Document jNg8xeDwrKQ8qN39YpkyegRX9

WPX Energy Permian, LLC CAA-06-2021-3320 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 6 BEFORE THE ADMINISTRATOR In the Matter of: WPX Energy Permian, LLC Denver, Colorado Respondent ) ) ) EPA Docket No. CAA-06-2021-3320 ) ) ) ) ADMINISTRATIVE COMPLIANCE ORDER ON CONSENT The following Administrative Compliance Order on Consent ("Consent Order") is issued pursuant to the authority of Section 113(a)(3)(B) of the Clean Air Act, 42 U.S.C. 7413(a)(3)(B) (hereinafter referred to as "the Act" or the "CAA"). Section 113(a)(3) of the Act authorizes the Administrator of the United States Environmental Protection Agency ("EPA") to issue an order requiring compliance to any person whom the Administrator finds to be in violation of the Act. The authority to issue this Consent Order has been delegated to the Regional Administrator of EPA Region 6 and re-delegated to the Director of the Enforcement and Compliance Assurance Division, EPA Region 6. STATUTORY AND REGULATORY BACKGROUND 1. The Act is designed "to protect and enhance the quality of the Nation's air resources so as to promote the public health and welfare and the productive capacity of its population." CAA 101(b)(1), 42 U.S.C. 7401(b)(1). 2. EPA is authorized by Section 113 of the CAA, 42 U.S.C. 7413, to take action to ensure that air pollution sources comply with all federally applicable air pollution control requirements. These include requirements promulgated by EPA. NSPS 40 C.F.R. Part 60, Subpart OOOOa WPX Energy Permian, LLC CAA-06-2021-3320 3. Section 111 of the CAA, 42 U.S.C. 7411, authorizes EPA to promulgate regulations establishing New Source Performance Standards ("NSPS"). Section 111(e) of the CAA, 42 U.S.C. 7411(e), states that after the effective date of standards of performance promulgated under this section, it shall be unlawful for any owner or operator of any new source to operate such source in violation of any standard of performance applicable to such source. 4. In 2012, pursuant to its authority under Section 111(b)(1)(B) of the Act, 42 U.S.C. 7411(b)(1)(B), to review and, if appropriate, revise NSPS, EPA published the final rule, "Standards of Performance for Crude Oil and Natural Gas Production, Transmission and Distribution," found at 40 C.F.R. Part 60, Subpart OOOO ("Subpart OOOO"). 5. In 2013 and 2014, EPA made amendments to the 2012 NSPS with respect to standards for storage vessels and other changes, which are found at 40 C.F.R. Part 60, Subpart OOOOa ("NSPS Subpart OOOOa"). 6. Affected facilities that commence construction, modification, or reconstruction after September 18, 2015, are subject to the standards located at 40 C.F.R. Part 60, Subpart OOOOa. 40 C.F.R. 60.5360a. 7. Among the "affected facilities" subject to NSPS Subpart OOOOa are "storage vessel affected facilities." 40 C.F.R. 60.5365a(e). Specifically, NSPS Subpart OOOOa at 40 C.F.R. 60.5365a(e) specifies that a "storage vessel affected facility" is a single storage vessel with the potential for VOC emissions equal to or greater than six (6) tpy. 8. NSPS Subpart OOOOa requires each storage vessel affected facility that uses a control device to reduce emissions from the facility to connect the facility through a closed vent system and route emissions to a control device or to a process. 40 C.F.R. 60.5395a(b)(1). 2 of 12 WPX Energy Permian, LLC CAA-06-2021-3320 9. NSPS Subpart OOOOa requires each storage vessel affected facility to demonstrate continuous compliance with the standards required by 40 C.F.R. 60.5415a(e)(3). 40 C.F.R. 60.5395a(d)(2). 10. 40 C.F.R. 60.5415a(e)(3)(ii)(C) requires, in conjunction with 40 C.F.R. 60.5411a(c)(2), that each storage vessel affected facility that uses a control device or routes emissions to a process and operates as a closed vent system be designed and operated "with no detectable emissions, as determined using olfactory, visual and auditory inspections." FINDINGS OF FACT AND CONCLUSIONS OF LAW 11. WPX Energy Permian, LLC ("WPX" or "Respondent") is a limited liability company doing business in the state of New Mexico. Respondent is a "person" within the meaning of Section 113(a) of the CAA, 42 U.S.C. 7413(a), and as defined in Section 302(e) of the CAA, 42 U.S.C. 7602(e). 12. At all times relevant to this Consent Order, Respondent has owned and/or operated the oil and natural gas production facility listed in Attachment A, which is located in the New Mexico Permian Basin (the "Facility") and emits VOCs. 13. Respondent is the "owner or operator" of the Facility within the meaning of 40 C.F.R. 51.100(f). 14. The Facility in Attachment A is covered by the State of New Mexico's Notice of Intent and Emissions Inventory Requirements program for oil and gas facilities, located at 20 N.M.A.C. 2.73. 15. The Facility contains single storage vessels in the oil and natural gas production segments with the potential for VOC emissions equal to or greater than six (6) tons per year (tpy) and is subject to the requirements of NSPS Subpart OOOOa. 3 of 12 WPX Energy Permian, LLC CAA-06-2021-3320 16. During September 10, 2019, through October 3, 2019, EPA contracted helicopter flyovers of the Permian Basin area to assess energy extraction facility emissions using Optical Gas Imaging ("OGI") technology. 17. Based upon its review of the images obtained during the flyovers and preliminary permit information available from online state databases for oil and gas facilities, EPA identified unauthorized emissions at facilities that EPA believed were owned or operated by Respondent. 18. On August 19, 2020, EPA emailed Respondent OGI video captures showing potentially unauthorized hydrocarbon emissions from process equipment and vapor recovery systems at these facilities. EPA asked Respondent to verify ownership, provide current sitespecific permit information, and take any necessary corrective action to address unauthorized hydrocarbon emissions at each facility. EPA considered information provided by Respondent to determine whether violations occurred at the facilities. 19. On September 3, 2020, Respondent provided information to EPA that a pressure relief valve leak was mitigated on an oil tank following a monthly inspection in October 2019 at the Facility listed in Attachment A that addressed the compliance issues observed during the flyovers. 20. EPA has conducted a comprehensive review of the facility-specific information gathered based upon observations made from the OGI video captures, facility permitted operations, and information provided by Respondent. Based on this review, EPA has made the following findings for the Facility in Attachment A: a. Respondent violated NSPS Subpart OOOOa, 40 C.F.R. 60.5395a(b)(1), by failing to use the Facility's control device to reduce emissions from the Facility by connecting the Facility through a closed vent system and routing emissions to a control device or to a process. 4 of 12 WPX Energy Permian, LLC CAA-06-2021-3320 b. Respondent violated NSPS Subpart OOOOa, 40 C.F.R. 60.5415a(e)(3)(ii)(C), by failing to operate the Facility - which uses control devices or routes emissions to process and operates a closed vent system - "with no detectable emissions, as determined using olfactory, visual and auditory inspections." 21. More than thirty (30) days before the issuance of this Consent Order, Respondent was notified of the violations alleged herein. On December 14, 2020, EPA sent Respondent a Notice of Potential Violation and Opportunity to Confer ("NOPVOC") letter and provided a copy to the State of New Mexico. 22. On January 14, 2020, Respondent and EPA Region 6 conferred regarding violations of NSPS Subpart OOOOa and the NOPVOC. On January 15, 2020, EPA responded and articulated EPA's position concerning Respondent's compliance status with the CAA, 42 U.S.C. 7401 et seq. 23. The parties to this Consent Order agree that an opportunity to confer has been satisfied in accordance with Section 113(a)(4) of the CAA, 42 U.S.C. 7413(a)(4). 24. The parties further agree that in order to avoid protracted litigation, and in the best interest of all the parties and the environment, this Administrative Compliance Order will be entered into on Consent and by mutual agreement of the parties. 25. Only for the purposes of this proceeding, including any subsequent proceeding by EPA to enforce this document, Respondent admits the jurisdictional allegations contained herein; however, Respondent neither admits nor denies the specific findings of fact and conclusions of law contained in this Consent Order. 26. Respondent also consents to and agrees not to contest EPA's jurisdiction to either issue this Consent Order or enforce its terms. Further, Respondent will not contest EPA's jurisdiction to either compel compliance with this Consent Order in any subsequent enforcement proceedings, whether administrative or judicial, or require Respondent's full compliance with the 5 of 12 WPX Energy Permian, LLC CAA-06-2021-3320 terms of this Consent Order or impose sanctions for violations of this Consent Order. Respondent consents to the terms of this Consent Order. ORDER ON CONSENT 27. Section 113(a)(3) of the CAA, 42 U.S.C. 7413(a)(3), provides in pertinent part that the Administrator may issue an Order requiring compliance with the requirements or prohibitions of subchapter I of the CAA, 42 U.S.C. 7401 et seq. Pursuant to this authority, EPA has decided to issue this Consent Order after investigating all relevant facts, taking into account Respondent's compliance history, efforts made by Respondent to comply with applicable regulations, and based upon the foregoing Findings of Fact and Conclusions of Law herein. 28. Respondent has consented to, and is hereby ordered to satisfy, the following requirements regarding all facilities listed in Attachment B (the "Facilities"). Attachment B includes the Facility referenced in EPA's NOPVOC and in Paragraph 20 and Attachment A of this Consent Order, and three additional facilities with no findings of violation where Respondent has agreed to satisfy the requirements below. a. Within thirty (30) days of the Effective Date of this Consent Order, Respondent shall inspect and evaluate all oil and water storage tanks and associated hatches, valves, gaskets, and pressure relief devices at the Facilities to ensure there are no unauthorized emissions. b. Within thirty (30) days of the Effective Date of this Consent Order, Respondent shall inspect all flares at the Facilities to ensure that flares that are used for the control of emissions from production are properly operated and continuously lit during all facility operating scenarios where gases are routed to the flares. c. Within ninety (90) days of the Effective Date of this Consent Order, Respondent shall review its operation and maintenance procedures for inspecting process equipment at each Facility, and update the procedures, as necessary, to ensure that problems are timely identified and addressed to minimize emissions from process equipment. If Respondent does not have such procedures, it shall create such procedures. Respondent shall ensure that these procedures include, at a minimum, the following: 6 of 12 WPX Energy Permian, LLC CAA-06-2021-3320 i. the use of a standard site inspection checklist during regular inspections that requires evaluation of the following: well pad, flares, separators, heater treaters, tank batteries, compressors, fuel skid, well heads, spill containment, solid waste and chemical storage, and miscellaneous facilitywide operations; ii. a quality control program that ensures the quality, efficiency, and performance of facility maintenance activities; and iii. appropriate and regular training for personnel implementing the operation and maintenance procedures. d. Within ninety (90) days from the review discussed in sub-paragraph "c." above, Respondent shall send a letter to EPA detailing: i. the equipment that was inspected under sub-paragraphs "a." and "b." above at each Facility, the method of inspection, and any actions taken, or improvements made to ensure or improve compliance; and ii. any updates that were made to the operation and maintenance procedures for the Facilities to ensure that problems are timely identified and addressed to minimize emissions from process equipment. 29. Any information or correspondence submitted by Respondent to EPA under this Consent Order shall be addressed to the following: Jamie Salabogi Air Permitting Enforcement Section (ECDAP) Enforcement and Compliance Assurance Division U.S. EPA - Region 6 1201 Elm Street, Suite 500 Dallas, Texas 75270 Phone: (214) 665-7533 Email: salabogi.jamie@epa.gov 30. To the extent this Consent Order requires Respondent to submit any information to EPA, Respondent may assert a business confidentiality claim covering part or all of that information, but only to the extent and only in the manner described in 40 C.F.R. 2.203. EPA will disclose information submitted under a confidentiality claim only as provided in 40 C.F.R. Part 2, Subpart B. See 41 Fed. Reg. 36,902 (Sept. 1, 1976). If Respondent does not assert a 7 of 12 WPX Energy Permian, LLC CAA-06-2021-3320 confidentiality claim, EPA may make the submitted information available to the public without further notice to Respondent. Emission data provided under Section 114 of the CAA, 42 U.S.C. 7414, is not entitled to confidential treatment under 40 C.F.R. Part 2, Subpart B. "Emission data" is defined in 40 C.F.R. 2.301. 31. By signing this Consent Order, Respondent acknowledges that this Consent Order will be available to the public and agrees that this Consent Order does not contain any confidential business information. GENERAL PROVISIONS 32. Pursuant to Section 113(a)(4) of the CAA, 42 U.S.C. 7413(a)(4), this Consent Order shall be effective when fully executed, as set forth below in Paragraph 50, shall not exceed a term of one year, and shall be nonrenewable. 33. The provisions of this Consent Order shall apply to and be binding upon Respondent, its officers, directors, agents, and employees solely in their capacity of acting on behalf of Respondent. 34. Respondent neither admits nor denies any of the factual or legal determinations made by EPA in this Consent Order. 35. The provisions of this Consent Order shall be transferable to any other party, upon sale or other disposition of the Facilities. Upon such action, the provisions of this Consent Order shall then apply to and be binding upon any new owner or operator, its officers, directors, agents, employees, and any successors in interest. 36. By signing this Consent Order, the undersigned representative of WPX certifies that he or she is fully authorized by Respondent to execute and enter into the terms and conditions of 8 of 12 WPX Energy Permian, LLC CAA-06-2021-3320 this Consent Order and has the legal capacity to bind Respondent to the terms and conditions of this Consent Order. 37. Nothing in this Consent Order shall be construed to prevent or limit EPA's civil and criminal authorities, or that of other Federal, State, or local agencies or departments to obtain compliance, penalties, or injunctive relief under any applicable Federal, State, or local laws or regulations, including the power of EPA to undertake any action against Respondent or any person in response to conditions that may present an imminent and substantial endangerment to the public health, welfare, or the environment. 38. Nothing contained in this Consent Order shall affect the responsibility of Respondent to comply with all other applicable Federal, State, or local laws or regulations, including Section 303 of the CAA, 42 U.S.C. 7603. 39. EPA does not waive any rights or remedies available to it for any violations by Respondent of Federal laws, regulations, statutes, or permitting programs. 40. Any and all information required to be maintained or submitted pursuant to this Consent Order is not subject to the Paperwork Reduction Act of 1995, 44 U.S.C. 3501 et seq., because it seeks to collect information from specific entities to assure compliance with this administrative action. 41. By signing this Consent Order, Respondent certifies that the information it has supplied concerning this matter was at the time of submission, and is, to the best of its knowledge and belief, truthful, accurate, and complete for each submission, response, and statement. Respondent acknowledges that there are significant penalties for submitting false or 9 of 12 WPX Energy Permian, LLC CAA-06-2021-3320 misleading information, including the possibility of fines and imprisonment for knowing submission of such information, under 18 U.S.C. 1001. 42. EPA and Respondent agree to the use of electronic signatures for this matter. EPA and Respondent further agree to electronic service of this Consent Order by email to the following addresses: To EPA: tripathi.arati@epa.gov To Respondent: lisa.decker@dvn.com 43. EPA reserves all of its statutory and regulatory powers, authorities, rights, and remedies, both legal and equitable, which may pertain to Respondent's failure to comply with any of the requirements of this Consent Order. This Consent Order shall not be construed as a covenant not to sue, release, waiver, or limitation of any rights, remedies, powers, and/or authorities, civil or criminal, which EPA has under any statutory, regulatory, or common law authority of the United States. 44. This Consent Order does not resolve any civil or criminal claims of the United States for the violations alleged in this Consent Order; nor does it limit the rights of the United States to obtain penalties or injunctive relief under the Act or other applicable federal law or regulations. 45. Respondent enters into this Consent Order in good faith without trial or adjudication of any issue of fact or law. 46. Respondent waives any and all remedies, claims for relief and otherwise available rights to judicial or administrative review that Respondent may have with respect to any issue of fact or law set forth in this Consent Order, including any right of judicial review under Section 307(b)(1) of the CAA, 42 U.S.C. 7607(b)(1). 10 of 12 WPX Energy Permian, LLC CAA-06-2021-3320 47. The parties shall bear their own costs and fees in this action, including attorneys' fees. 48. For purposes of the identification requirement of Section 162(f)(2)(A)(ii) of the Internal Revenue Code, 26 U.S.C. 162(f)(2)(A)(ii), performance of Paragraph 28 is restitution or required to come into compliance with the law. FAILURE TO COMPLY 49. Failure to comply with this Consent Order may result in an enforcement action for appropriate injunctive relief as well as civil penalties pursuant to Section 113(b) of the CAA, 42 U.S.C. 7413(b) or, in appropriate cases, criminal penalties. 11 of 12 Digitally signed by CHERYL SEAGER DN: c=US, o=U.S. Government, ou=Environmental Protection Agency, cn=CHERYL SEAGER, 0.9.2342.19200300.100.1.1=680010036 51793 Date: 2021.05.11 12:09:44 -05'00' WPX Energy Permian, LLC CAA-06-2021-3320 CERTIFICATE OF SERVICE I hereby certify that a true and accurate copy of the foregoing Administrative Compliance Order on Consent was sent this day in the following manner to the addressees: Copy via Email to Respondent: lisa.decker@dvn.com ARATI Digitally signed by ARATI TRIPATHI DN: c=US, o=U.S. Government, ou=Environmental Protection Agency, cn=ARATI TRIPATHI, TRIPATHI 0.9.2342.19200300.100.1.1=6800100365 5634 Date: 2021.05.11 12:46:48 -05'00' ____________________ U.S. EPA, Region 6 Dallas, Texas Attachment A WPX Energy Permian, LLC CAA-06-2021-3320 WPX Energy Permian, LLC Site Name East Pecos Federal 22 003H Permit Name and Number Notice of Intent No. 7076R2 NSPS Applicability NSPS Subpart OOOOa Attachment B WPX Energy Permian, LLC CAA-06-2021-3320 WPX Energy Permian, LLC Facilities Referenced in Paragraph 28 Site Name East Pecos Federal 22 003H North Brushy Draw Federal 35-09H RDX 17-44H, 45H, 46H RDX 16 010H Permit Name and Number Notice of Intent No. 7076R2 Notice of Intent No. 8767 Air Quality General Permit GCP-O&G 7504M2 No Permit Required