As with other parts of the country, Indian Country is experiencing rapid growth in oil and gas (O&G) development, and the EPA is currently exploring three approaches to streamlining the imposition of emissions requirements on new and modified O&G sources of air emissions in Indian Country.

One approach the Agency discussed in an advanced notice of proposed rulemaking (ANPR) would involve general permitting under the minor source New Source Review (NSR) program that will apply in Indian Country beginning September 2, 2014.  Other options under consideration are a federal implementation plan (FIP) and permitting by rule.

Uneven playing field

Many areas of Indian Country are located in shale basins with potentially recoverable O&G.  For example, the EPA notes that the Bureau of Land Management has approved the construction of more than 5,000 new wells in the Uinta Basin of Colorado and Utah.

While there are particular concerns about the impact of O&G emissions in some areas of Indian Country because of the scarcity of ambient air monitors, the EPA says it is committed to supporting tribes’ right to self-governance and protecting their inherent sovereignty.  But uncertainties surrounding the regulation of O&G production sources in some areas of Indian Country have resulted in an uneven playing field between Indian Country and surrounding states (i.e., sources in areas with similar air quality are not subject to the same requirements).

While the Indian Country minor NSR program allows the EPA to manage minor source emissions increases in Indian Country, industry and tribal governments have expressed concerns that the EPA regional office reviewing authorities may not be able to keep pace with the volume of O&G-related permit applications the offices may receive, and a lag in permit issuance rates could place sources in Indian Country at a competitive disadvantage compared to similar sources in surrounding state-managed lands.

The EPA points out that approximately 6,400 existing minor source registrations have been received in the EPA Region 8 Office for facilities in the O&G production segment.

Three options

The three regulatory options discussed in the ANPR for new and modified O&G sources in Indian Country are as follows:

• General permit.  A general permit is a type of permit that contains standardized requirements that can apply to one or more sources in a source category.  A general permit may be appropriate because it simplifies the permit issuance process for minor sources so that reviewing authorities can ensure environmental protection without expending resources by developing numerous site-specific permits that include substantially similar permit requirements. The general permit approach was proposed recently for a number of source categories as part of the Indian Country minor NSR program.
• FIP.  As with general permitting, the FIP approach would directly establish general requirements that would need to be met by sources, but it would have the advantage of removing the need for new or modified individual minor sources to obtain permits and also obviate the need for permitting authorities to review permit applications.
• Permit by rule.  A permit by rule is a standard set of requirements that can apply to multiple sources with similar emissions and other characteristics. While similar to a general permit, it differs in that permit-by-rule requirements are promulgated using a rulemaking process (i.e., the requirements are included in the Code of Federal Regulations), rather than by establishing the requirements through a general permit document that undergoes notice and comment.  The permit-by-rule mechanism is simpler than a site-specific permit or a general permit because it further reduces the time permitting authorities must devote to reviewing permit applications and issuing permits. 

Existing sources

In the ANPR, the EPA is also soliciting comments on regulating the significant number of existing O&G sources in Indian Country.  Neither general permitting nor permitting by rule may be applied to existing sources.  However, a FIP for existing O&G sources is a possibility.

“Addressing existing sources through a FIP could be especially useful in areas for which surrounding state requirements apply to existing oil and natural gas sources located on lands that are within a state’s jurisdiction,” says the EPA.

EPA’s ANPR on managing emissions from O&G production in Indian Country was published in the June 5, 2014, FR.