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EPA/AR RIN: 2060-AP76 Publication ID: Fall 2011 
Title: Oil and Natural Gas Sector--New Source Performance Standards and National Emission Standards for Hazardous Air Pollutants 
Abstract: New Source Performance Standards (NSPS) regulate criteria pollutants from new stationary sources. Two NSPS (subparts KKK and LLL) for the oil and natural gas industry were promulgated in 1985. Section 111 of the Clean Air Act (CAA) requires that NSPS be reviewed every 8 years and revised as appropriate. National Emission Standards for Hazardous Air Pollutants (NESHAP) regulate hazardous air pollutants (HAP) from new and existing stationary sources. Two NESHAP (subparts HH and HHH) for the oil and natural gas industry were promulgated in 1999. Section 112 of the CAA requires that NESHAP be reviewed every 8 years and revised as appropriate. In addition, section 112(f) requires that each category regulated under section 112(d) be reviewed to ensure that such regulations provide for an ample margin of safety to protect public health (i.e., address "residual risk" for each category). This action will include the required reviews under sections 111 and 112. Because the existing regulations are narrow in scope, the reviews will include consideration of broadening the scope of operations and emission points covered by the NSPS and MACT. 
Agency: Environmental Protection Agency(EPA)  Priority: Economically Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: Undetermined  Unfunded Mandates: No 
CFR Citation: 40 CFR 60    40 CFR 63   
Legal Authority: 42 USC 7411    42 USC 7412   
Legal Deadline:
Action Source Description Date
NPRM  Judicial  Consent Decree entered 02/04/2010, 3-month extension granted 1/11/11, new 3-month extension granted on 4/18/2011  07/28/2011 
Final  Judicial  Consent Decree deadline  04/03/2012 

Statement of Need: Not yet determined.

Summary of the Legal Basis: Not yet determined.

Alternatives: Not yet determined.

Anticipated Costs and Benefits: For the NSPS, the annual costs are estimated at $738 million. After taking into account the value of the natural gas and condensate recovered, there would be a net savings of $45 million annually. For the NESHAP, the annual costs of compliance will be $16 million. EPA estimates benefits for the VOCs 540,000 tons per year, or about 25 percent reduction overall; for methane, 3.4 million tpy, which is equal to 65 million metric tons of carbon dioxide equivalent (CO2e), which is a reduction of about 26 percent; and for air toxics, 38,000 tons, or a reduction of nearly 30 percent.

Risks: Not yet determined.

Timetable:
Action Date FR Cite
NPRM  08/23/2011  76 FR 52738   
Notice--Public Meeting  08/26/2011  76 FR 53371   
Final Action  03/00/2012    
Additional Information: EPA publication information: NPRM - http://www.regulations.gov/#!documentDetail;D=EPA-HQ-OAR-2010-0505-0002; EPA Docket information: EPA-HQ-OAR-2010-0505
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: Yes 
RIN Information URL: http://epa.gov/airquality/oilandgas/  
RIN Data Printed in the FR: No 
Agency Contact:
Bruce Moore
Environmental Protection Agency
Air and Radiation
109 T.W. Alexander Drive, Mail Code E143-01,
Research Triangle Park, NC 27711
Phone:919 541-5460
Fax:919 541-0246
Email: moore.bruce@epamail.epa.gov

Steve Fruh
Environmental Protection Agency
Air and Radiation
109 T.W. Alexander Drive, Mail Code E143-01,
Research Triangle Park, NC 27711, NC 27711
Phone:919 541-2837
Email: fruh.steve@epa.gov