INTRODUCTION

On August 23, 2011, the U.S. Environmental Protection Agency(EPA) published a proposed rule to regulate emissions of volatile organic compounds (VOCs), most notably benzene, and sulfur dioxide (SO2) generated during the production, storage, and transmission of oil and natural gas under the Clean Air Act (CAA). The Federal Register publication regarding this proposed rule maybe accessed by clicking here (please see alert below for links).

EPA's proposal revises the New Source Performance Standards(NSPS) and National Emission Standards for Hazardous Air Pollutants (NESHAPs) for the oil and gas industry. Under current regulations, there are two NSPS that are limited to the regulation of VOCs and SO2 at natural gas processing plants. EPA proposes to significantly broaden the list of operations subject to the NSPS to include hydraulic fracturing of gas wells, pneumatic controllers, compressors, condensate and crude oil storage tanks, and gas processing plants.

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