Document knB39gdd0pxerkOdEOXZedoE
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 6
1445 ROSS AVENUE, SU ITE 1200 DALLAS, TX 75202-2733
'f 9 DEC 20\S
SENT VIA EMAIL AND CERTIFIED MAIL: 7014 0150 0000 2453 0992
Chris Bement VP & GM, Western Operations Encana Oil & Gas (USA) Inc. 370 17111 Street Suite 1700 Denver, CO 80202
RE: In the Matter of Encana Oil & Gas (USA) Inc. Carmody Trust Production Facility; CAA-06-2019-3303
Dear Mr. Bement:
Please find enclosed a copy of the fully-executed Administrative Order on Consent ("AOC"). Please note the timeframes that apply to Encana Oil & Gas (USA) Inc., under the AOC.
If you have any questions, please contact Carlos Zequeira by phone at 214-6658053 or by email at zequeira.c@epa.gov.
s~-1_y,________~~~~
Enclosure (1)
cc: Eddie Lewis, Esq. 1301 McKinney, Suite 5 100 Houston, Texas 77010-3095
Che1yl T. Seager Director Compliance Assurance and Enforcement Division
ecc: Michael Miller, TCEQ (michael.miller@tceq.texas.gov) Eddie Lewis, Esq. (eddie.lewis@nortonrosefulbright.com)
Internet Address (URL) http://Www.epa.gov Recycled/Recyclable Printed with Vegetable Oil Based Inks on Recycled Paper (Minimum 25% Postconsumer)
Encana Oil & Gas (USA) Inc. (Carmody Trust Production Facility)
Docket No. CAA 06-2019-3303
6.
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 and
those contained in federally-enforceable SIPs or permits.
FINDINGS OF FACT AND CONCLUSIONS OF LAW
7.
Encana Oil & Gas (USA) Inc. ("Encana" or "Respondent") is a
corporation doing business in the state of Texas. 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).
8.
At all times relevant to this Consent Order, Respondent has owned and/or
operated an oil and natural gas production facility, the Carmody Trust Production
Facility, located at/near Karnes County, Texas in the Eagle Ford Shale area (the
"Facility").
9.
Respondent is the owner and/or operator of the Facility within the
meaning of 40 C.F.R. 51.1 OO(f).
I 0.
At all times relevant to this Consent Order, Respondent owned and/or
operated an oil and gas Facility that emits Volatile Organic Compounds.
II.
The Facility is subject to the State of Texas's Standard Permits program
under Subchapter F of Chapter 116 of the Texas Administrative Code.
12.
The Texas Commission on Environmental Quality ("TCEQ") issued
Respondent Permit No. 113078, an air permit issued under the SIP-approved Non-Rule
Standard Permit program. This permit covers various emission units at the Facility,
including any flares.
Page 3 of 12
Encana Oil & Gas (USA) Inc. (Carmody Trust Production Facility)
Docket No. CAA 06-2019-3303
13.
Respondent utilizes flares to control the emission of waste gas from the
Facility. Permit No. 113078 requires, inter alia, that Respondent operate the flare in
compliance with certain provisions of the Texas SIP.
14.
During May 8- 16, 2018, EPA conducted helicopter flyovers of the Eagle
Ford Shale area to assess energy extraction facility emissions using Optical Gas Imaging
("OGI") technology.
15.
On October 9, 2018, EPA sent Respondent OGI video captures of an unlit
flare at the Facility emitting unburned hydrocarbons.
16.
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 Region 6 notified Respondent and TCEQ of violations of the Texas SIP
and Permit on October 9, 2018.
17.
On October 24, 2018, Respondent and EPA Region 6 conferred regarding
violations of the Texas SIP at the Facility.
18.
On October 28, 2018, Respondent provided information to EPA that they
have taken corrective action measures at the Facility to address compliance issues
observed during the flyovers. Specifically, Respondent provided the following:
a. Shortly after the flyovers, Encana personnel repaired the connector on the
power cables going to the flare ignition pilot. The work was completed on
May 23, 2018.
19.
EPA has conducted a comprehensive review of the facility-specific
information gathered based upon observations made from the flyover video captures and
facility permitted operations. Based on this review, EPA has made the following findings
for the Facility:
Page 4 of 12
Encana Oil & Gas (USA) Inc. (Carmody Trust Production Facility)
Docket No. CAA 06-2019-3303
for violations of this Consent Order. Respondent consents to the terms of this Consent
Order.
ORDER ON CONSENT
25.
Section l 13(a)(l) of the CAA, 42 U.S.C. 7413(a)(J), provides in
pertinent part that the Administrator may issue an Order requiring compliance with any
requirement of a state implementation plan. 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.
26.
Respondent has consented to, and is hereby ordered to satisfy, the
following requirements regarding the Facility:
a. Within 30 days of the Effective Date of this Consent Order Respondent shall inspect all flares at the Facility to ensure that flares used for the control of emissions from production during all facility operating scenarios where gases are routed to the flares are properly operated and continuously lit.
b. Within 120 days of the Effective Date of this Consent Order, based on the inspections above, Respondent shall send a letter to EPA outlining any actions taken or improvements made at the Facility, which may include flare tip replacement, changes to the auto-ignition system, installation of thermocouples, remote monitoring of flare ignition status (e.g., Supervisory Control and Data Acquisition), or any other actions taken to ensure or improve compliance.
Page 6 of 12