PERMIT MEMORANDUM 2004-239-C (M-1) DRAFT 17

OKLAHOMA DEPARTMENT OF ENVIRONMENTAL QUALITY

AIR QUALITY DIVISION

MEMORANDUM October 8, 2007

TO: Phillip Fielder, P.E., Permits and Engineering Group Manager

Air Quality Division

THROUGH: Matt Paque, Supervising Attorney, Air Quality Division

THROUGH: Rick Groshong, Environmental Manager, Compliance and Enforcement

THROUGH: Grover Campbell, P.E., Existing Source Permits Section

Phil Martin, P.E., Engineering Section

THROUGH: Peer Review

FROM: Jian Yue, P.E., Engineering Section

SUBJECT: Evaluation of Permit Application No. 2004-239-C (M-1)

Mustang Gas Products, LLC

Ringwood Gas Plant

Sec. 34-T22N-R10W, Ringwood, Major County

Latitude: 36.384oN, Longitude: -98.248oW

Located 3 miles south of Ringwood on Highway 58

SECTION I. INTRODUCTION

Mustang Gas Products, LLC has requested a permit modification to replace a grandfathered engine (CM-17) at the Ringwood Gas Plant (SIC 1321). The facility is currently operating under Permit No. 2004-239-TVR issued on 10/21/2006.

CM-17 broke down on April 8, 2007. The applicant submitted a self disclosure concurrently with this application and proposed to temporarily install a rented 896-hp Waukesha L7042 GU compressor engine equipped with a double catalyst and air fuel ratio control. In another submittal dated June 26, 2007, the applicant proposed to permanently replace CM-17 with a 1,200-hp White Superior 12G825 which will be removed from the company’s Binger Gas Plant.

The applicant also requested changes in emissions from the glycol dehydrator. In Permit No. 2004-239-TVR, the control efficiency of the condenser was conservatively listed as 85%. In actual situation, the glycol unit is 100% controlled, because any remaining VOCs from the condenser and the flash tank are either routed to the inlet of the plant for processing or to the reboiler as fuel. There are no emissions from the dehydrator except for combustion emissions from the reboiler.

Finally, the applicant requests the insignificant tankage listing to be updated to reflect all tankage at the facility.

SECTION II. FACILITY DESCRIPTION

The facility is a natural gas processing plant which extracts natural gas liquids from inlet gas. Products resulting from the facility’s process include natural gas liquids and pipeline quality natural gas. High pressure natural gas enters the facility through inlet separators to the cryogenic process then to re-compressor #17. In the cryogenic process, gas is first dried in the mole sieve dehydrators and then sent through a series of temperature and pressure changes where gas and liquid products are separated. The mole sieve dehydrators absorb water from the natural gas but not hydrocarbons such as BTEX. In the lean oil process, gas is first dried in the triethylene glycol dehydrator and then sent through the lean oil absorber where natural gas liquids are removed from the gas stream. The resulting rich oil is heated to remove natural gas liquid products. The liquid product from both the cryogenic plant and the lean oil plant goes through an amine treater to remove CO2 and any trace amounts of sulfur and the product is sent to the product sales pipelines. The amine gas is sent to the flare. The applicant submitted a gas analysis performed on 5/6/2004, which indicated no H2S in the inlet gas, therefore, no SO2 emissions are expected from the flare.

Also located contiguous with the natural gas processing plant is the Meno Booster Station. Compressor engines CM-13 and CM-20 are associated with the co-located booster station. Both the Meno Booster Station and the Ringwood Gas Plant equipment are included in this permit.

SECTION III. EQUIPMENT

Emission units have been arranged into Emission Unit Groups (EUGs) as outlined following. Emission units that emit the same regulated air pollutants, trigger the same applicable requirements, share the same compliance demonstration methods, and share the same proposed compliance assurance certifications are combined as one EUG.

EUG-1 Facility Wide

This emission unit group is facility-wide. It includes all emission units and is established to discuss the applicability of those rules or compliance demonstrations, which may affect all sources within the facility.

EUG-2 Grandfathered Compressor and Generator Engines

EU / Point / Description / Horsepower HP / Serial # / Const. Date
EU-GEN-08 / P-CM-08 / Ingersoll-Rand PVG Generator Engine / 408 / 8HP2651 / 1951
EU-GEN-09 / P-CM-09 / Ingersoll-Rand PVG Generator Engine / 408 / 8HP2656 / 1951
EU-GEN-10 / P-CM-10 / Ingersoll-Rand PVG Generator Engine / 408 / 8HP2657 / 1951

EUG-3 Exempted Compressor Engine*

EU / Point / Description / Horsepower HP / Serial # / Const. Date
EU-CM-17 / P-CM-17 / White Superior 12G825 Compressor Engine / 1,200 / 268339 / 1975

*Regulatory exemption by 14.1.17 from 10/15/72 to 4/1/79.

As a result of this permit, EU-CM-17 will be pulled, repaired, and installed in Binger Gas Plant. The following engines will be installed.

EU / Point / Description / Horsepower
HP / Serial # / Const./Mfg Date
EU-CM-21 / P-CM-21 / Waukesha L7042 GU with Double Catalyst and Air Fuel Ratio Controller / 896 / 244589 / 2007/1973
EU-CM-22 / P-CM-22 / White Superior 12G825 / 1,200 / 26839 / 2007/1976

EUG-5 Permitted Compressor Engines under Permit No. 96-545-C

EU / Point / Description / Horsepower HP / Serial # / Const. Date
EU-CM-13 / P-CM-13 / Waukesha L7042GSI with Catalytic Converter / 1,232 / 174363 / 1975
EU-CM-20 / P-CM-20 / Waukesha L7042GSI with Catalytic Converter / 1,232 / 289914 / 1988

EUG-6 Glycol Dehydrator (Equipped with a Jatco BTEX Condenser)

EU / Point / Description / MMBTUH / Construction Date
EU-TEGV-2 / P-TEGV-2 / Glycol Dehydrator / - / 1998
EU-TEGH-2 / P-TEGH-2 / Glycol Reboiler / 0.375 / 1998

EUG-7 Grandfathered Flare

EU / Point / Description / Construction Date
EU-FL-2 / P-FL-2 / Acid Gas/Plant Flare / 1951

EUG-8 Non-Grandfathered Reboilers and Heaters

EU / Point / Description / MMBTUH / Construction Date
EU-HT-14.01 / P-HT-14.01 / Mole Sieve Regeneration Heater / 1.26 / 1993
EU-FH-530 / P-FH-530 / Amine Reboiler / 0.8 / 1977

EUG-9 Insignificant Storage Tanks

EU / Point / Description / Capacity (gallon) / Construction Date
EU-TK-21 / P-TK-21 / Rotary Oil / 3,760 / Unknown
EU-TK-29 / P-TK-29 / Water tank / 8,820 / 1991
EU-TK-30 / P-TK-30 / Wastewater Tank / 6,720 / 1991
EU-TK-31 / P-TK-31 / Lube Oil / 660 / May 1981
EU-TK-32 / P-TK-32 / Lube Oil / 660 / May 1981
EU-TK-33 / P-TK-33 / Antifreeze / 660 / May 1981
EU-TK-34 / P-TK-34 / Antifreeze / 660 / May 1976
EU-TK-35 / P-TK-35 / Lube Oil / 660 / May 1976
EU-TK-36 / P-TK-36 / Antifreeze / 660 / May 1976
EU-TK-37 / P-TK-37 / Lube Oil / 660 / May 1976
EU-TK-38 / P-TK-38 / Antifreeze / 420 / Unknown
EU-TK-39 / P-TK-39 / Lube oil / 420 / Unknown
EU-TK-43 / P-TK-43 / DEA Mix / 1,087 / 1992
EU-TK-44 / P-TK-44 / DEA Pure / 1,087 / 1992
EU-TK-70 / P-TK-70 / Waste Oil / 240 / Unknown
EU-TK-60 / P-TK-60 / Antifreeze / 575 / Approx 1991
EU-TK-61 / P-TK-61 / Antifreeze / 150 / Approx 1991
EU-TK-62 / P-TK-62 / Glycol / 518 / Approx 1991
EU-TK-63 / P-TK-63 / Lube Oil / 1,500 / Unknown
EU-TK-64 / P-TK-64 / Lube Oil / 6,475 / 1944

EUG-10a Methanol Tanks

EU / Point / Description / Capacity (gallons) / Construction Date
EU-TK-5 / P-TK-5 / Methanol / 42,115 / unknown
EU-TK-50 / P-TK-50 / Methanol Tank / 250 / 1991

EUG 10b: Condensate Tanks

EU / Point / Description / Capacity (gallons) / Construction Date
EU-TK-2 / P-TK-2* / Condensate / 42,115 / Unknown
EU-TK-9 / P-TK-9* / Condensate Tank / 42,368 / unknown
EU-TK-23 / P-TK-23 / Condensate Tank / 12,600 / 1991
EU-TK-24 / P-TK-24 / Condensate Tank / 12,600 / 1991
EU-TK-25 / P-TK-25 / Condensate Tank / 8,820 / 1991

*These tanks do not vent to the atmosphere. TK-2 vapors from breathing and working are routed to TK-9, and TK-9 vapors are routed to the inlet of the Ringwood Gas Gathering system.

EUG 10c: Fuel Tanks

EU / Point / Description / Capacity (gallons) / Construction Date
EU-TK-55 / P-TK-55 / Gasoline / 575 / Unknown
EU-TK-56 / P-TK-56 / Gasoline / 550 / Unknown
EU-TK-57 / P-TK-57 / Diesel / 265 / Unknown
EU-TK-58 / P-TK-58 / Kerosene / 265 / Unknown

EUG-11 Miscellaneous-Process Piping Fugitives

Component / Service / Flanges / Valves / Connections / VOC (%)
Generator Engines / Gas/Vapor / 234 / 111 / 636 / 0.5
Lean Oil Pump Engines / Gas/Vapor / 196 / 111 / 378 / 0.5
Refrigerant Compressors / Light Liquid / 128 / 194 / 232 / 100
Pipeline discharge Recompression Engine / Gas/Vapor / 167 / 121 / 220 / 0.527
Inlet Compressor Engines / Gas/Vapor / 429 / 555 / 1,398 / 15.5
Coolant Compression Engine / Gas/Vapor / 45 / 41 / 89 / 0.5
Pipeline Discharge Recompression Engine / Gas/Vapor / 95 / 87 / 204 / 0.5
Glycol Unit / Gas/Vapor / 44 / 112 / 269 / 15.5
Amine Unit / Gas/Vapor / 31 / 127 / 308 / 15.5
Absorber / Light Liquid / 14 / 36 / 44 / 67
Demethanizer / Light Liquid / 15 / 34 / 49 / 67
Re-Absorber / Light Liquid / 11 / 34 / 57 / 67
Still / Light Liquid / 17 / 13 / 64 / 67
Heaters / Light Liquid / 51 / 76 / 134 / 0.5
Cryo System / Gas/Vapor / 162 / 283 / 595 / 67
Yard Piping / Light Liquid / 1,576 / 1,721 / 3,877 / 27.396

The above equipment count is based on information provided on March 6, 1997 (confirmed in November 2000).

STACK PARAMETERS

Point / Height (feet) / Diameter (inches) / Flow (ACFM) / Temperature (°F)
EU-GEN-8 / 23 / 8.4 / 1,249 / 620
EU-GEN-9 / 23 / 8.4 / 1,249 / 620
EU-GEN-10 / 23 / 8.4 / 1,249 / 620
EU-CM-13 / 20 / 12 / 3,848 / 960
EU-CM-17 / 16 / 12 / 2,764 / 800
EU-CM-20 / 16 / 12 / 3,848 / 960
EU-CM-21 / 15.5 / 10 / 4,155 / 1,033
EU-CM-22 / 19 / 12 / 3,500 / 980

A 32,000 gallon propane tank is also located on-site. However, it is not currently in service. In the future, this tank may be used. In that event, the propane tank would be considered an insignificant activity. Fuel usage records would be maintained to document insignificant status.

SECTION IV. EMISSIONS

Criteria Pollutant Emissions

A. Existing Emissions

EU / NOx / CO / VOC
lb/hr / TPY / lb/hr / TPY / lb/hr / TPY
EU-GEN-81a / 16.19 / 70.91 / 16.19 / 70.91 / 1.80 / 7.88
EU-GEN-91a / 16.19 / 70.91 / 16.19 / 70.91 / 1.80 / 7.88
EU-GEN-101a / 16.19 / 70.91 / 16.19 / 70.91 / 1.80 / 7.88
EU-CM-131b / 5.43 / 23.78 / 8.15 / 35.70 / 1.19 / 5.23
EU-CM-171a / 47.62 / 208.58 / 47.62 / 208.58 / 5.29 / 23.17
EU-CM-191c / 15.86 / 69.46 / 15.86 / 69.46 / 1.32 / 5.79
EU-CM-201b / 5.43 / 23.78 / 8.15 / 35.70 / 1.19 / 5.23
EU-TEGV-22 / - / - / - / - / 3.79 / 16.58
EU-HT-14.013 / 0.12 / 0.54 / 0.12 / 0.53 / 0.01 / 0.04
EU-FH-5303 / 0.1 / 0.35 / 0.08 / 0.35 / 0.01 / 0.03
EU-FL-24 / 3.36 / 14.73 / 6.71 / 29.40 / 0.12 / 0.51
Condensate Storage Tanks
EU-TK-23 / - / - / - / - / 9.035a / 39.565a
EU-TK-24 / - / - / - / -
EU-TK-25 / - / - / - / -
EU-TK-28
EU-TK-29 / - / - / - / -
Other Storage Tanks
EU-TK-30 / - / - / - / - / 0.115b / 0.515b
EU-TK-47 / - / - / - / -
EU-TK-49 / - / - / - / -
EU-TK-50 / - / - / - / -
EU-TK-51 / - / - / - / -
EU-FUG-016 / - / - / - / - / 8.53 / 37.37
EU-TL-017 / - / - / - / - / 0.41 / 1.82
Totals / 126.49 / 553.95 / 135.26 / 592.45 / 36.4 / 159.48

1a Based on manufacturer’s data plus a degree of safety based on engineering judgment (18.0 g/hp-hr NOx, 18.0 g/hp-hr CO, 2.0 g/hp-hr VOC)

1b Based on catalytic converter manufacturer’s data plus a degree of safety based on engineering judgment (2.0 g/hp-hr NOx, 3.0 g/hp-hr CO, 0.44 g/hp-hr VOC)

1c Based on manufacturer’s data plus a degree of safety based on engineering judgment (12.0 g/hp-hr NOx, 12.0 g/hp-hr CO, 1.0 g/hp-hr VOC)

2 Dehydrator emissions were based on continuous operation, GRI-CLYCalc 3.0 analysis, maximum glycol recirculation rate of 3.5 gpm, maximum dry gas flow rate of 10 mmscfd, an 85% control efficiency of Jatco BTEX condenser, and another 85% control efficiency by routing uncondensed gases from the still vent and off gases from the flash tank to the reboiler for fuel or recycled to the facility inlet.

3 Based on continuous operation and AP-42 (3/98), Table 1.4-1

4 Based on AP-42 (1/95), Chapter 13.5

5a Includes breathing and working losses from each condensate tank calculated by Tanks 4 and flashing emissions based on Vasquez-Beggs Solution Method. A 100% safety factor was applied to the inlet pressure and maximum condensate throughput from 2003 through 2005. An additional 100% safety factor is included in the emission rates.

5b Working breathing losses are based on continuous operation and Tanks 4.0. Tank throughputs are based on the maximum facility throughput from 2003 through 2005 including a 100% safety factor. An additional 100% safety factor is included in the emission rate.

6 Fugitive emissions were based on continuous operation and EPA Protocol for Equipment Leak Emission Estimate, EPA Document 453/R-93-026, June 1993.

7 Loading emissions are based on the maximum throughput from 2003 through 2005 including a 100% safety factor, AP-42 Tables 5.2-1 and 7.1-2 and an additional 100% safety factor applied to the emissions rate.

B. Post Project Emissions

EU / NOx / CO / VOC
lb/hr / TPY / lb/hr / TPY / lb/hr / TPY
EU-GEN-81a / 16.19 / 70.91 / 16.19 / 70.91 / 1.80 / 7.88
EU-GEN-91a / 16.19 / 70.91 / 16.19 / 70.91 / 1.80 / 7.88
EU-GEN-101a / 16.19 / 70.91 / 16.19 / 70.91 / 1.80 / 7.88
EU-CM-131b / 5.43 / 23.78 / 8.15 / 35.70 / 1.19 / 5.23
EU-CM-201b / 5.43 / 23.78 / 8.15 / 35.70 / 1.19 / 5.23
EU-CM-211c / 1.98 / 8.67 / 1.98 / 8.67 / 0.99 / 4.33
EU-CM-221a / 47.62 / 208.58 / 47.62 / 208.58 / 5.29 / 23.17
EU-TEGV-22 / - / - / - / - / - / -
EU-HT-14.013 / 0.12 / 0.54 / 0.12 / 0.53 / 0.01 / 0.04
EU-FH-5303 / 0.1 / 0.35 / 0.08 / 0.35 / 0.01 / 0.03
EU-FL-14 / 3.36 / 14.73 / 6.71 / 29.40 / 0.12 / 0.51
Condensate Storage Tanks
EU-TK-23 / - / - / - / - / 9.035a / 39.565a
EU-TK-24 / - / - / - / -
EU-TK-25 / - / - / - / -
EU-TK-2 / - / - / - / -
EU-TK-9
Other Storage Tanks
EU-TK-5 / - / - / - / - / 0.345b / 1.515b
EU-TK-21 / - / - / - / -
EU-TK-29 / - / - / - / -
EU-TK-30 / - / - / - / -
EU-TK-31 / - / - / - / -
EU-TK-32 / - / - / - / -
EU-TK-33 / - / - / - / -
EU-TK-34 / - / - / - / -
EU-TK-35 / - / - / - / -
EU-TK-36 / - / - / - / -
EU-TK-37 / - / - / - / -
EU-TK-38 / - / - / - / -
EU-TK-39 / - / - / - / -
EU-TK-43 / - / - / - / -
EU-TK-44 / - / - / - / -
EU-TK-50 / - / - / - / -
EU-TK-55 / - / - / - / -
EU-TK-56 / - / - / - / -
EU-TK-57 / - / - / - / -
EU-TK-59 / - / - / - / -
EU-TK-60 / - / - / - / -
EU / NOx / CO / VOC
lb/hr / TPY / lb/hr / TPY / lb/hr / TPY
EU-TK-61 / - / - / - / -
EU-TK-62 / - / - / - / -
EU-TK-63 / - / - / - / -
EU-TK-64 / - / - / - / -
EU-TK-70 / - / - / - / -
EU-FUG-016 / - / - / - / - / 8.53 / 37.37
EU-TL-017 / - / - / - / - / 0.41 / 1.82
Totals / 112.61 / 493.16 / 121.38 / 531.66 / 23.14 / 101.37
Net Changes / -13.88 / -60.79 / -13.88 / -60.79 / -13.26 / -58.11

1a Based on manufacturer’s data plus a degree of safety based on engineering judgment (18.0 g/hp-hr NOx, 18.0 g/hp-hr CO, 2.0 g/hp-hr VOC)