N.M. Admin. Code § 20.2.50.123

Current through Register Vol. 35, No. 21, November 5, 2024

Section 20.2.50.123 - STORAGE VESSELS

A. Applicability: New storage vessels with a PTE equal to or greater than two tpy of VOC, existing storage vessels with a PTE equal to or greater than three tpy of VOC in multi-tank batteries, and existing storage vessels with a PTE equal to or greater than four tpy of VOC in single tank batteries are subject to the requirements of 20.2.50.123 NMAC. Storage vessels in multi-tank batteries manifolded together such that all vapors are shared between the headspace of the storage vessels and are routed to a common outlet or endpoint may determine an individual storage vessel PTE by averaging the emissions across the total number of storage vessels. Storage vessels associated with produced water management units are required to comply with this Section to the extent specified in Subsection B of Section 20.2.50.126 NMAC.

B.Emission standards:

(1) An existing storage vessel subject to this Section shall have a combined capture and control of VOC emissions of at least ninety-five percent according to the following schedule. If a combustion control device is used, the combustion device shall have a minimum design combustion efficiency of ninety-eight percent.

(a) By January 1, 2025, an owner or operator shall ensure at least 30% of the company's existing storage vessels are controlled;

(b) By January 1, 2027, an owner or operator shall ensure at least an additional 35% of the company's existing storage vessels are controlled; and

(c) By January 1, 2029, an owner or operator shall ensure the company's remaining existing storage vessels are controlled.

(2) A new storage vessel subject to this Section shall have a combined capture and control of VOC emissions of at least ninety-five percent upon startup. If a combustion control device is used, the combustion device shall have a minimum design combustion efficiency of ninety-eight percent.

(3) The emission standards in Subsection B of 20.2.50.123 NMAC cease to apply to a storage vessel if the actual annual VOC emissions decrease to less than two tpy.

(4) If a control device is not installed by the date specified in Paragraphs (1) and (2) of Subsection B of 20.2.50.123 NMAC, an owner or operator may comply with Subsection B of 20.2.50.123 NMAC by shutting in the well supplying the storage vessel by the applicable date, and not resuming production from the well until the control device is installed and operational.

(5) The owner or operator of a new or existing storage vessel with a thief hatch shall ensure that the thief hatch is capable of opening sufficiently to relieve overpressure in the vessel and to automatically close once the vessel overpressure is relieved. Any pressure relief device installed must automatically close once the vessel overpressure is relieved.

(6) An owner or operator complying with Paragraphs (1) and (2) of Subsection B of 20.2.50.123 NMAC through use of a control device shall comply with the control device operational requirements in 20.2.50.115 NMAC.

C.Storage vessel measurement requirements: Owners and operators of new storage vessels required to be controlled pursuant to this Part at well sites, tank batteries, gathering and boosting stations, or natural gas processing plants shall use a storage vessel measurement system to determine the quantity of liquids in the storage vessel(s). New tank batteries receiving an annual average of 200 bbls oil/day or more with available grid power shall be outfitted with a lease automated custody transfer (LACT) unit(s).

(1) The owner or operator shall keep thief hatches (or other access points to the vessel) and pressure relief devices on storage vessels closed and latched during activities to determine the quantity of liquids in the storage vessel(s), except as necessary for custody transfer. Tank batteries equipped with LACT units shall use the LACT unit measurements in lieu of field testing of quantity and quality except in case of malfunction. Nothing in this paragraph shall be construed to prohibit the opening of thief hatches, pressure relief devices, or any other openings or access points to perform maintenance or similar activities designed to ensure the safety or proper operation of the storage vessel(s) or related equipment or processes. Where opening a thief hatch is necessary, owners and operators of new and existing storage vessels shall minimize the time the thief hatch is open.

(2) The owner or operator may inspect, test, and calibrate the storage vessel measurement system either semiannually, or as directed by the Bureau of Land Management (see 43 C.F.R. Section 374.6(b)(5)(ii)(B) (November 17, 2016)) or system manufacturer. Opening a thief hatch if required to inspect, test, or calibrate the vessel measurement system is not a violation of Paragraph (1) of this Subsection.

(3) The owner or operator shall install signage at or near the storage vessel that indicates which equipment and method(s) are used and the appropriate and necessary operating procedures for that system.

(4) The owner or operator shall develop and implement an annual training program for employees and third parties conducting activities subject to this Subsection that includes, at a minimum, operating procedures for each type of system.

(5) The owner or operator must make and retain the following records for at least two years and make such records available to the department upon request:

(a) date of construction of the storage vessel or facility;

(b) description of the storage vessel measurement system used to comply with this Subsection;

(c) date(s) of storage vessel measurement system inspections, testing, and calibrations that require opening the thief hatch pursuant to Paragraph (1) of this Subsection;

(d) manufacturer specifications regarding storage vessel measurement system inspections and/or calibrations, if followed pursuant to Paragraph (2) of this Subsection; and

(e) records of the annual training program, including the date and names of persons trained.

D.Monitoring requirements: No later than January 1, 2023, the owner or operator of a storage vessel shall:

(1) on a monthly basis, monitor, calculate, or estimate, the total monthly liquid throughput (in barrels) and the upstream separator pressure (in psig) if the storage vessel is directly downstream of a separator. When a storage vessel is unloaded less frequently than monthly, the throughput and separator pressure monitoring shall be conducted before the storage vessel is unloaded;

(2) conduct an AVO inspection on a weekly basis. If the storage vessel is unloaded less frequently than weekly, the AVO inspection shall be conducted before the storage vessel is unloaded;

(3) inspect the storage vessel monthly to ensure compliance with the requirements of 20.2.50.123 NMAC. The inspection shall include a check to ensure the vessel does not have a leak;

(4) prior to any monitoring event, date and time stamp the event and enter the monitoring data in accordance with the requirements of this Part;

(5) comply with the monitoring requirements in 20.2.50.115 NMAC if using a control device to comply with the requirements in Paragraphs (1) and (2) of Subsection B of 20.2.50.123 NMAC; and

(6) comply with the monitoring requirements of 20.2.50.112 NMAC.

E.Recordkeeping requirements: No later than January 1, 2023, the owner or operator of a storage vessel shall comply with the following requirements:

(1) Monthly, maintain a record for each storage vessel of the following:

(a) unique identification number and location (latitude and longitude);

(b) monitored, calculated, or estimated monthly liquid throughput;

(c) the upstream separator pressure, if a separator is present;

(d) the data and methodology used to calculate the actual emissions of VOC (tpy);

(e) the controlled and uncontrolled VOC emissions (tpy); and

(f) the type, make, model, and identification number of any control device.

(2) Verify each record of liquid throughput by dated liquid level measurements, a dated delivery receipt from the purchaser of the hydrocarbon liquid, the metered volume of hydrocarbon liquid sent downstream, or other proof of transfer.

(3) Make a record of the inspections required in Subsections C and D of 20.2.50.123 NMAC, including:

(a) the date and time stamp, including GPS of the location, of the inspection;

(b) the person(s) conducting the inspection;

(c) a description of any problem observed during the inspection; and

(d) a description and date of any corrective action taken.

(4) Comply with the recordkeeping requirements in 20.2.50.115 NMAC if complying with the requirements in Paragraphs (1) and (2) of Subsection B of 20.2.50.123 NMAC through use of a control device.

(5) The owner or operator shall comply with the recordkeeping requirements in 20.2.50.112 NMAC.

F.Reporting requirements:

(1) An owner or operator complying with the requirements in Paragraphs (1) and (2) of Subsection B of 20.2.50.123 NMAC through use of a control device shall comply with the reporting requirements in 20.2.50.115 NMAC.

(2) The owner or operator shall comply with the reporting requirements in 20.2.50.112 NMAC.

N.M. Admin. Code § 20.2.50.123

Adopted by New Mexico Register, Volume XXXIII, Issue 14, July 26, 2022, eff. 8/5/2022