FINAL REGULATION ORDER
FINAL REGULATION ORDERCalifornia Code of Regulations, Title 17, Division 3, Chapter 1, Subchapter 10 ClimateChange, Article 4(Note: The entire text of sections 95665, 95666, 95667, 95668, 95669, 95670, 95671,95672, 95673, 95674, 95675, 95676, and 95677 set forth below is new language in“normal type” proposed to be added to title 17, California Code of Regulations.)Adopt new Subarticle 13, and sections 95665, 95666, 95667, 95668, 95669, 95670,95671, 95672, 95673, 95674, 95675, 95676, 95677, Appendix A, Appendix B, andAppendix C, title 17, California Code of Regulations, to read as follows:Subarticle 13: Greenhouse Gas Emission Standards forCrude Oil and Natural Gas Facilities§ 95665. Purpose and Scope.The purpose of this subarticle is to establish greenhouse gas emission standards forcrude oil and natural gas facilities located in sectors identified in section 95666. Thissubarticle is designed to serve the purposes of the California Global Warming SolutionsAct, AB 32, as codified in sections 38500-38599 of the Health and Safety Code.NOTE: Authority cited: Sections 38510, 38562, 39600, 39601 and 41511, Health and Safety Code.Reference: Sections 38551, 38560, 39600 and 41511, Health and Safety Code.§ 95666. Applicability.(a)This subarticle applies to owners or operators of equipment and components listedin section 95668 located within California, including California waters, that areassociated with facilities in the sectors listed below, regardless of emissions level:(1)(2)(3)(4)(5)(6)(b)Onshore and offshore crude oil or natural gas production; and,Crude oil, condensate, and produced water separation and storage; and,Natural gas underground storage; and,Natural gas gathering and boosting stations; and,Natural gas processing plants; and,Natural gas transmission compressor stations.Owners and operators must ensure that their facilities, equipment, andcomponents comply at all times with all requirements of this subarticle, including allof the standards and requirements identified in section 95668. Owners andoperators are jointly and severally liable for compliance with this subarticle.Page 1 of 71
NOTE: Authority cited: Sections 38510, 38562, 39600, 39601 and 41511, Health and Safety Code.Reference: Sections 38551, 38560, 39600 and 41511, Health and Safety Code.§ 95667. Definitions.(a)For the purposes of this subarticle, the following definitions apply:(1)“Air district or local air district” means the local Air Quality ManagementDistrict or the local Air Pollution Control District.(2)“Air Resources Board or ARB” means the California Air Resources Board.(3)"API gravity" means a scale used to reflect the specific gravity (SG) of a fluidsuch as crude oil, condensate, produced water, or natural gas. The APIgravity is calculated as [(141.5/SG) - 131.5], where SG is the specific gravityof the fluid at 60 F, and where API refers to the American Petroleum Institute.(4)“Blowout” means the uncontrolled flow of gas, liquids, or solids (or a mixturethereof) from a well onto the surface.(5)“Centrifugal compressor” means equipment that increases the pressure ofnatural gas by centrifugal action through an impeller. Screw, sliding vane, andliquid ring compressors are not centrifugal compressors for the purpose ofthis subarticle.(6)“Centrifugal compressor seal” means a wet or dry seal around thecompressor shaft where the shaft exits the compressor case.(7)“Circulation tank” means a tank or portable tank used to circulate, store, orhold liquids or solids from a crude oil or natural gas well during or following awell stimulation treatment but prior to the well being put into production.(8)“Commercial quality natural gas” means a mixture of gaseous hydrocarbonswith at least 80 percent methane by volume and less than 10 percent byweight volatile organic compounds and meets the criteria specified in PublicUtilities Commission General Order 58-A (November 10, 2016), which isincorporated herein by reference.(9)“Component” means a valve, fitting, flange, threaded-connection, processdrain, stuffing box, pressure-vacuum valve, pressure-relief device, pipes, sealfluid system, diaphragm, hatch, sight-glass, meter, open-ended line, wellcasing, natural gas powered pneumatic device, natural gas poweredpneumatic pump, or reciprocating compressor rod packing or seal.(10) “Condensate” means hydrocarbon or other liquid, excluding steam, eitherproduced or separated from crude oil or natural gas during production andwhich condenses due to changes in pressure or temperature.Page 2 of 71
(11) "Continuous bleed" means the continuous venting of natural gas from a gaspowered pneumatic device to the atmosphere. Continuous bleed pneumaticdevices must vent continuously in order to operate.(12) “Critical component” means any component that would require the shutdownof a critical process unit if that component was shutdown or disabled.(13) "Critical process unit" means a process unit or group of components that mustremain in service because of its importance to the overall process thatrequires it to continue to operate, and has no equivalent equipment to replaceit or cannot be bypassed, and it is technically infeasible to repair leaks fromthat process unit without shutting it down and opening the process unit to theatmosphere.(14) “Crude oil” means any of the naturally occurring liquids and semi-solids foundin rock formations composed of complex mixtures of hydrocarbons rangingfrom one to hundreds of carbon atoms in straight and branched chain rings.(15) “Crude oil and produced water separation and storage” means all activitiesassociated with separating, storing or holding of emulsion, crude oil,condensate, or produced water at facilities to which this subarticle applies.(16) “Emissions” means the discharge of natural gas into the atmosphere.(17) “Emulsion” means any mixture of crude oil, condensate, or produced waterwith varying quantities of natural gas entrained in the liquids.(18) “Equipment” means any stationary or portable machinery, object, orcontrivance covered by this subarticle, as set out by sections 95666 and95668.(19) “Facility” means any building, structure, or installation to which this subarticleapplies and which has the potential to emit natural gas. Facilities include allbuildings, structures, or installations which:(A) Are under the same ownership or operation, or which are owned oroperated by entities which are under common control;(B) Belong to the same industrial grouping either by virtue of falling withinthe same two-digit standard industrial classification code or by virtue ofbeing part of a common industrial process, manufacturing process, orconnected process involving a common raw material; and,(C) Are located on one or more contiguous or adjacent properties.Page 3 of 71
(20) “Flash or flashing” means a process during which gas dissolved in crude oil,condensate, or produced water under pressure is released when the liquidsare subject to a decrease in pressure, such as when the liquids aretransferred from an underground reservoir to the earth’s surface or from apressure vessel to an atmospheric tank.(21) “Flash analysis testing” means the determination of emissions from crude oil,condensate, and produced water by using sampling and laboratoryprocedures used for measuring the volume and composition of gasesreleased from the liquids, including the molecular weight, the weight percentof individual compounds, and a gas-oil or gas-water ratio.(22) “Fuel gas system” means, for the purposes of this subarticle, any system thatsupplies natural gas as a fuel source to on-site natural gas poweredequipment other than a vapor control device.(23) “Gas disposal well” means, for the purpose of this subarticle, any well that isused for the subsurface injection of natural gas for disposal.(24) “Gauge tank” means a tank found upstream of a separator and tank systemwhich is used for measuring the amount of liquid produced by an oil well andreceives or stores crude oil, condensate, or produced water.(25) "Inaccessible component" means any component located over fifteen feetabove ground when access is required from the ground; or any componentlocated over six (6) feet away from a platform or a permanent support surfacewhen access is required from the platform.(26) "Intermittent bleed" means the intermittent venting of natural gas from a gaspowered pneumatic device to the atmosphere. Intermittent bleed pneumaticdevices may vent all or a portion of their supply gas when control action isnecessary but do not vent continuously.(27) “Leak or fugitive leak” means the unintentional release of emissions at a rategreater than or equal to the leak thresholds specified in this subarticle.(28) “Leak detection and repair or LDAR” means the inspection of components todetect leaks of total hydrocarbons and the repair of components with leaksabove the standards specified in this subarticle and within the timeframesspecified in this subarticle.(29) “Liquids unloading” means an activity conducted with the use of pressurizednatural gas to remove liquids that accumulate at the bottom of a natural gaswell and obstruct gas flow.Page 4 of 71
(30) “Natural gas” means a naturally occurring mixture or process derivative ofhydrocarbon and non-hydrocarbon gases. Its constituents include thegreenhouse gases methane and carbon dioxide, as well as heavierhydrocarbons. Natural gas may be field quality (which varies widely) orpipeline quality.(31) "Natural gas gathering and boosting station" means all equipment andcomponents located within a facility fence line associated with moving naturalgas to a natural gas processing plant, transmission pipeline, or distributionpipeline.(32) “Natural gas processing plant” means a plant used for the separation ofnatural gas liquids (NGLs) or non-methane gases from produced natural gas,or the separation of NGLs into one or more component mixtures.(33) “Natural gas transmission compressor station” means all equipment andcomponents located within a facility fence line associated with moving naturalgas from production fields or natural gas processing plants through naturalgas transmission pipelines, or within natural gas underground storage fields.(34) "Natural gas transmission pipeline" means a state rate-regulated Intrastatepipeline, or a pipeline that falls under the “Hinshaw Exemption” as referencedin section 1(c) of the Natural Gas Act, 15 U.S.C. sections 717-717z.(35) “Natural gas underground storage” means all equipment and componentsassociated with the temporary subsurface storage of natural gas in depletedcrude oil or natural gas reservoirs or salt dome caverns. Natural gas storagedoes not include gas disposal wells.(36) “Non-associated gas” means natural gas that is not produced as a byproductof crude oil production but may or may not be produced with condensate.(37) “Offshore” means all marine waters located within the boundaries of the Stateof California.(38) “Onshore” means all lands located within the boundaries of the State ofCalifornia.(39) “Operator” means any entity, including an owner or contractor, havingoperational control of components or equipment, including leased, contracted,or rented components and equipment to which this subarticle applies.(40) “Optical gas imaging” means an instrument that makes emissions visible thatmay otherwise be invisible to the naked eye.Page 5 of 71
(41) “Owner” means the entity that owns or operates components or equipment towhich this subarticle applies.(42) "Photo-ionization detector or PID instrument" means a gas detection devicethat utilizes ultra-violet light to ionize gas molecules and is commonlyemployed in the detection of non-methane volatile organic compounds.(43) “Pneumatic device” means an automation device that uses natural gas,compressed air, or electricity to control a process.(44) “Pneumatic pump” means a device that uses natural gas or compressed air topower a piston or diaphragm in order to circulate or pump liquids.(45) "Pond" means an excavation that is used for the routine storage and/ordisposal of produced water and which is not used for crude oil separation orprocessing.(46) “Portable equipment” means equipment designed for, and capable of, beingcarried or moved from one location to another and which it resides for lessthan 365 days. Portability indicators include, but are not limited to, thepresence of wheels, skids, carrying handles, dolly, trailer, or platform.(47) "Portable pressurized separator" means a pressure vessel that can be movedfrom one location to another by attachment to a motor vehicle without havingto be dismantled and is capable of separating and sampling crude oil,condensate, or produced water at the temperature and pressure of theseparator required for sampling.(48) "Portable tank" means a tank that can be moved from one location to anotherby attachment to a motor vehicle without having to be dismantled.(49) "Pressure separator" means a pressure vessel used for the primary purposeof separating crude oil and produced water or for separating natural gas andproduced water.(50) "Pressure vessel" means any hollow container used to hold gas or liquid andrated, as indicated by an ASME pressure rating stamp, and operated tocontain normal working pressures of at least 15 psig without continuous vaporloss to the atmosphere.(51) “Production” means all activities associated with the production or recovery ofemulsion, crude oil, condensate, produced water, or natural gas at facilities towhich this subarticle applies.Page 6 of 71
(52) “Produced water” means water recovered from an underground reservoir as aresult of crude oil, condensate, or natural gas production and which may berecycled, disposed, or re-injected into an underground reservoir.(53) “Reciprocating natural gas compressor” means equipment that increases thepressure of natural gas by positive displacement of a piston in a compressioncylinder and is powered by an internal combustion engine or electric motorwith a horsepower rating supplied by the manufacturer.(54) “Reciprocating natural gas compressor rod packing” means a seal comprisingof a series of flexible rings in machined metal cups that fit around thereciprocating compressor piston rod to create a seal limiting the amount ofcompressed natural gas that vents into the atmosphere.(55) “Reciprocating natural gas compressor seal” means any device ormechanism used to limit the amount of natural gas that vents from acompression cylinder into the atmosphere.(56) “Separator” means any tank or pressure separator used for the primarypurpose of separating crude oil, produced water, and natural gas or forseparating natural gas, condensate, and produced water. In crude oilproduction a separator may be referred to as a Wash Tank or as a threephase separator. In natural gas production a separator may be referred to asa heater/separator.(57) "Separator and tank system" means the first separator in a crude oil or naturalgas production system and any tank or sump connected directly to the firstseparator.(58) "Successful repair" means tightening, adjusting, or replacing equipment or acomponent for the purpose of stopping or reducing fugitive leaks below theminimum leak threshold or emission flow rate standard specified in thissubarticle.(59) “Sump” means a lined or unlined surface impoundment or excavateddepression in the ground which, during normal operations, is used toseparate, store, or hold emulsion, crude oil, condensate, or produced water.(60) “Tank” means any container constructed primarily of non-earthen materialsused for the purpose of storing, holding, or separating emulsion, crude oil,condensate, or produced water and that is designed to operate below 15 psignormal operating pressure.(61) "Unsafe-to-Monitor Components" means components installed at locationsthat would prevent the safe inspection or repair of components as defined byPage 7 of 71
U.S. Occupational Safety and Health Administration (OSHA) standards or inprovisions for worker safety found in 29 CFR Part 1910.(62) “Vapor collection system” means equipment and components installed onpressure vessels, separators, tanks, or sumps including piping, connections,and flow-inducing devices used to collect and route emission vapors to aprocessing, sales gas, or fuel gas system; to a gas disposal well; or to avapor control device.(63) “Vapor control device” means destructive or non-destructive equipment usedto control emissions.(64) “Vapor control efficiency” means the ability of a vapor control device to controlemissions, expressed as a percentage, which can be estimated by calculationor by measuring the total hydrocarbon concentration or mass flow rate at theinlet and outlet of the vapor control device.(65) “Vent or venting” means the intentional or automatic release of natural gasinto the atmosphere from components, equipment, or activities described inthis subarticle.(66) ”Well” means a boring in the earth for the purpose of the following:(A)(B)(C)(D)(E)Exploring for or producing oil or gas.Injecting fluids or gas for stimulating oil or gas recovery.Re-pressuring or pressure maintenance of oil or gas reservoirs.Disposing of oil field waste gas or liquids.Injection or withdraw of gas from an underground storage facility.For the purpose of this subarticle, wells do not include active observationwells as defined in Public Resources Code Section 3008 subdivision (c), orwells that have been properly abandoned in accordance with PublicResources Code Section 3208.(67) “Well casing vent” means an opening on a well head that blocks or allowsnatural gas to flow to the atmosphere or to a vapor collection system.(68) “Well stimulation treatment” means the treatment of a well designed toenhance crude oil and natural gas production or recovery by increasing thepermeability of the formation and as further defined by the Division of Oil,Gas, and Geothermal Resources SB 4 Well Stimulation TreatmentRegulations, Title 14, Division 2, Chapter 4, Subchapter 2, Article 2, section1761(a) (June 16, 2017), which is incorporated herein by reference.NOTE: Authority cited: Sections 38510, 38562, 39600, 39601 and 41511, Health and Safety Code.Reference: Sections 38551, 38560, 39600 and 41511, Health and Safety Code.Page 8 of 71
§ 95668. Standards.The following standards apply at all times to facilities located in sectors listed in section95666. The availability of an exemption for any particular component or facility, orcompliance with one of the standards, does not exempt the owner or operator of afacility from complying with other standards for equipment or processes located at afacility.(a)Separator and Tank Systems(1)Except as provided in section 95668(a)(2), the following requirements applyto separator and tank systems located at facilities located in sectors listed insection 95666.(2)The requirements of section 95668(a) do not apply to the following, providedthat an owner or operator maintains, and makes available upon request bythe ARB Executive Officer, records necessary to verify compliance with thefollowing provisions:(A) Separator and tank systems that receive an average of less than 50barrels of crude oil or condensate per day. The average daily productionshall be determined using the annual production certified reportssubmitted to the California Department of Conservation Division of Oil,Gas, and Geothermal Resources (DOGGR) and dividing by 365 daysper year.(B) Separator and tank systems used in non-associated gas production thatreceive an average of less than 200 barrels of produced water per day.The average daily production shall be determined using the annualproduction certified reports submitted to the California Department ofConservation Division of Oil, Gas, and Geothermal Resources (DOGGR)and dividing by 365 days per year.(C) Separator and tanks systems that are controlled as of January 1, 2018with the use of a vapor collection system approved for use by a local airdistrict.(D) Separat
Appendix C, title 17, California Code of Regulations, to read as follows: Subarticle 13: Greenhouse Gas Emission Standards for . Crude Oil and Natural Gas Facilities § 95665. Purpose and Scope. The purpose of this subarticle is to establish greenhouse gas emission standards for
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in the Final Regulation Order approved by the Office of Administrative Law (OAL) on March 29, 2019 and included the full regulatory text for the Regulation; however, the following version is not an official legal edition of title 17, California Code of Regulations (CCR), sections 95801-96022. The effective date of this regulation is April 1, 2019.
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