On February 8, 2010, the Air Pollution Control Division (APCD) of the Colorado Department of Public Health and Environment issued PS Memo 09-02, a guidance document to clarify regulatory definitions and the permitting process for oil and gas industry produced water tank batteries.

PS Memo 09-02 replaces the guidance document initially issued by APCD on October 1, 2009, and attempts to answer frequently asked questions concerning the Air Pollutant Emission Notice (APEN) fee structure, APEN submittals, produced water exemptions, and tank battery modifications. The PS Memo 09-02 sections provide guidance on the following topics:

  • Section 1 contains definitions of terms used in PS Memo 09-02 or Colorado Air Quality Control Commission Regulations Number 3 and Number 7, including clarification on what amounts to modification of a produced water tank battery for minor construction permitting purposes.
  • Section 2 clarifies APEN submittal or revision requirements for water tanks, and provides examples of circumstances under which APENs should be submitted or revised, such as when there is a significant change in a tank’s annual actual emissions; when there is a change in the owner or operator of any tank; and prior to modifying control equipment (See PS Memo 09-02 and corresponding regulations for a complete explanation of APEN submittal requirements). Section 2 also elaborates on the time periods that should be used to calculate actual and requested emissions for an APEN, clarifies the APEN fee structure, and provides guidance on APEN exemptions.
  • Section 3 lists Colorado approved default emission factors for produced water tanks and explains that the default emission factors include flash, working, and breathing losses; clarifies when site-specific emission factors may be developed and used for tank batteries; and explains how site-specific emission factors should be developed.
  • Section 4 clarifies how uncontrolled and controlled actual and requested emissions are calculated for APEN purposes, how potential to emit calculations should be performed, and how emissions for dual product storage tanks should be estimated.
  • Section 5 provides guidance on several miscellaneous construction permit issues, including: identification of tank batteries as the emission source even when connected to a control device; the requirement that RACT be included on produced water tanks if the source is located in an ozone nonattainment area or an attainment maintenance area; the process for self-certification of produced water tanks; and an explanation of what permit exemptions are available to produced water storage tanks and when an operator should obtain a produced water storage tank permit.
  • Section 6 describes the sources that qualify for coverage under the produced water tank battery General Permit, and explains the process for permitting a produced water tank under the General Permit.
  • Section 7 summarizes House Bill 07-1341, which was a legislative action containing a section that regulates certain produced water tanks located in Garfield, Mesa, and Rio Blanco Counties.

For more information on PS Memo 09-02 you can access the guidance at http://www.cdphe.state.co.us