Regulatory Impact Analysis Proposed New Source Performance Standards and Amendments to the National Emissions Standards for Hazardous Air Pollutants for the Oil and Natural Gas Industry U.S. Environmental Protection Agency Office of Air and Radiation Office of Air Quality Planning and Standards Research Triangle Park, NC 27711 July 2011 CONTACT INFORMATION This document has been prepared by staff from the Office of Air Quality Planning and Standards, U.S. Environmental Protection Agency. Questions related to this document should be addressed to Alexander Macpherson, U.S. Environmental Protection Agency, Office of Air Quality Planning and Standards, C445-B, Research Triangle Park, North Carolina 27711 (email: macpherson.alex@epa.gov). ACKNOWLEDGEMENTS In addition to EPA staff from the Office of Air Quality Planning and Standards, personnel from the U.S. EPA Office of Atmospheric Programs, EC/R Incorporated, and ICF International contributed data and analysis to this document. Specific sections where EC/R Incorporated made contributions include the sections describing emissions options, pollution control options, secondary impacts analysis, engineering cost analysis, and employment impacts. Specific sections where ICF International made contributions also include the sections describing emissions options, pollution control options, engineering cost analysis, employment impacts, and small business impacts. ii TABLE OF CONTENTS TABLE OF CONTENTS .................................................................................................................... III LIST OF TABLES ............................................................................................................................. VI LIST OF FIGURES ........................................................................................................................ VIII 1 EXECUTIVE SUMMARY ........................................................................................................ 1-1 1.1 BACKGROUND .............................................................................................................................................. 1-1 1.2 NSPS RESULTS ............................................................................................................................................ 1-2 1.3 NESHAP AMENDMENTS RESULTS .............................................................................................................. 1-5 1.4 ORGANIZATION OF THIS REPORT .................................................................................................................. 1-7 2 INDUSTRY PROFILE ............................................................................................................. 2-1 2.1 INTRODUCTION ............................................................................................................................................ 2-1 2.2 PRODUCTS OF THE CRUDE OIL AND NATURAL GAS INDUSTRY ............................................................