September 7, 1979
10:00 a.m.
Bakersfield Inn
1101 Union Avenue
Palm Room
Bakersfield, CA
AGENDA
PAGE
79-20-1 Approval of Minutes from May 8, 9, 10, 17, 23, 24, 25, 001
June 27 and 28.
79-20-2 Public Hearing to Consider Amendments to the Rules and 030
Regulations of the Kern County Air Pollution Control
District and Revision of the Kern County Air Quality
Maintenance Plan/Non Attainment Plan.
79-20-3 Public Hearing to Reconsider the Adoption by the Board 146
into the Regulations of the Kern County Air Pollution Control
District on March 23, 1979, of Rule 424, for the Control of
Emissions of Sulfur Compounds from Steam Generators Used in
Oil Field Operations.
79-20-4 Other Business
1. Delegations to the Executive Officer
2. Executive Session
a. Personnel
b. Litigation
ITEM NO.: 79-20-2
Public Hearing to Consider Amendments to the Rules and
Regulations of the Kern County Air Pollution Control District and
Revision of the Kern County Air Quality Maintenance
Plan/Nonattainment Plan
RECOMMENDATION
Adopt Resolution 79-68 thereby amending the Kern County Air
Pollution Control District Rules 210.1, 210.2, 410.3, 410.5, 411,
411.1, 414 and 414.3 as shown in Attachments A through H to the
resolution.
SUMMARY
On March 22 and 23, 1979, the Board held a public hearing to
consider the Kern County Air Quality Maintenance
Plan/Nonattainment Plan. The Board found that the "level 1"
measures proposed in the plan to reduce hydrocarbon emissions
were necessary to attain and maintain the national ambient air
quality standard for ozone by the end of 1982. These measures
are broadly stated in the plan, and the Board had concern,
particularly because of the uncertainty of the emission
inventory, whether the standard for ozone would be achieved by
1982. Therefore, the Board conditioned its acceptance of the
plan upon the District's submitting evidence to demonstrate that
the standard would be achieved by the end of 1982.
The Executive Officer has evaluated the District's submittal and
has found:
1. The estimated emissions of volatile organic compounds from
steam stimulated oil production wells may be overstated in
the plan by a factor of two or more;
2. Emissions from steam stimulated oil wells comprise two
thirds of the total estimated emissions of volatile organic
gases in the District;
3. The District's attainment strategy depends almost entirely
upon reductions in emissions from steam stimulated wells
(79% of total estimated reductions are from control of steam
stimulated wells); and
4. It is doubtful whether the plan will result in the
achievement of the national ambient air quality standard for
ozone by the end of 1982.
The staff, therefore, concludes that reductions of emissions
through the use of all RACMs will be needed in addition to the
control of emissions from steam stimulated wells. To ensure the
maximum reduction in emissions the staff proposes that the Board
amend the District rules as follows:
Rule 210.1 and 210.2 (NSR). Amend the district s rule to:
1) require that replacement source be reviewed, and allow
the applicant to use the emissions from the original source
for the purpose of determining the net emissions increase;
2) require consideration of hydrocarbons, nitrogen oxides,
and sulfur oxides as precursors to particulate matter, and
nitrogen oxides as precursors to photochemical oxidant; 3)
delete the provision which would exempt violations of
standards which occur on private property, and 4) delete the
exemption for air pollution control equipment.
Rule 410.3 (Control of Volatile Organic Compound Emissions
from Degreasing Operations). Rescind the District's rule
and replace with revised model rule so as to delete the
exemption for degreasing operations that use
1,1,1,trichloroethante, methylene chloride, or
trichlorotrifluoroethane.
Rule 410.5 (Cutback Asphalt Paving Materials). Amend the
District's rule to: 1) make the effective date consistent
with the effective date of the model rule; 2) identify the
test procedures to be used; 3) change the definition of
"asphalt" to that in the model rule; 4) specify that the
temperature forecast of less than 50 F which allows the use
of cutback asphalt be used for the immediate vicinity of the
asphalt application; and 5) limit the weight of light
organic compounds in road oils used after January 1, 1982,
to 0.5% instead of 5% and change the boiling point of these
compounds from "less than 540 F" to "less than 500 F."
Rule 411 (Storage of Petroleum distillates or Light Crude
Oil). Amend the District's rule to: 1) delete the exemption
for tanks with shoe seals installed before December 26,
1978, from the gap criteria requirements; 2) delete the
exemption for tanks constructed before December 26, 1978,
from the requirement that roof openings have projections
into the liquid surface; and 3) apply the same definition of
gas tightness that applies to refineries, to all sources.
Rule 411.1 (Steam Drive Wells - Crude Oil Production).
Amend the District's rule to advance the final compliance
date by six months.
Rule 414 (Wastewater Separators). Amend the district's rule
to delete the exemption for separators which recover less
than 201 gallons per day of oil or tar, or which handle
petroleum or coal products with Reid Vapor Pressure of less
than 0.5 pounds per square inch.
Rule 414.3 (Refinery Process Unit Turnaround). Amend the
District's rule to require control of emissions during
purging operation after depressurization.
ITEM NO.: 79-20-3
Public Hearing to Reconsider the Adoption by the Board into the
Regulations of the Kern County Air Pollution Control District on
March 23, 1979, of Rule 424, for the Control of Emissions of
Sulfur Compounds from Steam Generators Used in Oil Field
Operations
On March 23, 1979, the Board adopted Rule 424 (Appendix A) for
the control of sulfur compounds from oil field steam generators
into the regulations of the Kern County Air Pollution Control
District. The rule was to become effective six months from the
date of adoption. Resolution 79-10 (attached), by which the
Board adopted the rule, requires the Executive Officer to notice
a public hearing so that the Board could reconsider its action
prior to the effective date of the rule. The Board, before
adopting Resolution 79-10, indicated its desire not to have the
rule go into effect unless there was some assurance that the
price of crude oil produced using thermal enhancement would be
adequate to cover the cost of necessary pollution controls.
Additionally, the Board authorized the Executive Officer to
rescind the rule upon the adoption of an equally effective rule
by Kern County Air Pollution Control Board within the period of
time before the rule becomes effective, and the Board appointed
Dr. Caretto to meet with the District and industry representatives
to consider such an alternative.
The picture on the price structure of thermally enhanced crude
oil is not clear at the time of writing of this report. In a
speech on July 16, 1979, President Carter indicated that price
controls would be removed on all heavy oil, which would include
thermally enhanced crude oil. It is uncertain as to the extent
such decontrol would apply. Separately, we understand that DOE
will, on August 11, 1979, propose regulations that would allow
the producers of thermally enhanced oil which is produced using
equipment with air pollution controls to receive the upper tier
price instead of the lower tier price, or the decontrolled price
instead of the upper tier price. The lower tier price for heavy
gravity crude is about $4.50 per barrel, the upper tier price is
about $11.00 per barrel and the decontrolled price from $12.00 to
$13.00 per barrel. The staff will update this report at the
August 20 hearing to reflect federal new pricing information. At
that time, we will also summarize the status discussions with the
Kern County District and oil industry representatives.