[Federal Register Volume 81, Number 107 (Friday, June 3, 2016)]
[Rules and Regulations]
[Pages 35943-35981]
[FR Doc No: 2016-11969]

Vol. 81

Friday,

No. 107

June 3, 2016

Part III

Environmental Protection Agency

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40 CFR Part 49

Federal Implementation Plan for True Minor Sources in Indian Country in
the Oil and Natural Gas Production and Natural Gas Processing Segments
of the Oil and Natural Gas Sector; Amendments to the Federal Minor New
Source Review Program in Indian Country To Address Requirements for
True Minor Sources in the Oil and Natural Gas Sector; Final Rule

Federal Register / Vol. 81 , No. 107 / Friday, June 3, 2016 / Rules
and Regulations

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 49

[EPA-HQ-OAR-2014-0606; FRL-9946-56-OAR]
RIN 2060-AS27

Federal Implementation Plan for True Minor Sources in Indian
Country in the Oil and Natural Gas Production and Natural Gas
Processing Segments of the Oil and Natural Gas Sector; Amendments to
the Federal Minor New Source Review Program in Indian Country To
Address Requirements for True Minor Sources in the Oil and Natural Gas
Sector

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is finalizing a
federal implementation plan (FIP) that applies to new true minor
sources and minor modifications at existing true minor sources in the
oil and natural gas production and natural gas processing segments of
the oil and natural gas sector that are locating or expanding in Indian
reservations or in other areas of Indian country over which an Indian
tribe, or the EPA, has demonstrated the tribe's jurisdiction. The FIP
satisfies the minor source permitting requirement under the ``Federal
Minor New Source Review (NSR) Program in Indian Country'' (referred to
as the ``Federal Indian Country Minor NSR rule''). For the oil and
natural gas production and natural gas processing segments of the oil
and natural gas sector, the FIP requires compliance with emission
limitations and other requirements from certain federal emission
standards as written at the time of construction or modification for
compression ignition and spark ignition engines; process heaters;
combustion turbines; fuel storage tanks; glycol dehydrators; completion
of hydraulically fractured oil and natural gas wells; reciprocating and
centrifugal compressors (except those located at well sites); pneumatic
controllers; pneumatic pumps; storage vessels; and fugitive emissions
from well sites, compressor stations and natural gas processing plants.
    The EPA is also finalizing several amendments to the Federal Indian
Country Minor NSR rule, including adding new text regarding the purpose
of the program, revising the program overview provision, revising
certain provisions to incorporate compliance with the FIP, revising the
applicability provision to establish that oil and natural gas sources
are required to comply with the FIP unless they either opt to obtain a
source-specific permit or are otherwise required to do so, and revising
the source registration provision for oil and natural gas sources
constructing under this FIP. Also, we are revising the applicability of
the Federal Indian Country Minor NSR rule to comport with a court
decision that addressed the scope of the EPA's jurisdiction to
implement the Federal Indian Country Minor NSR rule in Indian country:
Oklahoma Dept. of Environmental Quality v. EPA, 740 F.3d 185 (D.C. Cir.
2014). This court decision has the same effect on the scope of the
EPA's jurisdiction under the Federal Major New Source Review Program
for Nonattainment Areas in Indian Country and so we are changing the
applicability of the Federal Indian Country Nonattainment Major NSR
rule as well.

DATES: This final rule is effective on August 2, 2016.

ADDRESSES: The EPA has established a docket for this action under
Docket ID No. EPA-HQ-OAR-2014-0606. All documents in the docket are
listed on the http://www.regulations.gov Web site. Although listed in
the index, some information is not publicly available, e.g.,
Confidential Business Information or other information whose disclosure
is restricted by statute. Certain other material, such as copyrighted
material, is not placed on the Internet and will be publicly available
only in hard copy form. Publicly available docket materials are
available electronically through http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Mr. Christopher Stoneman, Outreach and
Information Division, Office of Air Quality Planning and Standards (C-
304-01), Environmental Protection Agency, Research Triangle Park, North
Carolina, 27711, telephone number<PHONE_NUMBER>, facsimile number
(919) 541-0072, email address<EMAIL_ADDRESS>For questions
about the applicability of this action to a particular source, please
contact the appropriate EPA region:
     EPA Region 5 (Illinois, Indiana, Michigan, Minnesota,
Ohio, and Wisconsin)--Ms. Genevieve Damico, Air Permits Section,
Environmental Protection Agency, Region 5, Chicago, Illinois 60604;
telephone number<PHONE_NUMBER>; fax<PHONE_NUMBER>; email address:
<EMAIL_ADDRESS>     EPA Region 6 (Arkansas, Louisiana, New Mexico, Oklahoma,
and Texas)--Ms. Bonnie Braganza, Air Permits Section, Multimedia
Permitting and Planning Division, Environmental Protection Agency
Region 6, Dallas, Texas 75202; telephone number<PHONE_NUMBER>; fax
number<PHONE_NUMBER>; email address<EMAIL_ADDRESS>     EPA Region 8 (Colorado, Montana, North Dakota, South
Dakota, Utah, and Wyoming)--Ms. Claudia Smith, Air Program, Mail Code
8P-AR, Environmental Protection Agency Region 8, Denver, Colorado
80202; telephone number<PHONE_NUMBER>; fax number<PHONE_NUMBER>;
email address<EMAIL_ADDRESS>     EPA Region 9 (Arizona, California, Hawaii, Nevada, and
Pacific Islands)--Ms. Lisa Beckham, Permits Office, Air Division, Air-
3, Environmental Protection Agency Region 9, San Francisco, California
94105; telephone number<PHONE_NUMBER>; fax number<PHONE_NUMBER>;
email address<EMAIL_ADDRESS>     All other EPA regions--The permit reviewer for minor
sources in Indian country for your EPA region. You can find the list of
the EPA permit reviewers at: https://www.epa.gov/tribal-air/tribal-minor-new-source-review. Scroll down to the heading, ``Existing Source
Registration,'' and click on ``Reviewing Authority'' to access
``Environmental Protection Agency's Reviewing Authorities for
Permits.''

SUPPLEMENTARY INFORMATION: The information presented in this preamble
is organized as follows:

I. General Information
    A. What entities are potentially affected by this final action?
    B. Where can I get a copy of this document and other related
information?
II. Summary of Final Oil and Natural Gas FIP
    A. Overview
    B. Eight Federal Rules and Exclusions in FIP
    C. Addressing Threatened and Endangered Species and Historic
Properties
    D. Summary of Final Amendments to the Federal Indian Country
Minor NSR Rule
III. Background
    A. Federal Indian Country Minor NSR Rule
    B. What is a FIP?
    C. Oil and Natural Gas Sector
    D. EPA Actions Affecting Oil and Natural Gas Minor Sources in
Areas Covered by the Federal Indian Country Minor NSR Rule
IV. Summary of Final Action, Comments and Responses
    A. Overview of Changes to the FIP and Federal Indian Country
Minor NSR Rule
    B. Proposed Amendments to the Federal Indian Country Minor NSR
Rule
    C. Implementation-Related Issues
    D. Requirements Relating to Threatened or Endangered Species and
Historic Properties
    E. Rationale for the FIP
    F. The FIP as an Alternative to Source-Specific Permits, General
Permits and Permits by Rule

    G. Synthetic Minor Sources and Minor Modifications at Major
Sources
    H. Nonattainment Areas
    I. How the EPA Selected Equipment Included in the Proposed FIP
    J. Pollutants Included in the Proposed FIP
    K. Exclusion of Existing Sources From the Proposed Oil and
Natural Gas FIP
    L. General Comments (e.g., Administrative, Incorporate by
Reference)
    M. Other Comments
V. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review and
Executive Order 13563: Improving Regulation and Regulatory Review
    B. Paperwork Reduction Act (PRA)
    C. Regulatory Flexibility Act (RFA)
    D. Unfunded Mandates Reform Act (UMRA)
    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination With
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children From
Environmental Health Risks and Safety Risks
    H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution or Use
    I. National Technology Transfer and Advancement Act (NTTAA)
    J. Executive Order 12898: Federal Actions To Address
Environmental Justice in Minority Populations and Low-Income
Populations
    K. Congressional Review Act (CRA)

I. General Information

A. What entities are potentially affected by this final action?

    Entities potentially affected by this action consist of owners/
operators of facilities included in the following source categories
that are located, or planning to locate, in an Indian reservation or in
another area of Indian country (as defined in 18 U.S.C. 1151) over
which an Indian tribe, or the EPA, has demonstrated that the tribe has
jurisdiction where there is no EPA-approved program in place and that
are subject to the requirements of the Federal Indian Country Minor NSR
rule.

           Table 1--Source Categories Affected by This Action
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                                                  Examples of regulated
       Industry category         NAICS Code \a\  entities/description of
                                                    industry category
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Oil and Natural Gas Production/           21111  Exploration for crude
 Operations.                                      petroleum and natural
                                                  gas; drilling,
                                                  completing, and
                                                  equipping wells;
                                                  operation of
                                                  separators, emulsion
                                                  breakers, desilting
                                                  equipment, and field
                                                  gathering lines for
                                                  crude petroleum and
                                                  natural gas; and all
                                                  other activities in
                                                  the preparation of oil
                                                  and natural gas up to
                                                  the point of shipment
                                                  from the producing
                                                  property.
                                                 Production of crude
                                                  petroleum, the mining
                                                  and extraction of oil
                                                  from oil shale and oil
                                                  sands, the production
                                                  of natural gas, sulfur
                                                  recovery from natural
                                                  gas, and the recovery
                                                  of hydrocarbon liquids
                                                  from oil and natural
                                                  gas field gases.
Crude Petroleum and Natural Gas          211111  Exploration,
 Extraction.                                      development and/or the
                                                  production of
                                                  petroleum or natural
                                                  gas from wells in
                                                  which the hydrocarbons
                                                  will initially flow or
                                                  can be produced using
                                                  normal pumping
                                                  techniques or
                                                  production of crude
                                                  petroleum from surface
                                                  shales or tar sands or
                                                  from reservoirs in
                                                  which the hydrocarbons
                                                  are semisolids.
Natural Gas Liquid Extraction..          211112  Recovery of liquid
                                                  hydrocarbons from oil
                                                  and natural gas field
                                                  gases; and sulfur
                                                  recovery from natural
                                                  gas.
Drilling Oil and Natural Gas             213111  Drilling oil and
 Wells.                                           natural gas wells for
                                                  others on a contract
                                                  or fee basis,
                                                  including spudding in,
                                                  drilling in,
                                                  redrilling, and
                                                  directional drilling.
Support Activities for Oil and           213112  Performing support
 Natural Gas Operations.                          activities on a
                                                  contract or fee basis
                                                  for oil and natural
                                                  gas operations (except
                                                  site preparation and
                                                  related construction
                                                  activities) such as
                                                  exploration (except
                                                  geophysical surveying
                                                  and mapping);
                                                  excavating slush pits
                                                  and cellars, well
                                                  surveying; running,
                                                  cutting, and pulling
                                                  casings, tubes, and
                                                  rods; cementing wells,
                                                  shooting wells;
                                                  perforating well
                                                  casings; acidizing and
                                                  chemically treating
                                                  wells; and cleaning
                                                  out, bailing, and
                                                  swabbing wells.
Engines (Spark Ignition and             ** 2211  Provision of electric
 Compression Ignition) for                        power to support oil
 Electric Power Generation.                       and natural gas
                                                  production where
                                                  access to the electric
                                                  grid is unavailable.
------------------------------------------------------------------------
\a\ North American Industry Classification System.

    This list is not intended to be exhaustive, but rather provides a
guide for readers regarding entities likely to be potentially affected
by this action. To determine whether your facility could be affected by
this action, you should examine the applicability criteria in the final
Federal Minor NSR Program in Indian Country (40 Code of Federal
Regulations (CFR) 49.153), as well as the FIP applicability in Sec.
49.101. If you have any questions regarding the applicability of this
action to a particular entity, contact the appropriate person listed in
the FOR FURTHER INFORMATION CONTACT section.

B. Where can I get a copy of this document and other related
information?

    In addition to being available in the docket, an electronic copy of
this final rule will also be available on the World Wide Web. Following
signature by the EPA Administrator, a copy of this final rule will be
posted in the regulations and standards section of our NSR home page
located at http://www.epa.gov/nsr and on the tribal NSR page at https://www.epa.gov/tribal-air/tribal-minor-new-source-review.

II. Summary of Final Oil and Natural Gas FIP

A. Overview

    We are finalizing a FIP to protect air quality in Indian country
due to the impact of new true minor sources \1\ and minor modifications
at existing true minor sources in the oil and natural gas production
and natural gas processing segments of the oil and natural gas sector
that are locating or expanding in an Indian reservation or in another
area

of Indian country over which a tribe, or the EPA, has demonstrated that
the tribe has jurisdiction. The FIP applies to new and modified true
minor sources that are located or expanding in the referenced areas of
Indian country designated as attainment, unclassifiable or attainment/
unclassifiable. It does not apply to new and modified true minor
sources that are located or expanding in referenced areas of Indian
country designated nonattainment. The FIP does not apply to minor
modification of major sources; such sources are required to obtain a
source-specific permit prior to beginning construction starting
September 2, 2014, per the Federal Indian Country Minor NSR rule.
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    \1\ Under Sec.  49.52(d), true minor source means a source, not
including the exempt emissions units and activities listed in Sec.
49.153(c), that emits, or has the potential to emit, regulated NSR
pollutants in amounts that are less than the major source thresholds
in Sec.  49.167 or Sec.  52.21, as applicable, but equal to or
greater than the minor NSR thresholds in Sec.  49.153, without the
need to take an enforceable restriction to reduce its potential to
emit to such levels. That is, a true minor source is a minor source
that is not a synthetic minor source. The potential to emit includes
fugitive emissions, to the extent that they are quantifiable, only
if the source belongs to one of the source categories listed in part
51, appendix S, paragraph II.A.4(iii) or Sec.  52.21(b)(1)(iii), as
applicable.
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    However, in response to comments, we are stating here our intent to
potentially apply this national FIP's requirements as appropriate to
nonattainment areas where the EPA has established a separate, area-
specific FIP. In that separate, area-specific action, we would
propose--and seek comment on--the application of this FIP's
requirements to new and modified true minor sources in those certain
areas designated nonattainment. This possible, future extension of
coverage of this FIP could provide a mechanism for streamlining
permitting in nonattainment areas, protecting air quality and allowing
continued oil and natural gas growth in Indian country.
    This FIP fulfills the EPA's obligation under the Federal Indian
Country Minor NSR rule to issue minor source NSR pre-construction
permits. The FIP provides a streamlined, alternative approach that
fulfills the permitting requirement, while also ensuring air quality
protection through requirements that are unambiguous and legally and
practicably enforceable. The FIP approach is also transparent to the
public; it is clear to the public what requirements will apply. The FIP
reduces burden for sources and the Reviewing Authority and minimizes
potential delays in new construction due to compliance with the minor
NSR permitting obligation. True minor sources in the oil and natural
gas production and natural gas processing segments of the oil and
natural gas sector are required to comply with the FIP instead of
obtaining a source-specific minor source permit, unless a source
chooses to opt out of the FIP and to obtain a source-specific minor NSR
permit instead. In addition, with advance notice the Reviewing
Authority can require a source to obtain a source-specific permit based
on local or reservation-specific air quality concerns where the
emissions from the source could cause or contribute to a National
Ambient Air Quality Standards (NAAQS) or Prevention of Significant
Deterioration (PSD) increment violation. To protect the NAAQS, the
Reviewing Authority can regulate emissions from operations at the minor
source not regulated by the FIP, or can require more stringent emission
limitations for operations at the source than would be required by the
FIP.
    In this FIP, we require owners/operators of oil and natural gas
production facilities and natural gas processing plants to comply with
eight federal standards to reduce emissions of volatile organic
compounds (VOC), nitrogen oxides (NOX), sulfur dioxide
(SO2), particulate matter (PM, PM10,
PM2.5), hydrogen sulfide (H2S), carbon monoxide
(CO) and various sulfur compounds from the following units/processes in
the oil and natural gas production and natural gas processing segments
of the oil and natural gas sector: Compression ignition and spark
ignition engines; process heaters; combustion turbines; fuel storage
tanks; glycol dehydrators; completion of hydraulically fractured oil
and natural gas wells; reciprocating and centrifugal compressors
(except those located at well sites); pneumatic controllers; pneumatic
pumps, and storage vessels; fugitive emissions from well sites;
compressor stations and natural gas processing plants. The oil and
natural gas FIP requires compliance with five NSPS and three national
emission standards for hazardous air pollutants (NESHAP).\2\ These
regulations are listed in Table 2.
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    \2\ Though this FIP only addresses new and modified true minor
sources, it is important to note that NESHAPs not only apply to new
sources but to existing sources as well.
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    The eight regulations and the provisions of each that are included
in the oil and natural gas FIP are discussed in more detail in this
section. The FIP's requirements include emission standards (that
contain emission limitations), monitoring, testing, recordkeeping and
reporting. For purposes of this FIP, true minor sources must comply
with these standards, as they currently exist or as amended in the
future, except for those provisions that we specifically exclude under
the FIP (unless the source opts-out of the FIP and obtains a source-
specific permit or is otherwise required to obtain a source-specific
permit by the Reviewing Authority). This includes the amendments to the
oil and natural gas NSPS that have become part of the final oil and
natural gas NSPS as a result of the 2016 final oil and natural gas
NSPS.\3\ Sources subject to this FIP would be subject to any future
changes to the eight underlying EPA standards only if they undergo a
future minor modification as a true minor sources and would otherwise
be subject to those future changes. To help understand the requirements
of this oil and natural gas FIP, please see the 2016 final oil and
natural gas NSPS and the provisions for each of the eight federal rules
(i.e., five NSPS and three NESHAP) identified in Table 2.\4\ (This FIP
does not change the applicability of the specified standards, nor does
it relieve sources subject to the standards from complying with them,
independently of this FIP.) The excluded provisions are listed below.
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    \3\ ``Oil and Natural Gas Sector: Emission Standards for New,
Reconstructed and Modified Sources,'' U.S. Environmental Protection
Agency, signed May 12, 2016, http://www.epa.gov/airquality/oilandgas/actions.html.
    \4\ The proposed FIP only included six emissions standards; in
response to comments, we are adding two more, bringing the total to
eight. For a discussion of this expansion and the pertinent
comments, see Section IV.I.
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    Also discussed in this section are features of the FIP and
amendments to the Federal Indian Country Minor NSR rule that are
largely necessary to facilitate implementation of the FIP.

           Table 2--Eight Federal Rules Included in the Oil and Natural Gas FIP for Indian Country \5\
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                                                                  Potentially affected
                                                                 sources in the oil and
                                                                 natural gas production
       40 CFR part and subpart             Title of subpart         and natural gas              Location
                                                                 processing segments of
                                                                the oil and natural gas
                                                                         sector
----------------------------------------------------------------------------------------------------------------
40 CFR part 63, subpart DDDDD........  National Emission        Process heaters........  http://www.ecfr.gov/cgi-
                                        Standards for                                     bin/text-
                                        Hazardous Air                                     idx?SID=9f31077f895e9c
                                        Pollutants for Major                              b417f5386519941a47&mc=
                                        Sources: Industrial,                              true&node=sp40.14.63.d
                                        Commercial, and                                   dddd&rgn=div6.
                                        Institutional Boilers
                                        and Process Heaters.
40 CFR part 63, subpart ZZZZ \6\.....  Subpart ZZZZ--National   Reciprocating Internal   http://www.ecfr.gov/cgi-
                                        Emissions Standards      Combustion Engines.      bin/text-
                                        for Hazardous Air                                 idx?c=ecfr;rgn=div6;vi
                                        Pollutants for                                    ew=text;node=%3A14.0.1
                                        Stationary                                        .1.1.1;idno=40;sid=e94
                                        Reciprocating Internal                            dcfde4a04b27290c445a56
                                        Combustion Engines.                               e635e58;cc=ecfr.
40 CFR part 60, subpart IIII.........  Standards of             Compression Ignition     http://www.ecfr.gov/cgi-
                                        Performance for          Internal Combustion      bin/text-
                                        Stationary Compression   Engines.                 idx?SID=9f31077f895e9c
                                        Ignition Internal                                 b417f5386519941a47&mc=
                                        Combustion Engines.                               true&node=sp40.7.60.ii
                                                                                ii&rgn=div6.
40 CFR part 60, subpart JJJJ.........  Standards of             Spark Ignition Internal  http://www.ecfr.gov/cgi-
                                        Performance for          Combustion Engines.      bin/text-
                                        Stationary Spark                                  idx?SID=9f31077f895e9c
                                        Ignition Internal                                 b417f5386519941a47&mc=
                                        Combustion Engines.                               true&node=sp40.7.60.jj
                                                                                jj&rgn=div6.
40 CFR part 60, subpart Kb...........  Standards of             Fuel Storage Tanks.....  http://www.ecfr.gov/cgi-
                                        Performance for                                   bin/text-
                                        Volatile Organic                                  idx?SID=9f31077f895e9c
                                        Liquid Storage Vessels                            b417f5386519941a47&mc=
                                        (Including Petroleum                              true&node=sp40.7.60.k_
                                        Liquid Storage                                    0b&rgn=div6.
                                        Vessels) for Which
                                        Construction,
                                        Reconstruction, or
                                        Modification Commenced
                                        After July 23, 1984.
40 CFR part 60, subpart OOOOa (final)  Standards of             Storage Vessels,         http://www.epa.gov/
                                        Performance for Crude    Pneumatic Controllers,   airquality/oilandgas/
                                        Oil and Natural Gas      Compressors              actions.html.
                                        Facilities for which     (Reciprocating and
                                        Construction,            Centrifugal),
                                        Modification, or         Hydraulically
                                        Reconstruction           Fractured Oil and
                                        Commenced after          Natural Gas Well
                                        September 18, 2015.      Completions, Pneumatic
                                                                 Pumps and Fugitive
                                                                 Emissions from Well
                                                                 Sites and Compressor
                                                                 Stations.
40 CFR part 63, subpart HH...........  National Emission        Glycol Dehydrators.....  http://www.ecfr.gov/cgi-
                                        Standards for                                     bin/text-
                                        Hazardous Air                                     idx?SID=9f31077f895e9c
                                        Pollutants from Oil                               b417f5386519941a47&mc=
                                        and Natural Gas                                   true&node=sp40.11.63.h
                                        Production Facilities.                            h&rgn=div6.
40 CFR part 60, subpart KKKK \7\.....  Standards of             Combustion Turbines....  http://www.ecfr.gov/cgi-
                                        Performance for New                               bin/text-
                                        Stationary Combustion                             idx?SID=4090b6cf5eea5c
                                        Turbines.                                         b67940a80906ff09a2&mc=
                                                                                true&node=sp40.7.60.kk
                                                                                kk&rgn=div6.
----------------------------------------------------------------------------------------------------------------

B. Eight Federal Rules and Exclusions in FIP

    This oil and natural gas FIP requires owners/operators of new and
modified existing true minor sources in the oil and natural gas
production and natural gas processing segments of the oil and natural
gas sector that are located in areas covered by the Federal Indian
Country Minor NSR rule to comply with eight federal rules. One of the
rules this FIP adopts is certain requirements of the final 40 CFR part
60, subpart OOOOa NSPS.\8\ Requirements under the final NSPS, subpart
OOOOa involve standards for oil and natural gas production and natural
gas processing.\9\
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    \5\ Three of the eight rules are NESHAPs. Our basis for
requiring compliance with NESHAPs in this rule that is designed to
fulfill requirements of the Federal Indian Country Minor NSR rule is
to address emissions of criteria pollutants. The requirements from
the NESHAPs are included because they effectively control emissions
of all VOC, not just those that are also HAP. VOC is an NSR-
regulated pollutant of concern in the Federal Indian Country Minor
NSR rule.
    \6\ This regulation was not included in the proposed FIP but is
being added to the final FIP in response to comments.
    \7\ Ibid.
    \8\ Finalized 40 CFR part 60, subpart OOOOa, covers the emission
sources covered under existing 40 CFR part 60, subpart OOOO, as well
as the added coverage of new, reconstructed and modified emission
sources beyond those covered in existing 40 CFR part 60, subpart
OOOO. These additional sources are hydraulically fractured oil well
completions, pneumatic pumps and fugitive emissions from well sites
and compressor stations.
    \9\ This list includes centrifugal compressors, reciprocating
compressors, pneumatic controllers, pneumatic pumps, fugitive
emissions from compressor stations, and storage vessels. It excludes
sources located in the transmission and storage segment because they
are not part of this FIP, which focusses on the oil and natural gas
production and natural gas processing segments of the oil and
natural gas sector.
---------------------------------------------------------------------------

    We are requiring under this FIP that owners/operators of new true
minor sources and modifications of existing true minor sources comply
with all applicable requirements of the eight federal rules listed in
Table 2 above in effect at the time they begin construction, except for
the excluded provisions indicated below. In general, for this FIP, we
are excluding specific provisions of the rules for three reasons: (1)
They are not relevant (e.g., equipment that is not used in this

sector); (2) they would not apply to the oil and natural gas production
and natural gas processing segments of the oil and natural gas sector;
(3) they apply only to equipment manufacturers and not to owners/
operators.
    For purposes of this FIP, owners/operators of true minor sources
(and minor modifications at true minor sources) must comply with all of
the applicable provisions of 40 CFR part 63, subpart DDDDD (NESHAP for
Major Sources: Industrial, Commercial, and Institutional Boilers and
Process Heaters), as written at the time \10\ the owner/operator begins
construction on the new true minor source or on the minor modification
at an existing true minor source.
---------------------------------------------------------------------------

    \10\ ``Written at the time'' for a rule means as currently
written and as may be amended in the future.
---------------------------------------------------------------------------

    For purposes of this FIP, owners/operators of true minor sources
(and minor modifications at true minor sources) must comply with all of
the applicable provisions of 40 CFR part 63, subpart ZZZZ (NESHAP for
Stationary Reciprocating Internal Combustion Engines), as written at
the time the owner/operator begins construction on the new true minor
source or on the minor modification at an existing true minor source.
    For purposes of this FIP, owners/operators of true minor sources
(and minor modifications at true minor sources) must comply with all of
the applicable provisions of 49 CFR part 60, subpart IIII (Standards of
Performance for Stationary Compression Ignition Internal Combustion
Engines), as written at the time the owner/operator begins construction
on the new true minor source or on the minor modification at an
existing true minor source, except for the following: \11\
---------------------------------------------------------------------------

    \11\ In the proposal, we excluded the following provision that
we are now not excluding because area sources that are also true
minor sources may be subject to this rule: Sec.  60.4200(c)--Am I
subject to this subpart? (area sources and exemptions from Title V
permits).
---------------------------------------------------------------------------

     Sec.  60.4200(a)(1)--Am I subject to this subpart?
(applies to manufacturers);
     Sec.  60.4200(b)--Not applicable to a stationary ignition
internal combustion engine being tested at an engine test cell/stand;
     Sec.  60.4201--What emission standards must I meet for
non-emergency engines if I am a stationary compression ignition
internal combustion engine manufacturer?;
     Sec.  60.4202--What emission standards must I meet for
emergency engines if I am a stationary compression ignition internal
combustion engine manufacturer?;
     Sec.  60.4203--How long must my engines meet the emission
standards if I am a manufacturer of stationary compression ignition
internal combustion engines?;
     Sec.  60.4210--What are my compliance requirements if I am
a stationary compression ignition internal combustion engine
manufacturer?; and
     Sec.  60.4215--What requirements must I meet for engines
used in Guam, American Samoa, or the Commonwealth of the Northern
Mariana Islands?.
    For purposes of this FIP, owners/operators of true minor sources
(and minor modifications at true minor sources) must comply with all of
the applicable provisions of 40 CFR part 60, subpart JJJJ (Standards of
Performance for Crude Oil and Natural Gas Facilities for which
Construction, Modification, or Reconstruction Commenced after September
18, 2015), as written at the time the owner/operator begins
construction on the new true minor source or on the minor modification
at an existing true minor source, except for the following:
     Sec.  60.4230(b)--Not applicable to stationary spark
ignition internal combustion engines being tested at an engine test
cell/stand;
     Sec.  60.4230(c)--Exemption for obtaining a Title V permit
for an owner or operator of an area source subject to this part;
     Sec.  60.4231 and Sec.  60.4232--Emission standards for
manufacturers;
     Sec.  60.4238 through Sec.  60.4242--Compliance
Requirements for Manufacturers; and
     Sec.  60.4247--Mobile source provisions that apply to
manufacturers of stationary spark ignition internal combustion engines
or equipment containing such engines.
    For purposes of this FIP, owners/operators of true minor sources
(and minor modifications at true minor sources) must comply with all of
the applicable provisions of 40 CFR part 60, subpart Kb (Standards of
Performance for Volatile Organic Liquid Storage Vessels), as written at
the time the owner/operator begins construction on the new true minor
source or on the minor modification at an existing true minor source,
except for the following:
     Sec.  60.112b(c)--Site-specific standard for Merck & Co.,
Inc.'s Stonewall Plant in Elkton, Virginia; and
     Sec.  60.117b(a) and (b)--Delegation of authority.
    For purposes of this FIP, owners/operators of true minor sources
(and minor modifications at true minor sources) must comply with all of
the applicable provisions of part 60, subpart OOOOa (Standards for New
and Modified Sources in the Oil and Natural Gas Sector), as written at
the time the owner/operator begins construction on the new true minor
source or on the minor modification at an existing true minor source,
except for the following: \12\
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    \12\ In the proposal, we excluded the following provision that
we are now not excluding because we have expanded the scope of this
FIP to include gas processing plants: Sec.  60.5365a(f)(3)--
Equipment exemption at processing plant.
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     Sec.  60.5365a(h)(4)--Existing sources constructed after
August 23, 2011;
     Sec.  60.5370a(c)--Permit exemption;
     Sec.  60.5413a(a)(5)--Exemptions from performance
testing--hazardous waste incinerator;
     Sec.  60.5420a(a)(2)(i)--Advance notification requirements
for well completions; and
     Sec.  60.5420a(a)(2)(ii)--Advance notification
requirements of well completions when subject to state regulation that
requires advance notification.
    For purposes of this FIP, owners/operators of true minor sources
(and minor modifications at true minor sources) must comply with all of
the applicable provisions of 40 CFR part 63, subpart HH (NESHAP from
Oil and Natural Gas Production Facilities), as written at the time the
owner/operator begins construction on the new true minor source or on
the minor modification at an existing true minor source, except for the
following: \13\
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    \13\ In the proposal, we excluded the following provision that
we are now not excluding because we have expanded the scope of this
FIP to include gas processing plants: Sec.  63.760(b)(1)(iii)--
Equipment located at natural gas processing plants. Similarly, for
the same reason, we have also modified the exclusion for Sec.
63.764(c)(2) by removing ``and equipment at natural gas processing
plants, respectively.''
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     Sec.  63.760(a)(2)--Facilities that process, upgrade or
store hydrocarbon liquids;
     Sec.  63.760(b)(1)(ii)--Each storage vessel with the
potential for flash emissions;
     Sec.  63.760(g)--Recordkeeping for major sources that
overlap with other regulations for equipment leaks;
     Sec.  63.764(c)(2)--Requirements for compliance with
standards for storage vessels;
     Sec.  63.766--Storage vessel standards; and
     Sec.  63.769--Equipment leak standards.
    For purposes of this FIP, owners/operators of true minor sources
(and minor modifications at true minor sources) must comply with all of
the applicable provisions of 40 CFR part 60, subpart KKKK (Standards of
Performance for Stationary Combustion

Turbines), as written at the time the owner/operator begins
construction on the new true minor source or on the minor modification
at an existing true minor source.

C. Addressing Threatened and Endangered Species and Historic Properties

    We are requiring that, prior to beginning construction, under Sec.
49.104, new true minor sources and minor modifications at existing true
minor sources document that potential impacts on threatened and
endangered species and historic properties (collectively referred to as
``protected resources'') have been assessed. The section provides two
options for documenting this assessment: (1) Submittal of documentation
to the EPA Regional Office (and to the relevant tribe for the area
where the source is located or locating) that a site-specific
assessment conducted by another federal agency has been completed for
the specific oil and natural gas activity, and that the owner/operator
meets all air quality-related requirements as specified within all
documents/approvals obtained through that assessment (these
requirements are typically implemented and enforced as conditions of an
approved Surface Use Plan of Operations and/or Application for Permit
to Drill); \14\ or (2) submittal of documentation to the EPA Regional
Office (and to the relevant tribe for the area where the source is
located or locating) demonstrating that the source has completed the
screening processes specified by the EPA for consideration of
threatened and endangered species and historic properties and received
a determination from the EPA stating that it has satisfactorily
completed these processes.\15\ (The processes are contained in the
following document: ``Procedures to Address Threatened and Endangered
Species and Historic Properties for the Federal Implementation Plan for
Managing Air Emissions from True Minor Sources in Indian Country in the
Oil and Natural Gas Production and Natural Gas Processing Segments of
the Oil and Natural Gas Sector,'' https://www.epa.gov/tribal-air/tribal-minor-new-source-review.)
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    \14\ This assessment will typically be conducted through the
National Environmental Policy Act process and result in either a
Record of Decision or a Finding of No Significant Impact document.
    \15\ This process of source documentation submittal and the
EPA's confirmation that it has satisfactorily completed the
procedures must occur prior to the source's submittal of its Part 1
Registration Form pursuant to Sec.  49.160(c)(1)(iv).
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D. Summary of Final Amendments to the Federal Indian Country Minor NSR
Rule

    This action finalizes several amendments to the Federal Indian
Country Minor NSR rule.
    First, we are revising Sec.  49.151(b)(1) to add new text regarding
the purpose of the Federal Minor NSR Program in Indian Country. The
revised text indicates that the program satisfies the requirements of
section 110(a)(2)(C) of the Clean Air Act (CAA) by establishing: (1) A
pre-construction permitting program for all new and modified minor
sources (minor sources) and minor modifications at major sources
located in Indian reservations and other areas of Indian country over
which an Indian tribe, or the EPA, has demonstrated that the tribe has
jurisdiction and where there is no EPA-approved program in place, and
(2) a FIP (Sec. Sec.  49.101 to 49.105) for true minor sources in the
oil and natural gas production and natural gas processing segments of
the oil and natural gas sector that are located in such areas of Indian
country.
    Second, we are revising Sec.  49.151(c)(1) (and Sec.  49.166(c)(1))
to comport the applicability of the Federal Indian Country Minor NSR
rule with a court decision that addressed the scope of the EPA's
jurisdiction to implement the Federal Indian Country Minor NSR rule:
Oklahoma Dept. of Environmental Quality v. EPA, 740 F.3d 185 (D.C. Cir.
2014) (hereinafter referred to as ODEQ v. EPA).\16\ We are also noting
in the definition of Indian country in Sec.  49.152(d) (and Sec.
49.167) that the geographic scope of the application of the rule is as
specified in Sec.  49.151(c)(1) (and Sec.  49.166(c)(1)).\17\
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    \16\ In that case, the U.S. Court of Appeals for the District of
Columbia Circuit vacated the Federal Indian Country Minor NSR rule
and Federal Indian Country Nonattainment Major NSR rule with respect
to non-reservation areas of Indian country (i.e., dependent Indian
communities and Indian allotments located outside of reservations)
in the absence of a demonstration of tribal jurisdiction by the EPA
or a tribe.
    \17\ We are also revising Sec.  49.166(c)(1) to comport the
applicability of the Federal Indian Country Nonattainment Major NSR
rule with the ODEQ v. EPA decision. The court decision has the same
effect on the scope of the EPA's jurisdiction under the Federal
Major New Source Review Program for Nonattainment Areas in Indian
Country and so we are changing the applicability of the Federal
Indian Country Nonattainment Major NSR rule as well.
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    Third, we are revising Sec.  49.151(c)(1)(iii)(A) to clarify
requirements for oil and natural gas activities with respect to the
registration deadline that conforms with the permitting deadline in
Sec.  49.151(c)(1)(iii)(B).
    Fourth, we are revising Sec.  49.151(c)(1)(iii)(B) to clarify
requirements for oil and natural gas activities with respect to the
permitting deadline. We are also revising the provision to provide that
true minor oil and natural gas sources can either comply with the FIP
in lieu of obtaining a minor NSR permit or obtain a minor source permit
if the source opts out of the FIP.
    Fifth, we are revising Sec.  49.151(d)(1), (2) and (4) to
incorporate compliance with the FIP. We are revising Sec.  49.151(d)(1)
to indicate that if you begin construction of a new source or
modification that is subject to the Federal Indian Country Minor NSR
Program after the applicable date \18\ without either applying for and
receiving a permit pursuant to the program or complying with the FIP
for the oil and natural gas production and natural gas processing
segments of the oil and natural gas sector, the owner/operator of the
source will be subject to appropriate enforcement action. We are
revising Sec.  49.151(d)(2) to indicate that if you do not construct or
operate your new source or existing source modification in accordance
with the terms of your minor NSR permit or the FIP for the oil and
natural gas production and natural gas processing segments of the oil
and natural gas sector, you will be subject to appropriate enforcement
action. We are revising Sec.  49.151(d)(4) to indicate that issuance of
a permit or compliance with the FIP for the oil and natural gas
production and natural gas processing segments of the oil and natural
gas sector does not relieve the owner/operator of a source of the
responsibility to comply fully with applicable provisions of any EPA-
approved implementation plan or FIP or any other requirements under
applicable law.
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    \18\ This date is September 2, 2014, for all true minor sources,
except oil and natural gas true minor sources, and October 3, 2016,
for oil and natural gas true minor sources.
---------------------------------------------------------------------------

    Sixth, we are amending Sec.  49.152 by adding a definition for
``Startup of production,'' which, to ensure consistency across the
EPA's regulations for the oil and natural gas sector, points directly
to the term as defined under 40 CFR part 60, subpart OOOOa.
    Seventh, we are revising Sec. Sec.  49.153(a)(1)(i)(B) and
(a)(1)(ii)(B) to establish that true minor sources in the oil and
natural gas production and natural gas processing segments of the oil
and natural gas sector are required to comply with the FIP, unless the
owner/operator of a source opts-out or is otherwise required by the EPA
to obtain a minor source permit. Existing Sec.  49.153(a)(1)(i)(B)
requires the owner/

operator of a new source to determine whether the source's potential to
emit (PTE) is equal to or greater than the corresponding minor NSR
threshold. If it is, then the source is subject to the pre-construction
requirements of the Federal Indian Country Minor NSR rule for that
pollutant. The amendment adds a clause to the end of the paragraph
stating that for sources in the oil and natural gas production and
natural gas processing segments of the oil and natural gas sector, if
the PTE for oil and natural gas production sources is equal to or
greater than the corresponding minor NSR threshold, such sources shall
instead comply with the requirements of Sec. Sec.  49.101 to 49.105,
unless the owner/operator of the source opts-out of the FIP pursuant to
Sec.  49.101(b)(2), or is otherwise required by the EPA to obtain a
source-specific minor source permit pursuant to Sec.  49.101(b)(3).
    Existing Sec.  49.153(a)(1)(ii)(B) requires the owner/operator of
modified sources to determine whether the increase in allowable
emissions resulting from the modification would be equal to or greater
than the minor NSR threshold for the pollutant being evaluated. If it
is, then the source is subject to the pre-construction requirements of
the Federal Indian Country Minor NSR rule for that pollutant. The
amendment adds a clause to the end of the paragraph stating that, for
sources in the oil and natural gas production and natural gas
processing segments of the oil and natural gas sector, if the PTE for
such sources is equal to or greater than the corresponding minor NSR
threshold, such sources must instead comply with the requirements of
Sec. Sec.  49.101 to 49.105, unless the owner/operator of the source
opts-out of the FIP pursuant to Sec.  49.101(b)(2) or is otherwise
required by the EPA to obtain a minor source permit pursuant to Sec.
49.101(b)(3).
    Finally, we are revising Sec. Sec.  49.160(c)(1)(ii) and (iii),
adding Sec.  49.160(c)(1)(iv) and revising Sec.  49.160(c)(4). For
Sec.  49.160(c)(1)(ii), we are revising the provision to clarify
requirements for oil and natural gas activities with respect to the
registration deadline that conforms with the permitting deadline in
Sec.  49.151(c)(1)(iii)(B). For Sec.  49.160(c)(1)(iii), we are
revising the language to indicate that if your true minor source is an
oil and natural gas source, and you commence construction or
modification of your source on or after October 3, 2016,\19\ you must
report your source's actual emissions (if available) as part of your
permit application (source-specific permits), unless you are subject to
the FIP. (If you are subject to the FIP, then you must register your
oil and natural gas source pursuant to Sec.  49.160(c)(1)(iv).) For
source-specific oil and natural gas source permittees, your permit
application will be used to fulfill the registration requirements
described in Sec.  49.160(c)(2).
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    \19\ In the proposed FIP action, we had proposed to extend the
registration form from the then applicable date of March 2, 2016, to
October 3, 2016. We have since finalized amendments to extend the
permitting compliance and registration deadlines (``Review of New
Sources and Modifications in Indian Country: Extension of Permitting
and Registration Deadlines for True Minor Sources Engaged in Oil and
Natural Gas Production in Indian Country,'' U.S. Environmental
Protection Agency, 81 FR 9109, February 24, 2016, https://www.gpo.gov/fdsys/pkg/FR-2016-02-24/pdf/2016-03623.pdf).
---------------------------------------------------------------------------

    We are adding Sec.  49.160(c)(1)(iv) to indicate that sources
subject to the FIP must still satisfy the requirement to register under
the Federal Indian Country Minor NSR rule by using the two registration
forms provided by the EPA \20\ rather than a permit application. The
registration form contains the information required in Sec.
49.160(c)(2). Minor sources complying with the FIP for the oil and
natural gas production and natural gas processing segments of the oil
and natural gas sector, must submit the Part 1 Registration Form that
contains the information in Sec.  49.160(c)(2) 30 days prior to
beginning construction. The Part 2 Registration Form must be submitted
within 60 days after the startup of production as defined in Sec.
49.152(d). The source must determine the potential for emissions within
30 days after startup of production. The combination of the Part 1 and
Part 2 Registration Form submittals satisfies the requirements in Sec.
49.160(c)(2). The forms are submitted instead of the application form
otherwise required in Sec.  49.160(c)(1)(iii). After being reviewed by
the permitting authority, completed registration forms will be
available online on the appropriate EPA Regional Office Web site.
---------------------------------------------------------------------------

    \20\ The registration forms are available at: https://www.epa.gov/tribal-air/tribal-minor-new-source-review or from the
EPA Regional Offices.
---------------------------------------------------------------------------

    For Sec.  49.160(c)(4), we are adding language indicating that
submitting a registration form does not relieve a source of the
requirement to comply with the FIP for the oil and natural gas
production and natural gas processing segments of the oil and natural
gas sector if the source or any physical or operational change at the
source would be subject to any minor or major NSR rule.

III. Background

A. Federal Indian Country Minor NSR Rule

1. What is the Federal Indian Country Minor NSR rule?
    On August 21, 2006, the EPA proposed the regulation: ``Review of
New Sources and Modifications in Indian Country'' (commonly referred to
as the Federal Indian Country NSR rule).\21\ Within this proposed
regulation, the EPA proposed to protect air quality in Indian country,
as defined in 18 U.S.C. 1151, by establishing a FIP program to
regulate, among other matters, the modification and construction of
minor stationary sources consistent with the requirements of section
110(a)(2)(c) of the CAA. We refer to this part of the Federal Indian
Country NSR rule as the Federal Indian Country Minor NSR rule. Under
the Federal Indian Country Minor NSR rule, we proposed to fill a
regulatory gap and provide a mechanism for issuing pre-construction
permits for the construction of new minor sources and certain
modifications of major and minor sources in Indian country. We
promulgated final rules on July 1, 2011,\22\ and the FIP became
effective on August 30, 2011.
---------------------------------------------------------------------------

    \21\ ``Review of New Sources and Modifications in Indian
Country,'' U.S. Environmental Protection Agency, 71 FR 48696, August
21, 2006, https://www.gpo.gov/fdsys/pkg/FR-2006-08-21/pdf/06-6926.pdf.
    \22\ ``Review of New Sources and Modifications in Indian
Country,'' U.S. Environmental Protection Agency, 76 FR 38748, July
1, 2011, https://www.gpo.gov/fdsys/pkg/FR-2011-07-01/pdf/2011-14981.pdf.
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    The Federal Indian Country Minor NSR rule applies to new and
modified minor stationary sources and to minor modifications at
existing major stationary sources located in Indian country where there
is no EPA-approved program in place for all new and modified minor
sources (minor sources) and minor modifications at major sources
located in areas covered by the Federal Indian Country Minor NSR rule.
    Tribes can elect to develop and implement their own EPA-approved
program under the Tribal Authority Rule,\23\ but they are not required
to do

so.\24\ In the absence of an approved tribal program, the EPA
implements this program. Alternatively, tribes can take delegation of
the program from the EPA to assist the EPA with administration of the
federal program, including acting as the Reviewing Authority for the
EPA.
---------------------------------------------------------------------------

    \23\ To obtain eligibility to develop and implement an EPA-
approved plan, under the Tribal Authority Rule a tribe must meet
four requirements: (1) Be a federally-recognized tribe, (2) have a
functioning government, (3) have the legal authority and (4) have
the capacity to run the program. For more information go to:
``Indian Tribes: Air Quality Planning and Management,'' U.S.
Environmental Protection Agency, 63 FR 7254, February 12, 1998,
http://www.gpo.gov/fdsys/pkg/FR-1998-02-12/pdf/98-3451.pdf.
    \24\ Under tribal law, tribes may also be able to establish
permit fees under a tribal permitting program, as do most states.
---------------------------------------------------------------------------

    Beginning September 2, 2014, any new stationary sources, other than
true minor sources in the oil and natural gas sector, that will emit,
or will have the potential to emit, a regulated NSR pollutant in
amounts that will be: (a) Equal to or greater than the minor NSR
thresholds established in the Federal Indian Country Minor NSR rule;
and (b) less than the amount that would qualify the source as a major
source or a major modification for purposes of the PSD or nonattainment
major NSR programs, must apply for and obtain a minor NSR permit before
beginning construction of the new source. Likewise, any existing
stationary source (minor or major) must apply for and obtain a minor
NSR permit before beginning construction of a physical or operational
change that will increase the allowable emissions of the stationary
source by more than the specified threshold amounts, if the change does
not otherwise trigger the permitting requirements of the PSD or
nonattainment major NSR program(s).\25\
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    \25\ A source may, however, be subject to certain monitoring,
recordkeeping and reporting (MRR) requirements under the major NSR
programs, if the change has a reasonable possibility of resulting in
a major modification. A source may be subject to both the Federal
Indian Country Minor NSR rule and the reasonable possibility MRR
requirements of the major NSR program(s).
---------------------------------------------------------------------------

    Among other things, the Federal Indian Country Minor NSR rule
created a framework for the EPA to streamline the issuance of pre-
construction permits to true minor sources by using general permits.
2. What is a true minor source and how does it differ from a synthetic
minor source?
    The designation of a source for the FIP applicability is dependent
on the source's PTE. Per Sec.  52.21(b)(4), PTE means the maximum
capacity of a stationary source to emit a pollutant under its physical
and operational design. Any physical or operational limitation on the
capacity of the source to emit a pollutant, including air pollution
control equipment and restrictions on hours of operation or on the type
or amount of material combusted, stored, or processed, shall be treated
as part of its design if the limitation or the effect it would have on
emissions is federally enforceable. Secondary emissions do not count in
determining the potential to emit of a stationary source.
    ``True minor source,'' under the Federal Indian Country Minor NSR
rule means a source that emits, or has the potential to emit, regulated
NSR pollutants in amounts that are less than the major source
thresholds under either the PSD Program at Sec.  52.21, or the Federal
Major NSR Program for Nonattainment Areas in Indian Country at
Sec. Sec.  49.166-49.173, but equal to or greater than the minor NSR
thresholds in Sec.  49.153, without the need to take an enforceable
restriction to reduce its PTE to such levels. A source's PTE includes
fugitive emissions, to the extent that they are quantifiable, only if
the source belongs to one of the 28 source categories listed in part
51, appendix S, paragraph II.A.4(iii) or Sec.  52.21(b)(1)(iii) of 40
CFR, as applicable.
    By contrast, ``synthetic minor source'' means a source that
otherwise has the potential to emit regulated NSR pollutants in amounts
that are at or above those thresholds for major sources, but that has
voluntarily taken a restriction so that its PTE is less than such
amounts. Such restrictions must be enforceable as a legal and practical
matter.
3. What is a general permit?
    A general permit, for purposes of this action, is a permit document
that contains standardized requirements that multiple stationary
sources can use. The Federal Indian Country Minor NSR rule specifies
the process and requirements for using general permits to authorize
construction and modifications at minor sources as a streamlined
permitting approach. The EPA may issue a general permit for categories
of emissions units or stationary sources that are similar in nature,
have substantially similar emissions, and would be subject to the same
or substantially similar permit requirements.\26\ ``Similar in nature''
refers to size, processes, and operating conditions. The purpose of a
general permit is to protect air quality while simplifying the
permitting process for similar minor sources. General permits offer a
cost-effective means of issuing permits and provide a quicker and
simpler mechanism for permitting minor sources than the source-specific
permitting process.
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    \26\ ``Review of New Sources and Modifications in Indian
Country,'' U.S. Environmental Protection Agency, 76 FR 38770, July
1, 2011, https://www.gpo.gov/fdsys/pkg/FR-2011-07-01/pdf/2011-14981.pdf.
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    The final Federal Indian Country Minor NSR rule contemplated
issuance of general permits by the EPA Regional Offices.\27\ While to
date the general permits that we have issued have been national in
scope, we will issue general permits on a different geographic scale as
appropriate.\28\
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    \27\ If a tribe develops an EPA-approved implementation plan,
then under that plan it could also issue its own general permits.
    \28\ We may in the future issue general permits on a smaller
geographic scale for a particular state or region of the country. In
fact, in the first batch of streamlined permits we issued in May
2015, we indicated that EPA Region 9 will be developing a general
permit or permit by rule for areas within California for gasoline
dispensing facilities. In addition, once the EPA issues a general
permit at the national level, Regional Offices serving as Reviewing
Authority do grant coverage under nationally-issued general permits
(as well as any general permits issued by that region for a smaller
geographic area). See ``General Permits and Permits by Rule for the
Federal Minor New Source Review Program in Indian Country for Five
Source Categories,'' U.S. Environmental Protection Agency, 80 FR
25068, May 1, 2015, http://www.gpo.gov/fdsys/pkg/FR-2015-05-01/pdf/FR-2015-05-01-FrontMatter.pdf.
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B. What is a FIP?

    In our proposed rule of September 18, 2015,\29\ we discussed the
concept of a FIP, including our authority to issue FIPs, at great
length. There are no currently approved Tribal Implementation Plans
(TIPs) that require the issuance of pre-construction permits designed
to reduce emissions related to oil and natural gas facilities. As a
result, the Federal Indian Country Minor NSR rule serves this purpose.
We have concluded that the issuance of source-specific permits to
sources in the oil and natural gas production and natural gas
processing segments of the oil and natural gas sector has the potential
to overwhelm the system. We initially considered issuing a general
permit or permit by rule for these sources, but ultimately concluded
that the issuance of a FIP would be a more effective way of addressing
the situation for a few reasons. Both a general permit and a permit by
rule provide a more streamlined approach for authorizing construction
and modification of a source compared to site-specific permitting.
However, a general permit still requires a source to submit an
application and to obtain approval of coverage from the Reviewing
Authority before beginning construction, and would, thus, pose a
resource burden on reviewing authorities associated with processing the
potentially large volume of requests from true minor sources in

the oil and natural sector for coverage. So, from those standpoints a
FIP is preferable to a general permit. In comparing a permit by rule to
a FIP, the EPA prefers the FIP because it provides more certainty for
affected sources than the permit by rule approach and, as discussed
below, does not have any significant disadvantages as compared to the
permit by rule approach.\30\
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    \29\ ``Review of New Sources and Modifications in Indian
Country: Federal Implementation Plan for Managing Air Emissions from
True Minor Sources Engaged in Oil and Natural Gas Production in
Indian Country,'' U.S. Environmental Protection Agency, 81 FR 56554,
September 18, 2015, https://www.gpo.gov/fdsys/pkg/FR-2015-09-18/pdf/2015-21025.pdf.
    \30\ For a further discussion comparing these three options,
see: ``Review of New Sources and Modifications in Indian Country:
Federal Implementation Plan for Managing Air Emissions from True
Minor Sources Engaged in Oil and Natural Gas Production in Indian
Country,'' U.S. Environmental Protection Agency, 81 FR 56554,
September 18, 2015, https://www.gpo.gov/fdsys/pkg/FR-2015-09-18/pdf/2015-21025.pdf.
---------------------------------------------------------------------------

    We believe a FIP is the most appropriate way of implementing the
Federal Indian Country Minor NSR rule in that it protects air quality
while at the same time reducing the impact on the Reviewing Authority
arising from the issuance of source-specific permits for these sources.
(The FIP also reduces the burden on industry and other interested
stakeholders.) Therefore, in this final action, we have determined that
it is necessary or appropriate to exercise our discretionary authority
under sections 301(a) and 301(d)(4) of the CAA and Sec.  49.11(a) to
protect air quality by promulgating a FIP applicable to true minor
sources in the oil and natural gas production and natural gas
processing segments of the oil and natural gas sector in areas covered
by the Federal Indian Country Minor NSR rule where there is no EPA-
approved program in place that contains legally and practicably
enforceable requirements to control and reduce air emissions from such
sources.

C. Oil and Natural Gas Sector

    In our proposed rule of September 18, 2015, we provided background
on the oil and natural gas sector. For a more complete description of
the sector, the reader should consult the Advance Notice of Proposed
Rulemaking (ANPR) we issued in June 2014.\31\
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    \31\ ``Managing Emissions from Oil and Natural Gas Production in
Indian Country,'' U.S. Environmental Protection Agency, 79 FR 32502,
June 5, 2014, http://www.gpo.gov/fdsys/pkg/FR-2014-06-05/pdf/2014-12951.pdf.
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    The oil and natural gas sector includes operations involved in the
extraction and production of oil and natural gas, as well as the
processing, transmission and distribution of natural gas. Specifically
for oil, the sector includes all operations from the well to the point
of custody transfer to an oil transmission pipeline or other means of
transportation to a petroleum refinery. For natural gas, the sector
includes all operations from the well to the final end user. The oil
and natural gas sector can generally be separated into four segments:
(1) Oil and natural gas production; (2) natural gas processing; (3)
natural gas transmission and storage; and (4) natural gas distribution.

D. EPA Actions Affecting Oil and Natural Gas Minor Sources in Areas
Covered by the Federal Indian Country Minor NSR Rule

1. Extension of Permitting Compliance and Registration Deadlines
    On January 14, 2014, the EPA published a proposed rule, ``General
Permits and Permits by Rule for the Federal Minor New Source Review
Program in Indian Country,'' \32\ that included two proposed amendments
that affected true minor sources in the oil and natural gas sector. The
proposed amendments were: (1) The extension of the deadline by which
new true minor sources and minor modifications of existing true minor
sources in the oil and natural gas sector must receive minor NSR
permits prior to commencing construction, from September 2, 2014, to
March 2, 2016; and (2) an adjustment to the deadline by which existing
true minor sources in the oil and natural gas sector must register,
from September 2, 2014, to March 2, 2016. On June 16, 2014, the EPA
finalized those amendments as proposed.\33\ On September 18, 2015, the
EPA proposed to extend these dates further to October 3, 2016.\34\
---------------------------------------------------------------------------

    \32\ ``General Permits and Permits by Rule for the Federal Minor
New Source Review Program in Indian Country,'' U.S. Environmental
Protection Agency, 79 FR 2546, January 14, 2014, http://www.gpo.gov/fdsys/pkg/FR-2014-01-14/pdf/2013-30345.pdf.
    \33\ For more information, see: ``Review of New Sources and
Modifications in Indian Country Amendments to the Registration and
Permitting Deadlines for True Minor Sources,'' U.S. Environmental
Protection Agency, 79 FR 34231, June 16, 2014, http://www.gpo.gov/fdsys/pkg/FR-2014-06-16/pdf/2014-14030.pdf.
    \34\ ``Review of New Sources and Modifications in Indian
Country: Federal Implementation Plan for Managing Air Emissions from
True Minor Sources Engaged in Oil and Natural Gas Production in
Indian Country,'' U.S. Environmental Protection Agency, 81 FR 56554,
September 18, 2015, https://www.gpo.gov/fdsys/pkg/FR-2015-09-18/pdf/2015-21025.pdf.
---------------------------------------------------------------------------

    On February 24, 2016,\35\ we finalized three amendments to the
Federal Indian Country Minor NSR rule that we had proposed at the same
time as the FIP and the other amendments we are finalizing in this
action. The amendments are:
---------------------------------------------------------------------------

    \35\ As noted above, we have already finalized amendments to
extend the permitting compliance and registration deadlines
(``Review of New Sources and Modifications in Indian Country:
Extension of Permitting and Registration Deadlines for True Minor
Sources Engaged in Oil and Natural Gas Production in Indian
Country,'' U.S. Environmental Protection Agency, 81 FR 9109,
February 24, 2016, https://www.gpo.gov/fdsys/pkg/FR-2016-02-24/pdf/2016-03623.pdf).
---------------------------------------------------------------------------

    First, we revised the deadline under Sec.  49.151(c)(1)(iii)(B) by
which new and modified true minor sources in the oil and natural gas
production and natural gas processing segments of the oil and natural
gas sector that are located in (or planning to locate in) reservation
areas of Indian country or other areas of Indian country for which
tribal jurisdiction has been demonstrated, must obtain a minor NSR
permit prior to beginning construction. We extended the deadline from
March 2, 2016, to October 3, 2016, for all true minor sources (both new
and modified true minor sources) \36\ within the oil and natural gas
sector located in Indian country.
---------------------------------------------------------------------------

    \36\ The preamble in the February 24, 2016 Federal Register
notice mistakenly indicates that the extension also applies to minor
modifications at major oil and natural gas sources; this was an
error. The rule language itself correctly indicates that the
extension applies to only new and modified true minor oil and
natural gas sources.
---------------------------------------------------------------------------

    Second, we revised Sec.  49.151(c)(1)(iii)(A) to conform the
registration deadline to the extended permitting deadline in Sec.
49.151(c)(1)(iii)(B).
    Finally, we revised Sec.  49.160(c)(1)(ii) to conform the
registration deadline to the extended permitting deadline in Sec.
49.151(c)(1)(iii)(B).
2. Advance Notice of Proposed Rulemaking
    On June 5, 2014, the EPA published an advance notice of proposed
rulemaking (ANPR).\37\ The purpose of the ANPR was to solicit broad
feedback on the most effective and efficient means of implementing the
Federal Minor NSR Program in Indian Country for sources in the
production segment of the oil and natural gas sector. In it, we
discussed alternatives to source-specific permits for new and modified
minor sources engaged in oil and natural gas production activities. The
EPA requested comments on the alternative approaches and other aspects
of managing air emissions from oil and natural gas sources in areas
covered by the Federal Indian Country Minor NSR rule.
---------------------------------------------------------------------------

    \37\ For more information, see: ``Managing Emissions from Oil
and Natural Gas Production in Indian Country,'' U.S. Environmental
Protection Agency, 79 FR 32502, June 5, 2014, http://www.gpo.gov/fdsys/pkg/FR-2014-06-05/pdf/2014-12951.pdf.

---------------------------------------------------------------------------

3. Proposed FIP and Associated Amendments
    On September 18, 2015, the EPA proposed a FIP \38\ that would apply
to new true minor sources and minor modifications at existing true
minor sources in the production segment of the oil and natural gas
sector that are locating or expanding areas covered by the Federal
Indian Country Minor NSR rule. We said that the FIP would satisfy the
minor source permitting requirement under the Federal Indian Country
Minor NSR rule. The proposed FIP proposed to require compliance with
emission limitations and other requirements from six federal emission
standards as written at the time of construction or modification for
compression ignition and spark ignition engines, compressors
(reciprocating and centrifugal), fuel storage tanks, fugitive emissions
from well sites and compressor stations, glycol dehydrators,
hydraulically fractured oil and natural gas well completions, pneumatic
controllers in production, pneumatic pumps, process heaters and storage
vessels.
---------------------------------------------------------------------------

    \38\ ``Review of New Sources and Modifications in Indian
Country: Federal Implementation Plan for Managing Air Emissions from
True Minor Sources Engaged in Oil and Natural Gas Production in
Indian Country,'' U.S. Environmental Protection Agency, 81 FR 56554,
September 18, 2015, https://www.gpo.gov/fdsys/pkg/FR-2015-09-18/pdf/2015-21025.pdf.
---------------------------------------------------------------------------

    The EPA also proposed several amendments to the Federal Indian
Country Minor NSR rule, including adding new text regarding the purpose
of the program, revising the program overview provision, establishing a
compliance deadline of October 3, 2016 for all true minor sources (both
new and modified true minor sources) within the oil and natural gas
sector, revising certain provisions to incorporate compliance with the
FIP, revising the applicability provision to establish that sources are
required to comply with the FIP unless they opt to obtain a source-
specific permit or are otherwise required to obtain a source-specific
permit, and revising the source registration provision. Also, we
proposed to revise the definition of Indian country for purposes of the
rule to comport with a court decision that addressed the scope of the
EPA's jurisdiction to implement the Federal Indian Country Minor NSR
rule: ODEQ v. EPA. This court decision also affects the scope of the
EPA's jurisdiction under the Federal Nonattainment Major NSR Program in
Indian Country so we proposed changing the definition under the Federal
Indian Country Nonattainment Major NSR rule as well.
4. Other Oil and Natural Gas Actions
    On September 18, 2015, the EPA proposed updates to the NSPS for the
oil and natural gas sector.\39\ The proposed FIP would adopt the
standards from six federal rules, including the oil and natural gas
NSPS. Changes to these rules would affect requirements in the FIP
because the proposed FIP would adopt all or parts of these six federal
emission standards, including future amendments. In addition, on
September 18, 2015, the EPA proposed an oil and natural gas source
determination rule.\40\ This action is also connected to this FIP as it
would affect how oil and natural gas sources are defined for the
purpose of major/minor source determinations.
---------------------------------------------------------------------------

    \39\ ``Oil and Natural Gas Sector: Emission Standards for New
and Modified Sources,'' U.S. Environmental Protection Agency, 80 FR
56593, September 18, 2015, https://www.gpo.gov/fdsys/pkg/FR-2015-09-18/pdf/2015-21023.pdf.
    \40\ ``Source Determination for Certain Emission Units in the
Oil and Natural Gas Sector,'' U.S. Environmental Protection Agency,
80 FR 56579, September 18, 2015, https://www.gpo.gov/fdsys/pkg/FR-2015-09-18/pdf/2015-21026.pdf.
---------------------------------------------------------------------------

IV. Summary of Final Action, Comments and Responses

A. Overview of Changes to the FIP and Federal Indian Country Minor NSR
Rule

    The purpose of this section is to provide an overview of key
aspects of our September 2015 proposed rule, our final action, and
relevant comments and our responses. The EPA received numerous
thoughtful and helpful comments on the proposal. After careful
consideration of this input, we are finalizing the FIP with some
changes. Overall, here are what we consider to be the most significant
changes we are making in this final rule. These changes are discussed
in greater detail below (except as noted):
    (1) Amending the Federal Indian Country Minor NSR rule in several
ways, including:
    a. Amending Sec. Sec.  49.152 and 49.160 of the Federal Indian
Country Minor NSR rule to provide for a two-part source registration
process, including adding a definition to Sec.  49.152(d) for ``Startup
of production'' that was not proposed but which is necessary to
accommodate the modified registration process;
    b. Amending Sec. Sec.  49.151 and 49.160 of the Federal Indian
Country Minor NSR rule to clarify how these provisions relate to the
FIP, including adjusting references to the oil and natural gas sector
so that the provisions being amended function properly with respect to
that sector and the final FIP and to reflect the expanded source scope
of the final FIP;
    c. Amending Sec. Sec.  49.151 and 49.152 (and Sec. Sec.  49.166 and
49.167) to update the applicability of the Federal Indian Country Minor
NSR rule (and Federal Indian Country Nonattainment Major NSR rule) to
comport with a court decision that addressed the scope of the EPA's
jurisdiction to implement the Federal Indian Country Minor NSR rule:
ODEQ v. EPA; and
    d. Amending Sec.  49.160 to clarify that, after October 3, 2016,
sources engaged in oil and natural gas activity not subject to the FIP
will use their source-specific permit applications for registration
(instead of a registration form);
    (2) Modifying the draft source registration form that we provided
for comment at proposal to:
    a. Provide for a two-part source registration process, including
making clear that the Part 1 Registration Form is due 30 days prior to
beginning construction and that the Part 2 Registration Form is due
within 60 days after the startup of production (as defined in Sec.
49.152(d)); \41\
---------------------------------------------------------------------------

    \41\ We also make it clear in the Part 2 Registration Form that
sources must determine their potential emissions within 30 days
after startup of production.
---------------------------------------------------------------------------

    b. Clarify what emissions-related information is required for
submittal as part of the Part 2 Form registration process;
    c. Clarify that fuel usage and production rates should be provided
on an annual basis;
    d. Removed the request for emissions and other information for
hazardous air pollutants, which are not regulated by the Federal Indian
Country Minor NSR rule;
    e. Provide a Confidential Business Information disclaimer;
    f. Clarify how sources should provide documentation that they are
meeting the threatened and endangered species and historic properties
criteria under Sec.  49.104 along with the registration form; and
    g. Condense and reorganize the request for emissions information to
make it clearer to the source;
    (3) Providing guidance that we intend to potentially apply this
national FIP's requirements as appropriate to nonattainment areas where
the EPA has established a separate, area-specific FIP;
    (4) Changing the FIP as proposed in several areas:
    a. Modifying Sec.  49.101 to change ``oil and natural gas
production facility'' to ``oil and natural gas source'' and also
clearly linking the modified wording to the reworded definition of oil
and natural gas source in Sec.  49.102;

    b. Replacing the definition of oil and natural gas production
facility in Sec.  49.102 with oil and natural gas source, which also
includes natural gas processing, but excludes natural gas transmission
and distribution;
    c. Expanding the scope of the FIP by revising Sec. Sec.  49.101 and
49.102 to cover non-major gas processing plants and the definition of
oil and natural gas source;
    d. Adding a subparagraph to Sec.  49.101 to make it clear that the
FIP does not apply to minor modifications at major sources;
    e. Rewording Sec.  49.104 to specify the information that is
acceptable to document that a source has addressed threatened and
endangered species and historic properties;
    f. Expanding Sec.  49.104 to add the process the Reviewing
Authority will use to determine whether the screening procedures
provided to the EPA have been satisfactorily completed to address
threatened and endangered species and historic properties;
    g. Expanding Sec.  49.105 to add two federal standards to the FIP's
requirements:
    i. 40 CFR part 63, subpart ZZZZ--NESHAP for Stationary
Reciprocating Internal Combustion Engines; and
    ii. 40 CFR part 60, subpart KKKK--Standards of Performance for New
Stationary Combustion Turbines;
    h. Adjusting exclusions from this FIP for the following two
standards under Sec.  49.105 to reflect the expansion of the scope of
the FIP to natural gas processing plants (not discussed below--instead,
see Section II.B.):
    i. 40 CFR part 60, subpart IIII--Standards of Performance for
Stationary Compression Ignition Internal Combustion Engines;
    ii. 40 CFR part 60, subpart OOOOa--Standards of Performance for
Crude Oil and Natural Gas Facilities for which Construction,
Modification, or Reconstruction Commenced after September 18, 2015; and
    iii. 40 CFR part 63, subpart HH--NESHAP from Oil and Natural Gas
Production Facilities; and
    i. Clarifying under Sec.  49.105 that the FIP applies not just to
true minor sources but to minor modifications at true minor sources as
well.

B. Proposed Amendments to the Federal Indian Country Minor NSR Rule

1. Proposed Rule
    The EPA proposed amendments to the Federal Indian Country Minor NSR
rule, including adding new text regarding the purpose of the program,
revising the program overview provision, establishing a compliance
deadline of October 3, 2016 for all true minor sources (both new and
modified true minor sources) within the oil and natural gas sector,
revising certain provisions to incorporate compliance with the FIP,
revising the applicability provision to establish that sources are
required to comply with the FIP unless they opt to obtain a source-
specific permit or are otherwise required to obtain a source-specific
permit, and revising the source registration provision. Also, we
proposed to revise the definition of Indian country for purposes of the
rule to comport with a court decision that addressed the scope of the
EPA's jurisdiction to implement the Federal Indian Country Minor NSR
rule: ODEQ v. EPA. This court decision also affects the scope of the
EPA's jurisdiction under the Federal Major NSR Program in Indian
Country, so we proposed to change the definition under the Federal
Indian Country Nonattainment Major NSR rule as well.
2. Final Action
    As mentioned in Section III.D., we have already finalized three
amendments to extend the permitting compliance and registration
deadlines for true minor sources in the oil and natural gas sector.\42\
In today's action, we are finalizing the remainder of the amendments as
described in Section II.D., as proposed, with five exceptions:
---------------------------------------------------------------------------

    \42\ ``Review of New Sources and Modifications in Indian
Country: Extension of Permitting and Registration Deadlines for True
Minor Sources Engaged in Oil and Natural Gas Production in Indian
Country,'' U.S. Environmental Protection Agency, 81 FR 9109,
February 24, 2016, https://www.gpo.gov/fdsys/pkg/FR-2016-02-24/pdf/2016-03623.pdf.
---------------------------------------------------------------------------

    First, we are amending Sec. Sec.  49.151, 49.153 and 49.160 of the
Federal Indian Country Minor NSR rule to clarify how these provisions
relate to the FIP, including adjusting references to the oil and
natural gas sector so that the provisions being amended function
properly with respect to that sector and the final FIP and to reflect
the expanded source scope of the final FIP.
    Second, we are revising Sec.  49.160(c)(1)(iii) and (iv) as
proposed by adding further revisions to provide for a modified, two-
part registration process under the Federal Indian Country Minor NSR
rule for sources covered by this FIP. We are also modifying the oil and
natural gas registration form as made available at proposal by
splitting the form into two forms to provide for the two-part source
registration process, requiring emissions information from sources
after production is started. The changes are described above in Section
IV.A.
    Third, associated with that change, we are adding a definition to
Sec.  49.152(d) for ``Startup of production'' that was not proposed but
which is necessary to accommodate the modified registration process.
    Fourth, we are amending Sec.  49.160(c)(1)(iii) to clarify that,
after October 3, 2016, sources engaged in oil and natural gas activity
not subject to the FIP will use their source-specific permit
applications for registration (instead of a registration form).
    Finally, we are amending Sec. Sec.  49.151(c)(1) and 49.152(d) (and
Sec. Sec.  49.166(c)(1) and 49.167) to update the applicability of the
Federal Indian Country Minor NSR rule and Federal Indian Country
Nonattainment Major NSR rule, respectively, to comport with a court
decision that addressed the scope of the EPA's jurisdiction to
implement the Federal Indian Country Minor NSR rule: ODEQ v. EPA.
3. Comments and Responses
    The following discussion contains comments on the proposed
amendments to the Federal Indian Minor NSR rule and our responses. The
comments and responses are also addressed in Section 1.0 of the
Response to Comment (RTC) Document.
(a) Pre-Construction Permit Requirements
    Comment #1: Five commenters expressed concern about the proposed
pre-construction requirements and the difficulty in determining PTE
before a well starts production due to the unpredictable nature of well
development and productivity. Two commenters stated the requirement is
burdensome and would lead to inaccurate data due to the unpredictable
nature of oil and natural gas production.
    Several commenters thought that pre-construction estimated
emissions would be of limited value to the EPA and would create
confusion for the public once released or used in modeling the effects
of oil and natural gas production. One commenter noted that the pre-
construction requirements limit the usefulness of the proposed FIP
because owners/operators will not have definitive source-specific
information before production begins.
    One commenter requested that if the EPA were to retain the pre-
construction requirements, then the EPA should provide a mechanism for
revising emissions estimates after actual emissions are known.
    Several commenters pointed to rules or state permitting programs
that require post-construction information to be submitted, rather than
pre-construction.

For example, the Federal Indian Country Minor NSR rule requires
operators to submit registration forms within 90 days of initial
production. Several commenters pointed to state requirements, which
acknowledge the unique challenges of permitting well production sites.
Wyoming allows operation prior to permitting as long as the operator
satisfies certain emission control requirements. In Colorado, emissions
information is not required to be submitted until after drilling,
workovers, completions, and testing are completed. North Dakota also
has owners/operators submit the oil and natural gas well registration
form within 90 days of completion of a well. Commenters believe that
providing information after the well begins production will conserve
EPA resources and provide the EPA with more accurate information, as
well as align permitting processes on Indian lands with state
permitting processes on adjacent lands.
    As an alternative to pre-construction information, two commenters
suggested that the EPA allow owners/operators to provide actual
emissions data based on the first 30 days of production, due to the EPA
90 days after startup, similar to 40 CFR part 60, subpart OOOO.
    As another alternative to providing pre-construction information,
one commenter suggested a two-part approach:
    Part 1: 30 days prior to the anticipated first date of production,
submit owner/operator information, well location description,
production equipment anticipated to be installed, and the anticipated
first date of production.
    Part 2: Within 60 days after first date of production, supply
information on emissions and production rates as part of a notification
process. The commenter requested 60 days as that date is used as part
of the mineral rights royalty notification processes under the
Department of Interior.
    The same commenter submitted revisions to the draft registration
form that we made available with the September 2015 proposed rule. The
commenter asked the EPA to remove actual emissions data and to require
operators to submit projected allowable emissions from the equipment,
based on the initial production. The commenter stated that if the EPA
needs to quantify actual emissions, the information will only be
accurate through an emission inventory, versus using data submitted
with the permit application, due to the actual emissions decreasing
over time.
    Response #1: The EPA has revised the Federal Indian Country Minor
NSR rule and the registration form to incorporate a two-step
registration process for oil and natural gas true minor sources
locating or expanding in Indian country, as suggested by commenters.
Generally, we prefer to receive registration forms complete with source
and emissions information prior to construction, as we proposed and as
required in Sec.  49.160 of the Federal Indian Country Minor NSR rule
for other source categories. However, we recognize the unique nature of
the oil and natural gas industry and believe in this instance a two-
part registration process is warranted.
    The Part 1 Registration Form will be due 30 days before the source
begins construction. The Part 2 Registration Form will be due within 60
days after the ``startup of production,'' in accordance with the
subpart OOOOa definition of startup of production. (For the Part 2
Registration Form, we are adding the definition for ``Startup of
production'' to Sec.  49.152(d), which points directly to the term as
defined under 40 CFR part 60, subpart OOOOa.) Sources must determine
the potential for emissions within 30 days after startup of production,
information which is required as part of the Part 2 Registration Form.
The EPA has selected 60 days as the submittal date for the Part 2
Registration Form--the date requested by the commenter--as that
timeframe will allow sufficent time for sources to assemble the
emissions information required as part of the the Part 2 Registration
Form and to submit it to the EPA.
    The control requirements from the eight NSPS and NESHAP standards
in this FIP will apply during production (the six standards included in
the original proposal and two standards being added in the final rule).
The owner/operator must account for emissions from startup of
production as required in the Part 2 Registration Form submission. We
disagree with the commenter about the type of emissions information
that must be submitted with the registration form. Pursuant to Sec.
49.160 of the Federal Indian Country Minor NSR rule, sources are
required to submit allowable and actual emissions, not just allowable,
as requested by the commenter. The owner/operator should calculate an
estimate of the actual annual emissions using estimated operating
hours, production rates, in-place control equipment, and types of
materials processed, stored, or combusted during the upcoming
consecutive 12 months.
    The source, as documented by an owners/operators should use the
definition in EPA's rulemaking on ``Source Determination for Certain
Emission Units in the Oil and Natural Gas Sector'' \43\ in defining
each source on its registration form.
---------------------------------------------------------------------------

    \43\ ``Source Determination for Certain Emission Units in the
Oil and Natural Gas Sector,'' signed May 12, 2016, http://www.epa.gov/airquality/oilandgas/actions/html.
---------------------------------------------------------------------------

(b) The Definition of Indian Country in Sec.  49.152
    Comment #2: Several commenters expressed concern about the EPA's
proposed definition change for the term Indian country as used in the
rule. Two commenters disagreed with the fourth paragraph added to the
definition of Indian country and noted that the EPA should not be
vested with power to make determinations or demonstrations about tribal
jurisdiction and that any such demonstration of jurisdiction should be
left to the sovereign whose jurisdiction is being asserted. The
commenters assert that although the EPA has indicated that this should
only impact trust lands in Oklahoma, tribal allotments would also be
impacted by the change in definition. One commenter recommended that
the definition of Indian country include Indian reservation lands for
which a TIP approved by the EPA pursuant to 40 CFR part 51 is not in
effect, and over which an Indian tribe has demonstrated that it has
jurisdiction.
    One commenter stated that the EPA should be cautious of how the
rule appears. By restating the definition of Indian country in the
rule, it appears that the EPA is defining the term. Of course, the EPA
cannot change the definition of Indian country through the proposed
rule. The term Indian country was defined by Congress in statute. The
EPA's regulations cannot change or modify this definition. The
commenter suggested that the EPA should make it clear that Indian
country is already statutorily defined and simply cross reference the
relevant statute.
    The commenter further states that the proposed and final rules
should not state that the EPA is ``revising the definition of Indian
Country.'' The commenter states that the EPA is doing no such thing. As
a result of ODEQ v. EPA, the EPA is required to consider how it will
apply the proposed rule in certain portions of Indian country, but the
EPA is not revising the definition of Indian country. In other words,
ODEQ v. EPA is not about the definition of Indian country, but rather
the process the EPA is using to apply the proposed rule to certain
parts of Indian country. The commenter recommends that the EPA remove
all references to revised definitions of Indian country from the
proposed rule. Rather than purporting to

revise the definition of Indian country, the commenter suggests that
the EPA include a new section discussing the applicability of the
proposed rule.
    Response #2: Regarding the commenters who expressed concern about
the EPA's proposed changes to the sections of the rule that define
Indian country, the EPA acknowledges the potential for confusion given
that Indian country is a statutorily defined term at 18 U.S.C. 1151. We
note that the EPA did not intend to, nor could we, change or in any way
affect the statutory definition at 18 U.S.C. 1151 or the manner in
which that statute is interpreted and applied for other purposes.
Rather, we intended simply to address a 2014 decision of the D.C.
Circuit (ODEQ v. EPA) that addressed the scope within Indian country of
the EPA's authority to administer the Federal Indian Country Minor NSR
rule--and, thus, the FIP in this action--and the Federal Indian Country
Nonattainment Major NSR rule.\44\ In that decision, the court
invalidated the rules as applied to non-reservation areas of Indian
country, unless the EPA or a tribe demonstrates that a tribe has
jurisdiciton over such a non-reservation area. The court did not
disturb application of the rules to Indian reservations. Our intent
was, thus, not to alter the applicable definition of Indian country,
but instead to address the scope of applicability of the rules within
Indian country in light of the D.C. Circuit decision. To avoid
potential confusion, we have altered the manner in which we are
addressing this court ruling.
---------------------------------------------------------------------------

    \44\ Oklahoma Dept. of Environmental Quality v. EPA, 740 F.3d
185 (D.C. Cir. 2014).
---------------------------------------------------------------------------

    In the final rule, we have left the Indian country definitions
largely intact and simply provided cross-references within the
definitional sections of both rules--Sec. Sec.  49.152 and 49.167--
stating that the geographic scope of the rules' applicability will be
as specified in the program overview sections of both rules--Sec. Sec.
49.151 and 49.166. We have then addressed the limitation imposed by the
court ruling (i.e., that the rules will only apply in non-reservation
areas of Indian country where there is a demonstration by a tribe or
the EPA acting on behalf of a tribe of tribal jurisdiction over such
area) in the program overview sections, which are more appropriate
provisions in which to address this issue. These changes do not alter
the substance of the revisions the EPA had proposed to address the ODEQ
v. EPA ruling. Instead, they simply move the needed revisions to more
appropriate locations in the rules, and, thus, avoid confusion about
the applicable definition of Indian country as a general matter.
Further, the EPA notes that the regulatory revisions finalized today to
address the ODEQ v. EPA decision apply solely to the Federal Indian
Country Minor NSR rule--and, thus, the FIP in today's action--and the
Federal Indian Country Nonattainment Major NSR rule. They are not
intended to apply to any other matter outside the scope of these rules.
    In addition, while the EPA acknowledges the commenter's statement
that an Indian tribe's jurisdiction should not need to be demonstrated
to exist, the EPA notes that, consistent with the ODEQ v. EPA decision,
a demonstration of tribal jurisdiction (either by the EPA or by an
Indian tribe) would need to be made to support application of the
Federal Indian Country Minor NSR rule in non-reservation areas of
Indian country.
    The EPA notes that the distinction between reservations and other
areas that may be under an Indian tribe's jurisdiction (i.e., non-
reservation areas of Indian country) is derived from a CAA tribal-
related provision (CAA section 301(d)(2)(B)). This provision includes a
delegation of authority from Congress to eligible Indian tribes over
their reservations, but expressly distinguishes other areas within a
tribe's jurisdiction. For this reason, tribes seeking to administer
their own CAA-regulatory programs would need to demonstrate their
jurisdiction over any non-reservation area included in their
application.\45\ By virtue of the ODEQ v. EPA decision, such a
demonstration of tribal jurisdiction must also be made (by a tribe or
by the EPA) to support application of the Federal Indian Country Minor
NSR rule in such non-reservation areas of Indian country.
---------------------------------------------------------------------------

    \45\ For more information go to: ``Indian Tribes: Air Quality
Planning and Management,'' U.S. Environmental Protection Agency, 63
FR 7254, February 12, 1998, http://www.gpo.gov/fdsys/pkg/FR-1998-02-12/pdf/98-3451.pdf.
---------------------------------------------------------------------------

    Comment #3: Further, concerning the definition of Indian country,
one commenter disagreed with the EPA's distinction between ``on-
reservation'' and ``off-reservation'' Indian country and contended that
tribes exercise jurisdiction over these lands through existing tribal
sovereignty and in accordance with numerous federal programs that
affirm tribal authorities and tribal self-determination over these
lands and areas. The commenter contends that the distinction was not
intended in the CAA and is not consistent with how tribes exercise
authority over their lands. Nonetheless, the commenter generally
supports the fourth paragraph added to the definition of Indian
country, stating that the rule would apply to ``all Indian reservation
lands where no EPA-approved program is in place and all other areas of
Indian country where no EPA-approved program is in place and over which
an Indian tribe, or the EPA, has demonstrated that a tribe has
jurisdiction.'' However, the commenter does not believe that a tribe's
jurisdiction has to be ``demonstrated'' to exist.
    Response #3: Regarding the comment on the EPA's distinction between
``on-reservation'' and ``off-reservation'' Indian country, the EPA
disagrees with the suggested changes. The EPA's revisions reflect the
holding in ODEQ v. EPA. The decision acknowledges that either a tribe
or the EPA can make such a demonstration of tribal jurisdiction over a
non-reservation area of Indian country. Although the EPA is not
typically called upon to assess tribal jurisdiction in the context of
implementing a federal rule, it is appropriate for the EPA to make such
determinations where required. The EPA has experience reviewing tribal
jurisdiction in other contexts, most notably where tribes apply to
administer regulatory programs under the EPA's statutes. In light of
the ODEQ v. EPA decision, such jurisdictional assessments are also
relevant for implementing federal permitting under the Federal Indian
Country Minor NSR rule in non-reservation areas of Indian country.
    Comment #4: One commenter acknowledged the EPA's intent in the
proposed rulemaking to protect the reservation airsheds, while allowing
for streamlined permitting of minor oil and natural gas sources, and
requested that the EPA achieve this goal by developing and implementing
the rule in a manner that promotes tribal sovereignty, authority, self-
determination and a tribe's ability to develop resources. The commenter
emphasized that the EPA should develop the proposed rule in a manner
that recognizes that Indian lands are not public lands.
    Another commenter noted that the EPA appears in the proposed rule
to understand the concern for the oil and natural gas industry to be on
tribal lands without tribal authorities having the ability to properly
regulate the industry on their own. The commenter encouraged the EPA to
recognize this potential situation while maintaining the tribe's choice
on who to do business with, as well as retaining the tribe's relative
autonomy to create their own pollution plans. The commenter
acknowledged that the EPA's intentions

in the proposed rule would likely provide better protections than any
TIP.
    Response #4: The EPA acknowledges that Indian country lands are not
public lands and has solicited tribal feedback on the development of a
streamlined permitting process that allows for tribes to develop
resources on their lands. In doing so, the EPA seeks to protect air
quality in Indian country, while also recognizing the importance of oil
and natural gas activity as an important source of revenue for tribes,
and has developed the FIP accordingly. Moreover, the development of
this FIP does not preclude tribes from requesting to assist the EPA
with administration of the FIP through a delegation agreement or from
developing TIPs, which could include different or additional pollution
control plans that tribes feel are needed to preserve air quality given
the unique characteristics of their lands. No changes will be made in
response to this comment.

C. Implementation-Related Issues

1. Proposed Rule
    In the proposed rule, we discussed the effect of the proposed FIP
on other Indian Country FIPs.
    The FIP proposed in September 2015 was intended to fulfill the
requirements of the Federal Indian Country Minor NSR rule to address
the air quality impacts of new and modified true minor sources and to
impose appropriate air pollution control requirements that protect the
NAAQS, while providing an alternative to obtaining source-specific pre-
construction approval through the NSR pre-construction permitting
process. The proposed FIP was not intended to replace any other FIPs
promulgated under the CAA for oil and natural gas sector sources in
areas covered by the Federal Indian Country Minor NSR rule. Under the
proposed FIP, an oil and natural gas source located in areas covered by
the Federal Indian Country Minor NSR rule that is subject to another
CAA FIP would have to continue to comply with that FIP and also have to
comply with the proposed FIP. Generally, in cases where emission
sources are already subject to a CAA FIP with more stringent
requirements than those established for equivalent emission sources
under the proposed FIP, those sources would be subject to the
requirements of both FIPs, but those more stringent requirements
supersede the requirements in this proposed FIP and compliance with the
more stringent requirements would constitute compliance with both FIPs
relative to those particular requirements. Conversely, if requirements
for certain emission sources in the proposed FIP are more stringent
than requirements for equivalent emission sources in another applicable
CAA FIP, then those sources would be subject to the requirements of
both FIPs, but the requirements in the proposed FIP supersede the
requirements for equivalent emission sources in the other FIP and
compliance with the more stringent requirements in the FIP would
constitute compliance with the requirements of both FIPs relative to
those particular requirements. In the case of the FIP for Oil and
Natural Gas Well Production Facilities on the Fort Berthold Indian
Reservation (FBIR FIP) \46\ at Sec. Sec.  49.4161-49.4168,\47\ we defer
to less stringent requirements in other federal CAA rules to avoid
duplicative requirements. The FBIR FIP provides an exception to the
general concept that the more stringent set of requirements govern.
---------------------------------------------------------------------------

    \46\ In the proposed September 2015 FIP, we referred to ``other
FIPs'' rather than just the FBIR FIP. Upon further review, we
realize that the FBIR FIP is the only case of a FIP that illustrates
an exception to the general concept.
    \47\ ``Approval and Promulgation of Federal Implementation Plan
for Oil and Natural Gas Well Production Facilities; Fort Berthold
Indian Reservation (Mandan, Hidatsa, and Arikara Nation), North
Dakota,'' U.S. Environmental Protection Agency, 78 FR 17836, March
22, 2013, https://www.gpo.gov/fdsys/pkg/FR-2013-03-22/pdf/2013-05666.pdf.
---------------------------------------------------------------------------

    In the September 2015 proposed FIP, we specifically addressed how
it related to the FBIR FIP. The FBIR FIP is not a permitting program
and does not exempt facilities from any federal CAA permitting
requirements, which includes compliance with this FIP. Similarly, the
proposed oil and natural gas FIP would not exempt facilities from
complying with the FBIR FIP. The EPA recognizes that the VOC control
requirements under the FBIR FIP are in some instances more stringent
than those in the proposed FIP. For example, in the proposed FIP, we
indicated that a new or modified oil and natural gas well production
facility that is subject to the FBIR FIP--and also subject to the
proposed FIP--would still need to comply with the FBIR FIP for casing
head natural gas emissions and heater treater produced natural gas
emissions. Requirements for these units were not contained in the
proposed FIP.
2. Final Action
    In this final action we are not changing our proposal in terms of
how this FIP relates to other Indian country FIPs. However, there were
several comments in this area that we are responding to below that
relate to the proposal.
3. Comments and Responses
    The following discussion contains comments on issues related to the
FIP and our responses. The comments and responses are also addressed in
Section 2.0 of the RTC Document.
    Comment #5: One commenter requested that the EPA clarify how
numerical VOC emission limitations will be applied through compliance
with 40 CFR part 63, subpart HH, when the subpart has numerous
compliance options that often do not contain specific numerical
emission limitations. The commenter noted that the proposed FIP would
create enforceable VOC emission reductions for glycol dehydrators
through the requirements of 40 CFR part 63, subpart HH, using HAPs as a
surrogate for VOCs.
    Response #5: The FIP does not impose a separate VOC limit for
glycol dehydration units that are subject to 40 CFR part 63, subpart HH
(i.e., independently of the FIP, the source will have to comply with
the HAP control requirements, which also effectively control VOC and
may or may not involve numerical emissions limitations). While the EPA
recognizes that 40 CFR part 63, subpart HH, specifies several different
control requirements depending on several factors (e.g., major/area
source status of the facility, actual natural gas throughput of the
dehydrators, urban/rural location), any dehydrators subject to those
standards will satisfy compliance with the FIP for those units by fully
complying with the MACT standard. We have not made any changes in
response to this comment.
    Comment #6: One commenter stated that the proposed oil and natural
gas FIP falls short in meeting several core objectives for permitting
oil and natural gas sector facilities. The commenter stated that the
foundation of the proposed FIP is still based on site-specific reviews,
which by definition will inhibit its streamlining capabilities, and
that this poses an obstacle to permitting. This could place future oil
and natural gas development in Indian country at a disadvantage
compared to more streamlined options available under state
jurisdictions.
    Response #6: The EPA disagrees that the foundation of the proposed
FIP is based on source-specific permit reviews. While source-specific
permits remain an option available to sources that do not wish to
comply with the FIP, apart from addressing threatened and endangered
species and historic properties, those sources that do wish to comply
with the FIP need only register in accordance with the provisions of
Sec.  49.160(c)(1)(iv).

This streamlined permitting mechanism allows for sources to begin
construction 30 days after submittal of the Part 1 registration
information. We have not made any changes in response to this comment.
    Comment #7: One commenter requested that the EPA clarify how the
proposed FIP will provide practical enforceability when several of the
six rules included in the proposed FIP, such as 40 CFR part 63, subpart
HH, do not contain practically enforceable requirements. The commenter
noted that, because several of the standards do not contain practically
enforceable requirements, sources that wish to restrict their PTE will
be forced to obtain a source-specific permit. The commenter stated that
the proposed FIP would fail to achieve the objective of providing
sources a streamlined approach for obtaining legal and practically
enforceable emission limitations.
    Response #7: A source has to be a true minor source to use the FIP.
The FIP is not intended to provide a mechanism for establishing
synthetic minor sources. We have not made any changes in response to
this comment.
    Comment #8: One commenter (a state agency) noted that North Dakota
regulations for natural gas capture have been enforced on the Fort
Berthold Indian Reservation under multiple tax and regulatory
agreements between the state and tribes. The commenter stated that the
proposed rule will increase the number and complexity of conflicts with
North Dakota regulations and the existing negotiated agreements. One
commenter stated that the proposed rule could have significant impacts
on their ability to administer their oil and natural gas regulatory
program, and recommended that the proposed rule recognize and give
deference to existing state and tribal agreements for natural gas
permitting and regulation.
    Response #8: The FIP adopted through this final action only applies
to sources locating in Indian country and does not impose any
requirements on sources located on state lands. The EPA also notes that
the State of North Dakota has not been approved by the EPA to
administer any program under the federal CAA on the Fort Berthold
Indian Reservation. The EPA notes that there are no new requirements
included as part of the FIP, only those rules already applicable to oil
and natural gas sources under existing federal NSPS and NESHAP rules
are included. We have not made any changes in response to this comment.
    Comment #9: One commenter stated that the Federal Indian Country
Minor NSR rule and the FIP should provide industry more flexible
compliance options that are cost effective without compromising
significant emissions reductions. The commenter suggested that the
Federal Indian Country Minor NSR rule and the FIP should include an
early action program, noting that, considering the uncertainty
surrounding ozone standard designations in the Uinta Basin, an early
action program would remove the risk for industry investments in
emission reductions by ensuring appropriate credit for those
investments. The commenter also suggested that the Federal Indian
Country Minor NSR rule and the FIP should include an option for
portfolio-wide emissions compliance, noting that a portfolio-wide
approach would provide many operators the needed flexibility to more
efficiently and cost-effectively achieve system-wide emission
reductions that meet regulatory goals.
    Response #9: Ozone Advance is the early action program that the EPA
is offering to promote local efforts aimed at reducing ozone.\48\ The
program, which began in 2012, is available to states, local
governments, and tribes that are interested in working proactively and
collaboratively with the EPA to select and implement measures and
programs that may reduce ozone air quality levels in attainment areas.
Other stakeholders, such as industry, are encouraged to become actively
involved in these efforts. Ozone Advance will continue to be available
in conjunction with the Federal Indian Country Minor NSR rule, this FIP
and any future, final FIPs developed for specific areas. As
appropriate, such FIPs could consider portfolio-wide options allowing
operators to reduce their emissions across entire tribal areas. We have
not made any changes in response to this comment at this time.
---------------------------------------------------------------------------

    \48\ For more information, go to: www.epa.gov/advance.
---------------------------------------------------------------------------

    Concerning ``credit'', the EPA cannot pre-approve State
Implementation Plan (SIP)/TIP ``credit'' for emission reductions in
areas that are not the subject of a nonattainment designation. However,
early actions to improve air quality can both serve to prevent areas
from becoming nonattainment and better position an area to comply with
the requirements associated with an eventual nonattainment designation.
For example, early emission reduction actions could potentially receive
``credit'' in future SIPs/TIPs if an area is eventually designated
nonattainment with a Moderate or higher classification, either in terms
of reflecting a lower baseline from which additional reductions are
needed to meet reasonable further progress goals or, if they occur
after the baseline year, as a measure that shows progress toward
attainment.
    If emission reductions occur after the baseline year, the area may
take credit for those reductions subject to CAA requirements, such as
demonstrating that the reductions are surplus, quantifiable,
enforceable, and permanent. The state or tribe would also need to meet
any other relevant requirement in CAA section 110 and/or section 172,
and if the measure is voluntary, the state or tribe would need to make
an enforceable commitment to ensure that the estimated emission
reductions are achieved. Credit earned in this manner means that fewer
additional emission reductions will be needed to meet reasonable
further progress goals and to demonstrate attainment, thereby bringing
the finish line of attainment with the ozone NAAQS closer.

D. Requirements Relating to Threatened or Endangered Species and
Historic Properties

1. Proposed Rule
    In the proposed rule, we proposed requirements for true minor oil
and natural gas sources relating to threatened and endangered species
and historic properties. The Endangered Species Act (ESA) requires
federal agencies to ensure, in consultation with the U.S. Fish and
Wildlife Service and/or the National Marine Fisheries Service (the
Services), that any action they authorize, fund, or carry out will not
likely jeopardize the continued existence of any listed threatened and
endangered species, or destroy or adversely modify the designated
critical habitat of such species. The National Historic Preservation
Act (NHPA) requires federal agencies to take into account the effects
of their undertakings on historic properties--i.e., properties that are
either listed on, or eligible for listing on, the National Register of
Historic Places--and to provide the Advisory Council on Historic
Preservation (the Council) a reasonable opportunity to comment on such
undertakings.
    In developing the proposed FIP, EPA considered issues regarding
listed species and historic properties and included provisions designed
to ensure appropriate review of potential impacts on these protected
resources. Although the individual coverage of each source that would
operate under the FIP would not constitute a separate triggering

action for ESA or NHPA purposes, we believe that the proposed FIP's
procedures relating to listed threatened and endangered species and
historic properties provide an appropriate site-specific means of
addressing issues regarding potential impacts on those resources in
connection with issuance of the FIP and, thus, in connection with
sources that could be covered under the FIP. We provided two options,
as follows, for sources to meet the proposed FIP's requirements
regarding these resources:
    (1) For sources for which a prior ESA and/or NHPA assessment has
been completed, in the proposed FIP we indicated that, where Federal
Land Managers (FLMs) have concluded ESA and/or NHPA compliance as part
of the process in which an oil and natural gas operator makes an
Application to Drill (APD) in connection with a particular source--
whether as part of the FLM's NEPA review or otherwise--the source would
be able to rely on that prior review for compliance with the proposed
FIP's listed species (if prior ESA compliance has occurred) and
historic properties (if prior NHPA compliance has occurred)
requirements. No further assessment of impacts on these resources would
be required by the proposed FIP as any such assessment would be
duplicative of the prior work conducted by the FLM(s). We would require
that documentation of completion of the APD process be provided before
the owner/operator begins construction under the FIP.
    (2) For sources for which no prior ESA and/or NHPA assessment has
been completed, in the proposed FIP we indicated that those facilities
must first complete screening procedures relevant to the particular
resource that have not previously been reviewed before the owner/
operator can begin construction under the proposed FIP. These screening
procedures are similar to those currently in place for existing general
permits and permits by rule in areas covered by the Federal Indian
Country Minor NSR rule that must be completed before the owner/operator
can begin construction under those general permits and permits by
rule.\49\ We stated that the review of the screening procedures would
be similar to our procedure for general permits and permits by rule,
for the proposed FIP, where once an owner/operator completes the
screening procedures,\50\ they would submit documentation to the EPA
Regional Office and receive written verification of completion before