, corrective action , report , or record . o §63.6660(c)-You must keep each record readily accessible in hard copy or electronic form on -site for at least 2 years after the date of each occu rrence, measurement, ma intenance, corrective action , report, or record , according to §63.10(b)(1 ). You c an keep the record s off-site for the remaining 3 years. • Other Requirements and Information o §63.6665 -Table 8 to this subpart shows which parts of the General P rovisions in §§63.1 through 63.15 apply to you . OPERATING & MAINTENANCE REQUIREMENTS 9. Upon startup of this point, the applicant sha ll follow the operating and maintenance (O&M) plan and record keeping format approved by the Division , in or der to demon strate compliance on an ongoing basis with the requirements of this permit. Revisions to your O&M plan are subject to Division approval prior to implementation. (Refere nce: Regulation No. 3 , Part 8 , Section III.G.7.) COMPLIANCE TESTING AND SAMPLING Period ic Testing Requirements 10 . This engine is subject to the periodic testing requirements of 4 0 C .F.R Part 63, Subpart ZZZZ . 11 . This engin e is subject to the periodic testing requi rements as specified in the operating and maintenance (O&M) plan as approved by the Division. Revisions to your O&M plan are subject to Division approval. Replacements of this unit completed as Alternative Operating Scenarios may be subject to additional test ing requi rements as specified in Attachment A. A IRS ID: 045/1046/013 Page 7 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1199 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division ADDITIONAL REQU IREMENTS 12. A revised Air Pollutant Emission Notice (APEN) shall be filed : (Reference: Regulation No. 3 , Part A, II.C) a. Annually whenever a significant increase in emissions occurs as follows : For any crit eria pollutant : For sources emitting less t han 100 t ons p er y e ar. a change in actual emissions of five (5) tons per year or more, above the level reported on the last APEN; or For any non-criteria reportable pollutant: If the emissions increase by 50% or five (5) tons per year, whichever is less, above the level reported on the last APEN submitted to the Division . b. Whenever there is a change in the owner or operator of any facility, process, or activity; or c. Whenever new control equipment is installed, or whenever a different type of control equipment replaces an existing type of control equipment; or d . Whenever a permit limitation must be modified; or e. No later than 30 days before the existing APEN expires. f . Within 14 calendar days of commencing operation of a permanent replacement engine under the alternative operating scenario outlined in this permit as Attachment A. The APEN shall include the specific manufacturer, model and serial number and horsepower of the permanent replacement engine, the appropriate APEN filing fee and a cover letter explaining that the permittee is exercising an alternative-operating scenario and is installing a permanent replacement engine. 13. This source is subject to the provisions of Regulation Number 3, Part C , Operating Permits (Title V of the 1990 Federal Clean Air Act Amendments). The provisions of this construction permit must be incorporated into the operating permit. The application for the modification to the Operating Permit is due within one year of commencement of operation of the equipment or modification covered by this permit. 14 . Prevention of Significant Deterioration (PSD) requirements shall apply to this source at any such time that this source becomes major solely by virtue of a relaxation in any permit condition. Any relaxation that increases the potential to emit above the applicable PSD threshold will require a f ull PSD review of the sou rce as though construction had not yet commenced on the source. The source shall not exceed the PSD threshold until a PSD permit is granted . (Regulation No .3 Part D, VI.B.4) GENERAL TERMS AND CONDITIONS : 15. This permit and any attachments must be retained and made available for inspection upon request. The permit may be reissued to a new owner by the APCD as provided in AIRS ID: 045/1046/013 Page 8 of 17 EnCana O il & Gas (USA) In c. Permit No. 08GA 1199 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Cont rol Division AQCC Regulation No. 3, Part B , Section II.B upon a request for transf er of ownersh ip and the submittal of a revised APEN and the required fee. 16. Issuance of a construction permit does not provide ''final" authority for this activity or operation of this source. Final authorization of t he permit must be secured from the APCD i n writing in accordance w ith the provisions of 25-7-114.5 (12)(a) C .R.S . and AQCC Regulation No.3, Part B, Section II I.G. F inal authorization cannot be granted until the operation or activ ity commences and has been verified by the APCD as conforming in all respects with the conditions of the permit. Once self-certification of all poi nts has been reviewed and approved by the Division, it will p rovide written d ocument ation of such f inal authoriz ation . Details for obtai ning final authorization to operate are located in the Requirements to Self-Certify for Final Authorization s ection of this permit. 17. T h is permit is issued in reliance upon the accuracy and completeness of information supplied by the appl icant and is conditioned upon co nduct of the activity , or construction, installation and operation of the source, in accordance with this information and with represent ations made by the applicant or applicant's agents. It is valid only for t he e quipment and operations or activity specifically identified o n the permit. 18. Unless s p ecifically stat ed otherwise, t he general and specific conditions contained in this permit h ave been deter mined by t he APCD to be necessary to assure compliance with the provisions of Section 25-7-1 14.5(7)(a), C .R.S . 19. E ach and every condition of this permit is a materia l part her eof and is not severable . A n y challenge to or appeal of a condition hereof shall constitute a rejection of the e ntire permit and upon such occurrence, this permit shall be deemed denied ab initio. T h is permit may be revoked at any t ime prior to self-certification and final aut horization by the Air Pollution Control D ivision (A PC D) on grounds set f orth in the Colorado A ir Quality Control Act and regulations of the A ir Q ua lity Control Commission (AQCC), including failure to meet any express term or condition of the permit. If t he Division denies a permit, conditions imposed upon a permit are contested by the applicant , or the Divis ion rev okes a permit , the applicant or owner or operator of a source may request a hearing before the AQCC for review o f the Division 's action. 20. Section 25-7-114.7 (2)(a), C .R.S. requires that all sources required to file an A ir P o llution Emission N otice (APEN) must pay an annual fee to cover the costs of inspections and administration. If a source or activity is t o be d iscontinued, the owner must notify the D ivision in writ ing requesting a cancellation of the permit. U pon not ification, annual fee billing will term inate. 21 . V iolation of the terms of a permit or of the provisions of t he Colorado Ai r Pollution Prevention and Control Act or the reg u lations of the AQCC may result in admin istrative , civil or crim inal enforcement actions under Sections 25-7 -115 (enforcement), -121 (inj unctions), -122 (c ivil penalties), -122.1 (crimi nal penalties), C .R.S. 22 . This permit replaces the following permit, w h ich is canceled upon issuance of t h is permit: AIRS ID: 045/1046/013 Page 9 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1199 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division Permit No. AIRS ID Notes 05P00963 777126601001 1 Engine-~M01 :. This equipment wi.ll now be covered under th1s stationary source perm1t. By: C iuissa Money rJ' Permit Engineer p "t H" t erm1 IS ory_ Issuance Date Description Issuance 1 This Issuance Canceled portable permit 05P00963 and issued as new stationary permit lA, Modification July 17, 2007 Change in fuel use, emissions, addition of control No. 1 for equipment 05P00963 Initial Approval April 14, 2006 Issued to EnCana Oil & Gas for 05P00963 AIRS ID: 045/1046/013 Page 10 of 17 EnCana Oil & Gas (USA) Inc. Per mit N o. 08GA 1199 Issuance 1 Notes to Permit Holder: Colorado Department of P ublic Health and Environment Air P o ll ution Control Division 1) The production or raw material processing limits and emission limits contained in this permit are based on the consumption rates requested in the permit application. These limits may be revised upon request of the permittee providing there is no exceedance of any specific emission control regulation or any ambient air quality standard . A revised air pollution emission notice (APEN) and application form must be submitted with a request for a permit revision . 2) This source is subject to the Common Provisions Regulation Part II , Subpart E , Affirmative Defense Provision for Excess Emissions During Malfunctions. The permittee shall notify the Division of any malfunction condition which causes a violation of any emission li mit or limits stated in this permit as soon as possible, but no later than noon of the next working day, followed by written notice to t he Division addressing all of the criteria set forth in Part II.E.1 . of the Common Provisions Regulation . See: http://www.cdphe.s tate.co.us/regulations/airregs/1 001 02aqcccommonprovisionsreg.pdf. 3) The following emissions of non-criteria reportable air pollutants are estimated based upon the process limits as indicated in this permit. This information is listed to inform the operator of the Division's analysis of the specific compounds emitted if the source(s) operate at the permitted limitations. Uncontrolled Emission Are t he Controlled AIRS Rate emissions Em issio n Poin t Pollutan t CAS# B IN {lb/yr ) reportable? Rate (lb/yr) Formaldehyde 5000 A 5599 Yes 2800 Acetaldehyde 75070 A 760 Yes 380 Acr olein 107028 A 467 Yes 234 013 Methanol 67561 c 227 No 114 n-Hexane 110543 c 101 No 50 Benzene 71432 A 40 No 20 Toluene 108883 c 37 No 19 4 ) The emission levels contained in this permit are based on the following emission factors: Point 013 : Emission Factors -Uncontrolled Emission Factors-Controlled CAS Pollutant lb/MMBtu g /bhp-hr Sour ce lb/MMBtu g /bhp-hr Source NOx 0 .3850 1.5000 Mfg 0.3850 1.5000 Mfg co 0 .5673 2 .2100 Mfg 0.0397 0.1547 Mfg voc 0 .1258 0.4900 Mfg 0.0629 0.2450 Mfg 5000 Formaldehyde 0 .0616 0.2400 Mfg 0.0308 0.1200 Mfg AP-42; Table 75070 Acetaldehyde 0.0084 0.0326 3.2-2 (7/2000); 0.0042 0.0163 Mfg Natural Gas AP-42; Table 107028 Acrolein 0.0051 0.0200 3.2-2 (7/2000); 0 .0026 0.0100 Mfg Natural Gas 67561 Methanol 0 .0025 0.0097 AP-42; T able 0.0013 0.0049 Mfg 3.2-2 (7 /2000); AIR S ID : 0 4 5/1046/013 P age 11 of 17 EnCana Oil & Gas (USA) Inc. Pe rmit N o. 08GA 1199 Issua nce 1 Colorado Department of Public Health and Environment Air Pollution Control Division Emission Factors -Un controlled Emis s i on Factors -Controlled CAS Po llutant l b/MMBtu g /bhp-hr Sou rce l b /MMBtu g /bhp-hr Natural Gas AP-42; Table 110543 n-Hexane 0.0011 0.0043 3.2-2 (7/2000); 0.0006 0.0022 I Natural Gas 1 71432 AP-42; Table Benzene 0.0004 0.0017 3.2-2 (7/2000); 0.0002 0.0009 Natural Gas AP-42; Table 108883 Toluene 0.0004 0.0016 3.2-2 (7/2000); 0 .0002 0.0008 Natural Gas Emission factors are based on a Brake-Specific Fuel Consumption Factor of 8,589 Btu/hp-hr, a site-rated horsepower value of 1 ,208, and a fuel heat value of 1,000 Btu /scf. 5) In accordance with C .R.S . 25-7-114.1 , the Air Pollutant Emission Notice (APEN) associated with this permit is valid for a term of five years. The five-year term for this APEN expires on Novem ber 9, 20 13. A revised APEN shall be submitted no later than 30 days before the five-year term expires. 6) T his facil ity is classified as follows: Applicable Status Requirement Operating Permit Major Source: NOx, HAPs Synthetic Minor Source : CO , VOC PSD Synthet ic Minor Source: VOC MACT HH Synthetic Minor Source: Toluene, Total HAP MACT Z2.ZZ Major Source 7) Full text of the Title 40 , Protection of Environment Electronic Code of Federal Regulations can be found at the website listed below: http://ecfr.gpoaccess.gov/ Part 60 : Standards of Pe rfor mance for New Stati onary So urces NSPS 60.1-End Subpart A-Subpart KKKK NSPS Part 60, Appendixes Appendix A-Appendix I Part 63 : National Emission Standar ds for Hazardous Ai r Pollutants for Source Categories MACT 63.1-63.599 Subpart A-Subpart Z MACT 63.600-63.1199 Subpart AA-Subpart DOD MACT 63.1200-63 .1439 Su bpart EE E -Su bp art P PP MACT 63.1440-63.6175 Subpart QQQ -Subpart YYYY MACT 63.6580-63.8830 Subpart Z2.ZZ-Subpart MMMMM MACT 63.8980-End Subpart NN NNN -Subpart XXXXXX AIRS ID: 045/104 6/013 P age 12 of 17 Source Mfg Mfg Mfg I EnCana Oil & Gas (USA) Inc. Permit No. 08GA1 199 Issuance 1 Colorado Department of Public Health and Environment Ai r Pollution Control Division ATT ACH MENT A : ALTERNATIVE OPERATING SCENARIOS REC IPROCAT ING INTERNAL C OMBUSTION ENGINES December 1 0, 2008 The following Alternative Operating Scenario (AOS) for the temporary and permanent replacement of natural gas fired reciprocating internal combustion engines has been reviewed in accordance with the requirements of Regulation No. 3., Part A , Section IV.A , Operational Flexibility-Alternative Operating Scenarios, Regulation No. 3, Part 8 , Construction Permits , and Regulation No . 3, Part D, Major Stationary Source New Source Review and Prevention of Significant Deterioration, and it has been found to meet all applicable substantive and procedural requirements . This permit incorporates and shall be considered a Construction Permit for any engine replacement performed in accordance with this AOS , and the permittee shall be allowed to perform such engine replacement without applying for a revision to this permit or obtaining a new Construction Permit. A.1 Engine Replacement The following AOS is incorporated into this permit in order to dea l with a compressor engine breakdown or periodic routine maintenance and repair of an existing onsite engine that requires the use of either a temporary or permanent replacement engine. "Temporary" is defined as in the same service for 90 operating days or less in any 12 month period. "Permanent" is defined as in the same service for more than 90 operating days in any 12 month period . T he 90 days is the total number of days that the engine is in operation . If the engine operates only part of a day, that day shall count as a single day towards the 90-day total. The compliance demonstrations and any periodic monitoring required by this AOS are in addition to any compliance demonstrations or periodic monitoring required by this permit. All replacement engines are subject to all federally applicable and state-only requirements set forth in this permit (including monitoring and reco rd keeping). The results of all tests and the associated calculations required by this AOS shall be submitted to the Division within 30 calendar days of the test or within 60 days of t he test if such testing is required to demonstrate compliance with NSPS or MACT requirements. Results of all tests shall be kept on site for five (5) years and made available to the Division upon request. The permittee shall maintain a log on-site and contemporaneously record the start and stop date of any engine replacement, the manufacturer, date of manufacture, model number, horsepower, and serial number of the engine(s) that are replaced during the term of this permit, and the manufacturer, model number, horsepower, and serial number of the replacement engine . In addition to the log, the permittee shall maintain a copy of all Applicability Reports required under section A.1 .2 and make them available to the Division upon request. A.1 .1 T he permittee may t emporarily replace an existing compressor engine that is subject to the emission limits set forth in this permit with an engine that is of the same manufacturer, mode l, and horsepower or a different manufacturer, model , or horsepower as the existing engine without modifying this permit, so long as the emissions from the temporary replacement engine comply with the emission limitations for the existing permitted engine as determined in section A.2. Measurement of emissions from the temporary replacement engine shall be made as set forth in section A.2. A.1 .2 The permittee may permanently replace the existing compressor engine with an engine that is of the same manufacturer, model and horsepower w ithout modifying this permit so long as the emissions from the permanent replacement engine comply with 1) the permitted annual emission limitations for the AI RS ID: 04 5/1046/013 Page 13 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1199 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division existing engine, 2) any permitted short-term emission limitations for the existing permitted engine, and 3) the applicable emission limitations as set forth in the Applicability Report submitted to the Division with the Air Pollutant Emissios Notice (APEN) for the replacement engine (see http://www.cdphe.state.co.us/ap/oilgaspermitting html for example applicability report formats). Measurement of emissions from the permanent replacement engine and compliance with the applicable emission limitations shall be made as set forth in section 2.2. An Air Pollutant Emissions Notice (APEN) that includes the specific manufacturer, model and serial number and horsepower of the permanent replacement engine shall be filed with the Division for the permanent replacement engine within 14 calendar days of commencing operation of the replacement engine. The APEN shall be accompanied by the appropriate APEN filing fee, a cover letter explaining that the permittee is exercising an alternative operating scenario and is Installing a permanent replacement engine, and a copy of the relevant Applicability Reports for the replacement engine. Example Applicability Reports can be found in at http://www.cdphe state.co.us/ap/oilqaspermittinq.html. This submittal shall be accompanied by a certification from a person legally authorized to act on behalf of the source indicating that "based on the information and belief formed after reasonable inquiry, the statements and information included in the submittal are true, accurate and complete". This AOS cannot be used for permanent engine replacement of a grandfathered or permit exempt engine or an engine that is not subject to emission limits. The permittee shall agree to pay fees based on the normal permit processing rate for review of information submitted to the Division in regard to any permanent engine replacement. A.2 Portable Analyzer Testing Note: In some cases there may be conflicting and/or duplicative testing requirements due to overlapping Applicable Requirements. In those instances, please contact the Division Field Services Unit to discuss streamlining the testing requirements. Note that the testing required by this Condition may be used to satisfy the periodic testing requirements specified by the permit for the relevant time period (i.e. if the permit requires quarterly portable analyzer testing , this test conducted under the AOS will serve as the quarterly test and an additional portable analyzer test is not required for another three months). The permittee may conduct a reference method test, in lieu of the portable analyzer test required by this Condition , if approved in advance by the Division . The permittee shall measure nitrogen oxide (NOX) and carbon monoxide (CO) emissions in the exhaust from the replacement engine using a portable flue gas analyzer within seven (7) calendar days of commencing operation of the replacement engine. All portable analyzer testing required by this permit shall be conducted using the Division's Portable Analyzer Monitoring Protocol (ver March 2006 or newer) as found on the Division 's website at: http://www.cdphe.state.co.us/ap/down/portanalyzeproto.pdf Results of the portable analyzer tests shall be used to monitor the compliance status of this unit. For comparison with an annual (tons/year) or short term (lbs/unit of time) emission limit, the resu lts of the tests shall be converted to a lb/hr basis and multiplied by the allowable operating hours in the month or year (whichever applies) in order to monitor compliance. If a source is not limited in its hours of operation the test results will be multiplied by the maximum number of hours in the month or year (8760), whichever applies. AIRS ID: 045/1046/013 Page 14 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1199 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division For comparison with a short-term limit that is either input based (lb/mmBtu), output based (g/hp-hr) or concentration based (ppmvd @ 15% 02) that the existing unit is currently subject to or the replacement engine will be subject to, the results of the test shall be converted to the appropri ate units as described in the above-mentioned Portable Analyzer Monitoring Protocol document. If the portable analyzer results indicate compliance with both the NOX and CO emission limitations, in the absence of credible evidence to the contrary , the source may certify that the eng ine i s in compliance with both the NOX and CO emission lim itations for the relevant time period . Subject to the provis ions of C .R.S . 25-7-123 .1 and in the absence of credible evidence to the contrary , if the portable analyzer results fail to demonstrate compliance with either the NOX or CO emission limitations, the engine will be considered to be out of compliance from the date of the portable analyzer test until a portable analyzer test indicates compliance w ith both the NOX and CO emission limitations or until the engine is taken offline. A.3 Applicable Regulati ons for Permanent Engine Replacements A.3 .1 Reasonably Available Control Technology (RACT): Reg 3 , Part B § 11.0 .2 All permanent replacement engines that are located in an area that is classified as attainmenUmaintenance or nonattainment must apply Reasonably Available Control Technology (RACT) for the pollutants for which the area is attainmenUmaintenance or nonattainment. Note that both VOC and NOX are precursors for ozone. RACT shall be applied for any level of emissions of the pollutant for which the area is in attainmenUmaintenance or nonattainment, except as follows: In the Denver Metropolitan PM1 0 attainmenUmaintenance area, RACT appli es to PM1 0 at any level of emissions and to NOX and S02, as precursors to PM1 0, if the potential to emit of NOX or S02 exceeds 40 tons/yr. For purposes of this AOS, the following shall be considered RACT for natural-gas fired reciprocating in ternal combustion engines: VOC: CO: NOX: S02: PM10: The emission limitations in NSPS JJJJ The emission lim itati ons in NSPS JJJJ The emission limitations in NSPS JJJJ Use of natural gas as fue l Use of natural gas as fuel As defined in 40 CFR Part 60 Subparts GG (§ 60.331 ) and 40 CFR Part 72 (§ 72 .2), natural gas contains 20.0 grains or less of total sulfur per 100 standard cubic feet. A.3.2 Control Requ irements and Emission Standards: Regulation No.7, Sections XVI. and XVII.E (State-Only cond itions). Control Requirements: Section XVI Any permanent replacement engine located within the boundaries of an ozone nonattainment area is subject to the applicable control requirements specified in Regulation No.7 , section XVI , as specified below: Rich burn engines with a manufacturer's design rate greater than 500 hp shall use a non- selective catalyst and air fuel controller to reduce emission . AIRS ID: 045/1046/013 Page 15 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1199 Issuance 1 Colorado Department of Public Health and Environment A ir Polluti on Control Division Lean burn engines with a manufacturer's design rate greater than 500 hp shall use an oxidation catalyst to reduce e missions. The above emission control equipment shall be appropriately sized for the engine and shall be operated and maintained according to manufacturer specifications . The source shall submit copies of the relevant Applicability Reports required under Condition A.1 .2 . Emission Standards: Section XVII. E-State-only requirements Any permanent engine that is either constructed or relocated to the state of Colorado from another state, after the date listed in the table below shall operate and maintain each engine according to the manufacturer's written i nstructions or procedures to the extent practicable and consistent w ith technological limitations and good engineering and maintenance practices over the entire life of the eng ine so that it achieves the emission standards required in the table below: I Max Engine Cons truction or Emission Standards in G/hp-hr HP Relocation Date NOx co voc IOO<Hp<500 January L 2008 2.0 4.0 1.0 January 1, 2011 1.0 2 .0 0.7 500:SHp July I, 2007 2.0 4.0 1.0 July 1, 2010 l.O 2.0 0.7 The source shall submit copies of the relevant Applicability Reports required under Condition A.1 .2 A.3.3 NSPS for spark igmtion internal combustion engines: 40 CFR 60, Subpart JJJJ A permanent replacement engine that i s manufactured on or after 7/1/09 for emergency engines greater than 25 hp, 7/1/2008 for engines less than 500 hp , 7/1/2007 for engines greater than or equal to 500 hp except for lean burn engines greater than or equal to 500 hp and less than 1,350 hp, and 1/1/2008 for lean burn engines greater than or equal to 500 hp and less than 1,350 hp are subject 40 CFR 60, Subpart JJJJ. An analysis of applicable monitoring, record keeping , and reporting requirements for the permanent engine replacement shall be included in the Applicability Reports required under Condition A.1.2. Any testing required by the NSPS is in addition to that required by this AOS. Note that the initial test required by NSPS Subpart JJJJ can serve as the testing requ ired by this AOS under Condition A.2 , if approved in advance by the Division , provided that such test is conducted within the time frame specified in Condition A.2 . Note that under the provisions of Regulation No.6 . Part B, section I. B. that Relocation of a source from outside of the State of Colo rado into t he State of Colorado is considered to be a new source, subj ect to the requirements of Regulation No. 6 (i.e., the date that the source is first relocated to Colorado becomes equivalent to the manufacture date for purposes of determining the applicability of NSPS JJJJ requirements). However, as of November 1, 2008 the Division has not yet adopted NSPS JJJJ. Until such time as it does, any engine subject to NSPS will be subject only under Federal law. Once the Division adopts NSPS JJJJ, there will be an additional step added to the determination of the NSPS. Under the provisions of Regulation No. 6, Part B.§ 1.8 (wh ich is referenced in Part A), any engine relocated from outside of the State of Colorado into the State of Colorado is considered to be a new source, subject to the requirements of NSPS JJJJ. AIRS ID: 045/1046/013 Page 16 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1199 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division A3.4 Reciprocating internal combustion engine (RICE) MACT: 40 CFR Part 63, Subpart ZZZZ A.3.4.1 Area Source for HAPs A permanent replacement eng ine located at an area source that commenced construction or reconstruction after June 12, 2006 as defined in § 63.2 , will meet the requirements of 40 CFR Part 63, Subpart Zll.Z by meeting the requirements of 40 CFR Part 60, Subpart JJJJ. An analysis of the applicable monitoring, recordkeeping , and reporting requirements for the permanent engine replacement shall be included in the Applicability Reports required under Condition A.1 .2. Any testing required by the MACT is in add it ion to that required by this AOS. Note that the in itial test required by the MACT can serve as the testing required by this AOS under Condition A .2 , if approved in advance by the Division, provided that such test is conducted with in the time frame specified in Condition A.2. A.4.3.2 Major source for HAPs A permanent replacement eng ine that is located at major source is subject to the requirements in 40 CFR Part 63 Subpart ZZZZ as follows: Exi sting , new or reconstructed spark ignition 4 stroke rich burn engines with a site rating of more than 500 hp are subject to t h e requirements in 40 CFR Part 63 Subpart ZZZZ. New or reconstructed (construction or reconstruction commenced after 12/19/02) 2 stroke and 4 stroke lean burn engines with a site rating of more than 500 hp are subject to the requirements in 40 CFR Part 63 Subpart ZZZZ. New or reconstructed (construction or reconstruction commenced after 6/12/06) 4 stroke lean burn engines with a site rating of greater than or equal to 250 but less or equal to 500 hp and were manufactured on or after 1/1/08 are subject to the requirements in 40 CFR Part 63 Subpart ZZZZ. New or reconstructed (construction or reconstruction commenced after 6/12/06) 2 stroke lean burn or 4 stroke rich burn engines with a site rating of 500 hp or less will meet the requirements of 40 CFR 63, Subpart Zll.Z by meeting the requirements of 40 CFR 60, Subpart JJJJ . New or reconstructed (construction or reconstruction commenced after 6/12/06) 4 stroke lean burn engines with a site rating of less than 250 hp w ill meet the requirements of 40 CFR 63, Subpart ZZZZ by meeting the requirements of 40 CFR 60, Subpart JJJJ . An analysis of the applicabl e monitoring , record keeping , and reporting requirements for the permanent engine rep lacement shall be included in the Applicability Reports required under Condition A.1 .2. Any testing required by the MACT i s in addition to that required by this AOS. Note that the initial test required by the MACT can serve as the testing required by this AOS under Condition A.2, if approved in advance by the Division, provided that such test is conducted within the time frame specified in Condition A.2 . A.3.5 Additional Sources The replacement of an existing eng ine with a new engine is viewed by the Division as the installation of a new emissions unit, not "routine replacement" of an existing unit. The AOS is therefore essentially an advanced construction permit review. The AOS cannot be used for additional new emission points for any s ite; an eng ine that is being installed as an entirely new emission point and not as part of an AOS- approved replacement of an existing onsite engine has to go through the appropriate Construction/Operating permitting process prior to installation . AIRS ID: 045/1046/013 Page 17 of 17 STATE OF COLORADO COLORADO DEPARTMENT OF PUBLIC HEALT H AN D ENVIRONMENT AIR POLLUTION CONTROL DIVISION TELEPHONE: (303) 692-31 50 CONSTRUCTION PERMIT PERMIT NO: DATE ISSU ED : ISS UED TO: 08GA1200 JU L 3 1 2009 EnCana Oil & Gas (USA) Inc. Issuance 1 THE SOURCE TO WHICH THIS PERMIT APPLIES IS DESCR IBED AND LOCATED AS FOLLOWS: Natura l gas compression faci l ity, known as the High Mesa Compressor Station , located in SE NW Section 36, Township 7S, Range 96W, in Garfield County, Colorado . THE S PEC IFIC EQUIPMENT OR A CTIVITY SUBJECT TO THIS PERMIT INC L UDES THE FOLLOWING: Facility AIRS Equipment Point Description ID One (1) Caterpillar, Model G3516LE, Serial Number 4EK04855, natural gas-fired, turbo-charged , 4SLB recip rocating internal HM02 014 combustion engine , site rated at 1,208 horsepower at 1,400 RPM . This engine shall be equipped with an oxidation catalyst and air- fuel ratio cont rol. T his emission unit is used for natural gas compression. This engine may be replaced with another engine in accordance with the temporary engine replacement provision or with another Caterpillar G351 6LE eng ine in accordance with the permanent replacement provision of the Alternate Operating Scenario (AOS), incl uded in this permit as Attachment A. THIS PERMIT IS GRANTED SUBJ ECT T O ALL RULES AND RE G ULATIONS OF THE COLORADO AIR QUALITY C ONTROL COMMISSION AND THE COLORADO AIR POLLUTION PREVENTION AND CONTROL A C T C .R.S. (25-7-101 et s eq), TO THOSE GENERAL TERMS AND CONDITIONS INC LUDED IN T HIS DOCUMENT AND T HE FOLL OWING SPECIFIC T ERMS AND CONDITIO NS: REQUIREM E NTS TO SE LF-CERTIFY FOR FINAL AUTHORIZATION 1. This construction permit represents final permit approval and authority to operate this emissions source (Regulation 3 , Part 8 , Section II I.G.5). AIRS 10: 045/1046/014 Page 1 of 17 NGEngine Version 2008-1 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1200 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division EMISSION LIMITATIONS AND RECORDS 2. Emissions of air pollutants shall not exceed the following limitations (as calculated in the Division's preliminary analysis). (Reference : Regulation No.3 , Part B , Section II.A.4) M thl L" "t on IY 1m1s: Facility AIRS Pounds per Month Equipment ID Point NOx voc co Emission Ty pe HM02 014 2972 486 306 Point Monthly hm1ts are based on a 31-day month . Annual Limits: Facility AIR S Tons per Year Equipment ID Point NOx voc co Emission Type HM02 014 17.5 2 .9 1.8 Po int See "Notes to Permit Holder #4 for mformat1on on em1ss1on factors and methods used to calculate limits. During the first twelve (12) months of operation , compliance with both the monthly and yearly emission limitations shall be required. After the first twelve (12) months of operation, compliance with only the yearly limitation shall be required . Compliance with the synth etic minor status of this facility shall be determined by recording the facility's annual criteria pollutant emissions , from each emission unit, on a rolling (12) month total. By the end of each month a new twelve-month total is calculated based on the previous twelve months' data. The permit holder shall calculate monthly emissions and keep a compliance record on site , or at a local field office with site responsibility, for Division review. This rolling twelve-month total shall apply to all emission units, requiring an APEN , at this facility. 3. This engine shall be equipped wit h an oxidation catalyst and air-fuel ratio control The selective oxidation catalyst shall be capable of reducing uncontrolled emissions of VOC and CO from the unit to the emission levels listed in Condition 2 , above . Operating parameters of the control equipment are identified in the operation and maintenance plan. (Reference: Regulation No.3 , Part B , Section III.E.) PROCESS LIMITATIONS AND RECORDS 4. This source shall be limited to the following maximum consumption, processing and/or operational rates as listed below. Monthly records of the actual consumption rate shall be maintained by the applicant and made available to the Division for inspection upon request. (Reference: Regulation 3 , Part B , II.A.4) P /C f L " . rocess onsump11on 1m1ts I Facility AIRS Annual Monthly Equipment Point Process Parameter Limit Limit (31 ID days) HM02 1 o14 Consumption of natural gas as a 90.9 7 .72 fuel MMscf/yr MMscf/month AIRS ID: 045/1046/014 Page 2 of 17 I EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1200 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division D uring t he first twelve (12) months of operation , compl iance with both the monthly and yearly consumption limitations shall be required. After the first twelve (12 ) months of operation, compliance with only the yearly limitation shall be required . Compliance wit h the yearly consumption limits shall be determined on a rolling twelve (12) month total. By the end of each month a new twelve-month tot al is calculat ed based on the previous twelve months' data. The permit holder shall calculat e monthly consumption of n atura l gas and keep a compliance record on site or at a local field office with site responsibi lity, for Division review. STATE AND FEDERAL REGULATORY REQUIREMENTS 5. Visible emissions shall not exceed twenty percent (20%) opacity during normal operation of the source. During periods of startup, process modification , or adjust ment of control equipment visible emissions shall not exceed 30% opacity for more than six minutes in any sixty consecutive minutes. (Reference: Regu lation No . 1 , Section II.A.1 . & 4 .) 6. This source is subject to the odor requirements of Regulation No. 2. (State only enforceable) 7. The permit number and AI RS ID number sh all be marked on the subject equipment for ease of id entif icat ion. (Reference: Regulation N umber 3 , Part B, Ill. E.) (State only enforceable) 8. T his source is subject to the require ments of: • Regulation No. 8, PartE , Subpart 11/.FFFF: National Emissions Standards for Hazardous Air Pollutants for Stationary Reciprocating Internal Combustion Engines (RICE) of 40 C.F.R. Part 63, Subpart ZZZZ, and • Regulation No. 8, Part E, Subpart /.A , National Emission Standards for Hazardous Air Pollutants for Source Categories: General Provisions, 40 CFR Part 63 including , but not limited to , the following: • Emission and Operating Limitations o 63.6600(b)-If you own or operate a new or reconst ru cte d 4SLB stationary RICE with a site rating of more than 500 brake H P located at maj or source of HAP emissions you must comply with the following emission limitations (T able 2a, Subpart ZZZZ to Part 63): • redu ce CO emissions by 93 percent or more; or • limit concent ration of formaldehyde in the stationary RICE exhaust to 14 ppmvd or less at 15 percent 02. A IRS ID: 045/1 046/014 Page 3 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA1200 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division o 63.6600(b)-If you own or operate a new or reconstructed 4SLB stationary RICE with a site rating of more than 500 brake HP located at major source of HAP em issions you must comply with the following operating limitations (Table 2b, Subpart ZZZZ to Part 63): • maintain your catalyst so that the pressure drop across the catalyst does not change by more than 2 inches of water at 100 percent load plus or minus 10 percent from the pressure drop across the catalyst that was measured during the initial performance test; and • maintain the temperature of your stationary RICE exhaust so that the catalyst inlet temperature is greater than or equal to 450 oF and less than or equal to 1350 °F. • General Compliance Requirements o §63.6605(a)-You must be in compliance with the em ission limitations and operating limitations in this subpart that apply to you at all times , except during periods of startup, shutdown, and malfunction. o §63.6605(b) -If you must comply with emission limitations and operating limitations, you must operate and mainta in your stationary RICE , including air pollution control and monitoring equipment, in a manner consistent with good air pollution control practices for minimizing emissions at all times , including during startup, shutdown , and malfunction. • Testing and Initial Compliance Requirements o §63.6610(a)-You must conduct the initial performance test or other initial compliance demonstrations in Table 4 to Subpart ZZZZ of Part 63 that apply to you within 180 days after the compliance date that is specified for your stationary RICE in §63.6595 and according to the provisions in §63.7(a)(2). o §63.6615 -If you must comply with the emission limitations and operating limitations, you must conduct subsequent performance tests semiannually (as per Table 3 of Subpart ZZZZ to Part 63). After you have demonstrated compliance for two consecutive tests , you may reduce the frequency of subsequent performance tests to annually. If the results of any subsequent annual performance test indicate the stationary RICE is not i n compliance w ith the CO or formaldehyde emission limitation , or you deviate from any of your operating limitations , you must resume semiannual performance tests . o §63.6620 -You must conduct performance test and other procedures in §63.6620 and in Tables 3 and 4 to Subpart ZZZZ of Part 63 that apply to you . o §63.6625(b) -If you are required to install a continuous parameter monitoring system (CPMS) as specified in Table 5 of this subpart, you must install, operate, and maintain each CPMS according to the requirements in §63.8 . AIRS ID: 045/1046/014 Page 4 of 17 EnCana Oil & Gas (USA) Inc. Permit No . 08GA 1200 Issuance 1 Colorado Departm ent of P ublic Health and Envir onm ent Air P o ll ution Control D ivision o §63.6630(a)-You must demonstrate in itial compliance with each emission and operating limitation that applies to you according t o T able 5 of Subpart ZZZZ to Part 63. o §63.6630(b) -Duri ng the in it ial performance test, you must establish each operating limitation i n T ables 1 band 2b of Subpart Z ZZZ to Part 63 that applies to you. o §63.6630(c)-You must subm it the Notification of Compliance Status containing the results of the initial complia nce demonstration according to the requirements in §63.6645. • Continuous Compliance Requirements o §63.6635(b) -Except for monitor malfunctions, associated repairs , a nd r equired quality assurance o r control activities (including, as applicable , calibration checks and required zero and span adj ustments}, you must monitor continuously at all times that the stationary RICE is operating. o §63.6635(c)-You may not u se data recorded d uring monitoring malfunctio n s , associated repa irs, an d required quality assurance or control act ivities in d ata averages and calculations used t o report emission or operating levels. You must, however, use all the valid data collected during all other periods. o §63.6640(a)-You must d emonstrate continuous compliance with each emission limitation and operati ng limitation in Tables 1a and 1b and T ables 2a and 2b of subpart ZZZZ of Part 63 that apply to you according to methods specified in Table 6 of Subpart ZZZZ of Part 63. o §63.6640(b)-You must report each instance in which you did not meet each emission limitation or operating limitation in Tables 1 a a nd 1 b and Tables 2a and 2b of Subpart ZZZZ of Part 63 that apply to you . These instances are deviations from the emission a nd operati ng limitations in this subpart. The se deviations must be reported according to the requirements in §63.6650. If you change your catalyst, you must reesta blish the values of the oper ating parameters measured during the in itial perfo r mance test. When you reestablish the values of your operating parameters, you must also conduct a performance test to demonstrate that you are meeting t he requir ed emission limitation appl icable to your stationary RICE . o §63.6640(d)-Consistent with §§63.6(e) and 63.7(e)(1), deviations from the emission o r ope rating limitations that occur during a period of st artup, shutdown , or malfunction are not violations if you demonstrate to the Administrator's satisfaction that you were operat ing in accordance with §63.6(e)(1). F or new, reconstructed , and rebuilt stationary RI CE , deviations from the emission or operating li mitation s that occur during the first 200 hours of operation from engine startup (engine bum-in period) are not violat ions. A IRS I D : 045/1046/014 Page 5 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1200 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division o §63.6640(e)-You must also report each instance in which you did not meet the requirements in Table 8 of Subpart ZZZZ to Part 63 that apply to you. • Notifications, Reports and Records o §63.6645(a) -If you own or operate a stationary RICE with a site rating of more than 500 brake HP located at a major source of HAP emissions you must submit all of the notifications in §§63. 7(b) and (c), 63.8(e), (f)(4) and (f)(6), 63.9(b) through (e), and (g) and (h) that apply to you by the dates specified. o §63.6645(c) -If you start up your new or reconstructed stationary RICE with a site rating of more than 500 brake HP located at a major source of HAP emissions on or after August 16, 2004, you must submit an Initial Notification not later than 120 days after you become subject to this subpart. o §63.6645(g) -If you are required to conduct a performance test, you must submit a Notification of Intent to conduct a performance test at least 60 days before the performance test is scheduled to begin as required in §63.7(b)(1). o §63.6645(h)-If you are required to conduct a performance test or other initial compliance demonstration as specified in Tables 4 and 5 of Subpart ZZZZ to Part 63, you must submit a Notification of Compliance Status according to §63. 9(h)(2)(ii). • §63.6645(h)(2) -For each initial compliance demonstration required in Table 5 of Subpart ZZZZ to Part 63 that includes a performance test conducted according to the requirements in Table 3 to this subpart, you must submit the Notification of Compliance Status, including the performance test results , before the close of business on the 60th day following the completion of the performance test according to §63 .1 O(d)(2). o §63.6650(a)-You must submit each report in Table 7 of Subpart ZZZZ to Part 63 that applies to you. o §63.6650(b)-You must submit each report by the date in Table 7 of Subpart ZZZZ to Part 63 and according to the requirements in paragraphs (b)(1) through (5) of §63.6650. o §63.6650(c)-The Compliance report must contain the information in paragraphs (c)(1) through (6) of §63.6650. o §63.6650(e)-For each deviation from an emission or operating limitation occurring for a stationary RICE where you are using a CMS to comply with the emission and operating limitations in Subpart ZZZZ to Part 63, you must include information in paragraphs (c)(1) through (4) and (e)(1 ) through (12) of §63.6650. AIRS ID: 045/1046/014 Page 6 of 17 EnCana Oil & Gas (U SA) Inc. Permit No . 08GA 1200 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division o §63.6655(a) -If you must comply with the emission and operating lim itations , you must keep the records described in §63.6655(a)(1) through (a)(3), §63.6655 (b )(1) through (b)(3) and §63.6655 (c). o §63.6655(d)-You must keep the records requi red in Table 6 of Subpa rt ZZZZ of Part 63 to show continuous compliance with each em ission or operating l imitation that applies to you . o §63.6660(a)-Your records must be in a form suitable and readily available for expeditious review accor ding to §63.1 O(b )(1 ). o §63.6660(b) -As specified in §63.1 O(b)(1 ), you must keep each record for 5 years following the date of each occurrence, measurement, maint enance, corrective action , report, or record . o §63.6660(c)-You must keep each record readily accessible in hard copy or electronic form on -sit e for at least 2 years after the date of each occu rrence , measureme nt, maintenance, corrective act ion , report, or record , according to §63.1 O(b)(1). You can keep the records off-s ite for the remaining 3 years . • Other Requirements and Information o §63.6665-Table 8 to this subpart shows which part s of the General Provisions in §§63.1 through 63.15 apply to you. OPERATING & MAINTENANCE REQUIREMENTS 9. Upon startup of this point, the appl icant shall f ollow the operating and maintenance (O&M) plan a nd record keeping format approved by the Division , i n order to demonstrate compliance on an ongoing basis with the requirements of t his perm it. Rev isions to your O&M plan are subject to Division approval prior to implementat ion. (Refe rence: Regulation No. 3 , Part B , Section III.G.7.) COMPLIANCE T ESTING AND SAMPLING Periodic Testing Requirements 10. Th is engine is subject to the periodic testing requ irements of 40 C .F.R Part 63, Subpart ZZZZ. 1 1. T his engine is subject to the periodic testing requi rements as specified in the operating and maintenance (O&M) plan as approved by the Division. Revisions to your O&M plan are subject to Division approv al. Replaceme nts of this unit com pleted as Alt ernative Operati ng Scenarios may be subject to additional testing requirements as specif ied in Attachment A. A IRS ID: 045/1046/014 Page 7 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA1200 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division ADDITIONAL REQUIREMENTS 12. A revised Air Pollutant Emission Notice (APEN) shall be filed: (Reference: Regulation No. 3 , Part A, II. C) a. Annually whenever a significant increase in emissions occurs as follows : For any c riteria pollutant: For sources emitting less than 100 tons per year. a change in actual emissions of five (5) tons per year or more, above the level reported on the last APEN ; or For any non-criteria reporta ble pollutant: If the emissions increase by 50% or five (5) tons per year, whichever is less, above the level reported on the last APEN submitted to the Division. b. Whenever there is a change in the owner or operator of any facility, process, or activity; or c . Whenever new control equipment is installed, or whenever a different type of control equipment replaces an existing type of control equipment; or d . Whenever a permit limitation must be modified; or e. No later than 30 days before the existing APEN expires . f . Within 14 calendar days of commencing operation of a permanent replacement engine under the alternative operating scenario outlined in this permit as Attachment A. The APEN shall include the specific manufacturer, model and serial number and horsepower of the permanent replacement engine, the appropriate APEN filing fee and a cover letter explaining that the permittee is exercising an alternative-operating scenario and is installing a permanent replacement engine. 13. This source is subject to the provisions of Regulation Number 3 , Part C , Operating Permits (Title V of the 1990 Federal Clean Air Act Amendments). The provisions of this construction permit must be incorporated into the operating permit. The application for the modification to the Operating Permit is due within one year of commencement of operation of the equipment or modification covered by this permit. 14. Prevention of Significant Deterioration (PSD) requirements shall apply to this source at any such time that this source becomes major solely by virtue of a relaxation in any permit condition. Any relaxation that increases the potential to emit above the applicable PSD threshold will requi re a full PSD review of the source as though construction had not yet commenced on the source. The source shall not exceed the PSD threshold until a PSD permit is granted. (Regulation No.3 Part D, VI.B .4) GENERAL TERMS AND CONDITIONS: 15. This permit and any attachments must be retained and made available for inspection upon request. The permit may be reissued to a new owner by the APCD as provided in AIRS ID: 045/1046/014 Page 8 of 17 EnCa na Oil & Gas (USA) Inc. Permit No . 08GA1200 Issu ance 1 Colorado Department o f P ublic Health and Environment Air Pollution Control Division AQCC Regulation No. 3, Part 8 , Section 11 .8 upon a request for transfer of owner ship a nd the submittal of a revised A PE N and the required fee. 16. Issu a nce of a construct ion permit does not p rovide "fin al " authority f or this activity or operation of this source. Final authorization of the permit must be secured from the APCD in writing in accordance with t h e p rovisions of 25-7 -1 14.5(12)(a) C.R.S. and AQCC Regulation No. 3 , Part 8 , Section Il l. G. F inal authoriz ation cannot be granted until the operation or activity commences and has been verifie d by the A P C D as conforming in all respects with the conditions of the permit. Once self-certification of all points has been reviewed and approved by the Division , it will provide written documentation of such final authorization. Details for obtaining final authorization to operate are located in the Requirements t o Self-Certify for Final Authori zation section of this permi t . 17. T his p erm it is issue d in reliance upon the accuracy and com pleteness of information supplied by the applicant a nd is conditioned upon conduct o f the activity, or construction, install ation and operation of the source, in accordance with this information and with representations made by the applicant or applicant's agent s. It is valid only for the equipment and ope rations or activity specifically ide ntified on the permit. 18 . Unless specifically stat ed o therwise, the general a nd specific conditions contained in this permit have been determine d by the APCD to be necessa ry to assure compliance wit h the provisions of Section 25-7-114.5(7)(a ), C.R.S. 19. Each and eve ry condition of this permit is a material part hereof and is not severa ble. Any challenge to or appe al of a condition hereof shall constitute a rejection of the ent ire permit and upon such occurrence, t h is permit shall be deemed denied ab initio. T his permit may be revoked at any time prior t o self-certification and final authoriz ation by the Air Pollution Control Division (APCD) on g rounds set forth in the Colorad o A ir Quality Control Act and regulations of the Air Quality Control Commission (AQCC), including failure to meet any express term or condition of the permit. If the D ivision denies a permit, conditions imposed upon a permit are contested by the applicant, or the Division revokes a permit , the a pplicant or own er or o p erator of a source may req uest a hearing before the AQCC for review of t he Di vision 's action. 20. Section 25-7-114.7(2)(a), C .R.S . requires that all sources requ ired to file an Air Pollution Emission Notice (APEN ) must pay an annual fee to cover the cost s of inspections and admi nistration. If a source or activity is to be discontinued, the owner must notify t h e Division in writing requesting a cancellation of the permit. Upon notification, annual f ee billing will terminate. 21 . Viol ation of the terms of a permit or of the provisions of the Colorado Air Pollution Prevention and Control Act or the regulations of t he AQCC may result in administrative, civil or criminal enf orcement actions under Section s 25-7-115 (enforcement), -121 (injunctions), -122 (civil penalties), -122.1 (crim inal penalties), C .R.S. 22 . This permit replaces the foll owing permit , which is canceled upon issuance of this permit: A IRS ID: 045/104 6/014 Page 9 of 17 EnCana Oil & Gas (USA) Inc. Permit No. OBGA 1200 Issuance 1 Colorado Department of Public Health a nd Environment Air Poll ution Control Division Permit No. AIRS ID Notes 05P00964 777/2661 /001 Engine-HM02: This equipment will now be covered under this stationary source permit. By: ~ , • • • h -=-(l'] (iV"\ I L.l Carissa Money (f Permit Engineer p "t H. t erm1 IS Ory Issuance Date Description Issuance 1 This Issuance Canceled portable permit 05P00964 and issued as new stationary permit lA, Modification July 17, 2007 Change in fuel use, emissions, addition of control No. 1 for equipment 05P00964 Initial Approval April14, 2006 Issued to EnCana Oil & Gas for 05P00964 AIRS ID: 045/1046/014 Page 10 of 17 EnCana Oil & G a s (USA) Inc. Permit N o. Q8GA1200 Issuance 1 Notes to Permit Holder: Colorado Department of Public H e a lth and E nvir o n ment Air Pollution Contro l Division 1) The production or raw material processing limits and emission limits contained in this permit are based on the consumption rates requested in the permit application . These limits may be revised upon request of the permittee providing there is no exceedance of any specific emission control regulation or any ambient air quality standard . A revised air pollution emission notice (APEN) and application form must be submitted with a request for a permit revision . 2) This source is subject to the Common Provisions Regulation Part II , Subpart E, Affirmative Defense Provision for Excess Emissions During Malfunctions. The permittee shall notify the Division of any malfunction condition which causes a violation of any emission limit or limits stated in this permit as soon as possible , but no later than noon of the next working day, followed by written notice to the Division addressing all of the criteria set forth in Part II.E.1 . of the Common Provisions Regulation . See: http ://www. cdphe . state. co. us/reg u lations/airregs/ 1 001 02aqcccommon provisi onsreg. pdf. 3) The following emissions of non-criteria reportable air pollutants are estimated based upon t he process limits as indicated in this permit. This information is listed to inform the operator of the Division's analysi s of the specific compounds emitted if the source(s) operate at the permitted limitations. U ncontro lled Emis s i on Are the Cont ro lled A I RS Ra te emis s ion s Emis sio n Point Pollutant CAS# BIN (lb/yr) reportable? Rat e (lb/yr} Formalde hyde 5000 A 5599 Yes 2800 Acetaldehy de 75070 A 760 Yes 380 A c rol e in 107028 A 467 Yes 234 014 Methanol 67561 c 227 No 114 n-Hexane 110543 c 101 No 50 Benzene 71432 A 40 No 20 Toluene 108883 c 37 No 19 4 ) The emission levels contained in this permit are based on the following emission factors: Point 014 : Emission Factors -Uncontrolled Emission Factors -Controlled CA S Pollutant lb/MMBtu g /bhp-hr Source lb/MMBt u g /bhp-hr Sourc e NOx 0.3850 1.5000 Mfg 0 .3850 1.5000 Mfg co 0 .5673 2 .2100 Mfg 0 .0397 0 .1547 Mfg voc 0.1258 0.4900 Mfg 0 .0629 0.2450 Mfg 5000 Formaldehyde 0 .0616 0 .2400 Mfg 0.0308 0 .1200 Mfg AP-42 ; Table 75070 Acetaldehyde 0 .0084 0 .0326 3.2-2 (7/2000); 0.0042 0.0163 Mfg Natural Gas AP-42 ; Table 107028 Acrolein 0 .0051 0.0200 3.2-2 (7/2000); 0.0026 0.0100 Mfg Natural Gas 67561 Methanol 0.0025 0.0097 AP-42; Table 0 .0013 0.0049 Mfg 3.2-2 (7/2000); A I RS ID: 0 4 5/1046/01 4 P age 11 of 17 EnCana O il & Gas (USA) Inc. Colora do D epartment of Public H ealth and Environment Permit N o. 08GA 1200 Air Pollution Contro l D ivision Issuance 1 Emissi on Fa c tors -Uncontrolled Emission Factors -Co ntrolled CAS Po llutant lb/MMBtu _g /bhp-hr Source lb/MMBtu g/bhp_-hr I Source Natural Gas AP-42 ; Table 110543 n-Hexane 0 .0011 0.0043 3.2-2 (7/2000); 0 .0006 0.0022 Mfg Natura l Gas AP-42 ; T able 71432 Benzene 0.0004 0.0017 3.2-2 (7/2000); 0.0002 0.0009 Mfg Natura l Gas AP-42 ; Table 108883 Toluene 0.0004 0.0016 3.2-2 (7/2000); 0 .0002 0 .0008 Mfg '-· Natural Gas Emission factors are based on a Brake-Specific Fuel Consumption Factor of 8,589 Btu/hp-hr, a site-rated horsepower value of 1,208, and a fuel heat value of 1,000 Btu/scf. 5) In accordance with C.R.S. 25-7-114 .1 the Air Pollutant Emission Notice (APE N) associated with this permit is valid for a term of five years. The five-year term for th is APEN expires on November 9, 20 13. A revised APEN shall be submitted no later than 30 days before the five-year term expires. 6) This facility is classified as follows : Applicable Status Requirement Operating Permit Major Source: NOx, HAPs S_ynthetic Minor Source: CO, VOC PSD Synthetic Minor Source : VOC MAC T HH Synthe t ic Minor Source: T oluene , Total HA P MACT ZZZZ Major Source 7) Full text of the Title 40, Protection of Environment Electronic Code of Federal Regula tions can be found at the website listed below: http://ecfr.gpoaccess.gov/ Part 60: Sta ndards of Performance for New Stationary Sources NSPS 60 .1-End Subpart A-Subpart K KKK NSPS Part 60, Appendixes Appendix A-Appendix I Part 63: National Emission Standards for Hazardous Air Pollutants for Source Categories MACT 63.1-63.599 Subpart A -Subpart Z MACT 63.600-63.1199 Subpart AA -Subpart DOD MACT 63.1200-63.1439 Subpart EEE-Subpart PPP MACT 63.1440-63.6175 S ubpa rt Q QQ -Subpa rt YYYY MACT 63.6580-63 .8830 Subpart ZZZZ -Subpart MMMMM MACT 63.8980-End Subpart NN NNN-Subpart XXXXXX AI R S ID: 045/104 6/014 Page 12 of 17 EnCana Oil & G as (USA) Inc. Permit N o. 08GA1 200 Issuance 1 Colorado Department of Public Health and E n v ironment Air Pollution Control D ivision ATTACHMENT A: ALTERNATIVE OPERATING SCENARIOS RECIPROCATING INTERNAL COMBUSTION ENGINES December 10 , 2008 The following A lternative Operating Scenario (AOS) for the temporary and permanent replacement of natural gas fired reciprocating i nternal combustion engi nes has been reviewed in accordance with the requirements of Regulation No. 3 ., Part A , Section IV.A, Operational Flexibility-Alternative Operat ing Scenarios, Regulation No. 3, Part B, Construction Permits, and Regulation No . 3, Part D, Major Stationary Source New Source Review and Prevention of Significant Deterioration , and it has been found to meet all applicable substantive and procedural requirements. This permit incorporates and shall be considered a Const ruction Permit for any engine replacement performed in accordance with this AOS, and the permittee shall be all owed to perform such engine replacement w ithout applying for a revision to this permit or obtaining a new Construction Permit. A 1 Eng ine Replacem ent The following AOS is incorporated into this permit in order to deal with a compressor engine breakdown or periodic routine maintenance and repair of an existing onsite engine that requires the use of either a temporary or permanent replacement engine . 'T emporary" is defined as in the same service for 90 operating days or less in any 12 month period. "Permanentn is defined as in the same service for more t han 90 operating days in any 12 month period . T he 90 days is the total number of days that the engine is in operati on . If the engine operates only part of a day, that day shall count as a single day towards the 90-day total. T he compliance demonstrations and any periodic monitoring required by th is AOS are in addition to any compliance demonstrations or periodic mon itoring required by this permit. All replacement eng ines are subject to all federally applicable and state-on ly requirements set forth in this pe rmit (includ ing monitoring and record keeping). The results of all tests and the associated calculations requ ired by this AOS shall be submitted to th e Division w ith in 30 calendar days of the test or within 60 days of the test if such testing is required to demonstrate compliance with NS PS or MACT requirements. Results of all tests shall be kept on s ite for five (5) years and made available to the Division upon request. The perm ittee shall maintain a log on-site and contemporaneously record the start and stop date of any engine replacement, the manufacturer, date of manufacture, model number, horsepower, and serial number of the engine(s) that are replaced during the term of this permit , and the manufacturer, model number, horsepower, and serial number of the rep lacement engine. In addition to the log , the permittee shall maintain a copy of all Applicability Reports required under section A 1.2 and make them available to the Div ision upon request. A.1.1 The permittee may temporarily replace an existing compressor engine that is subject to the emission limits set forth in this permit with an engine that is of the same manufacturer, model , and horsepower or a different manufacturer, model, or horsepower as the existing engine without mod ify ing th is permit, so long as the emission s from the temporary rep l acement engine comply with the emission limitations for the exi sting permitted eng ine as determined in section A.2. Measurement of emissions from the temporary replacement engine sha ll be made as set forth in section A2. A.1 .2 The pe r mittee may permanently rep lace the ex isting compressor engine w ith an eng ine that is of the same manufacturer, model and horsepower w ithout mod ifying thi s permit so long as the emissions from t he permanent replacement engine comply w ith 1) the permitted annual emission limitations for t he AI R S ID : 045/104 6/01 4 Page 13 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1200 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division existing engine, 2) any permitted short-term emission limitations for the existing permitted engine, and 3) the applicable emission limitations as set forth in the Applicability Report submitted to the Division w ith the Air Pollutant Emissios Notice (APEN) for the replacement engine (see http://www.cdphe.state.co.us/ap/OIIgaspermitting .html for example applicability report formats). Measurement of emissions from the permanent replacement engine and compliance w ith the applicable emission limitations shall be made as set forth in section 2.2. An Air Pollutant Emissions Notice (APEN) that includes the specific manufacturer, model and serial number and horsepower of the permanent replacement engine shall be filed with the Division for the permanent replacement engine within 14 calendar days of commencmg operation of the replacement engine. The APEN shall be accompanied by the appropriate APEN filing fee , a cover letter explaining that the permittee is exercising an alternative operating scenario and is installing a permanent replacement engine, and a copy of the relevant Applicability Reports for the replacement engine. Example Applicability Reports can be found in at http://www.cdphe .state co.us/ap/oilgaspermittinq.html. This submittal shall be accompanied by a certification from a person legally authorized to act on behalf of the source indicating that "based on the information and belief formed after reasonable inquiry, the statements and information included in the submittal are true, accurate and complete". This AOS cannot be used for permanent engine replacement of a grandfathered or permit exempt engine or an engine that is not subject to emission limits. The permittee shall agree to pay fees based on the normal permit processing rate for review of information submitted to the Division in regard to any permanent engine replacement. A.2 Portable Analyzer Testing Note: In some cases there may be conflicting and/or duplicative testing requirements due to overlapping Applicable Requirements. In those instances, please contact the Division Field Services Unit to discuss streamlining the testing requirements. Note that the testing required by this Condition may be used to satisfy the periodic testmg requirements specified by the permit for the relevant time period (i.e. if the permit requires quarterly portable analyzer testing, this test conducted under the AOS will serve as the quarterly test and an additional portable analyzer test is not required for another three months). The permittee may conduct a reference method test, in lieu of the portable analyzer test required by this Condition , if approved in advance by the Division . The permittee shall measure nitrogen oxide (NOX) and carbon monoxide (CO) emissions in the exhaust from the replacement engine using a portable flue gas analyzer within seven (7) calendar days of commencing operation of the replacement engine. All portable analyzer testing required by this permit shall be conducted using the Divis ion's Portable Analyzer Monitoring Protocol (ver March 2006 or newer) as found on the Division 's website at: http://www.cdphe.state. co. us/ap/down/portanalyzeproto.pdf Results of the portable analyzer tests shall be used to monitor the compliance status of this unit. For comparison with an annual (tons/year) or short term (lbs/unit of time) emission limit, the results of the tests shall be converted to a lb/hr basis and multiplied by the allowable operating hours in the month or year (whichever applies) in order to monitor compliance . If a source is not limited in its hours of operation the test results will be multiplied by the maximum number of hours in the month or year (8760), whichever applies. AIRS ID: 045/1046/014 Page 14 of 17 EnCana Oil & Gas (USA) Inc. Permi t No. 08GA 1200 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division For comparison w ith a short-term lim it that is either input based (lb/m m Btu), output based (g/hp-hr) or concentration based (ppmvd@ 15% 02) that the existing unit is currently subject to or the replacement engine will be subject to , the results of the test shall be converted to the appropriate units as described in t he above-mentioned Portable Analyzer Monitoring Protocol document. If the portable analyzer results ind icate compliance with both the NOX and CO emission limitations, in the absence of cred ible evidence to the contrary, the source may certify that the eng ine is in compliance with both the NOX and CO emission limitations for the relevant time period . Subject to t he provisions of C .R.S. 25-7-123.1 and in the absence of cred ible evidence to the contrary, if the portable analyzer results fail to demonstrate compliance with either the NOX or CO emi ssion limitations, the engine will be considered to be out of compliance from the date of the portable anal yzer test until a portable analyzer test indicates compliance with both t he NOX and CO emission lim itations or until th e engine is taken offline. A.3 Applicable Regulations for Permanent Engine Replacements A.3.1 Reason ably Available Control Technology (RACT): Reg 3, Part B § 11.0 .2 All permanent replacement engines that are located in an area that is classified as attainment/maintenan ce or nonattainment m ust apply Reasonably Available Control Technology (RACT) for the pollutants for which the area is attainment/maintenance or nonattainment. Note that both VOC and NOX are precursors for ozone. RACT shall be applied for any level of emissions of the pollutant for which the area is in atta inment/main tenance or nonattainment , except as follows: In the Denver Metropolitan PM 10 attainment/maintenance area , RACT applies to PM10 at any level of emissions and to NOX and S02, as precursors to PM10, if the potential to emit of NOX or S02 exceeds 40 tons/yr. For purposes of this AOS, the following shall be considered RACT for natural-gas fired reciprocating internal combustion eng ines: VOC: CO: NOX: S02: PM10 : The emission limitations in NSPS JJJJ The emission limitations in NSPS JJJJ The emission limitations in NSPS JJJJ Use of natural gas as fuel Use of natural gas as fuel As defined in 40 CFR Part 60 Subparts GG (§ 60.331 ) and 40 CFR Part 72 (§ 72.2 ), natural gas contains 20.0 grains or less of total sulfur per 100 standard cubic feet. A.3.2 Control Requ irements and Emission Standards: Regulation No.7 , Sections XVI. and XVII .E (State-Only conditions). Control Requirements: Section XVI Any permanent replacement engine located w ith in the boundaries of an ozone nonattainment area is subject to the applicable control requirements specified in Regulati on No.7 , section XVI , as specified below: Rich burn engines with a manufacturer's design rate greater than 500 h p shall use a non- selective catalyst and air fuel controller to reduce emission. AIRS ID: 045/1046/014 Page 15 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA1200 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division Lean burn engines with a manufacturer's design rate greater than 500 hp shall use an oxidation catalyst to reduce emiss1ons. The above emission control equipment shall be appropriately s1zed for the engine and shall be operated and maintained according to manufacturer specifications . The source shall submit copies of the relevant Applicability Reports required under Condition A.1 .2 . Emission Standards: Section XVII. E-State-only requirements Any permanent engine that i s either constructed or relocated to the state of Colorado from another state, after the date listed in the table below shall operate and maintain each engine according to the manufacturer's written instructions or procedures to the extent practicable and consistent with technological limitations and good engineering and maintenance practices over the entire life of the engine so that it achieves the emission standards required in the table below: Max Engine Construction or E mission Standards in Glhp-hr HP Relocation Date NOx co voc lOO <Hp<500 January 1, 2008 2.0 4.0 1.0 January 1. 2011 1.0 2.0 0.7 500~Hp July l , 2007 2.0 4.0 1.0 July 1. 2010 1.0 2.0 0 .7 The source shall submit copies of the relevant Applicability Reports required under Condition A.1 .2 A.3.3 NSPS for spark ignition internal combustion engines: 40 CFR 60, Subpart JJJJ A permanent replacement engine that is manufactured on or after 7/1/09 for emergency engines greater than 25 hp, 7/1/2008 for engines less than 500 hp, 7/1/2007 for engines greater than or equal to 500 hp except for lean burn engines greater than or equal to 500 hp and less than 1 ,350 hp, and 1/1/2008 for lean burn engines greater than or equal to 500 hp and less than 1,350 hp are subject 40 CFR 60, Subpart JJJJ . An analysis of applicable monitoring, recordkeeping , and reporting requirements for the permanent engine replacement shall be included in the Applicability Reports required under Condition A.1.2. Any testing required by the NSPS is in addition to that required by this AOS. Note that the initial test required by NSPS Subpart JJJJ can serve as the testing required by this AOS under Condition A.2, if approved in advance by the D ivision, provided that such test is conducted within the time frame specified in Condition A.2. Note that under the provisions of Regulation No. 6. Part B , section I. B. that Relocation of a source from outside of the State of Colorado into the State of Colorado is considered to be a new source, subject to the requirements of Regulation No.6 (i.e., the date that the source is first relocated to Colorado becomes equivalent to the manufacture date for purposes of determining the applicability of NSPS JJJJ requirements). However, as of November 1, 2008 the Division has not yet adopted NSPS JJJJ. Until such time as it does, any engine subject to NSPS will be subject only under Federal law. Once the Division adopts NSPS JJJJ, there will be an additional step added to the determination of the NSPS. Under the provisions of Regulation No. 6, Part B, § 1.8 (which is referenced in Part A}, any engine relocated from outside of the State of Colorado into the State of Colorado is considered to be a new source, subject to the requirements of NSPS JJJJ. AIRS ID: 045/1046/014 Page 16 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1200 Issuance 1 Color ado Department of Public Health and Environment Air Pollution Control Division A.3.4 Reciprocating in ternal combustion e ngine (RICE) MACT: 40 CFR Part 63, Subpart ZZZZ A.3.4 .1 Area Source for HAPs A permanent replacement engine located at an area source that commenced construction or reconstruction after June 12 , 2006 as defined in § 63.2 , will meet the requirements of 40 CFR Part 63, Subpart ZZZZ by meeting the requirements of 40 CFR Part 60, Subpart JJJJ. An analysis of the applicable monitoring , recordkeeping , and reporting requirements for the permanent engine replacement shall be included in the Applicability Reports required under Cond ition A.1 .2 . Any testing required by the MACT is in addition to that required by th is AOS . Note that the initial test required by the MACT can serve as the testi ng requ ired by th is AOS under Condition A.2 , if approved in advance by the Division , provided that such test is conducted with in the time frame specified in Condition A.2. A.4.3.2 Major source for HAPs A permanent replacement eng ine that is located at maj or source is subject to the requirements in 40 CFR Part 63 Subpart ZZZZ as follows: Existing, new or reconstructed spark ign ition 4 stroke rich burn engines with a site rating of more than 500 hp are subject to the requirements in 40 CFR Part 63 Subpart ZZZZ. New or reconstructed (construction or reconstruction commenced after 12/19/02) 2 stroke and 4 stroke lean burn engines w ith a site rating of more than 500 hp are subject to the requirements in 40 CFR Part 63 Subpart ZZZZ. New or reconstructed (const ruction or reconstruction commenced after 6/12/06) 4 stroke lean burn eng ines with a site rating of greater th an or equal to 250 but less or equal to 500 hp and were manufactured on or after 1/1/08 are subject to t he requirements in 40 CFR Part 63 Subpart ZZZZ. New or reconstructed (construction or reconstruction commenced after 6/12/06) 2 stroke lean burn or 4 stroke rich burn engines w ith a site rating of 500 hp or less will meet the requirements of 40 CFR 63, Subpart ZZZZ by meeting the requirements of 40 CFR 60, Subpart JJJJ. New or reconstructed (construction or reconstruction commenced after 6 /12/06) 4 stroke lean burn engines with a site rating of less than 250 hp w ill meet the requirements of 40 CFR 63, Subpart ZZZZ by meeting the requirements of 40 CFR 60, Subpart JJJJ. An analysis of the applicable monitoring, recordkeeping , and reporting requirements for the permanent engine replacement shall be included in the Appl icability Reports requ ired under Condition A.1 .2. Any testing required by the MACT i s in addition to that required by this AOS. Note that the initial test requi red by the MACT can serve as the testing required by this AOS under Condit ion A.2 , if approved in advance by the Division , provided that such test is conducted w ithin the time frame specified in Condition A.2. A.3.5 Additiona l Sources The replacement of an existing engine with a new engine is viewed by the Division as the installation of a new emissions unit, not "routine replacemenf of an existing unit. The AOS is therefore essentially an advanced construction permit review. Th e AOS cannot be used for addition al new emission points for any site; an engine that is being installed as an entirely new emission point and not as part of an AOS- approved replacement of an existing onsite engine has to go throu gh the appropriate Construction/Operating perm itting process prior to installation . AIRS ID: 045/1046/014 Page 17 of 17 STATE OF COLORADO C OLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT A IR POLLUTION CONTROL DIVISION TELEP HONE: (303) 692-3150 CONSTRUCTION PERMIT PERMIT NO: 08GA1194 DATE ISSUED: JUL 3 1 2009 Issuance 1 ISSUED TO: EnCana Oil & Gas (USA) Inc. THE SOURCE TO WHICH THIS PERMIT APPLIES IS DESCRIBED AND LOCATED AS FOLLOWS: Nat ural gas compression facil ity, known as the High Mesa Compressor Station , located in SE NW Section 36 , Township 7S, Range 96W, in Garfield County, Colorado . THE SPEC IFIC EQUIPMENT O R A CTIVITY S UBJECT TO THIS PERMIT INCLUDES THE FOLLOWING: Facility AIRS Equipment Point Description 10 One (1 ) Caterpillar, Model G3516LE, Serial Number WPW00191 , natural gas-fired, turbo-cha rged, 4SLB reciprocating intern al HM03 008 combustion engine, site rated at 1 ,208 horsepower at 1,400 RPM . This engine shall be equipped with an oxidation catalyst and ai r- fuel ratio control. T his emission unit is used for natural gas compression. This engine may be replaced with another engine in accordance with the temporary engine replacement provision or with another C aterpillar G 35 16 LE engine in accordance with the permanent replacement provision of t he Alternate Operating Scenario (AOS), included in this permit as Attachment A THIS PERMIT IS GRANTED SUBJECT TO ALL RULES AND REGULATIONS OF T HE COLORADO AIR QUALITY CONTROL COMMISSION AND THE COLORADO AIR POLLUTION PREVENTION AND C ONTROL ACT C .R.S. (25-7-101 et s e q ), TO THOSE GENERAL TERMS AN D CONDITIONS IN CLUDED IN THIS DOC UMENT AND THE FOLL OWING SPEC IFIC TERMS AND CONDITIONS: REQUIREMENTS TO SELF-CERTIFY FOR FINAL AUTHORIZATION 1. This construct ion permit represents final permit approval and authority to operate this emissions source (Regulation 3 , Part B , Section II I.G .5). A IRS 10 : 045/1046/008 Page 1 of 17 NGEngine Version 2008-1 EnCana Oil & Gas (U SA) Inc. Permit No . 08GA1194 Issuance 1 Colorado Department of Publ ic Health and Environment A ir Pollution Control Division EMISSION LIMITATIONS AND RECORDS 2 . Emissions of air pollutant s shall not exceed the following li mitations (as calculated in the Division's preli minary ana lysis). (Reference: Regula tion No . 3, Part B , Section II.A.4) M thl L " ·t on IY 1m1s: Facility AIRS Pounds p er Month Equipment 10 Point NOx voc co Em i ssion Type H M03 008 2972 486 306 Po int M onthly hm1 t s are based on a 31-da y mont h. Annual Limits: Facility AIRS Tons per Year Equipment 10 Po int NOx voc co Em ission Type H M03 008 17.5 2 .9 1.8 Poin t See *Notes to P erm1t Holder #4 for mformat1on on e m1ss1on fa ctors a n d meth ods used to c alculate lim its . During the first twelve (12) months of operation , compliance with both the monthly and yearly emission limitations shall be required . After the first twelve (12) months of operation, compl ian ce w ith o nly the yearly limitation sha ll be required. Compliance with the synthetic minor status of th is f acility shall be determined by recording the facility's annual criteria pollutant emissions, from each emission unit , on a roll ing (12) month total. By the end of each month a new twelve-month tota l is calculated based on the previous twelve months' data . T he permit holder shall calculate monthly e m issions and kee p a c om pliance record on site , or at a local field office w ith s ite responsibi li ty, for Division re view. Th is rolling twelve-month tot al shall apply t o a ll emission units, req uiring an APEN , at this facility . 3 . T his eng ine shall be equ ipped with an oxidat ion catalyst and air-fuel ratio cont rol. T he selective oxidation ca talyst shall be c apable of reducing uncontrolled emissions of VOC and CO from the unit to the emission levels listed in Condition 2 , above. Operating parameter s of the control equipment are identified in the operation and maintenance plan. (Reference: Regulation No.3, Part B , Section III.E.) PROCESS LIMITATIONS AND RECORDS 4 . This sour ce shall be limited to the following maxi mum consumption . processing and/or operat ional rates as listed below. Monthly records of the actual consumption rate shall be maintained by the applicant and made available to the Division for inspection upon request. (Reference: Regulat ion 3, Part B , II.A.4) Process/Consumption Limits Facility AIRS Annual Monthly Equipment Point Process Parameter Limit Limit (31 10 days) HM03 008 C onsump t ion of nat ural gas as a 90.9 7 .72 fuel MMscf/yr MMscf/month AIRS ID : 045/1046/008 Page 2 of 17 I EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1194 Issuance 1 Colorado Departm ent of Public Health and Environ ment Air Pollution Control Division During the first twelv e (12) months of operation , compliance with both the monthly and yearly consumption limitations shall be required. After the fi rst twelve (12) months o f operation, compliance with only the yearly li m itation shall be required. Compliance with the yearly consumption lim its shall be determined on a rolling twelve (12) month total. By the end of each month a new twelve-month total is calculated based on the previous twelve months' data. T he permit holder shall calculate monthly consumption of natural gas and keep a compliance record on site o r at a local field office with site responsibility, for Division review. STATE AND FEDERAL REGULATORY REQUIREMENTS 5. Visible emissions shall not exceed twenty percent (20%) opacity during normal oper at ion of the source. During periods of startup, process modificat ion, or adjustment of control equi pment v isible emissions shall not exceed 30% opacity for more than six m inutes in any sixty consecutive minutes. (Reference: Regulation No. 1 , Section I I.A .1. & 4.) 6 . T h is source is subject to the odor requirements of Regulation No . 2. (State only enforceab le) 7. The permit number and AIRS ID num ber s h all be marked on the subj ect equipment for ease of identif icatio n . (Reference: Regulation Number 3 , P art B, Ill. E.) (State only enforceable) 8. T h is source is subject to the requi rement s of: • Regulation No. 8, PartE , Subpart 1//.FFFF: Nati onal Emissions Standards for Hazardous Air Pollutants for Stationary Reciprocating Internal Combustion Engines (RICE) of 40 C.F.R. Part 63, Subpart ZZZZ, and • Regul ati on No. 8, Part E, Subpart /.A , National Emi ssion Standards for Hazardous A ir Pollutants for Source Categories: General Provi sions, 40 CFR Part 63 including, but not limited to, the following: • Emission and Operating Limitations o 63.6600(b)-If you own or operate a new or reconstructed 4SLB stationary R ICE with a s ite rating of more than 500 b rake HP located at major source of H AP emissions you must comply with the following emission limitations (Table 2a, Subpart ZZZZ to Part 63): • reduce CO emissions by 93 percent o r more; o r • limit concentration of formaldehyde in the stationary RICE exhaust to 14 ppmvd or less at 15 percent 02. A IRS ID: 045/1046/008 Page 3 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA1194 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division o 63.6600(b) -If you own or operate a new or reconstructed 4SLB stationary RICE with a site rating of more than 500 brake HP located at major source of HAP emissions you must comply with the following operating limitations (Table 2b, Subpart UZZ to Part 63): • maintain your catalyst so that the pressure drop across the catalyst does not change by more than 2 inches of water at 1 00 percent load plus or minus 10 percent from the pressure drop across the catalyst that was measured during the initial performance test; and • maintain the temperature of your stationary RICE exhaust so that the catalyst inlet temperature is greater than or equal to 450 oF and less than or equal to 1350 °F. • General Compliance Requirements o §63.6605(a)-You must be in compliance with the emission limitations and operating limitations in this subpart that apply to you at all times, except during periods of startup, shutdown, and malfunction. o §63.6605(b) -If you must comply with emission limitations and operating limitations, you must operate and maintain your stationary RICE, including air pollution control and monitoring equipment, in a manner consistent with good a ir pollution control practices for minimizing emissions at all times, including during startup, shutdown, and malfunction. • Testi ng and Initial Compliance Requirements o §63.6610(a)-You must conduct the initial performance test or other initial compliance demonstrations in Table 4 to Subpart UZZ of Part 63 that apply to you within 180 days after the compliance date that is specified for your stationary RICE in §63.6595 and according to the provisions in §63. 7(a)(2). o §63.6615 -If you must comply with the emission limitations and operating limitations, you must conduct subsequent performance tests semiannually (as per Table 3 of Subpart UU to Part 63). After you have demonstrated compliance for two consecutive tests, you may reduce the frequency of subsequent performance tests to annually. If the results of any subsequent annual performance test indicate the stationary RICE is not in compliance with the CO or formaldehyde emission limitation, or you deviate from any of your operating limitations, you must resume semiannual performance tests. o §63.6620 -You must conduct performance test and other procedures in §63.6620 and in T ables 3 and 4 to Subpart ZUZ of Part 63 that apply to you . o §63.6625(b)-If you are required to install a continuous parameter monitoring system (CPMS) as specified in Table 5 of this subpart, you must install, operate, and maintain each CPMS according to the requirements in §63.8 . AIRS ID: 045/1046/008 Page 4 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1194 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division o §63.6630(a)-You must demonstrate initial compliance with each emission and operating limitation that applies to you according to Table 5 of Subpart ZZZZ to Part 63. o §63.6630(b) -During the initial performance test, you must establish each operating limitation in Tables 1 b and 2b of Subpart ZZ2Z to Part 63 that applies to you. o §63.6630(c)-You must submit the Notification of Compliance Status containing the results of the initial compliance demonstration according to the requir ements in §63.6645. • Continuous Compliance Requirements o §63.6635(b)-Except for monitor malfunctions , associated repairs , and r equired quality assurance or control activities (including, as applicable, calibration checks and required zero and span adjustments), you must monitor conti nuously at all t imes that the stationary RICE is operating. o §63.6635(c)-You may not use data recorded during monitoring malfunctions, associated repairs, and required quality assurance or control activities in data averages and calculations used to report emission or operating levels . You must, however, use all the valid data collected during all other periods. o §63.6640(a)-You must demonstrate continuous compliance with each emission limitation and operating limitation in Tables 1 a and 1 b and Tables 2a and 2b of subpart Z2ZZ of Part 63 that apply to you according to methods specified in Table 6 of Subpart ZZZZ of Part 63. o §63.6640(b)-You must report each instance in which you did not meet each emission limitation or operating limitation in Tables 1 a and 1 b and Tables 2a and 2b of Subpart ZZZZ of Part 63 that apply to you. These instances are deviations from the emission and operating limitations in this subpart. These deviations must be reported according to the requirements in §63.6650. If you change your catalyst, you must reestablish the values of the operating parameters measured during the initial perfor mance test. When you reestablish the values of your operating parameters, you must also conduct a performance test to demonstrate that you are meeting the required emission limitation appli cable to your stationary RICE. o §63.6640(d)-Consistent w ith §§63.6(e) and 63.7 (e)(1), dev iations from the emission or operating lim itations that occur during a period of startup, shutdown , or malfunction are not violations if you demonstrate to the Admi nistrator's satisfaction that you were operating in accordance w ith §63.6(e)(1 ). For new, reconstructed, and rebuilt stationary RICE, deviations from the emission or operating limitations that occur during the first 200 hours of operation from engine startup (engine bum-in period) are not violations. AIRS ID: 045/1046/008 Page 5 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1194 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division o §63.6640(e)-You must also report each i nstance in which you did not meet the requirements in Table 8 of Subpart ZZZZ to Part 63 that apply to you . • Notifications, Reports and Records o §63.6645(a)-If you own or operate a stationary RICE with a site rating of more than 500 brake HP located at a major source of HAP emissions you must submit all of the notifications in §§63.7(b) and (c), 63 .8(e), (f)(4) and (f)(6), 63.9(b) through (e), and (g) and (h) that apply to you by the dates specified . o §63.6645(c)-If you start up your new or reconstructed stationary RICE w ith a site rati ng of more than 500 brake HP located at a major source of HAP emissions on or after August 16, 2004, you must submit an Initial Notification not later than 120 days after you become subject to this subpart. o §63.6645(g) -If you are required to conduct a performance test, you must submit a Notification of Intent to conduct a performance test at least 60 days before the performance test is scheduled to begin as required in §63.7(b)(1). o §63.6645(h) -If you are required to conduct a performance test or other initial compliance demonstration as specified in Tables 4 and 5 of Subpart ZZZZ to Part 63, you must submit a Notification of Compliance Status according to §63.9(h)(2)(ii). • §63.6645(h)(2) -For each initial compliance demonstration required in Table 5 of Subpart ZZZZ to Part 63 that includes a performance test conducted according to the requirements in Table 3 to this subpart, you must submit the Notification of Compliance Status , including the performance test results , before the close of business on the 60th day following the completion of the performance test according to §63.1 O(d)(2). o §63.6650(a)-You must submit each report in Table 7 of Subpart ZZZZ to Part 63 that applies to you . o §63.6650(b)-You must submit each report by the date in Table 7 of Subpart ZZZ.Z to Part 63 and according to the requ irements in paragraphs (b)(1) throug h (5) of §63.6650 . o §63.6650(c)-The Compliance report must contain the i nformati on in paragraphs (c)(1) through (6 ) of §63.6650. o §63.6650(e)-For each deviation from an emission or operating limitation occurring for a stationary RICE where you are using a CMS to comply with the emission and operating limitations in Subpart ZZZZ to Part 63, you must include information in paragraphs (c)(1) through (4) and (e)(1) through (12) of §63.6650. AIRS ID: 045/1046/008 Page 6 of 17 EnCana Oil & Gas (USA) Inc. Permit No . 08GA 1194 Issuance 1 Colorado Department of Public Health and Environment Air Poll ution Control Division o §63.6655(a) -If you must comply with the em iss ion and operati ng limitations , you must keep the records described in §63 .6655(a)(1) through (a )(3), §63.6655 (b)(1) through (b)(3) and §63.6655 (c). o §63.6655(d)-You must keep the records required in Table 6 of Subpart ZZZZ of Part 63 to show continuous compliance with each em ission or operating limitation that applies to you . o §63.6660(a) -Your records must be in a form suitable and readily available for exped itious review according to §63 .1 O(b )(1 ). o §63.6660(b) -As specified in §63.1 O(b)(1 ). you must keep each record f or 5 years following the date of each occurrence, measurement, maintenance, corrective action , report, or record . o §63.6660(c)-You must keep each record read ily accessible in hard copy or electronic form on -sit e for at least 2 yea rs after the date of each occurrence , measurement, ma intenance, co rrective action , report, or record , accord ing to §63.1 O(b)(1 ). You can ke ep the records off-site f or the remaini ng 3 years. • Other Requirements and Information o §63 .6665 -T able 8 to this subpart shows which parts of the General P rovisions in §§63.1 through 63.15 apply to you . OPERATING & MAINTENANCE REQUIREMENTS 9 . Upon startup of t his point , the applicant shall follow the operating and maintenance (O&M) plan and record keeping format approved by the Division , in orde r to demonst rate compliance on an ongoing basis with the req uirements of this perm it. Revisions to your O&M pla n are subject to Division a pproval prior to impleme ntation . (Reference: Reg ulation No. 3 , Part B , Section III.G .7.) COMPLIANCE TESTING AND SAMPLING Periodi c Testing Requirements 10. T his engine is subject to the periodic test ing requirements of 40 C.F.R Part 63 , Subpart ZZll.. 11. T his engine is subject t o the periodic testing requirements as specified in the operat ing and m ain tenance (O&M) plan as approved by the Division. Revisions to you r O&M pl an ar e subject to Division approval. Replacements of t his unit completed as A lternative Operating Scenarios may be subject to additional testing req uirements as specified in Attachment A. AIRS ID: 045/1046/008 Page 7 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1194 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division ADDITIONAL REQUIREMENTS 12 . A revised Air Pollutant Emission Notice (A PEN ) shall be filed : (Reference : Regulation No. 3 , Part A , II.C) a . Annually whenever a significant increase in emissions occurs as follows : For any criteria pollutant: For sources emitting less than 100 tons per year, a change in actual emissions of five (5) tons per year or more, above the level reported on the last APEN ; or For any non-criteria reportable pollutant: If the emissions increase by 50% or five (5) tons per year, whichever is less, above the level reported on the last APEN submitted to the Division. b . Whenever there is a change in the owner or operator of any facil ity, process, or activity; or c . Whenever new control equipment is installed , or whenever a different type of control equipment replaces an existing type of control equipment; or d . Whenever a permit limitation must be modified; or e . No later than 30 days before the existing APEN expires. f . Within 14 calendar days of commencing operation of a permanent replacement engine under the alternative operating scenario outlined in this permit as Attachment A. The A PEN shall include the specific manufacturer, model and serial number and horsepower of the permanent replacement engine, the appropriate APEN filing fee and a cover letter explaining that the permittee is exercising an alternative-operating scenario and is installing a permanent replacement engine. 13. This source is subject to the provisions of Regulation Number 3 , Part C , Operating Permits (Title V of the 1990 Federal Clean Air Act Amendments). T he provisions of this construction permit must be incorporated into the operating permit. The application for the modification to the Operating Permit is due within one year of commencement of operation of the equipment or modification covered by this permit. 14. Prevention of Significant Deterioration (PSD) requirements shall apply to this source at any such time that th is source becomes major solely by virtue of a relaxation in any permit condition. Any relaxation that increases the potential to emit above the applicable PSD threshold will require a full PSD review of the source as though construction had not yet commenced on the source. The source shall not exceed the PSD threshold until a PSD permit is granted. (Regulation No.3 Part D , VI.B.4) GENERAL TERMS AND CONDITIONS: 15. This permit and any attachments must be retained and made available for inspection upon request. The permit may be reissued to a new owner by the APCD as provided in AIRS ID: 045/1046/008 Page 8 of 17 EnCana Oil & Gas (USA) Inc. Permit No . 08GA 1194 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division AQCC Regulation No. 3, Part B, Section 11.8 upon a request for transfer of ownership and the subm ittal of a revised A P EN and the required fee. 16. Issuance of a construction permit does not provide ''final" authority for this activity or operation of this source. Final authorization of the permit must be secured from the APCD in writing in accordance with the provisions of 25-7-114.5(12)(a) C.R.S . and AQCC Regulation No.3 , Part B, Section III.G. Final a ut horization cannot be g ranted until the operation or activity commences and has been verified by the A PC D as conforming in all respects with the conditions of the permit. Once self-certification of all points has been reviewed and approved by t he Division , it will provide w ritten documentation of such fina l authorization . Details for obtai ning final authorizati on to operate are located in the Requirements to Self-Certify for Final Authorization section of this permit. 17. This permit is issued in reliance upon the accuracy and completeness of information supplied by the applicant and is conditioned upon conduct of the activity, or construction , installation and operation of the source , in accordance with this information and with representations made by the applicant or applicant's agents. It is valid only for the equipment and operations or activity specifically identif ied on the permit. 18 . Unless specifically stated ot herwise, the general and specific conditions contained in this permit have been determined by the A PCD to be necessary to assure compliance with the provisions of Section 25-7-114 .5(7)(a), C.R.S. 19. Each and every condition of this permit is a material part hereof and is not severable. Any cha ll enge to or appeal of a condition hereof shall const itute a rejection of the ent ire permit a nd upon such occurrence, this permit shall be deemed denied ab initio. This permit may be revoked at any time prior to self-certification and f inal authorization by the Air Pollution Control Division (APCD) on grounds set forth in the Colorado A ir Quality Control Act and regulat ions of the Ai r Quality Control Commiss ion (AQCC), including failure to meet any express term or condition of t he permit. If the Division denies a permit, conditions im posed upon a permit are contested by the applicant, or t he Division revokes a permit, t he applicant or owner or oper ator of a source may request a hearing before the AQCC for review of the D ivision 's action . 20 . Section 25-7-114.7(2)(a), C.R.S . requires that all sources required to file an A ir Pollution Emission Notice (APEN) must pay an annual fee to cover the costs of inspections and administration. If a source or activity is to be discontinued, the owner must notify the Division in writing requesting a cancellation of the permit. Upon not ificat ion, annual fee billing will terminat e. 21. Violation of the terms of a permit or of the provisions of the Colorado Air Pollution Prevention and Control Act or the regulations of the AQCC may result in administrative , civil or crimin al enforcement actions under Sections 25-7-115 (enforcement), -121 (injunctions), -122 (civil penalties ), -122.1 (criminal penalties), C.R.S . 22. This permit replaces the following permit, wh ich is can celed upon issuance of this permit: AIRS ID: 045/1046/008 Page 9 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1194 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division Permit No. AIRSID 1 Notes 03P00738 777121921001 I Engine-~M03 :. This equipment wi.ll now be covered under th1s stat1onary source perm1t. sy: , , .......... (n J:Y1 '·M Carissa Money d Permit Engineer P "t H " t erm1 IS ory Issuance Date Description Issuance 1 This Issuance Canceled portable permit 03P00738 and issued as new stationary permit lA Modification November 28, Permit modified due to engine replacement with No. 1 for 2007 higher HP. O&M plan included due to control 03P00738 device and ability to locate at Syn . Minor sources . Final Approval November 15, Issued to EnCana Oil & Gas for 03P00738 2005 Initial Approval October 29, Issued to EnCana Oil & Gas for 03P00738 2003. AIRS ID: 045/1046/008 Page 10 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA1194 Issuance 1 Notes to Perm it Holder: Colorado Department of P ublic Health and E nvironment Air Pollution Cont rol D ivision 1) The production or raw material processing limits and emission limits contained in this permit are based on the consumption rates requested in the permit application. These limits may be revised upon request of the permittee providing there is no exceedance of any specific emission control regulation or any ambient air quality standard . A revised air pollution emission notice (APEN) and application form must be submitted with a request for a permit rev ision . 2 ) This source is subject to the Common Provisions Regulation Part II , Subpart E, Affirmative Defense Provision for Excess Emissions During Malfunctions. The permittee shall notify the Division of any malfunction condition which causes a violation of any emission limit or limits stated in this permit as soon as possible, but no later than noon of the next working day, followed by written notice to the Division addressing all of the criteria set forth in Part II.E.1 . of the Common Provis ions Regulation . See : http://www. cdphe. state . co. us/regulations/airregs/1 001 02aqcccommon provisionsreg . pdf. 3) The following emissions of non-criteria reportable air po llutants are estimated based upon the process lim its as indicated in this perm it This information is listed to inform the operator of the Division's analysis of the specific compounds emitted if the source(s) operate at the permitted limitations . Unco ntrolled Emission Are the Contr olled AIRS Rate emissi ons Emission Point Pollutant CAS# B IN (lb/yr) reportable? Rate (lb/yr) Formaldehy de 5000 A 5599 Yes 2800 A c etaldehyde 75070 A 760 Yes 380 A c rolein 107028 A 467 Yes 234 008 Methanol 67561 c 227 No 114 n-Hexane 110543 c 101 No 50 Benzene 71432 A 40 No 20 Toluene 108883 c 37 No 19 4 ) The emission levels contained in this permit are based on the following emission factors: Point 008 : Emissio n Factors -Uncontrolled Emission Factors -Controlled CAS Pollutant lb/MMBtu g /bhp-hr Source l b/MMBtu g /bhp-hr Source NOx 0.3850 1.5000 Mfg 0.3850 1.5000 Mfg co 0.5673 2.2100 Mfg 0.0397 0 .1547 Mfg voc 0 .1258 0.4900 Mfg 0.0629 0.2450 Mfg 5000 Formaldehyde 0 .0616 0.2400 Mfg 0.0308 0.1200 Mfg AP-42; Table 75070 Acetaldehyde 0 .0084 0 .0326 3.2-2 (7/2000); 0.0042 0.0163 Mfg Natural Gas AP-42 ; Table 107028 Acrolein 0.0051 0 .0200 3.2-2 (7 /2000); 0.0026 0 .0100 Mfg Natural Gas 67561 Methanol 0.0025 0.0097 AP-42 ; Table 0.0013 0.0049 Mfg 3.2-2 (7/2000); AIRS 10: 045/1046/008 Page 11 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA1194 Issuance 1 Colo r ado Department of Public Health and Environment Air Pollution Control Division Emission Factors -Uncontrolled Emissi on Factors-Controlled CAS Pollutant lb/MMBtu g/bhp-hr Source lb/MMBtu g/bhp-hr Natural Gas AP-42 ; Table 110543 n-Hexane 0 .0011 0.0043 3.2-2 (7/2000); 0 .0006 0 .0022 Natural Gas AP-42 ; T able 71432 Benzene 0 .0004 0.0017 3.2-2 (7/2000); 0 .0002 0 .0009 Natural Gas AP-42 ; T able 108883 Toluene 0 .0004 0 .0016 3.2-2 (7/2000); 0 .0002 0.0008 Natu ral Gas Emission factors are based on a Brake-Spec ific Fuel Consumption Factor of 8,589 Btu/hp-hr, a site-rated horsepower value of 1,208, and a fuel heat value of 1,000 Btu /scf. 5) In accordance with C.R.S . 25-7-11 4.1 , the Air Po llutant Emission Notice (APEN ) associated w ith this permit is valid for a term of five years. The five-year term for this APEN expires on November 9, 20 13. A revised A PEN shall be subm itted no later tha n 30 days before th e fi ve-ye ar term expires. 6 ) This facility is classified as follows: Applicable Status Requirement Operating Perm it Major Source: NOx, HAPs Synthetic Minor Source: CO, VOC PSD Synthetic Minor Source: VOC MACT HH Synthetic Minor Source: Toluene , Tota l HAP MACT ZZZZ Major So urce 7) Full text of the T itle 40 , Protection of Enviro nment Electronic Code of Federal Regulations can be found at the website listed below: http://ecfr.gpoaccess.gov/ Part 60: Standards of Performance for New Stationary Sources NSPS 60.1-End Subpart A-Su bpart KKKK NSPS Part 60, A ppend ixes Appendix A-A ppendix I Part 63 : National Emi ssion Standards for Hazardous Air Pollutants for Source Categories MACT 63.1-03.599 Subpart A-Subpart Z MACT 63.600-63.1199 Subpart AA -Subpart DOD MACT 63.1200-03.1439 Subpart EEE-Subpart PPP MACT 63.1440-63.6175 Subpart QQQ -Subpart YYYY MACT 63.6580-63.8830 Subpart ZZZZ-Subpart MMMMM MACT 63.8980-End Subpart NNNN N-Subpart XXXXXX A I RS ID: 045/1046/008 Page 12 of 17 Source Mfg Mfg Mfg EnCana Oil & G as (USA) Inc. Perm it No . 08GA 1194 Issuance 1 Colorado Department o f P ubli c Health and Environment Air Pollut io n Control Division A TTACHMENT A : ALTERNATIVE OPERATING SCENARIOS RECIPROCAT ING INTERNAL COMBUSTION E NG INES December 10, 2008 The fo llowing A lternative Operating Scenario (AOS) for the temporary and permanent replacement of natural gas fired reciprocating internal combustion eng ines h as been reviewed in accordance w ith the requirements of Regulation No.3 ., Part A , Section IV.A , Operational Flexibility-Alternative Operating Scenarios, Regulation No . 3, Part B, Construction Permits , and Regu lation No. 3, Part D, Major Stationary Source New Sou rce Review and Prevention of Significant Deterio ration , and it has been found to meet all applicable substantive and procedural requirements. This permit incorporat es and shall be considered a Constr uction Permit for any engine replacement performed in accordance with this AOS, and the perm ittee shall be allowed to perform such engine replacement w ithout applying for a revision to this perm it or obtain ing a new Constructi on Perm it. A.1 Engine Replacement The following AOS i s incorporated into this perm it in order to dea l with a compressor engi ne breakdown or periodic routine ma intenance and repa ir of an existing onsite engine th at requires the use of either a temporary or permanent replacement engine. "Temporary" is defined as in the same service for 90 operating days or less in any 12 month period . "Permanent" is defined as in the same service for more t han 90 operati ng days in any 12 month period . The 90 days is the total number of days that t he engine is in operation . If the engine operates only part of a day, that day shall count as a single day towards the 90-day total. The compliance demonstrations and any periodic monitoring required by th is AOS are in addition to any compli ance demonstrations or periodic monitoring required by this permit. A ll rep lacement engines are subject to all federally applicabl e and state-on ly requirements set forth in this perm it (including monitoring and record keeping). The results of all tests and the associated ca lculations required by this AOS shall be submitted to the Division within 30 calenda r days of the test or within 60 days o f the test if such testing is required to demonstrate compliance with NSPS or MACT req ui rements. Results of all te sts shall be k ept on site for five (5) years and made available to the Divi sion upon request. The permittee shall maintain a log on-site and contemporaneously record th e start and stop date of any e ngine replacement, the manufacturer, date of manufacture, model number, horsepower, and serial number of the engine(s) that are replaced during the ter m of this permit , and the manufacturer, model nu mber, horsepower, and serial number of the rep lacement engine. In addition to the log, the permittee shall maintain a copy o f all Applicability Reports required under section A.1 .2 and make them available to t he D iv ision upon request A.1.1 T he permittee may t emporarily replace an existing compressor engine that i s subject to the emission limits set forth in this permit w ith an engine that is of the same manufacturer, model, and horsepower or a different manu facturer, model , or horsepower as the existing engine without modifying this permit, so long as the em issions from the temporary replacement engine comply with the emission limitations for the existing permitted eng ine as determined in section A.2. Measurement of emissions from the temporary replacement engine shall be made as set forth in section A.2 . A.1.2 The permittee may permanently replace the existing compressor engine with an engine that is of the same manufacturer, model and horsepower w ithout modifying thi s permit so long as the emissions from the permanent replacement engine comply w ith 1) the permitted annual emission limitations for the AIRS ID: 0 4 5/1046/008 P age 13 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1194 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division existing eng ine, 2) any permi tted short-term emission limitations for the existing perm itted engine, and 3) the app li cable emission lim itations as set forth in the Applicability Report submitted to the Divisi on w ith the Air Pollutant Emissios Notice (APEN ) for the replacement engine (see http://www cd phe state .co.us/ap/o ilgasperm itting .html for example applicability report formats). Measurement of emissions from the permanent replacement engine an d compliance with the applicable emission limitations sha ll be made as set forth in section 2 .2. An Air Pollutant Emissions Notice (APEN ) that includes the specific manufacturer, model and serial number and horsepower of the permanent replacement engine shall be filed with the Division for the permanent replacement engine within 14 calendar days of commencing operation of the rep lacement engine. The APEN shall be accompanied by the appropriate APEN filing fee , a cover letter explaining that the permittee is exercising an alternative operating scenario and is installing a permanent replacement engine, and a c opy of the relevant Applicability Reports for the rep lacement e ngine. Example Applicability Reports can be found in at http://www.cd ph e .s tate .co .us/ap/oilgaspermitting .html. This submittal shall be accompanied by a certification from a person legally authorized to act on behalf of the source indicating that "based on the information and belief formed after reasonable inquiry, the statements and information included in the submittal are true , accurate and c omplete". This AOS cannot be used for permanent engine replacement of a g randfathered or permit exempt engine or an engine that is not subject to emission limits. The permittee shall agree to pa y fees based on the normal permit processing rate for review of information submitted to the Divis ion in regard to any permanent engine replacement. A.2 Portable Analy zer Testing Note: In some cases there may be conflicting and/or duplicative testing requirements due to overlapping Applicable Requ irements . In those instances, please contact the Division F ield Services Unit to discuss streamlin ing the testing requirements. Note that the testing required by this Condition may be used to satisfy the periodic testing requirements specified by the permit for the relevant time period (i.e . if the permit requires quarterly portable analyzer testing , this test conducted under the AOS will serve as the quarterly test and an additional portable analyzer test is not required for another three months). The permittee may conduct a reference method test, in lieu of the portable analyzer test required by this Condition , if approved in advance by t he Division . The permittee shall measure nitrogen oxide (NOX) and carbon monoxide (CO) emissions in the exhaust from the replacement engine using a portable flue gas analyzer within seven (7) calendar days of commencing operation of the replacement engine. A ll portable ana lyzer testing required by th is permit shall be conducted using the Division's Portable Analyzer Monitonng Protocol (ver March 2006 or newer) as found on the D ivision's website at: http://www.cdphe.state .co.us/ap/down/portanalyzeproto.pdf Results of the portable analyzer tests shall be used to monitor the compliance status of th is unit. For comparison with an annual (tons/year) or short term (lbs/unit of time) emission limit , the results of the tests shall be converted to a lb/hr basis and multiplied by the allowable operating hours in the month or year (whichever applies) in order to monitor compliance. If a source is not limited in its hours of operation the test resu lts w ill be multipl ied by the maximum number of hours in the month or year (8760), whichever applies. AIRS ID: 045/1046/008 Page 14 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1194 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division For comparison with a short-term limit that is either input based (lb/mmBtu), output based (g/hp-hr) or concentration based (ppmvd @ 15% 02) that the existing unit is currently subject to or the replacement engine will be subject to, the results of the test shall be converted to the appropriate units as described in the above-mentioned Portable Analyzer Monitoring Protocol document. If the portable analyzer results indicate compliance with both the NOX and CO emission limitations, in the absence of credible evidence to the contrary , the source may certify that the engine is in compliance with both the NOX and CO emission limitations for the relevant time period. Subject to the provisions of C .R.S. 25-7-123.1 and in the absence of credible evidence to the contrary, if the portable analyzer results fail to demonstrate compliance with either the NOX or CO emission limitations, the engine will be considered to be out of compliance from the date of the portable analyzer test until a portable analyzer test indicates compliance with both the NOX and CO emission lim itations or until the engine is taken offline. A.3 Applicable Regulations for Permanent Engine Replacements A.3.1 Reasonably Availab le Control Technology (RACT): Reg 3 , Part B § 11.0 .2 All permanent replacement engines that are located in an area that is classified as attainmenUmaintenance or nonattainment must apply Reasonably Available Control Technology (RACT) for the pollutants for which the area is attainmenUmaintenance or nonattainment. Note that both VOC and NOX are precursors for ozone. RACT shall be applied for any level of emissions of the pollutant for which the area is in attainmenUmaintenance or nonattainment, except as follows: In the Denver Metropolitan PM 10 attainmenUmaintenance area, RACT applies to PM10 at any level of emissions and to NOX and S02, as precursors to PM10, if the potential to emit of NOX or S02 exceeds 40 tons/yr. For purposes of this AOS, the following shall be considered RACT for natural-gas fired reciprocating internal combustion engines: VOC: CO: NOX: S02: PM10: The emission limitations in NSPS JJJJ The emission limitations in NSPS JJJJ The emission limitations in NSPS JJJJ Use of natural gas as fuel Use of natural gas as fuel As defined in 40 CFR Part 60 Subparts GG (§ 60.331) and 40 CFR Part 72 (§ 72.2), natural gas contains 20.0 grains or less of total sulfur per 100 standard cubic feet. A.3.2 Control Requirements and Emission Standards: Regulation No. 7, Sections XVI. and XVII.E (State-Only conditions). Control Requirements: Section XVI Any permanent replacement engine located within the boundaries of an ozone nonattainment area is subject to the applicable control requirements specified in Regulation No. 7, section XVI , as specified below: Rich burn engines with a manufacturer's design rate greater than 500 hp shall use a non- selective catalyst and air fuel controller to reduce emission . AIRS ID: 045/1046/008 Page 15 of 17 E nCana Oil & Gas (USA) Inc. Permit No. 08GA 1194 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division Lean burn engines with a manufacturer's design rate greater than 500 hp shall use an oxidation catalyst to reduce emission s. The above emission control equipment s hall be appropriately sized for the engine and shall be operated and maintained according to manufacturer specifications. The source shall submit copies of the relevant Applicability Reports required under Condition A.1 .2 . Fmis sion Standards · Sectio n XVII E-State-only requirements Any permanent engine that is either constructed or relocated to the state of Colorado from another state , after t he date listed in the table below shall operate and maintain each engine according to the manufacturer's written instructions or procedures to the extent practicable and consistent w ith technological limitations and good engineering and maintenance practices over the entire life of the engine so that it achieves the emission standards required in the table below: Max Engine C onstruction or Emission Standards in G/hp-hr HP Relocation Date NOx co voc 100<Hp<500 January 1, 2008 2.0 4.0 1.0 January 1, 2011 1.0 2.0 0.7 500~Hp July 1, 2007 2.0 4.0 1.0 July 1, 2010 1.0 2.0 0.7 T he source shall submit copies of the relevant Applicability Reports required under Condition A.1 .2 A.3.3 NSPS for spark ign1tion internal combustion engines: 40 C FR 60, Subpart J J JJ A permanent replacement engine that is manufact ured on or after 7/1/09 for emergency engine s greater than 25 hp, 7/1/2008 for engines less th a n 500 hp, 7/1/2007 for engines g reater than or equal to 500 hp except for lean burn engines greater than or equal to 500 h p an d less than 1,350 hp, and 1/1/2008 for lean burn engines greater than or equal to 500 h p and less than 1,350 hp are subject 40 CFR 60, Subpart JJJJ. An a na lysis of applicable monitoring, record keep ing , and reporting requirements for the permanent engine repla cement shall be included in the A pplicability Reports req uired under Condition A.1.2. Any testing required by the NSPS is in addition to that required by this AOS. Note that the Initial test required by NSPS Subpart JJJJ can serve as the testing required by this AOS under Condition A.2, if approved in advance by the Division , provided that such test is conducted within the time frame specified in Condition A.2. Note that under the provisions of Regulation No. 6 . Part B, section I. B. that Relocation of a source from outside of the State of Colorado into the State of Colorado is considered to be a new source, subject to the requirements of Regulation No. 6 (i.e., the date that the source is first relocated to Colorado becomes equivalent t o t he manufac ture date for purposes of determining the applica bility of NSPS J J J J requirements). However, as of November 1, 2008 the Division has not yet adopted NSPS JJJJ. Until such time as it does, any engine subject to NSPS will be subject only under Federal law. Once the Division adopts NSPS JJJJ, there will be an additional step added to the determination of the NSPS. Under the provisions of Regulation No. 6, Part 8 , § 1.8 (which is referenced in Part A), any engine relocated from outside of the State of Colorado into the State of Colorado is considered to be a new source, subject to the requirements of NSPS JJJJ. A IRS ID: 04 5/104 6/008 Page 16 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA1194 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division A.3.4 Reciprocating internal combustion engine (RICE) MACT: 40 CFR Part 63, Subpart Zll.Z. A.3.4.1 Area Source for HAPs A permanent replacement eng ine located at an area source that commenced construction or reconstruction after June 12, 2006 as defined in § 63.2, will meet the requ irements of 40 CFR Part 63, Subpart ZZZZ by meeting the requirements of 40 CFR Part 60, Subpart JJJJ. An analysis of the applicable mon itoring , recordkeeping, and reporting requirements for the permanent engine replacement shall be included in the Applicability Reports requ ired under Condition A.1 .2 . Any testing requ ired by the MACT is in addit ion to that required by this AOS. Note that the initial test required by the MACT can serve as the testing required by this AOS under Condition A.2, if approved in advance by the Division, provided that such test is conducted within the time frame specified in Condition A .2 . A.4.3.2 Major source for HAPs A permanent replacement engine that is located at major source is subject to the requirements in 40 CFR Part 63 Subpart Zll.Z. as follows: Existing , new or reconstructed spark ignition 4 stroke rich burn engines with a site rating of more than 500 hp are subject to the requirements in 40 CFR Part 63 Subpart Zll.Z.. New or reconstructed (construction or reconstruction commenced after 12/19/02) 2 stroke and 4 stroke lean burn engines w i th a site rating of more than 500 hp are subject to the requirements in 40 CFR Part 63 Subpart ZZZZ . New or reconstructed (construction or reconstruction commenced after 6/12/06) 4 stroke lean burn engines with a site rating of greater than or equal to 250 but less or equal to 500 hp and were manufactured on or after 1/1/08 are subject to the requirements in 40 CFR Part 63 Subpart ZZZZ. New or reconstructed (construction or reconstruction commenced after 6/12/06) 2 stroke lean burn or 4 stroke rich burn engines with a s ite rating of 500 hp or less will meet the requirements of 40 CFR 63, Subpart ZZZZ by meeting the requ irements of 40 CFR 60, Subpart JJJJ . New or reconstructed (construction or reconstruction commenced after 6/12/06) 4 stroke lean burn engines with a site rating of less than 250 hp will meet the requirements of 40 CFR 63, Subpart ZZZZ by meeting the requirements of 40 CFR 60, Subpart JJJJ . An analysis of the applicable monitoring , recordkeeping , and reporting requirements for the permanent engine replacement shall be included in the Applicab ility Reports required under Condition A .1 .2. Any testing required by the MACT is in addition to that required by this AOS. Note that the initial test required by the MACT can serve as the testing required by th is AOS under Condit ion A2, if approved in advance by the Division , provided that such test is conducted within the time frame specified in Condition A2. A.3.5 Additional Sources The replacement of an existing engine w ith a new eng ine is viewed by the Division as the installation of a new emissions unit, not "routine replacemenf' of an existing unit. The AOS is therefore essentially an advanced constructi on permit review. The AOS cannot be used for additional new emission points for any site; an eng ine that is being installed as an entirely new emission point and not as part of an AOS- approved replacement of an existing onsite engine has to go through the appropriate Construction/Operating permitting process prior to installation. AIRS 10 : 045/1046/008 Page 17 of 17 STATE OF COLORADO COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT AIR POLLUTION CONTROL DIVISION TELEPHON E: (303) 692-3150 CONSTRUCTION PERMIT PERMIT NO: DATE ISSUED: ISSUED TO: 08GA1196 lJU L 3 1 2009 EnCana Oil & Gas (USA) Inc. Issuance 1 THE SOURCE TO W HICH THIS PERMIT APPLIES IS DESCRIBED AND LOCATED AS FOLLOWS: Natural gas compression faci lity, known as the H igh Mesa Compressor Station, located in S ENW Section 36, T ownship 7S, Range 96W, in Garfield County, Colorado. THE S PECIFIC EQU IPMENT OR ACTIVITY SUBJECT TO THIS PERMIT INCLUDES T HE FOLL OWING: Facility AIRS Equipment Point Description ID One (1 ) Caterpillar, Model G3516LE, Serial Number4E K05031 , natural gas-fired, turbo-charged , 4SLB reciprocating i nternal HM04 0 10 combustion engine , si te rated at 1,208 horsepower at 1 ,400 RPM . This engine sh all be equipped with an oxidation catalyst and air- fuel ratio cont ro l. T his emission unit is used for natural gas compression. T his engine may be replaced w ith another engine in accordance with the temporary eng ine replacement provision or with another Caterpillar G35 16LE eng ine in accordance w ith the permanent replacement provision of the Alternate Operating Scenario (AOS), included in this perm it as Attachment A. THIS PERMIT IS GRANTED SUBJECT TO ALL RULES AND REGULATIONS OF THE COLORADO AIR QUALITY CONTROL COMMISSION AND THE C OLORADO AIR POLLUTION PREVENTION AND CONTROL ACT C.R.S. (25-7-101 et s e q ), TO THOSE GENERAL TERMS AND CONDITIONS INCLUDED IN THIS DOCUMENT AND THE FOL LOWING SPECIFIC TERMS AND CONDITIONS: REQUIREMENTS TO SELF-CERTIFY FOR FINAL AUTHORIZATION 1. This construction permit represents final permit approval and authority to operate t his emissions source (Regulation 3 , Part B , Section II I.G.5). A IRS 10: 045/1046/010 Page 1 of 17 NGEngine Versi on 2008-1 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1196 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division EMISSION LIMITATIONS AND RECORDS 2. Emissions of air pollutants shall not exceed the following limitations (as calculated in the Division's preliminary analysis). (Reference : Regulation No. 3, Part 8 , Section II.A.4) M o n t h ly Limits: Faci l ity I AIRS Pounds per Mont h Equipment ID Po i nt NOx voc co Emission Type HM04 010 2972 486 306 Point Monthly limits are based on a 31-day month. A n nual Lim its: Faci l ity AIRS Tons per Year Equipme nt ID Point NOx voc T co Emission Type HM04 010 17.5 2 .9 I 1.8 Point See "Notes to Perm1t Holder #4 for mformat10n on emiSSion factors and methods used to calculate limits. During the first twelve (12) months of operation, compliance with both the monthly and yearly emission limitations shall be required. After the first twelve (12) months of operation, compliance with only the yearly limitation shall be required. Compliance with the synthetic minor status of this facility shall be determined by recording the facility's annual criteria pollutant emissions , from each emission unit, on a rolling (12) month total. By the end of each month a new twelve-month total is calculated based on the previous twelve months ' data. The permit holder shall calculate monthly emissions and keep a compliance record on site , or at a local field office with site responsibility, for Division review . This rolling twelve-month total shall apply to all emission units, requiring an APEN , at this facility. 3. This engine shall be equipped with an oxidation catalyst and air-fuel ratio control. The selective oxidation cata lyst shall be capable of reducing uncontrolled emissions of VOC and CO from the unit to the emission levels listed in Condition 2 , above. Operating parameters of the control equipment are identified in the operation and maintenance plan. (Reference: Regulation No.3, Part 8 , Section III.E.) PROCESS LIMITATIONS AND RECORDS 4 . This source shall be limited to the following maximum consumption. processing and/or operational rates as listed below. Monthly records of the actual consumption rate shall be maintained by the applicant and made available to the Division for inspection upon request. (Reference : Regulation 3, Part 8 , II.A.4) p c rocess/ ons u m ption Limits Fac ility I A I RS I A nnu al M o nthly Eq uipment p . t Process Parame ter Limit Limit (31 ID 01n davs) HM04 010 Consumption of natural gas as a 90.9 7.72 fuel MMscf/vr MMscf/month AIRS ID: 045/1046/010 Page 2 of 17 I I EnCana Oil & Gas (USA) Inc. Permit No. 08GA1196 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division During the first twelve (12) months of operation, compliance with both the monthly and yearly consumption limitations shall be required. After the first twelve (12) months of operation, compliance with only the yearly limitation shall be required . Compliance with the yearly consumption limits shall be determined on a rolling twelve ( 12) month total. By the end of each month a new twelve-month total is calcu lated based on the previous twelve months' data. T he permit holder shall calculat e monthly consumpt ion of natural gas and keep a compliance record on site or at a local field office with site responsibility, for Division review. STATE AND FEDERAL REGULATORY REQUIREMENTS 5. Visible emissions shall n ot exceed twenty percent (20%) opacity during normal operation of the source. During periods of startup, process modification, or adjustment of control equipment visible emissions shall not exceed 30% opacity for more than six minutes in any sixty consecutive minutes. (Reference: Regulation No. 1 , Section II.A.1. & 4 .) 6. T his sour ce is subject to the odor requirements of Regulation No . 2. (State only enforceable) 7. T he permit number and AIRS ID number shall be marked on the subject equipment f or ease of identification. (Reference: Regu lation Number 3 , Part 8 , Ill. E .) (State only enforceable) 8 . T his sou rce is subject to the requirement s of: • Regulation No. 8, Part E , Subpart Ill. FFFF: National Emissions Standards for Hazardous Air Pollutants for Stationary Reciprocating Internal Combustion Engines (RICE) of 40 C. F.R. Part 63, Subpart ZZZZ, and • Regulation No. 8, Part E, Subpart /.A , National Emission Standards for Hazardous Air Pollutants for Source Categories: General Provisions, 40 CFR Part 63 including, but not limited to, the following: • Emission a n d Operati ng Limitations o 63.6600(b) -If you own or operate a new or reconstructed 4SLB stationary RICE with a site rating of more t han 500 brake H P located at major source of HAP emissions you must comply with the following emission limitations (Table 2a, Subpart ZZZZ to Part 63): • reduce CO emissions by 93 percent or more; or • limit concentration of formaldehyde in the stationary RICE exhaust to 14 ppmvd or less at 15 percent 02. AIRS ID : 045/1046/010 Page 3 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1196 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division o 63.6600(b)-If you own or operate a new or reconstructed 4SLB stationary RICE with a site rating of more than 500 brake HP located at major source of HAP emissions you must comply with the following operating limitations (Table 2b, Subpart ZZZZ to Part 63): • maintain your catalyst so that the pressure drop across the catalyst does not change by more than 2 inches of water at 1 00 percent load plus or minus 10 percent from the pressure drop across the catalyst that was measured during the initial performance test; and • maintain the temperature of your stationary RICE exhaust so that the catalyst inlet temperature is greater than or equal to 450 oF and less than or equal to 1350 °F. • General Compl iance Requ irements o §63 .6605(a)-You must be in compliance with the emission limitations and operating limitations in this subpart that apply to you at all times, except during periods of startup, shutdown, and malfunction. o §63 .6605(b) -If you must comply with emission limitations and operating limitations, you must operate and maintain your stationary RICE, including air pollution control and monitoring equipment, in a manner consistent with good air pollution control practices for minimizing emissions at all times, including during startup, shutdown, and malf unction. • Testi ng and Initial Compliance Requirements o §63 .6610(a)-You must conduct the initial performance test or other initial compliance demonstrations in T able 4 to Subpart ZZZZ o f Part 63 that apply to you within 180 days after the compliance date that is specified for your stationary R ICE in §63.6595 and according to the provisions in §63.7(a)(2). o §63 .6615 -If you must comply with the emission limitations and operating limitations, you must conduct subsequent performance tests semiannually (as per Table 3 of Subpart ZZZZ to Part 63). After you have demonstrated compliance for two consecutive tests, you may reduce the frequency of subsequent performance tests to annually. If the results of any subsequent annual performance test indicate the stationary RICE is not in compliance with the CO or formaldehyde emission limitation, or you deviate from any of your operating limitations, you must resume semiannual performance tests. o §63.6620 -You must conduct performance test and other procedures in §63.6620 and in Tables 3 and 4 to Subpart ZZZZ of Part 63 that apply to you . o §6 3.6625(b) -If you are required to install a continuous parameter monitoring system (CPMS) as specified in Table 5 of this subpart, you must install, operate, and maintain each CPMS according to the requirements in §63.8. AIRS ID: 045/1046/010 Page 4 of 17 EnCana Oil & Gas (USA) In c. Permit No. 08GA 1196 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Cont rol Division o §63.6630(a)-You must demonstrate initial compliance w ith each emission and operating lim itation that applies to you according to Table 5 of Subpart ZZZZ to Part 63. o §63 .6630(b) -During the initial performance test, you must establish each operating limitation in Tables 1 b and 2b of Subpart ZZZZ to Part 63 that applies to you. o §63.6630(c)-You must submit the Notification of Compliance Status containing the results of the i nitial compliance demonstration according to the r equirements in §63.6645. • Continuous Compliance Requirements o §63.6635(b)-Except for monitor malfunctions, associated repairs, and required quality assurance or control activities (including , as applicable, calibration checks and required zero and span adjustments), you must monitor continuously at all times that the stationary RICE is operating. o §63.6635(c)-You may not use data recorded during monitoring malfunctions, associated repairs , and required quality assurance or control activities in data a v erages and calculations used to report emission or operating lev els. You must, however, use all the valid data collected during all other periods. o §63.6640(a)-You must demonstrate continuous complianc e with each emission limitation and operating limitation in Tables 1 a and 1 band Tables 2a and 2b of subpart ZZZZ of Part 63 that apply to you according to methods specified in Table 6 of Subpart ZZZZ of Part 63. o §63.6640(b)-You must report each instance in which you did not meet each emission limitation or operating li mitation in Tables 1 a and 1 b and Tables 2a and 2b of Subpart ZZZZ of Part 63 that apply to you. These instances are deviations from the emission and operating limitations i n this subpart. These deviations must be reported according to the requirements in §63.6650. If you change your catalyst, you must reestablish the values of the operating parameters measured during the initial performance test. When you reestablish the values of your operating parameters, you must also conduct a performance test to demonstrate that you are meeting the required emission limitation applicable to your stationary RICE. o §63.6640(d)-Consistent w ith §§63.6(e) and 63.7 (e)(1), deviations from the emission or operating limitations that occur during a period of startup, shutdown, or malfunction are not violations if you demonstrate to the Administrator's satisfaction that you were operating in accordance with §63.6(e)(1). For new, reconstructed, and rebuilt stationary RICE , deviations from the emission or operating limitations that occur during the first 200 hours of operation from engine startup (engine burn-in period) are not violations. AIRS ID: 045/1046/010 Page 5 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA1196 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division o §63.6640(e)-You must also report each instance in which you did not meet the requirements in Table 8 of Subpart Zll.Z to Part 63 that apply to you. • Not ifications, Reports a nd Records o §63.6645(a) -If you own or operate a stationary R IC E with a site rating of more than 500 brake HP located at a major source of HAP emissions you must subm it all of the notifications in §§63.7(b) and (c), 63.8(e), (f)(4) and (f)(6), 63.9(b) through (e), and (g) and (h) that apply to you by the dates specified . o §6 3.6645(c)-If you start up your new or reconstructed stationary R ICE with a site rating of more than 500 brake HP located at a major source of HAP emissions on or after August 16, 2004, you must submit an Initial Notification not later than 120 days after you become subject to this subpart. o §63 .6645(g ) -If you are required to conduct a performance test, you must submit a Notification of Intent to conduct a performance test at least 60 days before the performance test is scheduled to begin as required in §63.7(b)(1 ). o §63.6645(h) -If you are required to conduct a performance test or other initial compliance demonstration as specified in Tables 4 and 5 of Subpart Zll.Z to Part 63, you must submit a Notification of Compliance Status according to §63. 9(h)(2)(ii). • §63 .6645(h)(2)-For each initial compliance demonstration required in T able 5 of Subpart Zll.Z to Part 63 that includes a performance test conducted according to the requirements in Table 3 to this subpart, you must submit the Notification of Compliance Status, including the performance test results , before the close of business on the 60th day following the completion of the performance test according to §63.1 O(d)(2). o §63.6650(a)-You must submit each report in Table 7 of Subpart ZZZZ to Part 63 that applies to you . o §63.6650(b)-You must submit each report by the date in Table 7 of Subpart ZZZZ to Part 63 and according to the requi rements in paragraphs (b)( 1) through (5) of §63.6650. o §63 .6650(c)-The Compliance report must contain the information in paragraphs (c)(1) through (6) of §63.6650. o §63 .6650(e) -For each deviation from an emission or operating limitation occurring for a stationary RI CE wh ere you are using a CMS to comply with the emission and operating limitations in Subpart ZZZZ to Part 63, you must include information in paragraphs (c)(1) through (4) and (e)(1) through (12) of §63.6650. AIRS ID: 045/1046/010 Page 6 of 17 EnCana Oil & Gas (USA) Inc. Permit No . 08GA1196 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division o §63.6655(a )-If you must comply with the emission and operating limitations, you must keep the records described in §63.6655(a)(1) through (a)(3), §63.6655 (b)(1) through (b)(3) and §63.6655 (c). o §63 .6655(d)-You must keep the records required in T able 6 of Subpart ZZZZ of Part 63 to show continuous compliance with each emission or operating limitation that applies to you . o §63.6660(a)-Your records must be in a form suitable and readily available for expeditious review according to §63.10(b)(1 ). o §63.6660{b)-As specified in §63.1 O(b)(1 ), you must keep each record for 5 years following the date of each occurrence, measurement , maintenance, corrective action, report, or record . o §63.6660(c)-You must keep each record readily accessible in hard copy or electronic form on-site for at least 2 years after the date of each occu rrence , measurement, mai ntenance , corrective action , report, or record , according to §63.10(b)(1). You can keep the records off-site for the remaining 3 years. • Other Requirements and Information o §63.6665 -T able 8 to this subpart shows which parts of t he General Provisions in §§63.1 through 63.15 apply to you. OPERATING & MAINTENANCE REQUIREMENTS 9. Upon startup of this point, the applicant shall follow the operating and maintenance (O&M) plan and record keeping format approved by the Division , in order to demonstrate compliance on an ongoi ng basis with the req uirements of this permit. Revisions to your O&M plan are subject to Division approval prior to implementation. (Reference: Regulation No. 3, Part 8 , Section III.G .7.) COMPLIANCE TESTING AND SAMPLING Periodic Testi ng Requirements 10. This eng ine is subject to the periodic testing requirements of 40 C .F.R Part 63, S ubpart zzzz . 11 . This engine is subject to the periodic testing requ irements as specif ied in the operating and maintenance (O&M) plan as approved by the Division. Revisions to your O&M plan are subject to Division approval. Replacements of this unit completed as Alt ernative Operati ng Scenarios may be subject to additional testing requirements as specif ied in Attachment A. AIRS ID: 045/1046/010 Page 7 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA1196 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division ADDITIONAL REQUIREMENTS 12. A revised Air Pollutant Emission Notice (APEN) shall be filed: (Reference: Regulation No. 3 , Part A , II.C) a . Annually whenever a significant increase in emissions occurs as follows: For any criteria pollutant: For sources emitting less than 100 tons per year, a change in actual emissions of five (5) tons per year or more, above the level reported on the last APEN; or For any non-criteria reportable pollutant: If the emissions increase by 50% or five (5) tons per year, whichever is less, above the level reported on the last APEN submitted to the Division. b . Whenever there is a change in the owner or operator of any facility, process, or activity; or c . Whenever new control equipment is installed, or whenever a different type of control equipment replaces an existing t ype of control equipment; or d . Whenever a permit limitation must be modified; or e . No later than 30 days before the existing APEN expires. f . Within 14 calendar days of commencing operation of a permanent replacement engine under the alternative operating scenario outlined in this permit as Attachment A. The APEN shall include the specific manufacturer, model and serial number and horsepower of the permanent replacement engine, the appropriate APEN filing fee and a cover letter explaining that the permittee is exercising an alternative-operating scenario and is installing a permanent replacement engine. 13. This source is subject to the provisions of Regulation Number 3 , Part C , Operating Permits (Title V of the 1990 Federal Clean Air Act Amendments). The provisions of this construction permit must be incorporated into the operating permit. The application for the modification to the Operating Permit is due within one year of commencement of operation of the equipment or modification covered by this permit. 14. Prevention of Significant Deterioration (PSD) requirements shall apply to this source at any such time that this source becomes major solely by virtue of a relaxation in any permit condition . Any relaxation that increases the potential to emit above the applicable PSD threshold will require a full PSD review of the source as though construction had not yet commenced on the source. The source shall not exceed the PSD threshold until a PSD permit is granted. (Regulation No. 3 Part D, VI.B.4) GENERAL TERMS AND CONDITIONS: 15. This permit and any attachments must be retained and made available for inspection upon request. The permit may be reissued to a new owner by the APCD as provided in AIRS ID: 045/1046/010 Page 8 of 17 EnCana O il & G as (USA) Inc. Permit No . 08GA 1196 Issuance 1 Colorado Department of Public Health a nd Environment Air Pollution Control Division AQCC Regulation No. 3 , Part 8 , Section 11 .8 upon a request for transfer of ownership and the submittal of a revised APEN and the required fee. 16. Issuance of a construct ion permit does not provide ''final" authority f or this activity or operation of this source. F inal author ization of the permit must be secured from the APCD in writi ng in accordance with the provision s of 25-7-114.5(12)(a) C .R.S. a nd AQCC Regulation No.3 , Part 8 , Section Ill. G. Final author ization cannot be granted u ntil the operation or activity commences and has been verified by the APCD as conforming in all respects with the conditions of the permit. Once self-certification of all point s has been reviewed and approved by the Division, it w ill p r ovide written documentation of such final authorization . Details for obtai ning final authorization to operate are lo c ated in the Requirements to Self-Certify for Final Authorization section of this permit. 17. T his permit is issued in reliance upon the accuracy and completeness of information supplied by the applica nt and is cond itione d upon conduct of the activity, or const ruction, installation and operation of the source, in accor dance with this informat ion and with represent at io ns made by the applic a nt or app licant's agents. It is v a lid only f or t h e equipment and ope rations or activity specifically identified on the perm it. 18. Unless s pecif ically stated otherwise, t he genera l and specific condit ion s cont a ined i n this permit have been deter mined by the APCD to be necessary to a ssure compliance with the provisions of Section 25-7-1 14.5(7)(a), C .R.S. 19. E ach and every condition of this permit is a m aterial part hereof and is not severable. Any challenge to or appeal of a condition here of shall constitute a rejection of the ent ire permit and upon such occurrence, this permit shall be deemed denied ab initio. T his permit may be revoked at any time prior to self-certification and final authorization by the Air Pollution Control D ivision (APCD) on grounds set f orth in the Colorado Air Quality Cont rol Act and regulations of the Air Quality Control Commission (AQCC), includi ng failure to meet any express term or condition of the permit. If the Division denies a permit, conditions imposed upon a permit are conteste d by the applicant, or the Division revokes a per mit, the applicant or owner o r operator of a source may request a hearing before the AQCC f or review of the Division's action. 20. Section 25-7-114.7(2 )(a), C .R.S. requires t h at all sources required to file an Air Pollution Emission Notice (A P EN ) must pay an annual fee to cover the costs of inspections and administration. If a source or activity is to be discontinued, the owner must notify the Division in writing requesting a cancellation of the permit. Upon notificat ion, annual fee billing wi ll terminate. 21 . Violation of the terms of a permit or of the provisions of the Colorado Air P ollution Prevention and Control Act or the regulat ion s of the AQCC may result in administrative, civil or crim i nal enfor cement actions und er Sections 25-7-1 15 (enforcement), -121 (inj unctions), -122 (civil penalties), -122.1 (criminal penalties), C .R.S. 22 . T h is permit replaces the following permit, which is canceled upon issuance of this permit: AIRS ID: 045/1046/010 Page 9 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1196 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division Permit No. AIRS ID 04P00443 777/2273/001 By: Carissa Money Permit Engineer (f P ·t H. t ermt IS Ory Issuance Date Issuance 1 This Issuance Initial Approval August 11 , for 04P00443 2004 AIRS ID: 045/1046/010 Notes Engine-HM04: This equipment will now be covered under this stationary source permit. Description Canceled portable perm it 04P00443 and issued as new stationary permit Issued to EnCana Oil & Gas Page 10 of 17 EnCana Oil & Gas (USA) Inc. Permit No . 08GA 1196 Issua nce 1 Notes to Permit Holder: Colorad o Department of P ublic Health a nd Environmen t A ir P o ll ution Control Divis ion 1) The production or raw material processing limits and emission limits contained in this permit are based on the consumption rates requested in the permit application . T hese limits may be revised upon request of the permittee providing there is no exceedance of any specific emission control regulation or any ambient air quality standard . A rev ise d air pollution emission notice (APEN) and application form must be submitted with a request for a permit revision . 2) This source is subject to the Common Provisions Regulation Part II , Subpart E, Affirmative Defense Provision for Excess Emissions During Malfunctions. The permittee shall notify the Division of any malfunction condition which causes a violation of any emission limit or limits stated in this permit as soon as possible, but no later than noon of the next working day, followed by written notice to the Division addressing all of the criteria set forth in Part II .E.1 . of the Common Provisions Regulation. See: http ://www .cdphe . state . co. us/reg u la tions/airregs/1 001 02aqcccommonprovisionsreg . pdf. 3) The following emissions of non-criteria reportable air pollutants are estimated based upon the process limits as indicated in this perm it. This information is listed to inform the operator of the Division's analysis of the specific compounds emitted if the source(s) operate at the permitted limitations . Uncontrolled Em issi o n Are the Cont ro lled AIRS Rate emissions Em iss ion Po i n t Polluta nt CAS# BIN (lb/yr) reporta ble ? Rat e (lb/yr ) Fo rmaldehyd e 5000 A 5599 Yes 2800 A cetaldeh y d e 75070 A 760 Yes 380 A c r o l ein 107028 A 467 Yes 234 010 Methanol 67561 c 227 No 114 n-Hexane 110543 c 101 No 50 Benzene 71432 A 40 No 20 Toluene 108883 c 37 No 19 4 ) The emi ssion levels contained in this permit are based on the following emission factors : Po int 0 10 : Emission Factors -Uncon t ro lled Emi ssion Factor s -Contr o lled CA S Po llutant lb/MMBtu g/b hp-hr Source l b/MMBtu g /bhp-hr Sourc e NOx 0 .3850 1.5000 Mfg 0.3850 1.5000 Mfg co 0 .5673 2 .2100 Mfg 0.0397 0.1547 Mfg voc 0.1258 0.4900 Mfg 0.0629 0.2450 Mfg 5000 Formaldehyde 0 .0616 0.2400 Mfg 0 .0308 0 .1200 Mfg AP-42; Table 75070 Acetaldehyde 0 .0084 0 .0326 3.2-2 (7 /2000); 0 .00 42 0 .0163 Mfg Natura l Gas A P-42 ; Table 107028 Acrole in 0.0051 0 .0200 3.2-2 (7/2000); 0.0026 0.0100 Mfg Natural Gas 67561 M ethanol 0.0025 0.0097 AP-42; T able 0.0013 0.0049 Mfg 3.2-2 (7/20001; AI RS ID: 04 5/1046/010 P age 11 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1196 Issuance 1 Colorado Department of Public Health and E nvironment Air Pollution Control Division Emission Factors -Uncontrolled Emission Factors -Contr olled CAS Pollutant lb/MMBtu g /bhp-hr Source lb/MMBtu g /bhp-hr Natural Gas AP-42 ; T able 110543 n-Hexane 0 .0011 0 .0043 3.2-2 (7/2000); 0 .0006 0 .0022 Natural Gas AP-42 ; Table 71432 Benzene 0.0004 0.00 17 3.2-2 (7/2000); 0.0002 0 .0009 Natural Gas AP-42 ; Table 108883 Toluene 0 .0004 0.0016 3.2-2 (7/2000); 0 .0002 0.0008 Natural Gas Emission factors are based on a Brake-Specific Fuel Consumption Factor of 8,589 Btu/hp-hr, a site-rated horsepower value of 1,208 , and a fuel heat value of 1,000 Btu/scf. 5) In accordance with C.R.S. 25-7-114.1, the Air Pollutant Emission Notice (APEN ) associated with this permit is valid for a term of fi ve years. The fi ve-year term for this APEN expires on No,·e mber 9, 2013 . A revised APEN shall be su bmitted no later t ha n 30 days before the fi v e-year term expires. 6) This facility is c lassified as follows: Applicable Status Requirement Operating Permit Major Sou rce: NOx, HAPs Synthetic Minor Source : CO, VOC PSD Synthetic Minor Source: VOC MACT HH Synthetic Minor Source: Toluene, Total HAP MACT ZZZZ Major Source 7) Full text of the T itle 40, Protection of Environment Electronic Code of Federal Regulations can be found at the websi te listed below: http://ecfr.gpoaccess.gov/ Part 60: Standar d s of Pe rformance for New Stationary Sources NSPS 60 .1-End Subpart A-S ubpart KKKK NSPS Part 60, Appendixes Appendix A-Appendix I Part 63 : National Emission Standards for Hazardous Air Pollutants for Source Categor ies MACT 63 .1-63.599 Subpart A-Subpart Z MACT 63 .600-63.1199 Subpart AA-Subpart DOD MACT 63.1200-63.1439 Subpart EE E -Subpart PPP MACT 63 .1440-63.6175 Subpart QQQ -Subpart YYYY MACT 63 .6580-63.8830 Subpart ZZZZ-Subpart MMMMM MACT 63 .8980-End Subpart NNNNN-Subpart XXXXXX A I RS 10: 045/1046/010 P age 12 of 17 Sour ce Mfg Mfg Mfg EnCana Oil & Gas (USA) Inc. Permit No. 08GA1196 Issuance 1 Colorado Department o f Public Health and Environment Air Pollution Control Division A TTACHMENT A: ALTERNATIVE OPERATING SCENARIOS RECIPROCATING INTERNAL COMBUSTION ENGINES December 10, 2008 The following Alternative Operating Scenario (AOS) for the temporary and permanent replacement of natural gas fired reciprocating internal combustion engines has been reviewed in accordance with the requirements of Regulation No.3., Part A, Section IV.A, Operational Flexibility-Alternative Operating Scenarios, Regulation No. 3, Part B, Construction Permits, and Regulation No. 3, Part D, Major Stationary Source New Source Review and Prevention of Significant Deterioration, and it has been found to meet all applicable substantive and procedural requirements. This permit incorporates and shall be considered a Construction Permit for any engine replacement performed in accordance with this AOS, and the permittee shall be allowed to perform such engine replacement without applying for a revision to this permit or obtaining a new Construction Permit. A.1 Engine Replacement The following AOS is incorporated into this permit in order to deal with a compressor engine breakdown or periodic routine maintenance and repair of an existing onsite engine that requires the use of either a temporary or permanent replacement engine. "Temporary" is defined as in the same service for 90 operating days or less in any 12 month period. "Permanenr is defined as in the same service for more than 90 operating days in any 12 month period. The 90 days is the total number of days that the engine is in operation . If the engine operates only part of a day, that day shall count as a single day towards the 90-day total. The compliance demonstrations and any periodic monitoring required by this AOS are in addition to any compliance demonstrations or periodic monitoring required by this permit. All replacement engines are subject to all federally applicable and state-only requirements set forth in this permit (including monitoring and record keeping). The results of all tests and the associated calculations required by this AOS shall be submitted to the Division within 30 calendar days of the test or within 60 days of the test if such testing is required to demonstrate compliance with NSPS or MACT requirements. Results of all tests shall be kept on site for five (5) years and made available to the Division upon request. The permittee shall maintain a log on-site and contemporaneously record the start and stop date of any engine replacement, the manufacturer, date of manufacture, model number, horsepower, and serial number of the engine(s) that are replaced during the term of this permit, and the manufacturer, model number, horsepower, and serial number of the replacement engine. In addition to the log, the permittee shall maintain a copy of all Applicability Reports required under section A.1.2 and make them available to the Division upon request. A.1 .1 The permittee may temporarily replace an existing compressor engine that is subject to the emission limits set forth in this permit with an engine that is of the same manufacturer, model, and horsepower or a different manufacturer, model, or horsepower as the existing engine without modifying this permit, so long as the emissions from the temporary replacement engine comply with the emission limitations for the existing permitted engine as determined in section A.2. Measurement of emissions from the temporary replacement engine shall be made as set forth in section A.2. A.1.2 T he permittee may permanently replace the existing compressor engine with an engine that is of the same manufacturer, model and horsepower without modifying this permit so long as the emissions from the permanent replacement engine comply with 1) the permitted annual emission limitations for the AIRS ID: 045/1046/010 Page 13 of 17 EnCana Oil & Gas (USA) Inc. Permit No. 08GA 1196 Issuance 1 Colorado Department of Public Health and Environment Air Pollution Control Division existing engine, 2) any permitted short-term emission limitations for the existing permitted engine, and 3) the applicable emission limitations as set forth in the Applicability Report submitted to the Division with the Air Pollutant Emissios Notice (APEN) for the replacement engine (see http://www.cdphe.state.co.us/ap/oilgaspermitting .html for example applicability report formats). Measurement of emissions from the permanent replacement engine and compliance with the applicable emission limitations shall be made as set forth in section 2 .2 . An Air Pollutant Emissions Notice (APEN) that includes the specific manufacturer, model and serial number and horsepower of the permanent replacement engine shall be filed with the Division for the permanent replacement engine within 14 calendar days of commencing operation of the replacement engine. The APEN shall be accompanied by the appropriate APEN filing fee, a cover letter explaining that the permittee is exercising an alternative operating scenario and is installing a permanent replacement engine, and a copy of the relevant Applicability Reports for the replacement engine. Example Applicability Reports can be found in at http://www.cdphe.state co.us/ap/oilgaspermitting .html. This submittal shall be accompanied by a certification from a person legally authorized to act on behalf of the source indicating that "based on the information and belief formed after reasonable inquiry, the statements and information included in the submittal are true, accurate and complete" This AOS cannot be used for permanent engine replacement of a grandfathered or permit exempt engine or an engine that is not subject to emission limits. The permittee shall agree to pay fees based on the normal permit processing rate for review of information submitted to the Division in regard to any permanent engine replacement. A.2 Portable Analyzer Testing Note: In some cases there may be conflicting and/or duplicative testing requirements due to overlapping Applicable Requirements. In those instances, please contact the Division Field Services Unit to discuss streamlining the testing requirements. Note that the testing required by this Condition may be used to satisfy the periodic testmg requirements specified by the permit for the relevant time period (i.e. if the permit requires quarterly portable analyzer testing , this test conducted under the AOS will serve as the quarterly test and an additional portable analyzer test is not required for another three months). The permittee may conduct a reference method test, in lieu of the portable analyzer test required by this Condition , if approved in advance by the Division. The permittee shall measure nitrogen oxide (NOX) and carbon monoxide (CO) emissions in the exhaust from the replacement engine using a portable flue gas analyzer within seven (7) calendar days of commencing operation of the replacement engine. All portable analyzer testing required by th is permit shall be conducted using the Division 's Portable Analyzer Monitoring Protocol (ver March 2006 or newer) as found on the Division's website at: http://www.cdphe.state.co.us/ap/down/portanalyzeproto .pdf Results of the portable analyzer tests shall be used to monitor the compliance status of this unit. For comparison with an annual (tons/year) or short term {lbs/unit of time) emission limit, the results of the tests shall be converted to a lb/hr basi s and multiplied by the allowable operating hours in the month or year (whichever applies) in order to monitor compliance. If a source is not limited in its hours of operation the test results will be multiplied by the maximum number of hours in the month or year (8760), whichever applies. AIRS ID: 045/1046/010 Page 14 of 17