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1022

VIEWS: 7 PAGES: 37

									                                                                                     DRAFT
OKLAHOMA DEPARTMENT OF ENVIRONMENTAL QUALITY
AIR QUALITY DIVISION

MEMORANDUM                                                                       July 20, 2007

TO:                  Phillip Fielder, P.E., Permits and Engineering Group Manager,
                     Air Quality Division

THROUGH:             Matt Paque, Supervising Attorney, Air Quality Division

THROUGH:             Kendal Stegmann, Senior Environmental Manager, Compliance and
                     Enforcement

THROUGH:             Grover Campbell, P.E., Existing Permits Section

THROUGH:             Phil Martin, P.E., Engineering Section

THROUGH:             Peer Review

FROM:                Donna Lautzenhiser, E.I., New Source Permits Section

SUBJECT:             Evaluation of Permit Application No. 2006-174-C (M-1)
                     CenterPoint Energy Field Services, Inc.
                     Wardville Compressor Station
                     Latitude: 34.670º Longitude: -96.006°
                     Section 2, T2N, R12E, Atoka County, Oklahoma
                     Location: From Kiowa, travel south on Hwy 69 to junction of Hwy 69
                     and Hwy 131, turn west on Hwy 131, proceed 4.5 miles, turn north on
                     county road, proceed approximately 1 mile to location on west side of
                     road.

SECTION I.      INTRODUCTION

CenterPoint Energy Field Services, Inc. (CEFS) has applied for a construction permit to modify
an existing compressor station (SIC 1311). The facility will be a major (non-PSD) source. Tier
II processing is required, along with Best Available Control Technology for NOx and an ambient
impacts analysis.

The compressor station currently consists of one (1) 1,478-hp Waukesha 7042GSI compressor
engine (SN-01) equipped with a catalytic converter and one (1) 1,340-hp Caterpillar 3516
compressor engine (SN-02). CEFS is authorized to add a third engine. However, CEFS has
proposed the following modifications to their construction permit:

      Removal from the permit of the previously permitted, but not installed, 1,478-hp
       Waukesha 7042GSI as the third engine (SN-03).
      Addition of a 1,340-hp Caterpillar 3516 compressor engine (SN-03).
PERMIT MEMORANDUM NO. 2006-174-C (M-1)                                                             DRAFT         2

      Addition of six (6) additional 1,340-hp Caterpillar 3516 compressor engines (SN-04, SN-
       05, SN-06, SN-07, SN-08, and SN-09) which will be equipped with oxidation catalysts.
      Addition of a 50 MMSCFD amine unit to reduce CO2 emissions with a 4.0 MMBTUH
       reboiler.

  The engines will be installed in a phased approach; CEFS is therefore proposing to retrofit
  ENG-3 with an oxidation catalyst upon installation of ENG-05 and/or ENG-06 and to retrofit
  ENG-2 with an oxidation catalyst upon installation of ENG-8 in order to maintain minor
  source status for HAP emissions. Additional equipment includes three (3) 210-bbl
  condensate storage tanks, and one (1) glycol dehydration unit rated at 100 MMSCFD with a
  reboiler rated at 2.25 MMBTUH. Upon completion of this project the facility will be a major
  source of air emissions and will need to apply for a Title V operating permit.

SECTION II.          EQUIPMENT

                                   EUG 1 Internal Combustion Engines
   EU          Point               Make/Model         Hp       Serial #                            Const. Date
  SN01         SN01             Waukesha 7042GSI*    1478    C-12700/2                                2006
  SN02         SN02             Caterpillar G3516**  1340    WPW00372                                 2006
  SN03         SN03            Caterpillar G3516***  1340       TBD                                   2007
  SN04         SN04            Caterpillar G3516**** 1340       TBD                                 Proposed
  SN05         SN05            Caterpillar G3516**** 1340       TBD                                 Proposed
  SN06         SN06            Caterpillar G3516**** 1340       TBD                                 Proposed
  SN07         SN07            Caterpillar G3516**** 1340       TBD                                 Proposed
  SN08         SN08            Caterpillar G3516**** 1340       TBD                                 Proposed
  SN09         SN09            Caterpillar G3516**** 1340       TBD                                 Proposed
   *Equipped with NSCR controls.
   **To be equipped with oxidative controls before start-up of ENG-08.
   *** To be equipped with oxidative controls before start-up of ENG-05 and/or ENG-06.
   **** Equipped with oxidative controls.


                                     EUG 2 Tanks/Tank Truck Loading
        EU            Point                        Contents                              Barrels     Gallons
       Tanks          SN10                        Condensate                              210         8,820
                      SN11                        Condensate                              210         8,820
                      SN12                        Condensate                              210         8,820
                      SN13-        Miscellaneous insignificant tanks including
                                                                                            --          --
                       15                     lube oil, glycol, etc.
                      SN16                   Tank Truck Loading                             --          --

                         EUG 3          Glycol Dehydrator and Amine Unit Reboilers
         EU           Point                     Make/Model               MMBTUH                        Date
                                                                                                     Installed
       SN11           SN14                     Dehydrator Reboiler                       2.25          2006
       SN15           SN18                     Amine Unit Reboiler                        4.0          2006
PERMIT MEMORANDUM NO. 2006-174-C (M-1)                                                  DRAFT       3


                      EUG 4        Glycol Dehydrator and Amine Plant Vents
        EU          Point                 Make/Model             MMSCFD                   Date
                                                                                        Installed
       SN10         SN13       TEG Glycol Dehydrator Still Vent                   100     2007
       SN14         SN17               Amine Unit *                                50     2006
   * Amine unit is being used to reduce CO2 emissions and is not a sweetening unit.

                                       EUG 5 Fugitives
                             Number Items   Type of Equipment
                               168                  Valves
                               396                  Flanges
                                7                Pump Seals
                                9          Other (relief valves, etc.)

SECTION III.        EMISSIONS

Dehydrator emissions were calculated based on GRI-GLYCALC 4.0, AP-42 factors from Table
1.4-1 and Table 1.4-2 (7/98), and manufacturer’s rated fuel consumption. The dehydrator will be
equipped with a vapor recovery system which will condense all hydrocarbons that are
condensable at a temperature of less than 110°F. The non-condensables will then be routed
through the reboiler for complete combustion. Tank emissions for working, breathing and
flashing emissions are based on E&P TANK V2.0 and an annual facility throughput of 413,910
gallons per year. Process fugitives were calculated using emission factors from EPA-453/R-93-
026, “protocol for Equipment Leak Fugitives,” dated 11/95. Fugitive VOC emissions from
condensate loading operations were calculated using Formula 1 of Section 5.2 of the EPA’s
“Compilation of Air Pollutant Emission Factors – AP-42 (01/95).” VOCs are defined in OAC
252:100-37.

Emission estimates for the 1,478-hp Waukesha 7042GSI compressor engine with NSCR are
based on continuous operation (8,760 hours per year) and manufacturer’s data plus a 20% safety
factor for NOx and CO (2.4 g/hp-hr NOx, 2.4 g/hp-hr CO and 0.99 g/hp-hr VOCs). Brake-
specific fuel consumption for the 1,340-hp Caterpillar 3516 compressor engine has been listed at
7,781 BTU/hp-hr for a fuel consumption of 11,500 SCFH. Air emissions are discharged through
a stack 0.85 feet in diameter, 20 feet above grade, at a rate of 6,966 ACFM at 1,055°F. Moisture
content of stack gases has been estimated at 16% from fuel usage and the stoichiometric ratio of
two SCF of water per SCF of natural gas fuel.

Emission estimates for the 1,340-hp Caterpillar 3516 compressor engines not equipped with
oxidation catalysts are based on continuous operation (8,760 hours per year) and manufacturer’s
data plus a 20% safety factor for NOx and CO (2.4 g/hp-hr NOx, 2.28 g/hp-hr CO and 0.46 g/hp-
hr VOCs). Brake-specific fuel consumption for the 1,340-hp Caterpillar 3516 compressor engine
has been listed at 7,803 BTU/hp-hr for a fuel consumption of 10,456 SCFH. Air emissions are
discharged through a stack 0.85 feet in diameter, 22 feet above grade, at a rate of 7,684 ACFM at
855°F. Moisture content of stack gases has been estimated at 11% from fuel usage and the
stoichiometric ratio of two SCF of water per SCF of natural gas fuel.
  PERMIT MEMORANDUM NO. 2006-174-C (M-1)                                                  DRAFT            4


  Emission estimates for the 1,340-hp Caterpillar 3516 compressor engines equipped with
  oxidation catalysts are based on continuous operation (8,760 hours per year) and manufacturer’s
  data plus a 20% safety factor for NOx and CO (1.80 g/hp-hr NOx, 0.18 g/hp-hr CO and 0.13 g/hp-
  hr VOCs). Brake-specific fuel consumption for the 1,340-hp Caterpillar 3516 compressor engine
  has been listed at 7,803 BTU/hp-hr for a fuel consumption of 10,456 SCFH. Air emissions are
  discharged through a stack 0.85 feet in diameter, 22 feet above grade, at a rate of 7,684 ACFM at
  855°F. Moisture content of stack gases has been estimated at 11% from fuel usage and the
  stoichiometric ratio of two SCF of water per SCF of natural gas fuel.

                                                                             NOx          CO        NMHC
Engines                                                                    (g/hp-hr)   (g/hp-hr)   (g/hp-hr)
Waukesha 7042GSI (SN01)                                                       2.4          2.4        0.99
Caterpillars 3516 (2 engines – SN-02 and SN-03 before                         2.4         2.28        0.46
addition of SN-05 and/or SN-06)
Caterpillars 3516 (8 engines – SN-02 after addition of ENG-                    1.80      0.18         0.13
08, SN03 after addition of SN-05 and/or SN-06, SN-04, SN-
05, SN-06, SN-07, SN-08, SN-09)

                              Total Potential Emissions (Phase 1)
                                            NOx                CO                           NMHC
                  EU                  Lb/hr     TPY     Lb/hr     TPY                   Lb/hr  TPY
   SN01-1,478-hp Waukesha              7.82     34.25     7.82    34.25                  3.23  14.13
   7042GSI w/NSCR
   SN02-1,340-hp Caterpillar 35161     7.09     31.05     6.74    29.50                  1.36      5.95
                                  2
   SN03-1,340-hp Caterpillar 3516      7.09     31.05     6.74    29.50                  1.36      5.95
   SN04-1,340-hp Caterpillar 3516      5.32     23.29     0.53     2.33                  0.38      1.68
   w/oxidation catalyst
   Site Fugitives                       ---       ---      ---      ---                   ---       0.42
   210-bbl Condensate Tanks (3)         ---       ---      ---      ---                   ---      12.09
   Truck Loading                        ---       ---      ---      ---                   ---       0.73
   Glycol Dehydrator Still Vent         ---       ---      ---      ---                   ---       1.53
   (97% controlled)
   Glycol Dehydrator Reboiler           ---      0.63      ---     0.53                             0.03
   Amine Unit                           ---       ---      ---      ---                   ---      13.35
   Amine Unit Reboiler                  ---      1.37      ---     1.41                             0.09
   TOTAL                              27.32    121.96    21.83    97.52                  6.33      55.97
  1
    To be equipped with oxidative catalyst upon installation of ENG-8.
  2
    To be equipped with oxidative catalyst upon installation of ENG-5 and/or ENG-6.
PERMIT MEMORANDUM NO. 2006-174-C (M-1)                                    DRAFT         5


                           Total Potential Emissions (Phase 2)
                                         NOx                CO               NMHC
               EU                  Lb/hr     TPY     Lb/hr     TPY       Lb/hr  TPY
SN01-1,478-hp Waukesha              7.82     34.25     7.82    34.25      3.23  14.13
7042GSI w/NSCR
SN02-1,340-hp Caterpillar 3516 1    7.09     31.05     6.74    29.50     1.36    5.95
SN03-1,340-hp Caterpillar 3516      5.32     23.29     0.53     2.33     0.38    1.68
w/oxidation catalyst
SN04-1,340-hp Caterpillar 3516      5.32     23.29     0.53     2.33     0.38    1.68
w/oxidation catalyst
SN05-1,340-hp Caterpillar 3516      5.32     23.29     0.53     2.33     0.38    1.68
w/oxidation catalyst
SN06-1,340-hp Caterpillar 3516      5.32     23.29     0.53     2.33     0.38    1.68
w/oxidation catalyst
Site Fugitives                       ---       ---      ---      ---      ---    0.42
210-bbl Condensate Tanks (3)         ---       ---      ---      ---      ---   12.09
Truck Loading                        ---       ---      ---      ---      ---    0.73
Glycol Dehydrator Still Vent         ---       ---      ---      ---      ---    1.53
(97% controlled)
Glycol Dehydrator Reboiler           ---      0.63      ---     0.53             0.03
Amine Unit                           ---       ---      ---      ---      ---   13.35
Amine Unit Reboiler                  ---      1.37      ---     1.41             0.09
TOTAL                              36.19    160.77    16.68    75.01     6.11   55.06
1
    To be equipped with oxidative catalyst upon installation of ENG-8.
PERMIT MEMORANDUM NO. 2006-174-C (M-1)                                   DRAFT                6


                           Total Potential Emissions (Phase 3)
                                         NOx                CO              NMHC
               EU                  lb/hr     TPY      lb/hr    TPY      lb/hr  TPY
SN01-1,478-hp Waukesha              7.82     34.25     7.82    34.25     3.23  14.13
7042GSI w/NSCR
SN02-1,340-hp Caterpillar 3516      5.32     23.29     0.53     2.33    0.38          1.68
w/oxidation catalyst
SN03-1,340-hp Caterpillar 3516      5.32     23.29     0.53     2.33    0.38          1.68
w/oxidation catalyst
SN04-1,340-hp Caterpillar 3516      5.32     23.29     0.53     2.33    0.38          1.68
w/oxidation catalyst
SN05-1,340-hp Caterpillar 3516      5.32     23.29     0.53     2.33    0.38          1.68
w/oxidation catalyst
SN06-1,340-hp Caterpillar 3516      5.32     23.29     0.53     2.33    0.38          1.68
w/oxidation catalyst
SN07-1,340-hp Caterpillar 3516      5.32     23.29     0.53     2.33    0.38          1.68
w/oxidation catalyst
SN08-1,340-hp Caterpillar 3516      5.32     23.29     0.53     2.33    0.38          1.68
w/oxidation catalyst
SN09-1,340-hp Caterpillar 3516      5.32     23.29     0.53     2.33    0.38          1.68
w/oxidation catalyst
Site Fugitives                       ---       ---      ---      ---     ---           0.42
210-bbl Condensate Tanks (3)         ---       ---      ---      ---     ---          12.09
Truck Loading                        ---       ---      ---      ---    40.29          0.73
Glycol Dehydrator Still Vent         ---       ---      ---      ---     ---           5.24
(97% controlled)
Glycol Dehydrator Reboiler           ---      0.94      ---     0.79                   0.05
Amine Unit                           ---       ---      ---      ---     ---          13.35
Amine Unit Reboiler                  ---      1.67      ---     1.41                   0.09
TOTAL                              50.38    223.18    12.06    55.09    43.91         59.54

                          EUG 3   Fugitive VOC Emissions
                                         Emission Factor
           Equipment            %C3+    (lb/hr/component) (lb/hr)          TPY
     Gas Service
     168 Valves                   5            0.00990           0.01          0.01
     396 Flanges                  5            0.00086           0.02          0.07
     6 Compressor Seals           5            0.01940          0.005          0.02
     9 Relief Valves              5            0.01940           0.01          0.04
     Total                                                       0.04          0.17
PERMIT MEMORANDUM NO. 2006-174-C (M-1)                                                 DRAFT            7

The internal combustion engines have emissions of HAP, the most significant being
formaldehyde. Formaldehyde emission estimates are based on continuous operation and the
emission factors below. The factors for the rich-burn engines with catalytic converters are based
on manufacturer’s data.

Hazardous air pollutant (HAP) emissions were speciated from the engines using factors based on
AP-42 and on manufacturer’s emission factors for formaldehyde. Total HAPs are below the 10-
TPY individual HAP threshold for major status under 40 CFR Part 63.2.

              Pollutant                        CAS #              9 Engine Emissions, TPY
              Acetaldehyde                    75-07-0                       3.20
              Acrolein                        107-02-8                      2.02
              Benzene                         71-43-2                       0.24
              Ethyl Benzene                   100-41-4                      0.00
              Formaldehyde                    50-00-0                       8.75
              Methanol                        67-56-1                       1.07
              Toluene                         108-88-3                      0.00
              Xylene                         1330-20-7                      0.00
              Total                                                       15.28

                          Formaldehyde Emissions by Phase
                    Emission         Phase I          Phase II                              Phase III
 Emission Unit       Factor*
                     g/hp-hr           TPY              TPY                                   TPY
SN-01                  0.03            0.43             0.43                                  0.43
SN-02               0.30/0.08          3.88             3.88                                  1.04
SN-03               0.30/0.08          3.88             1.04                                  1.04
SN-04                  0.08            1.04             1.04                                  1.04
SN-05                  0.08             ---             1.04                                  1.04
SN-06                  0.08             ---             1.04                                  1.04
SN-07                  0.08             ---               ---                                 1.04
SN-08                  0.08             ---               ---                                 1.04
SN-09                  0.08             ---               ---                                 1.04
Total Formaldehyde (TPY)               9.23             8.45                                  8.75
   *Manufacturer’s data before and after addition of oxidation catalyst.
PERMIT MEMORANDUM NO. 2006-174-C (M-1)                                               DRAFT            8

BEST AVAILABLE CONTROL TECHNOLOGY

BACT is required for NOx emissions. The emissions of all other pollutants are below major source
thresholds.

The EPA Publication, “Alternate Control Techniques Document – NOx Emissions From Stationary
Reciprocating Internal Combustion Engines” (EPA-453/R-93-032, July 1993) identifies the
following NOx emissions controls for lean-burn spark-ignition stationary internal combustion
engines:

   -   Selective catalytic reduction (90% control)
   -   Low-emissions combustion (87% control)
   -   air-fuel ratio adjustment (5-30% control)
   -   Ignition spark retard (0-20% control)

Non-selective catalytic reduction is not on this list. Lean-burn engines operate with significant
oxygen concentrations in exhaust gases. Oxygen adsorbs on the catalyst, blocking the reaction of
NOx with CO. Catalytic converters are, therefore, not technologically feasible.

A. Control Options Descriptions

SCR (Selective Catalytic Reduction) provides the highest degree of NOx emissions control. SCR
reacts ammonia with NOx to form nitrogen gas and water. The reaction takes place normally on a
precious metal catalyst bed. The catalyst must be operated in a narrow temperature range and is
susceptible to fouling and “poisoning” by engine materials such as lubricating oils.

Low-emission technology utilizes pre-combustion chamber (PCC) technology. The majority of the
air/fuel mixture within the cylinders is too lean to be ignited by the spark plug. A relatively small
chamber in the cylinder is supplied with a rich air/fuel mixture which can be ignited by the spark
plug; ignition in this small chamber then ignites the lean air/fuel mixture in the rest of the cylinder.
Compared to an industry average for operation at the crossover point of NOx and CO emissions (11
g/hp-hr NOx), this combustion technology gives emissions reductions of 82% for NOx.

Air-fuel ratio adjustment ensures a higher-than-stoichiometric ratio of air to fuel. The excess air
results in lower flame temperature when the combustion cycle is at maximum compression.

Spark retard is conducted by delaying the ignition spark until after the compression cycle is at
maximum compression, thus oxygen and nitrogen are subjected to lower pressures while at elevated
temperatures.

B. Control Technology Discussion

SCR and low-emission combustion are almost identical, with SCR providing slightly better control
than low-emission combustion. All other techniques are less effective and will not be discussed
further.
PERMIT MEMORANDUM NO. 2006-174-C (M-1)                                            DRAFT           9

Low-emission combustion is able to follow load swings without high NOx emissions or “ammonia
slip,” discharge of unreacted ammonia. By being incorporated into the engine design, it is not as
susceptible to breakdown as SCR (a breakdown means the emission unit ceases to operate
altogether).

C. Selection of BACT

Low-emission technology on the lean-burn engines at an emission rate of 1.8 g/hp-hr is
acceptable for NOx emissions control.

SECTION IV. AIR QUALITY IMPACTS ANALYSIS

A new major source of air pollution is required to demonstrate that it will not cause a violation of
the National Ambient Air Quality Standards. Emissions of NOx were analyzed by air dispersion
modeling.

Air dispersion modeling was conducted using the EPA “SCREEN3” model for NOx emissions.
Stack parameters and emission rates were as shown in Section III. The 1-hour impacts of NOx for
each engine were calculated at 43.92 ug/m3 except for SN-01 which was calculated at 71.25-
ug/m3 with the sum of all 9 engines of 423-ug/m3. That sum was first adjusted to annual
concentration using the transform factor of 0.08, then further adjusted using the Ambient Ratio
Method by multiplying by 0.75, the ratio of NO2 to total NOx. Total NO2 was then added to the
background level of 12.6-ug/m3 from the AQD monitoring site at OKC site No. 0415 of 25.43-
ug/m3 (annual). Total NO2 impacts are 37.99-ug/m3. This concentration is in compliance with the
NAAQS limit of 100-ug/m3 (annual average).

SECTION V.       INSIGNIFICANT ACTIVITIES

The insignificant activities identified and justified in the application are duplicated below.
Appropriate record keeping of activities indicated below with “*” is specified in the Specific
Conditions.

1. * Stationary reciprocating engines burning natural gas, gasoline, aircraft fuels, or diesel fuel
   which are either used exclusively for emergency power generation or for peaking power
   service not exceeding 500 hours/year. None identified but may be used in the future.

2. Space heaters, boilers, process heaters, and emergency flares less than or equal to 5
   MMBTU/hr heat input (commercial natural gas). Two 156-MBTUH building heaters are on-
   site and others may be used in the future.

3. Emissions from stationary internal combustion engines rated less than 50-hp output. None
   identified but may be used in the future.

4. * Storage tanks with less than or equal to 10,000 gallons capacity that store volatile organic
   liquids with a true vapor pressure less than or equal to 1.0-psia at maximum storage
   temperature. None identified but may occur in the future.
PERMIT MEMORANDUM NO. 2006-174-C (M-1)                                          DRAFT         10

5. * Emissions from fuel storage/dispensing equipment operated solely for facility-owned
   vehicles if fuel throughput is not more than 2,175 gallons/day, averaged over a 30-day period.
   None identified but may occur in the future.

6. Gasoline and aircraft fuel-handling facilities equipment, and storage tanks except those
   subject to new source performance standards and standards in OAC 252:100-37-15, 39-30,
   39-41, 39-48. None identified at the present time.

7. Emissions from condensate tanks with a design capacity of 400 gallons or less in ozone
   attainment areas.

8. * Emissions from crude oil and condensate-storage tanks with a capacity of less than or equal
   to 420,000 gallons that store crude oil and condensate prior to custody transfer.

9. * Emissions from storage tanks constructed with a capacity less than 39,894 gallons which
   store VOC with a vapor pressure less than 1.5-psia at maximum storage temperature. Tanks
   SN07, SN08, SN09, and SN10 have capacities less than 39,894 gallons and store products
   having a vapor pressure less than 1.5-psia.

10. Cold degreasing operations utilizing solvents that are denser than air. None identified but
    may be used in the future.

11. * Non-commercial water washing operations (less than 2,250 barrels/year) and drum crushing
    operations of empty barrels less than or equal to 55 gallons with less than three percent by
    volume of residual material. None identified at the present time.

12. Hazardous waste and hazardous materials drum staging areas. None identified but may occur
    in the future.

13. Sanitary Sewage collection and treatment facilities other than incinerators and Publicly
    Owned Treatment Works (POTW) Stacks or vents for sanitary sewer plumbing traps are also
    included (i.e. lift stations). None identified but may be used in the future.

14. * Surface coating operations which do not exceed a combined total usage of more than 60
    gallons/month of coatings, thinners, and clean-up solvents at any one emission unit. None
    identified but may be used in the future.

15. Exhaust systems for chemical, paint, and/or solvent storage rooms or cabinets, including
    hazardous waste satellite (accumulation) areas. One chemical, paint, and/or solvent storage
    cabinet was onsite and others may be used in the future.

16. Hand wiping and spraying of solvents from containers with less than 1-liter capacity used for
    spot cleaning and/or degreasing in ozone attainment areas. None identified but may be used
    in the future.
PERMIT MEMORANDUM NO. 2006-174-C (M-1)                                           DRAFT          11

17. * Activities that have the potential to emit no more than 5 TPY (actual) of any criteria
    pollutant. None identified but may have some in the future.

SECTION VI.       OKLAHOMA AIR QUALITY RULES

OAC 252:100-1 (General Provisions)                                                    [Applicable]
Subchapter 1 includes definitions but there are no regulatory requirements.

OAC 252:100-2 (Incorporation by Reference)                  [See Federal Rules for Applicability]
The purpose of this Subchapter is to incorporate by reference applicable provisions of Title 40 of
the Code of Federal Regulations. The provisions of Title 40 of the Code of Federal Regulations
listed in OAC 252:100, Appendix Q are hereby incorporated by reference as they existed on
September 1, 2006.

OAC 252:100-3 (Air Quality Standards and Increments)                              [Applicable]
Subchapter 3 enumerates the primary and secondary ambient air quality standards and the
significant deterioration increments. At this time, all of Oklahoma is in "attainment" of these
standards.

OAC 252:100-5 (Registration, Emissions Inventory and Annual Operating Fees)      [Applicable]
Subchapter 5 requires sources of air contaminants to register with Air Quality, file emission
inventories annually, and pay annual operating fees based upon total annual emissions of
regulated pollutants. Emission inventories were submitted and fees paid for previous years as
required.

OAC 252:100-8 (Permits for Part 70 Sources)                                           [Applicable]
Part 5 includes the general administrative requirements for Part 70 permits. Any planned
changes in the operation of the facility that result in emissions not authorized in the permit and
that exceed the “Insignificant Activities” or “Trivial Activities” thresholds require prior
notification to AQD and may require a permit modification. Insignificant activities refer to those
individual emission units either listed in Appendix I or whose actual calendar year emissions do
not exceed the following limits.

          5 TPY of any one criteria pollutant
          2 TPY of any one hazardous air pollutant (HAP) or 5 TPY of multiple HAPs or 20%
           of any threshold less than 10 TPY for a HAP that the EPA may establish by rule

OAC 252:100-9 (Excess Emissions Reporting Requirements)                               [Applicable]
In the event of any release which results in excess emissions, the owner or operator of such
facility shall notify the Air Quality Division as soon as the owner or operator of the facility has
knowledge of such emissions, but no later than 4:30 p.m. the next working day. Within ten (10)
working days after the immediate notice is given, the owner or operator shall submit a written
report describing the extent of the excess emissions and response actions taken by the facility.
PERMIT MEMORANDUM NO. 2006-174-C (M-1)                                            DRAFT          12

OAC 252:100-13 (Open Burning)                                                     [Applicable]
Open burning of refuse and other combustible material is prohibited except as authorized in the
specific examples and under the conditions listed in this subchapter.

OAC 252:100-19 (Particulate Matter (PM))                                            [Applicable]
Section 19-4 regulates emissions of PM from new and existing fuel-burning equipment, with
emission limits based on maximum design heat input rating. Appendix C specifies a PM
emission limitation of 0.60 lbs/MMBTU for all equipment at this facility with a heat input rating
of 10 Million BTU per hour (MMBTUH) or less. Fuel-burning equipment is defined in OAC
252:100-1 as “combustion devices used to convert fuel or wastes to usable power.” Thus the
engines are subject to the requirements of this subchapter. AP-42 Table 3.2-2 (7/00), lists the
total PM emissions from 4-stroke lean burn natural gas-fired engines to each be 0.01
lbs/MMBTU. SN-01, 02, 03, 04, and 05 are each 4-stroke lean burn. This permit requires the
use of natural gas for all fuel-burning equipment to ensure compliance with Subchapter 19.

OAC 252:100-25 (Visible Emissions and Particulates)                                  [Applicable]
No discharge of greater than 20% opacity is allowed except for short-term occurrences that
consist of not more than one six-minute period in any consecutive 60 minutes, not to exceed
three such periods in any consecutive 24 hours. In no case shall the average of any six-minute
period exceed 60% opacity. When burning natural gas there is very little possibility of exceeding
these standards.

OAC 252:100-29 (Fugitive Dust)                                                         [Applicable]
No person shall cause or permit the discharge of any visible fugitive dust emissions beyond the
property line on which the emissions originate in such a manner as to damage or to interfere with
the use of adjacent properties, or cause air quality standards to be exceeded, or interfere with the
maintenance of air quality standards. Under normal operating conditions, this facility has
negligible potential to violate this requirement; therefore it is not necessary to require specific
precautions to be taken.

OAC 252:100-31 (Sulfur Compounds)                                                     [Applicable]
Part 5 limits sulfur dioxide emissions from new equipment (constructed after July 1, 1972). For
gaseous fuels the limit is 0.2 lbs/million BTU heat input. This is equivalent to approximately
0.2-weight percent sulfur in the fuel gas, which is equivalent to 2,000-ppmw sulfur. Thus, a
limitation of 343-ppmv sulfur in a field gas supply will be in compliance. The permit requires
the use of pipeline-grade natural gas or field gas with a maximum sulfur content of 343-ppmv for
all fuel-burning equipment to ensure compliance with Subchapter 31. Compliance testing of the
fuel sulfur content whenever the gas supplier or gas field is changed will be used to ensure
compliance with this limitation.
Part 5 also limits hydrogen sulfide emissions from new petroleum or natural gas process
equipment (constructed after July 1, 1972). Removal of hydrogen sulfide in the exhaust stream,
or oxidation to sulfur dioxide, is required unless hydrogen sulfide emissions would be less than
0.3 lbs/hr for a two-hour average. The facility has estimated potential facility-wide emissions of
SO2 to be 0.25 TPY (≈0.057 lb/hr). An analysis of inlet gas to this facility showed negligible
(0.94 ppm) hydrogen sulfide content. Based on a capacity of 50 MMSCF/D, the anticipated
maximum emission rate is 0.173 lb/hr which is less than the threshold.
PERMIT MEMORANDUM NO. 2006-174-C (M-1)                                            DRAFT          13

OAC 252:100-33 (Nitrogen Oxides)                                               [Not Applicable]
This subchapter limits new gas-fired fuel-burning equipment with rated heat input greater than or
equal to 50 MMBTUH to emissions of 0.2 lbs of NOx per MMBTU, three-hour average. There
are no equipment items that exceed the 50 MMBTUH threshold.

OAC 252:100-35 (Carbon Monoxide)                                              [Not Applicable]
None of the following affected processes are located at this facility: gray iron cupola, blast
furnace, basic oxygen furnace, petroleum catalytic cracking unit, or petroleum catalytic
reforming unit.

OAC 252:100-37 (Volatile Organic Compounds)                                      [Part 7 Applicable]
Part 3 requires storage tanks constructed after December 28, 1974, with a capacity of 400 gallons
or more and storing a VOC with a vapor pressure greater than 1.5-psia to be equipped with a
permanent submerged fill pipe or with an organic vapor recovery system. The condensate tank
on-site is operated by CEFS and is not considered part of this permit. Also, the tank was built
prior to the effective date of this standard (July 1, 1973) and would not be subject to this
requirement.
Part 3 sets emission controls for loading of volatile organic compounds at facilities that have a
throughput greater than 40,000 gallons/day. The amount of condensate throughput per year, kept
track of by CEFS, is much less than this level and qualifies as an insignificant activity.
Part 5 limits the VOC content of coating used in coating lines or operations. This facility will not
normally conduct coating or painting operations except for routine maintenance of the facility
and equipment, which is exempt.
Part 7 requires fuel-burning equipment to be operated and maintained so as to minimize VOC
emissions. Temperature and available air must be sufficient to provide essentially complete
combustion.
Part 7 requires all rotating pumps or compressors handling VOC to be equipped with mechanical
seals or other equipment of equal efficiency. All reciprocating pumps or compressors handling
VOC are to be equipped with packing glands that are properly installed and maintained in good
working order such that emissions from the drain recovery system are limited to two cubic inches
of VOC in any 15-minute period at standard conditions per pump or compressor.
Part 7 also regulates water separators that receive water containing more than 200 gallons per day
of VOC. There is no effluent water separator at this location.

OAC 252:100-39 (VOC in Nonattainment and Former Nonattainment Areas)            [Not Applicable]
This subchapter imposes additional conditions beyond those of Subchapter 37 on emissions of
organic materials from new and existing facilities in Tulsa and Oklahoma Counties. This facility is
located in Atoka County.

OAC 252:100-42 (Toxic Air Contaminants (TAC))                                      [Applicable]
Any work practice, material substitution, or control equipment required by the Department prior
to June 11, 2004, to control a TAC, shall be retained unless a modification is approved by the
Director. Since no Area of Concern (AOC) has been designated anywhere in the state, there are
no specific requirements for this facility at this time.
PERMIT MEMORANDUM NO. 2006-174-C (M-1)                                              DRAFT          14

OAC 252:100-43 (Testing, Monitoring, and Recordkeeping)                                [Applicable]
This subchapter provides general requirements for testing, monitoring and recordkeeping and
applies to any testing, monitoring or recordkeeping activity conducted at any stationary source.
To determine compliance with emissions limitations or standards, the Air Quality Director may
require the owner or operator of any source in the state of Oklahoma to install, maintain and
operate monitoring equipment or to conduct tests, including stack tests, of the air contaminant
source. All required testing must be conducted by methods approved by the Air Quality Director
and under the direction of qualified personnel. A notice-of-intent to test and a testing protocol
shall be submitted to Air Quality at least 30 days prior to any EPA Reference Method stack tests.
Emissions and other data required to demonstrate compliance with any federal or state emission
limit or standard, or any requirement set forth in a valid permit shall be recorded, maintained, and
submitted as required by this subchapter, an applicable rule, or permit requirement. Data from
any required testing or monitoring not conducted in accordance with the provisions of this
subchapter shall be considered invalid. Nothing shall preclude the use, including the exclusive
use, of any credible evidence or information relevant to whether a source would have been in
compliance with applicable requirements if the appropriate performance or compliance test or
procedure had been performed.

The following Oklahoma Air Pollution Control Rules are not applicable to this facility:

 OAC 252:100-7             Minor Facilities                          not in source category
 OAC 252:100-11            Alternative Emissions Reduction           not eligible
 OAC 252:100-15            Mobile (Motor Vehicle) Sources            not in source category
 OAC 252:100-23            Cotton Gins                               not type of emission unit
 OAC 252:100-24            Feed & Grain Elevators                    not in source category
 OAC 252:100-39            Nonattainment Areas                       not in a subject area
 OAC 252:100-47            Municipal Solid Waste Landfills           not in source category

SECTION VII.        FEDERAL REGULATIONS

PSD, 40 CFR Part 52                                                           [Not Applicable]
Total potential emissions for NOx and CO are each below the level of significance of 250 TPY,
and not one of the 26 specific industries defined as major at 100 TPY.

NSPS, 40 CFR Part 60                                                                  [Not Applicable]
Subparts K, Ka, Kb, VOL Storage Vessels. This subpart regulates hydrocarbon storage tanks
larger than 19,813 gallons capacity for Kb and 40,000 gallons for K and Ka. This subpart is not
applicable since the capacities of the tanks at this facility are less than 19,813 gallons.
Subpart GG, Stationary Gas Turbines. There are none at this facility.
Subpart VV, Equipment Leaks of VOC in the Synthetic Organic Chemical Manufacturing
Industry. The equipment is not in a SOCMI plant.
Subpart KKK, Equipment Leaks of VOC from Onshore Natural Gas Processing Plants. The
facility does not engage in natural gas processing.
Subpart LLL, Onshore Natural Gas Processing: SO2 Emissions. This subpart affects sweetening
units and sweetening units followed by sulfur recovery units and sets standards for each facility
which commences construction or modification after January 20, 1984. “Construction” as
PERMIT MEMORANDUM NO. 2006-174-C (M-1)                                            DRAFT          15

defined in §60.2 means fabrication, erection, or installation of an affected facility. “Sweetening
unit” means a process that separates H2S and CO2 contents from the sour gas stream. Natural gas
is considered “sour” if hydrogen sulfide (H2S) is present in amounts greater than 0.25 grains/100-
scf (4-ppm). §60.640 (b) exempts facilities that have a design capacity less than 2 long tons per
day (LT/D) of hydrogen sulfide (H2S) in the acid gas (expressed as sulfur) from the standards and
other requirements of §§60.642 through 60.646, but requires these facilities to comply with the
recordkeeping requirements of §60.647(c). The inlet gas has a concentration of 0.94-ppm,
therefore the facility is not processing sour gas.
Subpart IIII, Standards of Performance for Stationary Compression Ignition Internal Combustion
Engines, affects stationary compression ignition (CI) internal combustion engines (ICE) based on
power and displacement ratings, depending on date of construction, beginning with those
constructed after July 11, 2005. For the purposes of this subpart, the date that construction
commences is the date the engine is ordered by the owner or operator.
Subpart JJJJ, Stationary Spark Ignition Internal Combustion Engines. This subpart was proposed
in the Federal Register on June 12, 2006. It will affect all new engines and those modified or
reconstructed after June 6, 2006. It will impose categories of standards for NOX, CO, NMHC,
based on engine power rating, lean-burn or rich-burn, fuel type, and manufacture date. A sulfur
limit is proposed for gasoline. All engines were manufactured prior to the applicability date.

NESHAP, 40 CFR Part 61                                                            [Not Applicable]
There are no emissions of any of the regulated pollutants: arsenic, asbestos, benzene, beryllium,
coke oven emissions, mercury, radionuclides or vinyl chloride except for trace amounts of
benzene. Subpart J, Equipment Leaks of Benzene only affects process streams which contain
more than 10% benzene by weight. Analysis of Oklahoma natural gas indicates a maximum
benzene content of less than 1%. Process streams at this facility are below this threshold.

NESHAP, 40 CFR Part 63                                                    [Subpart HH Applicable]
Subpart HH, Oil and Natural Gas Production Facilities. This subpart applies to affected emission
points that are located at facilities which are either major or area sources of HAP and either
process, upgrade, or store hydrocarbons prior to the point of custody transfer or prior to which
the natural gas enters the natural gas transmission and storage source category. For purposes of
this subpart natural gas enters the natural gas transmission and storage source category after the
natural gas processing plant. If no natural gas plant is present, natural gas enters the natural gas
transmission and storage source category after the point of custody transfer. The only affected
units at area sources of HAP emissions are triethylene glycol (TEG) dehydration units. Since the
TEG was constructed/reconstructed on or after July 8, 2005, and is located in an Urban Area plus
offset or Urban Cluster that is not located within an Urban-1 County, it is considered a new
source. The new TEG dehydration unit at this facility is subject to the control requirements for
glycol dehydration unit process vents of § 63.775, the monitoring requirements of § 63.773, and
the recordkeeping and reporting requirements specified in §§ 63.774 and 63.775. All applicable
requirements have been incorporated into the permit.
Subpart HHH, Natural Gas Transmission and Storage Facilities. This subpart applies to each
glycol dehydration unit located at facilities, which are major sources of HAPs. This part of the
facility is not a major source of HAPs as discussed previously in the “Emissions” section.
PERMIT MEMORANDUM NO. 2006-174-C (M-1)                                             DRAFT          16

Subpart ZZZZ, Reciprocating Internal Combustion Engines (RICE). This subpart was
promulgated on June 15, 2004. This subpart affects RICE with a site-rating greater than 500
brake horsepower and which are located at a major source of HAP emissions. The subpart
establishes emission and operating limitations for each affected source. Based on emission
calculations, this facility is a minor source of HAP and is not subject to this subpart.

Changes to this subpart which will affect area sources of HAP were proposed on June 12, 2006.
As proposed, this subpart will set standards for new or reconstructed RICE, located at area
sources, with a maximum engine power greater than 500-hp, constructed or reconstructed after
June 12, 2006, and which are manufactured after July 1, 2007.

CAM, 40 CFR Part 64                                                                 [Applicable]
This part applies to any pollutant-specific emission unit at a major source that is required to
obtain an operating permit, for any application for an initial operating permit submitted after
April 18, 1998, that addresses “large emissions units,” or any application that addresses “large
emissions units” as a significant modification to an operating permit, or for any application for
renewal of an operating permit, if it meets all of the following criteria.

   It is subject to an emission limit or standard for an applicable regulated air pollutant,
   It uses a control device to achieve compliance with the applicable emission limit or standard,
   It has potential emissions, prior to the control device, of the applicable regulated air
    pollutant of 100 TPY or 10/25 TPY of a HAP.

The CAM rule applies to the Waukesha L7042GSI compressor engine (SN-01) only. A CAM
Plan has been submitted.

Chemical Accident Prevention Provisions, 40 CFR Part 68                            [Not Applicable]
The definition of a stationary source does not apply to transportation, including storage incident
to transportation, of any regulated substance or any other extremely hazardous substance under
the provisions of this part. The definition of a stationary source also does not include naturally
occurring hydrocarbon reservoirs. Naturally occurring hydrocarbon mixtures, prior to entry into
a natural gas processing plant or a petroleum refining process unit, including: condensate, crude
oil, field gas, and produced water, are exempt for the purpose of determining whether more than
a threshold quantity of a regulated substance is present at the stationary source. This facility does
not process or store more than the threshold quantity of any regulated substance (Section 112r of
the Clean Air Act 1990 Amendments). More information on this federal program is available on
the web page: www.epa.gov/ceppo.

Stratospheric Ozone Protection, 40 CFR Part 82                       [Subpart A and F Applicable]
These standards require phase out of Class I & II substances, reductions of emissions of Class I
& II substances to the lowest achievable level in all use sectors, and banning use of nonessential
products containing ozone-depleting substances (Subparts A & C); control servicing of motor
vehicle air conditioners (Subpart B); require Federal agencies to adopt procurement regulations
which meet phase out requirements and which maximize the substitution of safe alternatives to
Class I and Class II substances (Subpart D); require warning labels on products made with or
containing Class I or II substances (Subpart E); maximize the use of recycling and recovery upon
PERMIT MEMORANDUM NO. 2006-174-C (M-1)                                           DRAFT          17

disposal (Subpart F); require producers to identify substitutes for ozone-depleting compounds
under the Significant New Alternatives Program (Subpart G); and reduce the emissions of halons
(Subpart H).
Subpart A identifies ozone-depleting substances and divides them into two classes. Class I
controlled substances are divided into seven groups; the chemicals typically used by the
manufacturing industry include carbon tetrachloride (Class I, Group IV) and methyl chloroform
(Class I, Group V). A complete phase-out of production of Class I substances is required by
January 1, 2000 (January 1, 2002, for methyl chloroform). Class II chemicals, which are
hydrochlorofluorocarbons (HCFCs), are generally seen as interim substitutes for Class I CFCs.
Class II substances consist of 33 HCFCs. A complete phase-out of Class II substances,
scheduled in phases starting by 2002, is required by January 1, 2030.
This facility does not utilize any Class I & II substances.

SECTION VIII.        COMPLIANCE

Tier Classification and Public Review

This application has been classified as Tier II.

On November 20, 2006 the applicant submitted a Landowner Affidavit certifying that they are not
seeking a permit for land use or for any operation upon land owned by others without their
knowledge. The affidavit certifies that the applicant owns the real property.

The applicant published the “Notice of Filing a Tier II Application” in The Atoka County Times,
a daily newspaper, in Atoka County, on November 22, 2006. The notice stated that the
application was available for public review at Atoka County Library located at 512 East A Street
in Atoka, OK. The status of all permit applications is also available for review in the Air
Quality section of the DEQ web page at http://www.deq.state.ok.us. A draft of this permit will
also be made available for public review for a period of 30 days as stated in a future newspaper
announcement. This facility is located within 50 miles of the Oklahoma-Texas Border. That state
will be notified of the draft permit.

Fee Paid
Major source construction permit fee of $2,000.

SECTION IX.        SUMMARY

The applicant has demonstrated the ability to comply with the requirements of the applicable Air
Quality rules and regulations. Ambient air quality standards are not threatened at this site. There
are no active Air Quality compliance and enforcement issues concerning this facility. Issuance of
the construction permit is recommended, contingent on public and EPA reviews.
                                                                                                    DRAFT
                                         PERMIT TO CONSTRUCT
                                   AIR POLLUTION CONTROL FACILITY
                                          SPECIFIC CONDITIONS

CenterPoint Energy Field Services, Inc.                                       Permit Number 2006-174-C (M-1)
Wardville Compressor Station

The permittee is authorized to construct in conformity with the specifications submitted to Air
Quality on November 20, 2006, with supplemental information received on numerous subsequent
dates. The Evaluation Memorandum, dated July 20, 2007, explains the derivation of applicable
permit requirements and estimates of emissions; however, it does not contain operating limitations
or permit requirements. Continuing operations under this permit constitutes acceptance of, and
consent to, the conditions contained herein:

1.       Points of emissions and limitations for each point:                           [OAC 252:100-8-6(a)(1)]

     1.      EUG 1: Compressor Engines

                                                          Phase I
                                                               NOx                   CO                 VOC
                              EU
                                                          lb/hr TPY            lb/hr    TPY       lb/hr    TPY
         SN01-1,478-hp Waukesha 7042GSI                    7.82 34.25           7.82    34.25      3.23   14.13
         w/NSCR
         SN02-1,340-hp Caterpillar 35161                   7.09     31.05       6.74   29.50      1.36    5.95
         SN03-1,340-hp Caterpillar 35162                   7.09     31.05       6.74   29.50      1.36    5.95
         SN04-1,340-hp Caterpillar 3516                    5.32     23.29       0.53    2.33      0.38    1.68
         w/oxidation catalyst
     1
         To be equipped with oxidative catalyst upon installation of ENG-8.
     2
         To be equipped with oxidative catalyst upon installation of ENG-5 and/or ENG-6.

                                                          Phase II
                                                                NOx                  CO                 VOC
                              EU
                                                           lb/hr TPY           lb/hr    TPY       lb/hr    TPY
         SN01-1,478-hp Waukesha 7042GSI                     7.82 34.25          7.82    34.25      3.23   14.13
         w/NSCR
         SN02-1,340-hp Caterpillar 3516 1                  7.09     31.05       6.74   29.50      1.36    5.95
         SN03-1,340-hp Caterpillar 3516                    5.32     23.29       0.53    2.33      0.38    1.68
         w/oxidation catalyst
         SN04-1,340-hp Caterpillar 3516                    5.32     23.29       0.53       2.33   0.38    1.68
         w/oxidation catalyst
         SN05-1,340-hp Caterpillar 3516                    5.32     23.29       0.53       2.33   0.38    1.68
         w/oxidation catalyst
         SN06-1,340-hp Caterpillar 3516                    5.32     23.29       0.53       2.33   0.38    1.68
         w/oxidation catalyst
     1
         To be equipped with oxidative catalyst upon installation of ENG-8.
SPECIFIC CONDITIONS 2006-174-C (M-1)                          DRAFT                                   2
                                               Phase III
                                                     NOx                CO                VOC
                       EU
                                                lb/hr TPY         lb/hr    TPY      lb/hr    TPY
     SN01-1,478-hp Waukesha 7042GSI              7.82 34.25        7.82    34.25     3.23   14.13
     w/NSCR
     SN02-1,340-hp Caterpillar 3516              5.32    23.29    0.53      2.33     0.38      1.68
     w/oxidation catalyst
     SN03-1,340-hp Caterpillar 3516              5.32    23.29    0.53      2.33     0.38      1.68
     w/oxidation catalyst
     SN04-1,340-hp Caterpillar 3516              5.32    23.29    0.53      2.33     0.38      1.68
     w/oxidation catalyst
     SN05-1,340-hp Caterpillar 3516              5.32    23.29    0.53      2.33     0.38      1.68
     w/oxidation catalyst
     SN06-1,340-hp Caterpillar 3516              5.32    23.29    0.53      2.33     0.38      1.68
     w/oxidation catalyst
     SN07-1,340-hp Caterpillar 3516              5.32    23.29    0.53      2.33     0.38      1.68
     w/oxidation catalyst
     SN08-1,340-hp Caterpillar 3516              5.32    23.29    0.53      2.33     0.38      1.68
     w/oxidation catalyst
     SN09-1,340-hp Caterpillar 3516              5.32    23.29    0.53      2.33     0.38      1.68
     w/oxidation catalyst

a.    Each rich-burn engine shall be equipped with properly functioning NSCR catalyst controls.
                                                                          [OAC 252:100-8-6(a)(1)]
b.    Each lean-burn engine required to have controls shall be equipped with properly
      functioning oxidation catalyst controls.                            [OAC 252:100-8-6(a)(1)]
c.    Each engine at the facility shall have a permanent, legible, and accessible identification plate
      attached that shows the make, model number, and serial number.              [OAC 252:100-43]
d.    As each engine comes online it becomes subject to performance testing and quarterly
      testing requirements. At least once per calendar quarter, the permittee shall conduct tests of
      NOX and CO emissions from the engine(s) and from each replacement engine/turbine when
      operating under representative conditions for that period. Testing is required for any
      engine/turbine that runs for more than 220 hours during that calendar quarter. A quarterly
      test may be conducted no sooner than 20 calendar days after the most recent test. Testing
      shall be conducted using a portable analyzer in accordance with a protocol meeting the
      requirements of the latest AQD Portable Analyzer Guidance document, or an equivalent
      method approved by Air Quality. When four consecutive quarterly tests show the
      engine/turbine to be in compliance with the emissions limitations shown in the permit, then
      the testing frequency may be reduced to semi-annual testing. A semi-annual test may be
      conducted no sooner than 60 calendar days nor later than 180 calendar days after the most
      recent test. Likewise, when the following two consecutive semi-annual tests show
      compliance, the testing frequency may be reduced to annual testing. An annual test may be
      conducted no sooner than 120 calendar days nor later than 365 calendar days after the most
      recent test. Upon any showing of non-compliance with emissions limitations or testing that
      indicates that emissions are within 10% of the emission limitations, the testing frequency
      shall revert to quarterly. Reduced testing frequency does not apply to engines with catalytic
      converters or oxidation catalyst.                                [OAC 252:100-8-6 (a)(3)(A)]
SPECIFIC CONDITIONS 2006-174-C (M-1)                         DRAFT                                3
e.   When periodic compliance testing shows engine exhaust emissions in excess of the lb/hr
     limits, the permittee shall comply with the provisions of OAC 252:100-9. Requirements of
     OAC 252:100-9 include immediate notification and written notification of Air Quality.
                                                                                  [OAC 252:100-9]
f.   The permittee shall keep operation and maintenance (O&M) records for those engines that
     do not conduct quarterly testing. Such records shall at a minimum include the dates of
     operation, and maintenance, type of work performed, and the increase, if any, in emissions
     as a result.                                                      [OAC 252:100-8-6 (a)(3)(B)]
g.   Replacement (including temporary periods of 6 months or less for maintenance purposes), of
     the internal combustion engines with emissions specified in this permit with engines/turbines
     of lesser or equal emissions of each pollutant (in lbs/hr and TPY) is authorized under the
     following conditions.                                                 [OAC 252:100-8-6(f)(2)]
     i.    The permittee shall notify AQD in writing no later than 7 days in advance of the start-up
           of the replacement engine(s)/turbine(s). Said notice shall identify the engine removed
           and include the date of the change, the new engine(s) make and model, horsepower
           rating, fuel usage, stack flow (ACFM), stack temperature (oF), stack height (feet),
           stack diameter (inches), and pollutant emissions rates (g/hp-hr, lb/hr, and TPY) at
           maximum rated horsepower for the altitude/location.
     ii. Quarterly emissions tests for the replacement engine(s)/turbine(s) shall be conducted to
           confirm continued compliance with NOX and CO emissions limitations. A copy of the
           first quarter testing shall be provided to AQD within 60 days of start-up of each
           replacement or additional engine/turbine.         The test report shall include the
           engine/turbine fuel usage, stack flow (ACFM), stack temperature (oF), stack height
           (feet), stack diameter (inches), and pollutant emissions rates (g/hp-hr, lbs/hr, and TPY)
           at maximum rated horsepower for the altitude/location.
     iii. Replacement equipment and emissions are limited to equipment and emissions that
           are not subject to NSPS, NESHAP, or PSD.

EUG 2:    Tanks

             EU          Point        Contents                   Barrels     Gallons
              Tanks       SN10            Condensate              210        8,820
                          SN11            Condensate              210        8,820
                          SN12            Condensate              210        8,820
             The facility will have other miscellaneous tanks that will qualify as
             insignificant/trivial activities.

                                Storage Tank Emission Limits
                                Units              VOC
                                TPY                12.09

a.   Condensate throughput for the facility shall not exceed 9,855 barrels in any 12-month
     period.
SPECIFIC CONDITIONS 2006-174-C (M-1)                                     DRAFT                          4
EUG-3 and EUG-4: Glycol Dehydrator and Amine Unit. The reboiler burners in this group are
insignificant by virtue of having actual emissions of less than 5 TPY.

The permittee shall comply with all applicable requirements of the National Emission Standards for
Hazardous Air Pollutants (NESHAP) for Oil and Natural Gas Production, Subpart HH, for each
affected dehydration unit including but not limited to the following:
                                                                    [40 CFR 63.760 through 63.775]
      a.   Each owner or operator of an area source located within an UA plus offset and UC
           boundary (as defined in § 63.761) shall comply with the provisions specified in §§
           63.764 (d)(1)(i) through (iii).
           i.    The control requirements for glycol dehydration unit process vents specified in §
                 63.765;
           ii. The monitoring requirements specified in § 63.773; and
           iii. The recordkeeping and reporting requirements specified in §§ 63.774 and
                 63.775.
b.    The inlet gas shall be tested annually to ensure the sulfur concentration is less than 4-ppm.

                                                   NOx                        CO               VOC
                  EU
                                           lb/hr         TPY          lb/hr        TPY   lb/hr     TPY
SN-13 Still Vent                             --           --            --          --     0.35      1.53
SN-17 Amine Unit 1                           --           --            --          --     3.05     13.35
1
    The amine unit shall be operated to reduce CO2 and not as a sweetening unit.

EUG 5: Fugitives. Emissions from the fugitive equipment leaks are based on equipment type,
the number of components and the average emission factors for oil and gas facilities. There are
no emission limits applied to these EU.

                                     Number Items             Type of Equipment
                                         168                        Valves
                                         396                       Flanges
                                          6                       Pump Seal
                                          9                         Other

2.    The fuel-burning equipment shall use pipeline-grade natural gas, or field gas with a
maximum sulfur content of 343-ppmv. Compliance can be shown by the following methods: for
pipeline grade natural gas, a current gas company bill; for other gaseous fuel, a current lab
analysis, stain-tube analysis, gas contract, tariff sheet, or other approved methods. Compliance
shall be demonstrated at least once annually.                                  [OAC 252:100-31]

3. Upon issuance of an operating permit, the permittee shall be authorized to operate the facility
continuously (24 hours per day, every day of the year).                  [OAC 252:100-8-6(a)]

4.    The permittee shall maintain records of operations as listed below. These records shall be
maintained on-site or at a local field office for at least five years after the date of recording and
shall be provided to regulatory personnel upon request.                [OAC 252:100-8-6 (a)(3)(B)]
SPECIFIC CONDITIONS 2006-174-C (M-1)                        DRAFT                                5
     a.    Periodic emission testing for the engines and each replacement engine.
     b.    Operating hours for the engines if less than 220 hours per quarter and not tested.
     c.    O&M records for an engine if not tested in each quarter.
     d.    Records required by NESHAP, Subpart HH.
     e.    Condensate throughput for the facility (monthly and 12-month rolling totals).
     f.    Records required by Specific Condition No. 2.

5. The following records shall be maintained on-site or at a local field office to verify
insignificant activities.                                    [OAC 252:100-8-6(a)(3)(B)]

    a. For stationary reciprocating engines burning natural gas, gasoline, aircraft fuels, or
       diesel fuel which are either used exclusively for emergency power or for peaking
       power service not exceeding 500 hours/year: fuel burned and annual operating
       hours.
    b. For fuel storage/dispensing equipment: fuel throughput averaged over a 30-day
       period.
    c. For storage tanks containing volatile organic liquids with vapor pressures less than
       1.0 psia and having capacities less than 10,000 gallons: records of capacity of the
       tanks, and contents.
    d. The glycol dehydration unit’s average natural gas throughput (monthly).
    e. For storage tanks constructed with a capacity less than 39,894 gallons which store
       VOC with a vapor pressure less than 1.5 psia at maximum storage temperature:
       records of capacity of the tanks, and contents.
    f. For non-commercial water washing and drum crushing operations: amount of water
       collected from washing operations in barrels annually and size of barrels crushed
       and percent contents.
    g. For surface coating operations, which do not exceed a combined total usage of more
       than 60 gallons/month of coatings, thinners, and clean-up solvents at any one
       emission unit: amount of solvent/coatings used per month.
    h. For activities that have the potential to emit less than 5 TPY (actual) of any criteria
       pollutant: the type of activity and the amount of emissions from that activity
       (cumulative annual).
    i. Results of annual testing of inlet gas sulfur concentration.

6.   No later than 30 days after each anniversary date of the issuance of the Title V operating
permit, the permittee shall submit to Air Quality Division of DEQ, with a copy to the US EPA,
Region 6, a certification of compliance with the terms and conditions of this permit.
                                                             [OAC 252:100-8-6 (c)(5)(A) & (D)]

7.    Within 180 days following commencement of operations of each new engine, performance
testing shall be conducted on each new engine.                          [OAC 252:100-43]

8. Within 60 days following completion of construction, the permittee shall submit an
operating permit application along with the performance test results for all applicable emission
units.
Lacey A. Ivey, Environmental Air Specialist
CenterPoint Energy
P.O. Box 21734
Shreveport, LA 71151-0001

Subject: Permit No. 2006-174-C (M-1)
         Wardville Compressor Station
         Atoka County, Oklahoma

Dear Ms. Ivey:

Air Quality Division has completed the initial review of your permit application referenced
above. This application has been determined to be a Tier II. In accordance with 27A O.S. § 2-
14-302 and OAC 252:002-4-7-13(c), the enclosed draft permit is now ready for public review.
The requirements for public review include the following steps that you must accomplish:

1. Publish at least one legal notice (one day) in at least one newspaper of general circulation
within the county where the facility is located. (Instructions enclosed)

2. Provide for public review (for a period of 30 days following the date of the newspaper
announcement) a copy of this draft permit and a copy of the application at a convenient location
within the county of the facility. Your corporate or facility office is not an appropriate location.

3. Send to AQD a copy of the proof of publication notice from Item #1 above together with any
additional comments or requested changes that you may have on the draft permit.

Thank you for your cooperation. If we may be of further service, please contact me at (918) 293-
1613 or by mail at DEQ Regional Office at Tulsa, 3105 East Skelly Drive, Suite 200, Tulsa,
Oklahoma, 74105.

Sincerely,



Donna Lautzenhiser, E.I.
New Source Permits Unit
AIR QUALITY DIVISION

Enclosure
Texas Commission on Environmental Quality
Operating Permits Division (MC 163)
P.O. Box 13087
Austin, TX 78711-3087

Re:    Permit Application No. 2006-174-C (M-1)
       Wardville Compressor Station
       Section 2, T2N, R12E, Atoka County, Oklahoma
       Permit Writer: Donna Lautzenhiser

Dear Sir / Madame:

The subject facility has requested an construction permit at a minor source that will require a
major source operating permit after completion of the project under 40 CFR Part 70. Air
Quality Division has completed the initial review of the application and prepared a draft
permit for public review. Since this facility is within 50 miles of the Oklahoma - Texas
border, a copy of the proposed permit will be provided to you upon request. The draft permit
is also available for review on the Air Quality section of the DEQ web page at
http://www.deq.state.ok.us.

Thank you for your cooperation. If you have any questions, please refer to the permit number
above and contact me or the permit writer at (405) 702-4201.

Sincerely,


Phillip Fielder, P.E.
Permits and Engineering Group Manager
AIR QUALITY DIVISION
                                 PERMIT
                            AIR QUALITY DIVISION
                             STATE OF OKLAHOMA
                    DEPARTMENT OF ENVIRONMENTAL QUALITY
                          707 N. ROBINSON, SUITE 4100
                                  P.O. BOX 1677
                     OKLAHOMA CITY, OKLAHOMA 73101-1677


                        Permit No. 2006-174-C (M-1)

                         CenterPoint Energy Field Services, LP
having complied with the requirements of the law, is hereby granted permission to
construct additional compressor engines at their Wardville Compressor Station located
in Section 2, T2N, R12E near Kiowa, Atoka County, Oklahoma, subject to Standard
Conditions dated December 6, 2006, and Specific Conditions, both attached.


In the absence of construction commencement, this permit shall expire 18 months from
the issuance date, except as authorized under Section B of the Standard Conditions.



___________________________________
Division Director                                                            Date




DEQ Form 100-890                                                    Revised 10/20/2006
             TITLE V (PART 70) PERMIT TO OPERATE / CONSTRUCT
                          STANDARD CONDITIONS
                               (December 6, 2006)


SECTION I.       DUTY TO COMPLY

A. This is a permit to operate / construct this specific facility in accordance with Title V of the
federal Clean Air Act (42 U.S.C. 7401, et seq.) and under the authority of the Oklahoma Clean
Air Act and the rules promulgated there under. [Oklahoma Clean Air Act, 27A O.S. § 2-5-112]

B. The issuing Authority for the permit is the Air Quality Division (AQD) of the Oklahoma
Department of Environmental Quality (DEQ). The permit does not relieve the holder of the
obligation to comply with other applicable federal, state, or local statutes, regulations, rules, or
ordinances.                                      [Oklahoma Clean Air Act, 27A O.S. § 2-5-112]

C. The permittee shall comply with all conditions of this permit. Any permit noncompliance
shall constitute a violation of the Oklahoma Clean Air Act and shall be grounds for enforcement
action, for revocation of the approval to operate under the terms of this permit, or for denial of an
application to renew this permit. All terms and conditions (excluding state-only requirements)
are enforceable by the DEQ, by EPA, and by citizens under section 304 of the Clean Air Act.
This permit is valid for operations only at the specific location listed.
                              [40 CFR §70.6(b), OAC 252:100-8-1.3 and 8-6 (a)(7)(A) and (b)(1)]

D. It shall not be a defense for a permittee in an enforcement action that it would have been
necessary to halt or reduce the permitted activity in order to maintain compliance with the
conditions of the permit.                                        [OAC 252:100-8-6 (a)(7)(B)]

SECTION II.       REPORTING OF DEVIATIONS FROM PERMIT TERMS

A. Any exceedance resulting from emergency conditions and/or posing an imminent and
substantial danger to public health, safety, or the environment shall be reported in accordance
with Section XIV.                                              [OAC 252:100-8-6 (a)(3)(C)(iii)]

B. Deviations that result in emissions exceeding those allowed in this permit shall be reported
consistent with the requirements of OAC 252:100-9, Excess Emission Reporting Requirements.
                                                              [OAC 252:100-8-6 (a)(3)(C)(iv)]

C. Oral notifications (fax is also acceptable) shall be made to the AQD central office as soon as
the owner or operator of the facility has knowledge of such emissions but no later than 4:30 p.m.
the next working day the permittee becomes aware of the exceedance. Within ten (10) working
days after the immediate notice is given, the owner operator shall submit a written report
describing the extent of the excess emissions and response actions taken by the facility. Every
written report submitted under OAC 252:100-8-6 (a)(3)(C)(iii) shall be certified by a responsible
official.                                                        [OAC 252:100-8-6 (a)(3)(C)(iii)]
MAJOR SOURCE STANDARD CONDITIONS                                    December 6, 2006             2


SECTION III.       MONITORING, TESTING, RECORDKEEPING & REPORTING

A. The permittee shall keep records as specified in this permit. Unless a different retention
period or retention conditions are set forth by a specific term in this permit, these records,
including monitoring data and necessary support information, shall be retained on-site or at a
nearby field office for a period of at least five years from the date of the monitoring sample,
measurement, report, or application, and shall be made available for inspection by regulatory
personnel upon request. Support information includes all original strip-chart recordings for
continuous monitoring instrumentation, and copies of all reports required by this permit. Where
appropriate, the permit may specify that records may be maintained in computerized form.
                                    [OAC 252:100-8-6 (a)(3)(B)(ii), 8-6 (c)(1), and 8-6 (c)(2)(B)]

B. Records of required monitoring shall include:
   (1) the date, place and time of sampling or measurement;
   (2) the date or dates analyses were performed;
   (3) the company or entity which performed the analyses;
   (4) the analytical techniques or methods used;
   (5) the results of such analyses; and
   (6) the operating conditions as existing at the time of sampling or measurement.
                                                                  [OAC 252:100-8-6 (a)(3)(B)(i)]

C. No later than 30 days after each six (6) month period, after the date of the issuance of the
original Part 70 operating permit, the permittee shall submit to AQD a report of the results of any
required monitoring. All instances of deviations from permit requirements since the previous
report shall be clearly identified in the report.          [OAC 252:100-8-6 (a)(3)(C)(i) and (ii)]

D. If any testing shows emissions in excess of limitations specified in this permit, the owner or
operator shall comply with the provisions of Section II of these standard conditions.
                                                                  [OAC 252:100-8-6 (a)(3)(C)(iii)]

E. In addition to any monitoring, recordkeeping or reporting requirement specified in this
permit, monitoring and reporting may be required under the provisions of OAC 252:100-43,
Testing, Monitoring, and Recordkeeping, or as required by any provision of the Federal Clean
Air Act or Oklahoma Clean Air Act.

F. Submission of quarterly or semi-annual reports required by any applicable requirement that
are duplicative of the reporting required in the previous paragraph will satisfy the reporting
requirements of the previous paragraph if noted on the submitted report.

G. Every report submitted under OAC 252:100-8-6 and OAC 252:100-43 shall be certified by a
responsible official.                                    [OAC 252:100-8-6 (a)(3)(C)(iv)]

H. Any owner or operator subject to the provisions of NSPS shall maintain records of the
occurrence and duration of any start-up, shutdown, or malfunction in the operation of an affected
facility or any malfunction of the air pollution control equipment.           [40 CFR 60.7 (b)]

DEQ Form 100-890                                                          Revised 10/20/2006
MAJOR SOURCE STANDARD CONDITIONS                                   December 6, 2006             3

I. Any owner or operator subject to the provisions of NSPS shall maintain a file of all
measurements and other information required by the subpart recorded in a permanent file suitable
for inspection. This file shall be retained for at least two years following the date of such
measurements, maintenance, and records.                                      [40 CFR 60.7 (d)]

J. The permittee of a facility that is operating subject to a schedule of compliance shall submit
to the DEQ a progress report at least semi-annually. The progress reports shall contain dates for
achieving the activities, milestones or compliance required in the schedule of compliance and the
dates when such activities, milestones or compliance was achieved. The progress reports shall
also contain an explanation of why any dates in the schedule of compliance were not or will not
be met, and any preventative or corrective measures adopted.            [OAC 252:100-8-6 (c)(4)]

K. All testing must be conducted by methods approved by the Division Director under the
direction of qualified personnel. All tests shall be made and the results calculated in accordance
with standard test procedures. The use of alternative test procedures must be approved by EPA.
When a portable analyzer is used to measure emissions it shall be setup, calibrated, and operated
in accordance with the manufacturer’s instructions and in accordance with a protocol meeting the
requirements of the “AQD Portable Analyzer Guidance” document or an equivalent method
approved by Air Quality. [40 CFR §70.6(a), 40 CFR §51.212(c)(2), 40 CFR § 70.7(d), 40 CFR
§70.7(e)(2), OAC 252:100-8-6 (a)(3)(A)(iv), and OAC 252:100-43]

The reporting of total particulate matter emissions as required in Part 70, PSD, OAC 252:100-19,
and Emission Inventory, shall be conducted in accordance with applicable testing or calculation
procedures, modified to include back-half condensables, for the concentration of particulate
matter less than 10 microns in diameter PM10. NSPS may allow reporting of only particulate
matter emissions caught in the filter (obtained using Reference Method 5). [US EPA Publication
(September 1994). PM10 Emission Inventory Requirements - Final Report. Emission Inventory
Branch: RTP, N.C.]; [Federal Register: Volume 55, Number 74, 4/17/90, pp.14246-14249. 40
CFR Part 51: Preparation, Adoption, and Submittal of State Implementation Plans; Methods for
Measurement of PM10 Emissions from Stationary Sources]; [Letter from Thompson G. Pace,
EPA OAQPS to Sean Fitzsimmons, Iowa DNR, March 31, 1994 (regarding PM10 Condensables)]

L. The permittee shall submit to the AQD a copy of all reports submitted to the EPA as required
by 40 CFR Part 60, 61, and 63, for all equipment constructed or operated under this permit
subject to such standards.                       [OAC 252:100-4-5 and OAC 252:100-41-15]

SECTION IV.        COMPLIANCE CERTIFICATIONS

A. No later than 30 days after each anniversary date of the issuance of the original Part 70
operating permit, the permittee shall submit to the AQD, with a copy to the US EPA, Region 6, a
certification of compliance with the terms and conditions of this permit and of any other
applicable requirements which have become effective since the issuance of this permit. The
compliance certification shall also include such other facts as the permitting authority may
require to determine the compliance status of the source.
                                                    [OAC 252:100-8-6 (c)(5)(A), (C)(v), and (D)]


DEQ Form 100-890                                                         Revised 10/20/2006
MAJOR SOURCE STANDARD CONDITIONS                                    December 6, 2006             4

B. The certification shall describe the operating permit term or condition that is the basis of the
certification; the current compliance status; whether compliance was continuous or intermittent;
the methods used for determining compliance, currently and over the reporting period; and a
statement that the facility will continue to comply with all applicable requirements.
                                                               [OAC 252:100-8-6 (c)(5)(C)(i)-(iv)]

C. Any document required to be submitted in accordance with this permit shall be certified as
being true, accurate, and complete by a responsible official. This certification shall state that,
based on information and belief formed after reasonable inquiry, the statements and information
in the certification are true, accurate, and complete.
                                                [OAC 252:100-8-5 (f) and OAC 252:100-8-6 (c)(1)]

D. Any facility reporting noncompliance shall submit a schedule of compliance for emissions
units or stationary sources that are not in compliance with all applicable requirements. This
schedule shall include a schedule of remedial measures, including an enforceable sequence of
actions with milestones, leading to compliance with any applicable requirements for which the
emissions unit or stationary source is in noncompliance. This compliance schedule shall
resemble and be at least as stringent as that contained in any judicial consent decree or
administrative order to which the emissions unit or stationary source is subject. Any such
schedule of compliance shall be supplemental to, and shall not sanction noncompliance with, the
applicable requirements on which it is based, except that a compliance plan shall not be required
for any noncompliance condition which is corrected within 24 hours of discovery.
                                      [OAC 252:100-8-5 (e)(8)(B) and OAC 252:100-8-6 (c)(3)]

SECTION V.         REQUIREMENTS THAT BECOME APPLICABLE DURING THE
                   PERMIT TERM

The permittee shall comply with any additional requirements that become effective during the
permit term and that are applicable to the facility. Compliance with all new requirements shall
be certified in the next annual certification.                        [OAC 252:100-8-6 (c)(6)]

SECTION VI.        PERMIT SHIELD

A. Compliance with the terms and conditions of this permit (including terms and conditions
established for alternate operating scenarios, emissions trading, and emissions averaging, but
excluding terms and conditions for which the permit shield is expressly prohibited under OAC
252:100-8) shall be deemed compliance with the applicable requirements identified and included
in this permit.                                                      [OAC 252:100-8-6 (d)(1)]

B. Those requirements that are applicable are listed in the Standard Conditions and the Specific
Conditions of this permit. Those requirements that the applicant requested be determined as not
applicable are summarized in the Specific Conditions of this permit. [OAC 252:100-8-6 (d)(2)]




DEQ Form 100-890                                                          Revised 10/20/2006
MAJOR SOURCE STANDARD CONDITIONS                                    December 6, 2006             5


SECTION VII.        ANNUAL EMISSIONS INVENTORY & FEE PAYMENT

The permittee shall file with the AQD an annual emission inventory and shall pay annual fees
based on emissions inventories. The methods used to calculate emissions for inventory purposes
shall be based on the best available information accepted by AQD.
                                        [OAC 252:100-5-2.1, -5-2.2, and OAC 252:100-8-6 (a)(8)]

SECTION VIII.       TERM OF PERMIT

A. Unless specified otherwise, the term of an operating permit shall be five years from the date
of issuance.                                                      [OAC 252:100-8-6 (a)(2)(A)]

B. A source’s right to operate shall terminate upon the expiration of its permit unless a timely
and complete renewal application has been submitted at least 180 days before the date of
expiration.                                                        [OAC 252:100-8-7.1 (d)(1)]

C. A duly issued construction permit or authorization to construct or modify will terminate and
become null and void (unless extended as provided in OAC 252:100-8-1.4(b)) if the construction
is not commenced within 18 months after the date the permit or authorization was issued, or if
work is suspended for more than 18 months after it is commenced.       [OAC 252:100-8-1.4(a)]

D. The recipient of a construction permit shall apply for a permit to operate (or modified
operating permit) within 180 days following the first day of operation. [OAC 252:100-8-4(b)(5)]

SECTION IX.        SEVERABILITY

The provisions of this permit are severable and if any provision of this permit, or the application
of any provision of this permit to any circumstance, is held invalid, the application of such
provision to other circumstances, and the remainder of this permit, shall not be affected thereby.
                                                                        [OAC 252:100-8-6 (a)(6)]

SECTION X.         PROPERTY RIGHTS

A. This permit does not convey any property rights of any sort, or any exclusive privilege.
                                                                    [OAC 252:100-8-6 (a)(7)(D)]

B. This permit shall not be considered in any manner affecting the title of the premises upon
which the equipment is located and does not release the permittee from any liability for damage
to persons or property caused by or resulting from the maintenance or operation of the equipment
for which the permit is issued.                                        [OAC 252:100-8-6 (c)(6)]

SECTION XI.        DUTY TO PROVIDE INFORMATION

A. The permittee shall furnish to the DEQ, upon receipt of a written request and within sixty
(60) days of the request unless the DEQ specifies another time period, any information that the

DEQ Form 100-890                                                          Revised 10/20/2006
MAJOR SOURCE STANDARD CONDITIONS                                       December 6, 2006              6

DEQ may request to determine whether cause exists for modifying, reopening, revoking,
reissuing, terminating the permit or to determine compliance with the permit. Upon request, the
permittee shall also furnish to the DEQ copies of records required to be kept by the permit.
                                                                     [OAC 252:100-8-6 (a)(7)(E)]

B. The permittee may make a claim of confidentiality for any information or records submitted
pursuant to 27A O.S. 2-5-105(18). Confidential information shall be clearly labeled as such and
shall be separable from the main body of the document such as in an attachment.
                                                                   [OAC 252:100-8-6 (a)(7)(E)]

C. Notification to the AQD of the sale or transfer of ownership of this facility is required and
shall be made in writing within 10 days after such date.
                                               [Oklahoma Clean Air Act, 27A O.S. § 2-5-112 (G)]

SECTION XII.       REOPENING, MODIFICATION & REVOCATION

A. The permit may be modified, revoked, reopened and reissued, or terminated for cause.
Except as provided for minor permit modifications, the filing of a request by the permittee for a
permit modification, revocation, reissuance, termination, notification of planned changes, or
anticipated noncompliance does not stay any permit condition.
                                      [OAC 252:100-8-6 (a)(7)(C) and OAC 252:100-8-7.2 (b)]

B. The DEQ will reopen and revise or revoke this permit as necessary to remedy deficiencies in
the following circumstances:             [OAC 252:100-8-7.3 and OAC 252:100-8-7.4(a)(2)]

   (1) Additional requirements under the Clean Air Act become applicable to a major source
       category three or more years prior to the expiration date of this permit. No such
       reopening is required if the effective date of the requirement is later than the expiration
       date of this permit.
   (2) The DEQ or the EPA determines that this permit contains a material mistake or that the
       permit must be revised or revoked to assure compliance with the applicable requirements.
   (3) The DEQ or the EPA determines that inaccurate information was used in establishing the
       emission standards, limitations, or other conditions of this permit. The DEQ may revoke
       and not reissue this permit if it determines that the permittee has submitted false or
       misleading information to the DEQ.

C. If “grandfathered” status is claimed and granted for any equipment covered by this permit, it
shall only apply under the following circumstances:                      [OAC 252:100-5-1.1]

   (1) It only applies to that specific item by serial number or some other permanent
       identification.
   (2) Grandfathered status is lost if the item is significantly modified or if it is relocated outside
       the boundaries of the facility.




DEQ Form 100-890                                                             Revised 10/20/2006
MAJOR SOURCE STANDARD CONDITIONS                                     December 6, 2006              7

D. To make changes other than (1) those described in Section XVIII (Operational Flexibility),
(2) administrative permit amendments, and (3) those not defined as an Insignificant Activity
(Section XVI) or Trivial Activity (Section XVII), the permittee shall notify AQD. Such changes
may require a permit modification.                                      [OAC 252:100-8-7.2 (b)]

E. Activities that will result in air emissions that exceed the trivial/insignificant levels and that
are not specifically approved by this permit are prohibited.              [OAC 252:100-8-6 (c)(6)]

SECTION XIII.        INSPECTION & ENTRY

A. Upon presentation of credentials and other documents as may be required by law, the
permittee shall allow authorized regulatory officials to perform the following (subject to the
permittee's right to seek confidential treatment pursuant to 27A O.S. Supp. 1998, § 2-5-105(18)
for confidential information submitted to or obtained by the DEQ under this section):
                                                                       [OAC 252:100-8-6 (c)(2)]

   (1) enter upon the permittee's premises during reasonable/normal working hours where a
       source is located or emissions-related activity is conducted, or where records must be
       kept under the conditions of the permit;
   (2) have access to and copy, at reasonable times, any records that must be kept under the
       conditions of the permit;
   (3) inspect, at reasonable times and using reasonable safety practices, any facilities,
       equipment (including monitoring and air pollution control equipment), practices, or
       operations regulated or required under the permit; and
   (4) as authorized by the Oklahoma Clean Air Act, sample or monitor at reasonable times
       substances or parameters for the purpose of assuring compliance with the permit.

SECTION XIV.        EMERGENCIES

A. Any emergency and/or exceedance that poses an imminent and substantial danger to public
health, safety, or the environment shall be reported to AQD as soon as is practicable; but under
no circumstance shall notification be more than 24 hours after the exceedance.
                                                             [OAC 252:100-8-6 (a)(3)(C)(iii)(II)]

B. An "emergency" means any situation arising from sudden and reasonably unforeseeable
events beyond the control of the source, including acts of God, which situation requires
immediate corrective action to restore normal operation, and that causes the source to exceed a
technology-based emission limitation under this permit, due to unavoidable increases in
emissions attributable to the emergency.                                    [OAC 252:100-8-2]

C. An emergency shall constitute an affirmative defense to an action brought for noncompliance
with such technology-based emission limitation if the conditions of paragraph D below are met.
                                                                       [OAC 252:100-8-6 (e)(1)]




DEQ Form 100-890                                                           Revised 10/20/2006
MAJOR SOURCE STANDARD CONDITIONS                                     December 6, 2006             8

D. The affirmative defense of emergency shall be demonstrated through properly signed,
contemporaneous operating logs or other relevant evidence that:
                                            [OAC 252:100-8-6 (e)(2), (a)(3)(C)(iii)(I) and (IV)]

   (1) an emergency occurred and the permittee can identify the cause or causes of the
       emergency;
   (2) the permitted facility was at the time being properly operated;
   (3) during the period of the emergency the permittee took all reasonable steps to minimize
       levels of emissions that exceeded the emission standards or other requirements in this
       permit;
   (4) the permittee submitted timely notice of the emergency to AQD, pursuant to the
       applicable regulations (i.e., for emergencies that pose an “imminent and substantial
       danger,” within 24 hours of the time when emission limitations were exceeded due to the
       emergency; 4:30 p.m. the next business day for all other emergency exceedances). See
       OAC 252:100-8-6(a)(3)(C)(iii)(I) and (II). This notice shall contain a description of the
       emergency, the probable cause of the exceedance, any steps taken to mitigate emissions,
       and corrective actions taken; and
   (5) the permittee submitted a follow up written report within 10 working days of first
       becoming aware of the exceedance.

E. In any enforcement proceeding, the permittee seeking to establish the occurrence of an
emergency shall have the burden of proof.                        [OAC 252:100-8-6 (e)(3)]

SECTION XV.        RISK MANAGEMENT PLAN

The permittee, if subject to the provision of Section 112(r) of the Clean Air Act, shall develop
and register with the appropriate agency a risk management plan by June 20, 1999, or the
applicable effective date.                                             [OAC 252:100-8-6 (a)(4)]

SECTION XVI.        INSIGNIFICANT ACTIVITIES

Except as otherwise prohibited or limited by this permit, the permittee is hereby authorized to
operate individual emissions units that are either on the list in Appendix I to OAC Title 252,
Chapter 100, or whose actual calendar year emissions do not exceed any of the limits below.
Any activity to which a State or federal applicable requirement applies is not insignificant even if
it meets the criteria below or is included on the insignificant activities list. [OAC 252:100-8-2]

   (1) 5 tons per year of any one criteria pollutant.
   (2) 2 tons per year for any one hazardous air pollutant (HAP) or 5 tons per year for an
       aggregate of two or more HAP's, or 20 percent of any threshold less than 10 tons per year
       for single HAP that the EPA may establish by rule.




DEQ Form 100-890                                                           Revised 10/20/2006
MAJOR SOURCE STANDARD CONDITIONS                                    December 6, 2006             9


SECTION XVII.        TRIVIAL ACTIVITIES

Except as otherwise prohibited or limited by this permit, the permittee is hereby authorized to
operate any individual or combination of air emissions units that are considered inconsequential
and are on the list in Appendix J. Any activity to which a State or federal applicable requirement
applies is not trivial even if included on the trivial activities list. [OAC 252:100-8-2]

SECTION XVIII.        OPERATIONAL FLEXIBILITY

A. A facility may implement any operating scenario allowed for in its Part 70 permit without the
need for any permit revision or any notification to the DEQ (unless specified otherwise in the
permit). When an operating scenario is changed, the permittee shall record in a log at the facility
the scenario under which it is operating.                 [OAC 252:100-8-6 (a)(10) and (f)(1)]

B. The permittee may make changes within the facility that:

   (1) result in no net emissions increases,
   (2) are not modifications under any provision of Title I of the federal Clean Air Act, and
   (3) do not cause any hourly or annual permitted emission rate of any existing emissions unit
       to be exceeded;

provided that the facility provides the EPA and the DEQ with written notification as required
below in advance of the proposed changes, which shall be a minimum of 7 days, or 24 hours for
emergencies as defined in OAC 252:100-8-6 (e). The permittee, the DEQ, and the EPA shall
attach each such notice to their copy of the permit. For each such change, the written notification
required above shall include a brief description of the change within the permitted facility, the
date on which the change will occur, any change in emissions, and any permit term or condition
that is no longer applicable as a result of the change. The permit shield provided by this permit
does not apply to any change made pursuant to this subsection.          [OAC 252:100-8-6 (f)(2)]

SECTION XIX.        OTHER APPLICABLE & STATE-ONLY REQUIREMENTS

A. The following applicable requirements and state-only requirements apply to the facility
unless elsewhere covered by a more restrictive requirement:

   (1) No person shall cause or permit the discharge of emissions such that National Ambient
       Air Quality Standards (NAAQS) are exceeded on land outside the permitted facility.
                                                                                [OAC 252:100-3]
   (2) Open burning of refuse and other combustible material is prohibited except as authorized
       in the specific examples and under the conditions listed in the Open Burning Subchapter.
                                                                              [OAC 252:100-13]
   (3) No particulate emissions from any fuel-burning equipment with a rated heat input of 10
       MMBTUH or less shall exceed 0.6 lb/MMBTU.                              [OAC 252:100-19]
   (4) For all emissions units not subject to an opacity limit promulgated under 40 CFR, Part 60,
       NSPS, no discharge of greater than 20% opacity is allowed except for short-term

DEQ Form 100-890                                                          Revised 10/20/2006
MAJOR SOURCE STANDARD CONDITIONS                                    December 6, 2006           10

         occurrences which consist of not more than one six-minute period in any consecutive 60
         minutes, not to exceed three such periods in any consecutive 24 hours. In no case shall
         the average of any six-minute period exceed 60% opacity.              [OAC 252:100-25]
   (5)   No visible fugitive dust emissions shall be discharged beyond the property line on which
         the emissions originate in such a manner as to damage or to interfere with the use of
         adjacent properties, or cause air quality standards to be exceeded, or interfere with the
         maintenance of air quality standards.                                 [OAC 252:100-29]
   (6)   No sulfur oxide emissions from new gas-fired fuel-burning equipment shall exceed 0.2
         lb/MMBTU. No existing source shall exceed the listed ambient air standards for sulfur
         dioxide.                                                              [OAC 252:100-31]
   (7)   Volatile Organic Compound (VOC) storage tanks built after December28, 1974, and with
         a capacity of 400 gallons or more storing a liquid with a vapor pressure of 1.5 psia or
         greater under actual conditions shall be equipped with a permanent submerged fill pipe or
         with a vapor-recovery system.                                   [OAC 252:100-37-15(b)]
   (8)   All fuel-burning equipment shall at all times be properly operated and maintained in a
         manner that will minimize emissions of VOCs.                       [OAC 252:100-37-36]

SECTION XX.         STRATOSPHERIC OZONE PROTECTION

A. The permittee shall comply with the following standards for production and consumption of
   ozone-depleting substances.                                        [40 CFR 82, Subpart A]

   1. Persons producing, importing, or placing an order for production or importation of certain
      class I and class II substances, HCFC-22, or HCFC-141b shall be subject to the
      requirements of §82.4.
   2. Producers, importers, exporters, purchasers, and persons who transform or destroy certain
      class I and class II substances, HCFC-22, or HCFC-141b are subject to the recordkeeping
      requirements at §82.13.
   3. Class I substances (listed at Appendix A to Subpart A) include certain CFCs, Halons,
      HBFCs, carbon tetrachloride, trichloroethane (methyl chloroform), and bromomethane
      (Methyl Bromide). Class II substances (listed at Appendix B to Subpart A) include
      HCFCs.

B. If the permittee performs a service on motor (fleet) vehicles when this service involves an
ozone-depleting substance refrigerant (or regulated substitute substance) in the motor vehicle air
conditioner (MVAC), the permittee is subject to all applicable requirements. Note: The term
“motor vehicle” as used in Subpart B does not include a vehicle in which final assembly of the
vehicle has not been completed. The term “MVAC” as used in Subpart B does not include the
air-tight sealed refrigeration system used as refrigerated cargo, or the system used on passenger
buses using HCFC-22 refrigerant.                                           [40 CFR 82, Subpart B]

C. The permittee shall comply with the following standards for recycling and emissions
reduction except as provided for MVACs in Subpart B.             [40 CFR 82, Subpart F]




DEQ Form 100-890                                                          Revised 10/20/2006
MAJOR SOURCE STANDARD CONDITIONS                                  December 6, 2006            11

   (1) Persons opening appliances for maintenance, service, repair, or disposal must comply
       with the required practices pursuant to § 82.156.
   (2) Equipment used during the maintenance, service, repair, or disposal of appliances must
       comply with the standards for recycling and recovery equipment pursuant to § 82.158.
   (3) Persons performing maintenance, service, repair, or disposal of appliances must be
       certified by an approved technician certification program pursuant to § 82.161.
   (4) Persons disposing of small appliances, MVACs, and MVAC-like appliances must comply
       with record-keeping requirements pursuant to § 82.166.
   (5) Persons owning commercial or industrial process refrigeration equipment must comply
       with leak repair requirements pursuant to § 82.158.
   (6) Owners/operators of appliances normally containing 50 or more pounds of refrigerant
       must keep records of refrigerant purchased and added to such appliances pursuant to §
       82.166.

SECTION XXI.       TITLE V APPROVAL LANGUAGE

A. DEQ wishes to reduce the time and work associated with permit review and, wherever it is
not inconsistent with Federal requirements, to provide for incorporation of requirements
established through construction permitting into the Sources’ Title V permit without causing
redundant review. Requirements from construction permits may be incorporated into the Title V
permit through the administrative amendment process set forth in Oklahoma Administrative
Code 252:100-8-7.2(a) only if the following procedures are followed:

   (1)   The construction permit goes out for a 30-day public notice and comment using the
         procedures set forth in 40 Code of Federal Regulations (CFR) § 70.7 (h)(1). This
         public notice shall include notice to the public that this permit is subject to
         Environmental Protection Agency (EPA) review, EPA objection, and petition to EPA,
         as provided by 40 CFR § 70.8; that the requirements of the construction permit will be
         incorporated into the Title V permit through the administrative amendment process;
         that the public will not receive another opportunity to provide comments when the
         requirements are incorporated into the Title V permit; and that EPA review, EPA
         objection, and petitions to EPA will not be available to the public when requirements
         from the construction permit are incorporated into the Title V permit.
   (2)   A copy of the construction permit application is sent to EPA, as provided by 40 CFR §
         70.8(a)(1).
   (3)   A copy of the draft construction permit is sent to any affected State, as provided by 40
         CFR § 70.8(b).
   (4)   A copy of the proposed construction permit is sent to EPA for a 45-day review period
         as provided by 40 CFR § 70.8(a) and (c).
   (5)   The DEQ complies with 40 CFR § 70.8 (c) upon the written receipt within the 45-day
         comment period of any EPA objection to the construction permit. The DEQ shall not
         issue the permit until EPA’s objections are resolved to the satisfaction of EPA.
   (6)   The DEQ complies with 40 CFR § 70.8 (d).
   (7)   A copy of the final construction permit is sent to EPA as provided by 40 CFR § 70.8
         (a).

DEQ Form 100-890                                                        Revised 10/20/2006
MAJOR SOURCE STANDARD CONDITIONS                                 December 6, 2006           12

   (8)  The DEQ shall not issue the proposed construction permit until any affected State and
        EPA have had an opportunity to review the proposed permit, as provided by these
        permit conditions.
   (9) Any requirements of the construction permit may be reopened for cause after
        incorporation into the Title V permit by the administrative amendment process, by DEQ
        as provided in OAC 252:100-8-7.3 (a), (b), and (c), and by EPA as provided in 40 CFR
        § 70.7 (f) and (g).
   (10) The DEQ shall not issue the administrative permit amendment if performance tests fail
        to demonstrate that the source is operating in substantial compliance with all permit
        requirements.

B. To the extent that these conditions are not followed, the Title V permit must go through the
Title V review process.

SECTION XXII.       CREDIBLE EVIDENCE

For the purpose of submitting compliance certifications or establishing whether or not a person
has violated or is in violation of any provision of the Oklahoma implementation plan, nothing
shall preclude the use, including the exclusive use, of any credible evidence or information,
relevant to whether a source would have been in compliance with applicable requirements if the
appropriate performance or compliance test or procedure had been performed.
                                                                          [OAC 252:100-43-6]




DEQ Form 100-890                                                       Revised 10/20/2006

								
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