November 3, 2011
Practice Group(s):
Energy, Infrastructure
and Resources
Oil & Gas
Ohio EPA Releases Draft General Permit
for Oil and Gas Well-Site Production
Operations
By Bryan D. Rohm, David R. Overstreet and Craig P. Wilson
Introduction
On October 20, the Ohio Environmental Protection Agency (“Ohio EPA”) published for public review
and comment a draft air pollution general permit for oil and gas well site production operations
(“Draft GP”), together with an accompanying qualifying criteria document, which includes a new
section covering natural gas micro turbines. The Draft GP is intended to streamline the permitting
process to facilitate the marked increase in the development of the Utica and Marcellus shale
formations in Ohio. Ohio EPA will receive public comments on the Draft GP through November 28,
2011, and expects to issue a final general permit for use by the end of 2011.
Background
An earlier version of this draft general permit has been available for unofficial comment from Ohio
EPA since June 2011. In July 2011, Ohio EPA released a second version of this draft general permit
dated July 29, 2011, which was opened for official public comment. Eleven official public comments
were received and published on Ohio EPA’s website on October 3, 2011. The Draft GP follows and
implements some of the proposed comments made to the July 2011 version.
Purpose
The Draft GP applies to air emissions from the production phase of oil and gas operations. The Draft
GP covers emissions from: (i) dehydration systems; (ii) natural gas-fired spark-ignition engines; (iii)
diesel engines; (iv) micro turbines; (v) unpaved roadways; (vi) petroleum liquids and recovered-water
storage tanks and loading; (vii) natural gas-fired turbine generator sets; (viii) combustion
devices/flares; and (ix) equipment/pipeline leaks. (Ohio EPA has taken the position that emissions
from the drilling and completion phases are temporary, of limited duration or de minimis, and,
therefore, generally are exempt from permitting requirements.) The Draft GP identifies the law or
regulation applicable to each type of source and lists the emission limitations, operational restrictions,
monitoring and recordkeeping requirements, reporting requirements, and testing requirements.
A goal of the Draft GP is to streamline the permitting process and allow operators to receive
authorizations in as little as two weeks. In addition, Ohio EPA is “exercising its discretion not to
penalize a company for failing to obtain an air permit before installing an oil and gas well as long as
the company applies for the general permit within thirty (30) days of the general permit becoming
available.”
Ohio EPA Releases Draft General Permit for Oil and Gas
Well-Site Production Operations
What Is New In the October 20, 2011 Draft GP?
A prominent difference between the July 29, 2011 version and the October 20, 2011 Draft GP is the
addition of a new section regulating natural gas micro turbines. 1 Natural gas micro turbines offer a
low emission alternative to diesel powered generators and will now be covered under the Draft GP,
but will be limited to a maximum capacity of 200 kW.
Other notable additions or changes incorporated into the Draft GP are: (i) an express accommodation
of uncertified engines; (ii) a requirement to maintain manufacturers’ operating manuals or instructions
at a central location (rather than requiring them on-site); (iii) an increase in combined total horsepower
to 1,800 (from 1,500) for spark ignition internal combustion engines; (iv) varying stack height for
spark ignition internal combustion engines based on engine size; (v) modified requirements for the
development of a leak detection and repair program to monitor and repair leaks from equipment
covered under the Draft GP; (vi) a decrease in the minimum inspection frequency for unpaved roads
to monthly (from daily); (vii) a limitation of the Draft GP to unpaved roadways less than 3 miles in
length (the prior draft covered all unpaved roads, regardless of length); (viii) various changes to
emissions limits and testing standards; and (ix) an increase in the number and capacity of storage
tanks covered.
In recent comments, several operators suggested removing all regulation of unpaved roads from the
Draft GP. Although Ohio EPA reduced the monitoring frequency of unpaved roads from daily to
monthly, there still remains concern surrounding: (i) the need for and burden of dust abatement in
rural, unpopulated areas; and (ii) monitoring non-oil and gas related traffic on unpaved, public roads.
In what appears to be an effort to mitigate the burden of maintaining dust abatement on public roads,
the Draft GP limits dust abatement requirements to unpaved roads that do not exceed 3 miles in
length. However, Ohio EPA did not eliminate entirely the requirement for dust abatement on unpaved
roads in rural unpopulated areas.
Conclusion
Operators with current or planned Marcellus/Utica shale development in Ohio who believe they will
be impacted by the final general permit should review and provide suggestions regarding the Draft
GP. The comment period closes on November 28, 2011. Ohio EPA is offering two ways to submit
comments: (i) via email to cheryl.suttman@epa.state.oh.us; or (ii) via mail to Cheryl Suttman, Attn:
General Permits, Ohio EPA – DAPC, P.O. Box 1049, Columbus, Ohio 43216-1049.
Authors:
Bryan D. Rohm
bryan.rohm@klgates.com
+1. 412.355.8682
David R. Overstreet
david.overstreet@klgates.com
+1. 412.355.8263
Craig P. Wilson
craig.wilson@klgates.com
+1. 717.231.4509
1
Ohio Environmental Protection Agency, October 20, 2011 Draft Version of the Ohio EPA Air Program Oil and Gas WellSite Production Operations General Permit Terms and Conditions, pp. 31-34, available at
http://www.epa.ohio.gov/portals/27/genpermit/NG.GP3mhb.docx (last visited Oct. 26, 2011).
2
Ohio EPA Releases Draft General Permit for Oil and Gas
Well-Site Production Operations
3