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ARTICLE · 10 AUGUST 2016

Evolution Of Source Determination For Certain Emission Units In The Oil And Natural Gas Sector

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This Source Determination for Certain Emission Units in the Oil and Natural Gas Sector rule came alongside updates to New Source Performance Standards.

United StatesEnvironment

On August 2, 2016, the Environmental Protection Agency's ("EPA") final rule regarding the aggregation of physically separate emitting surface sites into a single source for permit determinations in the oil and natural gas industry took effect.1 This Source Determination for Certain Emission Units in the Oil and Natural Gas Sector rule came alongside updates to New Source Performance Standards ("NSPS").2 These rules are part of President Obama's Climate Action Plan: Strategy to Reduce Methane Emissions and the Clean Air Act ("CAA"). Through this rulemaking, EPA has set out to clarify the term "adjacent" as applied to the determination of whether or not physically separate emitting sites in the onshore oil and gas sector should be aggregated into a single "stationary source" for the purposes of the Prevention of Significant Deterioration ("PSD") and Nonattainment New Source Review ("NNSR") programs and "major source" permitting under Title V of the CAA.3

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