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NESHAP for Oil and Natural Gas Production (40 CFR part 63, subpart HH) (Renewal)

OMB: 2060-0417

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SUPPORTING STATEMENT

ENVIRONMENTAL PROTECTION AGENCY

NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH) (Renewal)


1. Identification of the Information Collection


1(a) Title of the Information Collection


NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH) (Renewal), EPA ICR Number 1788.13, OMB Control Number 2060-0417.


1(b) Short Characterization/Abstract


The National Emission Standards for Hazardous Air Pollutants (NESHAP) for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH) were proposed on February 6, 1998, and promulgated on June 17, 1999, only for major sources. On July 8, 2005, a supplemental proposal was proposed for area sources, with the final rule effective date on January 3, 2007. The rule was subsequently amended on August 16, 2012, to include emission sources for which standards were not previously developed. These regulations apply to emission points located at both new and existing oil and natural gas production facilities that are both major and area sources. A major source of hazardous air pollutants (HAP) is one that has the potential to emit 10 tons or more of any single HAP or 25 tons or more of total HAP per year; an area source is one with the potential to emit less than these amounts. New facilities include those that commenced either construction or reconstruction after the date of proposal. This information is being collected to assure compliance with 40 CFR Part 63, Subpart HH.


In general, all NESHAP standards require initial notifications, performance tests, and periodic reports by the owners/operators of the affected facilities. They are also required to maintain records of the occurrence and duration of any malfunction in the operation of an affected facility, or any period during which the monitoring system is inoperative. These notifications, reports, and records are essential in determining compliance and are required of all affected facilities subject to NESHAP.


Any owner/operator subject to the provisions of this part shall maintain a file of these measurements and retain the file for at least five years following the date of such measurements, maintenance reports, and records. All reports required to be submitted electronically are submitted through the EPA's Central Data Exchange (CDX), using the Compliance and Emissions Data Reporting Interface (CEDRI), where the delegated state or local authority can review them. If there is no such delegated authority, the EPA’s regional office can review them. All other reports are sent to the delegated state or local authority. If there is no such delegated authority, the reports are sent directly to the EPA’s regional offices. The use of the term "Designated Administrator" throughout this document refers to the U.S. EPA or a delegated authority such as a state agency. The term "Administrator" alone refers to the U.S. EPA Administrator. 


The “Affected Public” are oil and natural gas production facilities. The “burden” to the Affected Public may be found below in Table 1: Annual Respondent Burden and Cost – NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH) (Renewal). The “burden” to the Federal Government is attributed entirely to work performed by either Federal employees or government contractors and may be found below in Table 2: Average Annual EPA Burden and Cost – NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH) (Renewal). There are approximately 4,987 oil and natural gas production facilities, which are owned and operated by the oil and natural gas production industry. None of the 4,987 facilities in the United States are owned by either state, local, or tribal entities or by the Federal government. They are all owned and operated by privately-owned, for-profit businesses. We assume that they will all respond to EPA inquiries.


Based on our consultations with industry representatives, there is an average of one affected facility at each plant site and each plant site has only one respondent (i.e., the owner/operator of the plant site).


Over the next three years, approximately 5,146 respondents per year will be subject to these standards, including the 4,987 existing respondents and 169 additional new respondents per year that will become subject to these same standards. The 169 new respondents include: 28 new major source respondents, 3 new area source respondents, and 138 new area source respondents that only maintain records.


The active (previous) ICR had the following Terms of Clearance (TOC): Upon resubmission, the agency must update the burden estimates to accurately reflect the number of respondents in industry and verify that there are no reporting or recordkeeping requirements for States in 40 CFR part 63, subpart HH. The agency must also ensure that ‘burden’ is calculated for all the requirements and that the requirements and burden tables are consistent throughout the supporting statement. The agency must provide screen shots of the electronic mode of collection that is used for this information collection. In addition, the agency must have a burden statement that aligns with the requirements under 5 CFR 1320.8(b)(3) and placement of the OMB control number for on-line submissions on the initial screen per 5 CFR 1320.3(f)(2).


In renewing the currently approved ICR, the agency has reviewed the number of respondents in industry and updated the burden estimates accordingly. In this case, we identified 169 new sources based on growth within the industry. There are no reporting requirements for states. ‘Burden’ has been calculated for all requirements, which are reflected in the burden tables in the supporting statement. All electronic collection in this information collection is submitted through EPA's CEDRI or ERT, as discussed in section 4(b)(i) of this document. Additional Paperwork Reduction Act requirements for CEDRI and ERT, including the burden statement and OMB control number, are available at: https://www.epa.gov/electronic-reporting-air-emissions/paperwork-reduction-act-pra-cedri-and-ert.




2. Need for and Use of the Collection


2(a) Need/Authority for the Collection


The EPA is charged under Section 112 of the Clean Air Act, as amended, to establish standards of performance for each category or subcategory of major sources and area sources of hazardous air pollutants. These standards are applicable to new or existing sources of hazardous air pollutants and shall require the maximum degree of emission reduction. In addition, section 114(a) states that the Administrator may require any owner/operator subject to any requirement of this Act to:


(A) Establish and maintain such records; (B) make such reports; (C) install, use, and maintain such monitoring equipment, and use such audit procedures, or methods; (D) sample such emissions (in accordance with such procedures or methods, at such locations, at such intervals, during such periods, and in such manner as the Administrator shall prescribe); (E) keep records on control equipment parameters, production variables or other indirect data when direct monitoring of emissions is impractical; (F) submit compliance certifications in accordance with Section 114(a)(3); and (G) provide such other information as the Administrator may reasonably require.


In the Administrator's judgment, HAP emissions from oil and natural gas production either cause or contribute to air pollution that may reasonably be anticipated to endanger public health and/or welfare. Therefore, the NESHAP were promulgated for this source category at 40 CFR Part 63, Subpart HH.


2(b) Practical Utility/Users of the Data


The recordkeeping and reporting requirements in these standards ensure compliance with the applicable regulations, which were promulgated in accordance with the Clean Air Act. The collected information is also used for targeting inspections and as evidence in legal proceedings.


Performance tests are required in order to determine an affected facility’s initial capability to comply with these emission standards. Continuous emission monitors are used to ensure compliance with these same standards at all times. During the performance test a record of the operating parameters under which compliance was achieved may be recorded and used to determine compliance in place of a continuous emission monitor.


The notifications required in these standards are used to inform the Agency, or its delegated authority, when a source becomes subject to the requirements of the regulations. The reviewing authority may then inspect the source to check if the pollution control devices are properly installed and operated, leaks are being detected and repaired, and that the standards are being met. The performance test may also be observed.


The required semiannual reports are used to determine periods of excess emissions, identify problems at the facility, verify operation/maintenance procedures, and for compliance determinations.


Additionally, the EPA is requiring electronic reporting for certain notifications or reports. The EPA is requiring that owners or operators of affected sources would submit electronic copies of initial notifications required in 40 CFR 63.9(b), performance test reports required in 40 CFR 63.775(g), and changes in information already provided (required for major source to area source reclassification required in 40 CFR 63.9(j) through the EPA's Central Data Exchange (CDX), using the Compliance and Emissions Data Reporting Interface (CEDRI). For the notifications required in 40 CFR 63.9(b) and 63.9(j), owners and operators would be required to upload a PDF of the required notifications.


CEDRI includes the Electronic Reporting Tool (ERT) software, which is used by facilities to generate electronic reports of performance tests. The EPA is also requiring that 40 CFR Part 63, Subpart HH performance test reports be submitted through the EPA’s ERT.


3. Non-duplication, Consultations, and Other Collection Criteria


The requested recordkeeping and reporting are required under 40 CFR Part 63, Subpart HH.


3(a) Non-duplication


For reports required to be submitted electronically, the information is sent through the EPA's CDX, using CEDRI, where the appropriate EPA regional office can review it, as well as for state and local agencies that have been delegated authority. If a state or local agency has adopted under its own authority its own standards for reporting or data collection, adherence to those non-Federal requirements does not constitute duplication. 


For all other reports, if the subject standards have not been delegated, the information is sent directly to the appropriate EPA regional office. Otherwise, the information is sent directly to the delegated state or local agency. If a state or local agency has adopted its own standards to implement the Federal standards, a copy of the report submitted to the state or local agency can be sent to the Administrator in lieu of the report required by the Federal standards. Therefore, duplication does not exist. 


3(b) Public Notice Required Prior to ICR Submission to OMB


An announcement of a public comment period for the renewal of this ICR was published in the Federal Register (87 FR 43843) on July 22, 2022. No comments were received on the burden published in the Federal Register for this renewal.


3(c) Consultations


The Agency has consulted industry experts and internal data sources to project the number of affected facilities and industry growth over the next three years. The primary source of information as reported by industry, in compliance with the recordkeeping and reporting provisions in these standards, is the Integrated Compliance Information System (ICIS). ICIS is EPA’s database for the collection, maintenance, and retrieval of compliance data for industrial and government-owned facilities. The growth rate for the industry is based on our consultations with the Agency’s internal industry experts. Approximately 5,146 respondents will be subject to these standards over the three-year period covered by this ICR.


Industry trade associations and other interested parties were provided an opportunity to comment on the burden associated with these standards as they were being developed and these same standards have been reviewed previously to determine the minimum information needed for compliance purposes. In developing this ICR, we contacted both the American Petroleum Institute, at (202) 682-8000, and America’s Natural Gas Alliance, at (202) 789-2642.


It is our policy to respond after a thorough review of comments received since the last ICR renewal, as well as for those submitted in response to the first Federal Register notice. In this case, no comments were received.


3(d) Effects of Less-Frequent Collection


Less-frequent information collection would decrease the margin of assurance that facilities are continuing to meet these standards. Requirements for information gathering and recordkeeping are useful techniques to ensure that good operation and maintenance practices are applied and that emission limitations are met. If the information required by these standards was collected less-frequently, the proper operation and maintenance of control equipment and the possibility of detecting violations would be less likely.


3(e) General Guidelines


These reporting or recordkeeping requirements do not violate any of the regulations promulgated by OMB under 5 CFR Part 1320, Section 1320.5.


These standards require the respondents to maintain all records, including reports and notifications for at least five years. This is consistent with the General Provisions as applied to these standards. The EPA believes that the five-year records retention requirement is consistent with the Part 70 permit program and the five-year statute of limitations on which the permit program is based. The retention of records for five years allows EPA to establish the compliance history of a source, any pattern of non-compliance, and to determine the appropriate level of enforcement action. The EPA has found that the most flagrant violators have violations extending beyond five years. In addition, EPA would be prevented from pursuing the violators due to the destruction or nonexistence of essential records.


3(f) Confidentiality


Any information submitted to the Agency for which a claim of confidentiality is made will be safeguarded according to the Agency policies set forth in Title 40, chapter 1, part 2, subpart B - Confidentiality of Business Information (CBI) (see 40 CFR 2; 41 FR 36902, September 1, 1976; amended by 43 FR 40000, September 8, 1978; 43 FR 42251, September 20, 1978; 44 FR 17674, March 23, 1979).


3(g) Sensitive Questions


The reporting or recordkeeping requirements in these standards do not include sensitive questions.


4. The Respondents and the Information Requested


4(a) Respondents/SIC Codes


The respondents to the recordkeeping and reporting requirements are oil and natural gas production facilities. The United States Standard Industrial Classification (SIC) codes and the corresponding North American Industry Classification System (NAICS) codes for the respondents affected by the standard are listed below:


Standard (40 CFR Part 63, Subpart HH)

SIC Codes

NAICS Codes

Natural Gas Extraction

1321

211130

Crude Petroleum Extraction

1311

211120

4(b) Information Requested


(i) Data Items


In this ICR, all the data that are recorded or reported is required by the NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH).


A source must make the following reports:


Notifications

Item

Major Sources

Area Sources

Initial notification

§63.775(b)(1), §63.9(b)(2)

§63.775(c)(1)

Notification of intent to construct/reconstruct

§63.5(d), §63.9(b)(4)

§63.9(b)(5)

Notification of actual startup date

§63.9(b)(4), §63.9(b)(5)(ii)

§63.9(b)(5)

Notification of date of CMS performance evaluation

§63.775(b)(2), §63.8(e)(2), §63.9(g)(1)

§63.775(c)(2)

Notification of intent to conduct a performance test

§63.775(b)(3), §63.7(b), §63.9(e)

§63.775(c)(3)

Notification of compliance status

§63.775(b)(4), §63.9(h), §63.775(d)

§63.775(c)(4)

Notification of change in compliance demonstration method for control device performance

§63.772(f), §63.775(e)

Notification of process change

§63.775(f)

Notification of changes in information (reclassification to area source status or to revert to major source status) (electronic submission)

§63.9(b), §63.9(j)



Reports

Item

Major Sources

Area Sources

Periodic reports

§63.775(b)(5), §63.769(c), §63.772(f), §63.775(e)(1)-(2)

§63.775(c)(5), §63.775(e)(3)

Malfunction report and Affirmative Defense report

§63.775(b)(6), §63.762(d)(2)

§63.775(c)(6), §63.762(d)(2)

Semiannual excess emissions and continuous monitoring system performance report

§63.8(c)(8), §63.10(e)(3)

Semiannual HAP summary report

§63.10(e)(3)

Results of performance test

§63.7(g), §63.10(d)(2)

Performance test reports (electronic submission)

§63.775(g)

A source must keep the following records:



Recordkeeping

Record retention

§63.10(b)(1), §63.774(b)(1)

Copies of notifications and reports and supporting documentation

§63.10(b)(2)(xiv)

Records of performance tests, other compliance demonstrations, and performance evaluations (area sources)

§63.10(b)(2)(vii)-(ix)

Record related to control equipment inspections (area sources)

§63.774(b)(5-8) §63.773(c)(7)

Records related to CMS (area sources)

§63.10(b)(2)(vi), (x), (xi), §63.10(c), §63.774(b)(3-4)

Records required if complying via process modification (area sources)

§63.774(b)(10-11),

§63.771(e)

Records required if complying via benzene emission limit (area sources)

§63.774(c)

Records related to equipment that is exempt or subject to other standards

§63.764(e), §63.774(d) §63.774(b)(9)

Affirmative Defense

§63.762(d)

Records of exempt glycol dehydration units

§63.764(e)(1), §63.774(d)(1)

Records of exempt ancillary equipment and compressors

§63.764(e)(2), §63.774(d)(2)

Records of glycol dehydration unit baseline operations (alternative standards)

§63.771(e)(1), §63.774(b)(10)

Records of conditions for which glycol dehydration unit baseline operations shall be modified to achieve 95% HAP emission reduction (alternative standards)

§63.771(e)(2), §63.774(b)(11)

Records to demonstrate that glycol dehydration unit operates under conditions for HAP reduction (alternative standards)

§63.771(e)(3), §63.774(b)(11)

Documentation of control device design analysis

§63.769(c), §63.772(e)(4)

Records relating to malfunction periods; maintenance; compliance measurements; performance tests and evaluation; calibrations and adjustments

§63.10(b)(2), §63.774(b)(2), §63.774(g)

Records of periods when monitoring systems are not operating (breakdowns, repairs, malfunctions, etc.)

§63.10(c), §63.774(b)(3), §63.774(g)

Records of control device operating parameters – continuous and daily average (except flares)

§63.774(b)(4)(i-ii)

Records of flare design, visible emissions, heat content, flow-rate, exit velocity, pilot flame outages (flares only)

§63.774(b)(4)(i-ii), §63.774(e)

Records of 365 days rolling average condenser efficiency (condensers only)

§63.774(b)(4)(ii)(B)

Records of flow indicator operation, flow detection, vent stream diversions

§63.774(b)(4)(iii)

Records of inspections of seals or closure mechanisms, records of broken/changed/checked out seals/valves/locks

§63.774(b)(4)(iv)

Records of unsafe-to-inspect parts

§63.773(c)(7), §63.774(b)(5)

Records of difficult-to-inspect parts

§63.773(c)(7), §63.774(b)(6)

Records of leak or defect detection and repair

§63.769(c), §61.246, §63.773(c)(7), §63.774(b)(7)

Records of inspections during which no leaks or defects were detected

§63.773(c)(7), §63.774(b)(8)

Records of compliance with benzene emission limit (alternative standards)

§63.774(c)

Site-specific performance evaluation test plan

§63.7(c)(2), §63.8(d)(2), §63.8(e)(3)(i)

Records of results of performance test

§63.7(g)(3)

Continuous monitoring system quality control program

§63.8(d)

Records of continuous monitoring system performance

§63.10(c)


Electronic Reporting


Some of the respondents are using monitoring equipment that automatically records parameter data. Although personnel at the affected facility must still evaluate the data, internal automation has significantly reduced the burden associated with monitoring and recordkeeping at a plant site.


The rule was amended to include electronic reporting provisions on both August 16, 2012 and November 19, 2020. Respondents are required to use the EPA’s Electronic Reporting Tool (ERT) to develop performance test reports and submit them through the EPA’s Compliance and Emissions Data Reporting Interface (CEDRI), which can be accessed through the EPA’s Central Data Exchange (CDX) (https://cdx.epa.gov/). The ERT is an application rather than a form, and the requirement to use the ERT is applicable to numerous subparts. The splash screen of the ERT contains a link to the Paperwork Reduction Act (PRA) requirements, such as the OMB Control Number, expiration date, and burden estimate for this and for other subparts. Respondents are also required to submit electronic copies of certain notifications through EPA’s CEDRI. The notification is an upload of their currently required notification in portable document format (PDF) file. For purposes of this ICR, it is assumed that there is no additional burden associated with the proposed requirement for respondents to submit the notifications and reports electronically.


Electronic copies of records may also be maintained in order to satisfy federal recordkeeping requirements. For additional information on the Paperwork Reduction Act requirements for CEDRI and ERT for this rule, see: https://www.epa.gov/electronic-reporting-air-emissions/paperwork-reduction-act-pra-cedri-and-ert.


(ii) Respondent Activities


Respondent Activities

Familiarization with the regulatory requirements.


Install, calibrate, maintain, and operate continuous parameter monitoring systems and/or flare.

Perform initial performance test, Reference Methods 1 or 1A; 2, 2A, 2C, or 2D; 3A or 3B; 3C; 4; 10; 18; ASTM D6420-99; 21; 22; 25A; and 301 test, and repeat performance tests if necessary.

Write the notifications and reports listed above.

Enter information required to be recorded above.

Submit the required reports developing, acquiring, installing, and utilizing technology and systems for collecting, validating, and verifying information.

Develop, acquire, install, and utilize technology and systems for processing and maintaining information.

Develop, acquire, install, and utilize technology and systems for disclosing and providing information.

Train personnel to be able to respond to a collection of information.

Transmit, or otherwise disclose the information.


5. The Information Collected: Agency Activities, Collection Methodology, and Information Management


5(a) Agency Activities


The EPA conducts the following activities in connection with the acquisition, analysis, storage, and distribution of the required information:


Agency Activities

Review notifications and reports, including performance test reports, and excess emissions reports, required to be submitted by industry.

Audit facility records.

Input, analyze, and maintain data in the Enforcement and Compliance History Online (ECHO) and ICIS.


5(b) Collection Methodology and Management


Following notification of startup, the reviewing authority could inspect the source to determine whether the pollution control devices are properly installed and operated. Performance test reports are used by the Agency to discern a source’s initial capability to comply with these emission standards and to note the operating conditions under which compliance was achieved. Data and records maintained by the respondents are tabulated and published for use in compliance and enforcement programs. The semiannual reports are used for problem identification, as a check on source operation and maintenance, and for compliance determinations.


Information contained in the reports is reported by state and local governments in the ICIS Air database, which is operated and maintained by EPA's Office of Compliance. The EPA uses ICIS for tracking air pollution compliance and enforcement by local and state regulatory agencies, EPA regional offices, and EPA headquarters. The EPA and its delegated Authorities can edit, store, retrieve and analyze the data.


The majority of the respondents are large entities (i.e., large businesses). However, their impact on small entities (i.e., small businesses) was taken into consideration during the development of the regulation. Due to technical considerations involving the process operations and the types of control equipment employed, the recordkeeping and reporting requirements are the same for both small and large entities. The Agency considers these to be the minimum requirements needed to ensure compliance and, therefore, cannot reduce them further for small entities. To the extent that larger businesses can use economies of scale to reduce their burden, the overall burden will be reduced.

5(d) Collection Schedule


The specific frequency for each information collection activity within this request is shown at the end of this document in Table 1: Annual Respondent Burden and Cost – NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH) (Renewal).


6. Estimating the Burden and Cost of the Collection


Table 1 documents the computation of individual burdens for the recordkeeping and reporting requirements applicable to the industry for the subparts included in this ICR. The individual burdens are expressed under standardized headings believed to be consistent with the concept of ‘Burden’ under the Paperwork Reduction Act. Where appropriate, specific tasks and major assumptions have been identified. Responses to this information collection are mandatory.


The Agency may neither conduct nor sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB Control Number.


6(a) Estimating Respondent Burden


The average annual burden to industry over the next three years from these recordkeeping and reporting requirements is estimated to be 60,600 hours (Total Labor Hours from Table 1 below). These hours are based on Agency studies and background documents from the development of the regulations, Agency knowledge and experience with the NESHAP program, the previously-approved ICR, and any comments received.


6(b) Estimating Respondent Costs


(i) Estimating Labor Costs

This ICR uses the following labor rates:


Managerial $157.61 ($75.05 + 110%)

Technical $123.94 ($59.02 + 110%)

Clerical $62.52 ($29.77 + 110%)


These rates are from the United States Department of Labor, Bureau of Labor Statistics, September 2021, “Table 2. Civilian Workers, by occupational and industry group.” The rates are from column 1, “Total compensation.” The rates have been increased by 110 percent to account for varying industry wage rates and the additional overhead business costs of employing workers beyond their wages and benefits, including business expenses associated with hiring, training, and equipping their employees.



(ii) Estimating Capital/Startup and Operation and Maintenance Costs


The type of industry costs associated with the information collection activities in the subject standard(s) are both labor costs, which are addressed elsewhere in this ICR, and the costs associated with continuous monitoring. The capital/startup costs are one-time costs when a facility becomes subject to these regulations. The annual operation and maintenance costs are the ongoing costs to maintain the monitors and other costs, such as photocopying and postage.


(iii) Capital/Startup vs. Operation and Maintenance (O&M) Costs



Capital/Startup vs. Operation and Maintenance (O&M) Costs


(A)

Continuous Monitoring Device


(B)

Capital/Startup Cost for One Respondent


(C)

Number of New Respondents


(D)

Total Capital/Startup Cost, (B X C)


(E)

Annual O&M Costs for One Respondent


(F)

Number of Respondents with O&M


(G)

Total O&M,

(E X F)

THC analyzer (major source) a

$10,200

28

$285,600

$1,020

650

$663,000

Monitoring equipment (CMS) b, c

$1,015

31

$31,465

$134

740

$99,125

Postage cost d

NA

0

$0

$7.63

3,781

$28,846

Total e

 

 

$317,000

 

 

$791,000

a. Cost information for THC analyzer is from the EPA Air Pollution Control Cost Manual, January 2002, “Table 4.12: Default Analyzer and Monitor Equipment Costs for CEMS ($).” EPA assumes all major sources utilize an organic monitoring device to measure the concentration level of organic compounds in the exhaust vent system. EPA estimates the cost for a TOC/HAP monitor based on the cost of a total hydrocarbon (THC) analyzer.

2 We assume that all new major sources (28) and 2 percent of new area sources (3) are required to purchase CMS per year.

3 We assume the average number of existing major sources (650), 2% of existing area sources (87), and 3 new area sources have O&M costs associated with CMS.

4 We estimate an average of 3,781 responses (reports).

5 Totals have been rounded to 3 significant figures. Figures may not add exactly due to rounding.


The total capital/startup costs for this ICR are $317,000. This is the total of column D in the above table.


The total operation and maintenance (O&M) costs for this ICR are $791,000. This is the total of column G.


The average annual cost for capital/startup and operation and maintenance costs to industry over the next three years of the ICR is estimated to be $1,110,000. These are the recordkeeping costs.


6(c) Estimating Agency Burden and Cost


The only costs to the Agency are those costs associated with analysis of the reported information. The EPA's overall compliance and enforcement program includes such activities as the examination of records maintained by the respondents, periodic inspection of sources of emissions, and the publication and distribution of collected information.


The average annual Agency cost during the three years of the ICR is estimated to be $354,000.


This cost is based on the average hourly labor rate as follows:


Managerial $70.56 (GS-13, Step 5, $44.10 + 60%)

Technical $52.37 (GS-12, Step 1, $32.73 + 60%)

Clerical $28.34(GS-6, Step 3, $17.71 + 60%)


These rates are from the Office of Personnel Management (OPM), 2022 General Schedule, which excludes locality rates of pay. The rates have been increased by 60 percent to account for the benefit packages available to Federal government employees. Details upon which this estimate is based appear at the end of this document in Table 2: Average Annual EPA Burden and Cost – NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH) (Renewal).


6(d) Estimating the Respondent Universe and Total Burden and Costs


Based on our research for this ICR, on average over the next three years, approximately 650 existing major source respondents and 4,337 existing area source respondents will be subject to these standards. It is estimated that an additional 28 new major source respondents and 141 new area source respondents per year will become subject to requirements under the rule. The overall average number of respondents, as shown in the table below, is 5,146 per year.


The number of respondents is calculated using the following table that addresses the three years covered by this ICR:







Number of Respondents

 

(A)

(B)

(C)

(D)

(E)


Year

Number of New Respondents 1, 2

Number of Existing Respondents 3

Number of Existing Respondents that keep records but do not submit reports 3, 4

Number of Existing Respondents That Are Also New Respondents 5

Number of Respondents (E=A+B-D)


 

Major

Area

Area -
Only Keep Records

Major

Area

Area

Major

Area + Major


1

28

3

138

632

4,196

4,112

10

4,987


2

28

3

138

650

4,337

4,250

10

5,146


3

28

3

138

668

4,478

4,388

10

5,305


Average

28

3

138

650

4,337

4,250

10

5,146


1 New respondents include sources with constructed or reconstructed affected facilities.

2 We assume that there are 141 new area source respondents and 28 new major source respondents.

3 All major sources and 2 percent of area sources will maintain records and submit reports.

4 We assume that 98 percent of area sources will only be required to maintain records.

5 We estimate 10 of the 28 new major source respondents are existing respondents that become new respondents due to construction or reconstruction, while 18 of the 28 new major source respondents are new facilities. Of the 10 existing respondents that become new major source respondents due to construction/reconstruction, we assume that all 10 of these existing respondents are already existing major sources.

Column D is subtracted to avoid double-counting respondents. As shown above, the average Number of Respondents over the three-year period of this ICR is 5,146.


The total number of annual responses per year is calculated using the following table:


Total Annual Responses

(A)

(B)

(C)

(D)

(E)

Information Collection Activity

Number of Respondents

Number of Responses

Number of Existing Respondents That Keep Records But Do Not Submit Reports

Total Annual Responses
E=(BxC)+D

Major sources

 

 

 

 

Notification of construction/reconstruction

28

1

0

28

Notification of actual startup

28

1

0

28

Notification of date of CMS performance evaluation

28

1

0

28

Notification of date of performance test

28

1

0

28

Notification of compliance status report

28

1

0

28

Affirmative defense and malfunction reports

650

2

0

1,300

Semiannual periodic report

650

2

0

1,300

Area sources

 

 

 

 

Notification of intent to construct

3

1

0

3

Notification of actual startup date

3

1

0

3

Notification of intent to conduct performance test

16

1

0

16

Notification of date of CMS performance evaluation

16

1

0

16

Notification of compliance status

16

1

0

16

First periodic report

3

1

0

3

Subsequent periodic reports

87

1

0

87

Affirmative defense and malfunction reports

90

10

0

897

 

 

 

Total

3,781


The number of Total Annual Responses is 3,781.


The total annual labor costs are $7,280,000. Details regarding these estimates may be found at the end of this document in Table 1: Annual Respondent Burden and Cost – NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH) (Renewal).


6(e) Bottom Line Burden Hours and Cost Tables


The detailed bottom line burden hours and cost calculations for the respondents and the Agency are shown in Tables 1 and 2 at the end of this document, respectively, and summarized below.


(i) Respondent Tally


The total annual labor hours are 60,600. Details regarding these estimates may be found below in Table 1: Annual Respondent Burden and Cost – NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH) (Renewal).

We assume that burdens for managerial tasks take 5% of the time required for technical tasks because the typical tasks for managers are to review and approve reports. Clerical burdens are assumed to take 10% of the time required for technical tasks because the typical duties of clerical staff are to proofread the reports, make copies and maintain records.


Furthermore, the annual public reporting and recordkeeping burden for this collection of information is estimated to average 16 hours per response.


The total annual capital/startup and O&M costs to the regulated entity are $1,110,000. The cost calculations are detailed in Section 6(b)(iii), Capital/Startup vs. Operation and Maintenance (O&M) Costs.


(ii) The Agency Tally


The average annual Agency burden and cost over next three years is estimated to be 6,940 labor hours at a cost of $354,000; see below in Table 2: Average Annual EPA Burden and Cost – NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH) (Renewal).


We assume that burdens for managerial tasks take 5% of the time required for technical tasks because the typical tasks for managers are to review and approve reports. Clerical burdens are assumed to take 10% of the time required for technical tasks because the typical duties of clerical staff are to proofread the reports, make copies and maintain records.


6(f) Reasons for Change in Burden


There is an increase in burden from the most-recently approved ICR currently identified in the OMB Inventory of Approved Burdens due to an increase in the number of new or modified sources. This ICR updates the number of affected sources subject to the regulation based on an assumption that the industry continues to grow at a constant rate since the previous renewal. There is also a slight increase in costs, which is wholly due to the use of updated labor rates. This ICR uses labor rates from the most-recent Bureau of Labor Statistics report (September 2021) to calculate respondent burden costs. Because the industry growth rate is constant, the number of new sources each year is constant, and there is no change in the capital/startup costs from the most-recently approved ICR. However, the number of existing sources has increased due to the industry growth rate, resulting in an increase to the operation & maintenance (O&M) costs.


6(g) Burden Statement


The annual public reporting and recordkeeping burden for this collection of information is estimated to average 16 hours per response. ‘Burden’ means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or provide information either to or for a Federal agency. This includes the time needed to review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously-applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information.


An agency may neither conduct nor sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMB Control Number. The OMB Control Numbers for EPA regulations are listed at 40 CFR Part 9 and 48 CFR Chapter 15.


To comment on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including the use of automated collection techniques, EPA has established a public docket for this ICR under Docket ID Number EPA-HQ-OAR-2022-0085. An electronic version of the public docket is available at http://www.regulations.gov/, which may be used to obtain a copy of the draft collection of information, submit or view public comments, access the index listing of the contents of the docket, and to access those documents in the public docket that are available electronically. When in the system, select “search,” then key in the docket ID number identified in this document. The documents are also available for public viewing at the Enforcement and Compliance Docket and Information Center in the EPA Docket Center (EPA/DC), WJC West, Room 3334, 1301 Constitution Ave., NW, Washington, DC. The EPA Docket Center Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. Due to COVID-19 precautions, entry to the Reading Room is available by appointment only. Please contact personnel in the Reading Room to schedule an appointment. The telephone number for the Reading Room is (202) 566-1744, and the telephone number for the docket center is (202) 566-1752. Also, you can send comments to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, DC 20503, Attention: Desk Officer for EPA. Please include the EPA Docket ID Number EPA-HQ-OAR-2022-0085 and OMB Control Number 2060-0417 in any correspondence.


Part B of the Supporting Statement


This part is not applicable because no statistical methods were used in collecting this information.

Table 1: Annual Respondent Burden and Cost – NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH) (Renewal)

 

(A)

(B)

(C)

(D)

(E)

(F)

(G)

(H)

Burden item

Technical Person hours per occurrence

No. of occurrences per respondent per year

Technical Person hours per respondent per year (C=AxB)

Respondents per year a

Technical person- hours per year (E=CxD)

Management person hours per year (Ex0.05)

Clerical person hours per year (Ex0.1)

Total Cost Per Year b

1. Applications

N/A

 

 

 

 

 

 

 

2. Surveys and studies

N/A

 

 

 

 

 

 

 

3. Reporting requirements

 

 

 

 

 

 

 

 

a. Familiarize with regulatory requirements c

 

 

 

 

 

 

 

 

New sources

4

1

4

169

676

33.8

67.6

$93,337.99

Existing sources (major source only)

1

1

1

650

650

32.5

65

$89,748.07

b. Required activities

N/A

 

 

 

 

 

 

 

Major sources

 

 

 

 

 

 

 

 

i. Notification of construction/reconstruction c

2

1

2

28

56

2.8

5.6

$7,732.14

ii. Notification of actual startup c

2

1

2

28

56

2.8

5.6

$7,732.14

iii. Notification of date of CMS performance evaluation c

2

1

2

28

56

2.8

5.6

$7,732.14

iv. Notification of date of performance test c

2

1

2

28

56

2.8

5.6

$7,732.14

v. Notification of compliance status report c

4

1

4

28

112

5.6

11.2

$15,464.28

vi. Affirmative Defense and malfunction reports e

2

2

4

650

2,600

130

260

$358,992.27

vii. Semiannual periodic report e

2

2

4

650

2,600

130

260

$358,992.27

Area sources

 

 

 

 

 

 

 

 

i. Notification of intent to construct c

2

1

2

3

6

0.3

0.6

$828.44

ii. Notification of actual startup date c

1

1

1

3

3

0.15

0.3

$414.22

iii. Notification of intent to conduct performance test c, f

2

1

2

16

31.0

1.6

3.1

$4,283.05

iv. Notification of date of CMS performance evaluation c, f

2

1

2

16

31.0

1.6

3.1

$4,283.05

v. Notification of compliance status f

10

1

10

16

155.1

7.8

15.5

$21,415.27

vi. First periodic report g

4

1

4

3

12

0.6

1.2

$1,656.89

vii. Subsequent periodic reports g

2

1

2

87

173

9

17

$23,953.07

viii. Affirmative Defense and malfunction reports h

2

10

20

90

1794.8

89.7

179.5

$247,815.13

c. Create information

N/A

 

 

 

 

 

 

 

d. Gather existing information c

8

1

8

169

1352

67.6

135

$186,675.98

e. Affirmative defense d

N/A

 

 

 

 

 

 

 

Subtotal for Reporting Requirements

 

 

 

 

11,983

$1,438,789

4. Recordkeeping requirements

 

 

 

 

 

 

 

 

a. Familiarize with rule requirement

 

 

 

 

 

 

 

 

Major source i

4

1

4

28

112

5.6

11.2

$15,464.28

Area source i

4

1

4

141

564

28.2

56.4

$77,873.71

b. Plan activities

 

 

 

 

 

 

 

 

Major source

16

1

16

28

448

22.4

44.8

$61,857.13

Area source

 

 

 

 

 

 

 

 

i. Sources required to operate add-on controls j

16

1

16

90

1436

72

144

$198,252.10

ii. Sources required to implement MP k

4

1

4

138

552

27.6

55.2

$76,216.82

c. Implement activities

 

 

 

 

 

 

 

 

Major source

N/A

 

 

 

 

 

 

 

Area source

 

 

 

 

 

 

 

 

i. Performance test l

35

1

35

16

542.85

27.1425

54.285

$74,953.44

ii. Design analysis l

12

1

12

74

891

45

89

$122,990.75

iii. Control equipment leak monitoring j

3

2

6

90

538

27

54

$74,344.54

iv. Operate and maintain CMS j, m

2

12

24

90

2154

108

215

$297,378.15

d. Develop record system

 

 

 

 

 

 

 

 

Major source

 

 

 

 

 

 

 

 

i. Control equipment c

8

1

8

28

224

11.2

22.4

$30,928.56

ii. Equipment inspection and monitoring n

13

1

13

650

8450

423

845

$1,166,724.88

Area source

 

 

 

 

 

 

 

 

Control equipment o

8

1

8

16

124.08

6.204

12.408

$17,132.22

e. Time to enter information

 

 

 

 

 

 

 

 

Major source

 

 

 

 

 

 

 

 

i. Control equipment monitoring n, p

1

2

2

650

1300

65

130

$179,496.14

ii. Control device CMS n, p, q

1

12

12

650

7800

390

780

$1,076,976.81

iii. Equipment inspection and monitoring n, p, q

1

12

12

650

7800

390

780

$1,076,976.81

Area source

 

 

 

 

 

 

 

 

i. Control equipment leak monitoring j, r

1

2

2

90

179

9

18

$24,781.51

ii. CMS measurements j

1

12

12

90

1077

54

108

$148,689.08

f. Time to train personnel

 

 

 

 

 

 

 

 

Major source c, s

8

1

8

28

224

11.2

22.4

$30,928.56

Area source c, s

8

1

8

3

24

1.2

2.4

$3,313.77

g. Maintain records (area source) j, t

20

1

20

90

1795

90

179

$247,815.13

h. Retain records of emission u

1

1

1

4,250

4250

213

425

$586,850.19

i. Retrieve records/reports j, v

20

1

20

90

1795

90

179

$247,815.13

Subtotal for Recordkeeping Requirements

 

 

 

 

48,622

$5,837,759.70

Total Labor Burden and Costs (rounded) w

 

 

 

 

60,600

$7,280,000

Total Capital and O&M Cost (rounded) w

 

 

 

 

 

 

 

$1,110,000

GRAND TOTAL (rounded) w

 

 

 

 

 

 

 

$8,390,000

Assumptions:

a We assume that on average there are 5,146 existing sources (650 existing major sources and 4,337 existing area sources) during the three-year period of this ICR. We assume that an additional 169 new respondents (28 new major source respondents and 141 new area source respondents) per year will become subject to new requirements under the rule over the three years of this ICR due to new construction. We assume that all 141 of the new area source respondents are newly constructed area sources, while 18 of the 28 new major source respondents are newly constructed (greenfield) major sources. The remaining 10 new major source respondents are existing major sources that perform construction or reconstruction and are required to file reports as though they were new major source respondents.

b This ICR uses the following labor rates: Managerial $157.61 ($75.05+ 110%); Technical $123.94 ($59.02 + 110%); and Clerical $62.52 ($29.77 + 110%). These rates are from the United States Department of Labor, Bureau of Labor Statistics, September 2021, “Table 2. Civilian Workers, by occupational and industry group.” The rates are from column 1, “Total compensation.” The rates have been increased by 110 percent to account for varying industry wage rates and the additional overhead business costs of employing workers beyond their wages and benefits, including business expenses associated with hiring, training, and equipping their employees.

c New respondents are comprised of: 28 new major source respondents that are required to file reports, 3 new area source respondents that are required to file reports, and 138 new area source respondents that only maintain records, for a total of 169 new respondents per year on average. For existing respondents, we assume only major source respondents will need to re-familiarize with the regulatory requirement. Most area source respondents only have recordkeeping requirements.

d Not applicable.

e We assume that affirmative defense and malfunction reports may be included as part of the semiannual periodic reports. In addition, we estimate two hours are required to complete each report. All existing major sources are subject to malfunction and semiannual reports.

f We assume that 11% of new area sources are located within an urbanized area (UA)/urban cluster (UC) plus offset boundary and have facilities subject to control, monitoring, and recordkeeping requirements.

g We assume that 2% of existing area sources and 3 new area sources will complete this activity.

h We assume that affirmative defense and malfunction reports may be included as part of the semiannual periodic reports. We assume that 2% of existing area sources and 3 new area sources will complete this activity. In addition, we estimate two hours are required to complete each report.

i We assume that it will take each of the new sources (28 major and 141 area) four hours to read instructions.

j We assume that 2% of the 4,337 existing area sources (87 sources) and 3 new area sources will complete this activity.

k This applies to new area sources that only keep records.

l Performance of control devices can be evaluated with performance tests or design analysis. The estimated hours per activity and number of sources are based on estimates from EPA ICR Number 1788.09 and 2440.02.

m We assume that it will take each respondent two hours twelve times per year to implement this activity.

n This applies to the existing major sources.

o The 11% of new area sources doing a performance test on control equipment need to develop a record system. The estimated hours per activity and number of sources are based on estimates from EPA ICR Number 1788.09 and 2440.02.

p We assume that all of the major sources will each take one hour to enter information.

q We assume that each respondent will be required to enter information twelve times per year.

r We assume that each respondent will be required to enter information two times per year.

s We assume that new respondents subject to reporting requirements will take eight hours to train personnel in the recordkeeping system.

t We assume that it will take 20 hours for each respondent to maintain records.

u We assume that 98% of the 4,337 existing area source respondents are subject only to the recordkeeping requirements. These sources will take one hour each year to process records of emissions.

v We assume that each respondent will take twenty hours once per year to retrieve records/reports.

w Totals have been rounded to 3 significant figures. Figures may not add exactly due to rounding.


Table 2: Average Annual EPA Burden and Cost – NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH) (Renewal)

Activity

(A)

(B)

(C)

(D)

(E)

(F)

(G)

(H)

EPA person- hours per occurrence

No. of occurrences per plant per year

EPA person- hours per plant per year

Plants per year a

Technical person- hours per year

Management person-hours per year

Clerical person-hours per year

Cost, $ b

 

 

(C=AxB)

 

(E=CxD)

(Ex0.05)

(Ex0.1)

 

Major source

 

 

 

 

 

 

 

 

Initial notification c

2

1

2

28

56

2.8

5.6

$3,288.99

Preconstruction review application c

4

1

4

28

112

5.6

11.2

$6,577.98

Performance test notification c

2

1

2

28

56

2.8

5.6

$3,288.99

Compliance status notification c

4

1

4

28

112

5.6

11.2

$6,577.98

Affirmative Defense and malfunction reports d

2

2

4

650

2,600

130

260

$152,703.20

Semiannual periodic reports e

2

2

4

650

2,600

130

260

$152,703.20

Area sources

 

 

 

 

 

 

 

 

Notification of intent to construct

2

1

2

3

6

0.3

0.6

$352.39

Notification of actual startup date

2

1

2

3

6

0.3

0.6

$352.39

Notification of intent to conduct performance test f

2

1

2

16

31.02

1.551

3.102

$1,821.87

Notification of date of CMS performance evaluation

2

1

2

16

31.02

1.551

3.102

$1,821.87

Notification of compliance status

4

1

4

16

62.04

3.102

6.204

$3,643.73

Periodic reports - first and subsequent g

2

1

2

90

179

9.0

18

$10,541.22

Affirmative Defense and malfunction reports h

2

1

2

90

179.48

8.974

17.948

$10,541.22

TOTAL (rounded) i

 

 

 

 

6,940

$354,000

Assumptions:

a We assume that on average there are 5,146 existing sources (650 existing major sources and 4,337 existing area sources) during the three-year period of this ICR. We assume that an additional 169 new respondents (28 new major source respondents and 141 new area source respondents) per year will become subject to new requirements under the rule over the three years of this ICR due to new construction. We assume that all 141 of the new area source respondents are newly constructed area sources, while 18 of the 28 new major source respondents are newly constructed (greenfield) major sources. The remaining 10 new major source respondents are existing major sources that perform construction or reconstruction and are required to file reports as though they were new major source respondents.

b This cost is based on the following labor rates which incorporates a 1.6 benefits multiplication factor to account for for the benefit packages available to government employees: Managerial rate of $70.56 (GS-13, Step 5, $44.10 + 60%), Technical rate of $52.37 (GS-12, Step 1, $32.73 + 60%), and Clerical rate of $28.34 (GS-6, Step 3, $17.71 + 60%). These rates are from the Office of Personnel Management (OPM) “2022 General Schedule” which excludes locality rates of pay.

c We have assumed that this is a one-time only activity for each facility.

d We have assumed that affirmative defense and malfunction reports may be included as part of the semiannual periodic reports.

e We have assumed that each respondent will take two hours two times per year to complete the semiannual periodic reports.

f We have assumed that each of the respondents will take two hours once per year to complete requirements.

g We assume that 2% of existing area sources and 3 new area sources will complete this activity.

h We have assumed that it will take two hours once per year to review reports.

i Totals have been rounded to 3 significant figures. Figures may not add exactly due to rounding.

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