a san joaquin valley sm air pollution control district

54
a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT HEALTHY AIR LIVING' MAR 0 4 2015 Wm Douglas Shaffer California Resources Production Corp 9600 Ming Avenue, Suite 300 Bakersfield, CA 93311 RE: Final - Authority to Construct! Certificate of Conformity (Significant Modification) Facility Number: S-1738 Project Number: S-1143715 Dear Mr. Shaffer: The Air Pollution Control Officer has issued the Authority to Construct permits to California Resources Production Corp for ten (10) IC engines, in western Kern County, CA. Enclosed are the Authority to Construct permits and a copy of the notice of final action to be published approximately three days from the (date of this letter. Notice of the District's preliminary decision to issue the Authority to Construct permits was published on December 8, 2014. The District's analysis of the proposal was also sent to CARB and US EPA Region IX on December 3, 2014. All comments received following the District's preliminary decision on this project were considered. A copy of the comments and responses are enclosed. Comments received by the District during the public notice period resulted in minor changes due to public comment. These changes were minor and did not trigger additional public notification requirements, nor didi they have any impact upon the Best Available Control Technology determination or on the amount of offsets required for project approval. Northern Region 4800 Enterprise Way Modesto, CA 95356-8718 Tel: (209) 557-6400 FAX: (209) 557-6475 Seyed Sadredin ' Executive DirectorlAir Pollution Control Officer. Central Region (Main Office) 1990 E. Gettysburg Avenue . Fresno, CA 93726-0244 Tel: (559) 230-6000 FAX: (559) 230-6061 win/vv.velleyair.org www.healthyairliving.com Southern Region 34946 Flyover Court Bakersfield, CA 93308-9725 Tel: 661-392-5500 FAX: 661-392•5585 Pralad ea =Med PM.

Upload: others

Post on 09-Dec-2021

4 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT HEALTHY AIR LIVING'

MAR 0 4 2015 Wm Douglas Shaffer California Resources Production Corp 9600 Ming Avenue, Suite 300 Bakersfield, CA 93311

RE: Final - Authority to Construct! Certificate of Conformity (Significant Modification) Facility Number: S-1738 Project Number: S-1143715

Dear Mr. Shaffer:

The Air Pollution Control Officer has issued the Authority to Construct permits to California Resources Production Corp for ten (10) IC engines, in western Kern County, CA. Enclosed are the Authority to Construct permits and a copy of the notice of final action to be published approximately three days from the (date of this letter.

Notice of the District's preliminary decision to issue the Authority to Construct permits was published on December 8, 2014. The District's analysis of the proposal was also sent to CARB and US EPA Region IX on December 3, 2014. All comments received following the District's preliminary decision on this project were considered. A copy of the comments and responses are enclosed.

Comments received by the District during the public notice period resulted in minor changes due to public comment. These changes were minor and did not trigger additional public notification requirements, nor didi they have any impact upon the Best Available Control Technology determination or on the amount of offsets required for project approval.

Northern Region

4800 Enterprise Way

Modesto, CA 95356-8718

Tel: (209) 557-6400 FAX: (209) 557-6475

Seyed Sadredin '

Executive DirectorlAir Pollution Control Officer.

Central Region (Main Office)

1990 E. Gettysburg Avenue

. Fresno, CA 93726-0244

Tel: (559) 230-6000 FAX: (559) 230-6061

win/vv.velleyair.org www.healthyairliving.com

Southern Region

34946 Flyover Court

Bakersfield, CA 93308-9725

Tel: 661-392-5500 FAX: 661-392•5585

Pralad ea =Med PM.

Page 2: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Sin;e(ely,

rnaud MarjoIlet irector of Permit Services

Mr. Wm Douglas Shaffer Page 2

Thank you for your cooperation in this matter. If you have any questions, please contact Mr. Leonard Scandura at (661) 392-5500.

AM:RUE/st

Enclosures

cc: Mike Tollstrup, CARB (w/enclosure) via email cc: Gerardo C. Rios, EPA (w/enclosure) via email

Page 3: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Applicant Comment

Condition 10 from ATC '-499-0 should be added to ATC '-498-0.

Condition 10 reads as follows:

10. IC engine is authorized to operate only in the South Half of Section 25, Section 35, and Section 36 in Township I IN, Range 21 W, and the West Half of Section 30, Township 11N, Range 20W. [District Rule 2201] Federally Enforceable Through Title V Permit

District Response

The condition has been added.

Applicant Comment

Condition 16 on ATC '-499-0 should be corrected to the proper (modeled) stack height of 10 feet rather than 12 feet as shown.

Condition 16 reads as follows:

16. The exhaust stack height shall be at least 4-2 10 feet. [District Rule 4102]

District Response

The restriction on stack height was added in error and the condition has been deleted.

Page 4: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

San Joaquin Valley ME AIR POLLUTION CONTROL DISTRICT HEALTHY iIR LIVlNG

Facility # S-1738 CALIFORNIA RESOURCES PRODUCTION CORP. 9600 MING AVENUE, SUITE 300 BAKERSFIELD, CA 93311

AUTHORITY TO CONSTRUCT (ATC)

QUICK START GUIDE

1. Pay Invoice. Please pay enclosed invoice before due date.

2. Fully Understand ATC. Make sure you understand ALL conditions in the ATC prior to construction, modification and/or operation.

3. Follow ATC. You must construct, modify and/or operate your equipment as specified on the ATC. Any unspecified changes may require a new ATC.

4. Notify District. You must notify the District's Compliance Department, at the telephone numbers below, upon start-up and/or operation under the ATC. Please record the date construction or modification commenced and the date the equipment began operation under the ATC. You may NOT operate your equipment until you have notified the District's Compliance Department.

5. Source Test. Schedule and perform any required source testing. See http://www.valleyair.org/busind/comply/source testing.htm for source testing resources.

6. Maintain Records. Maintain all records required by ATC. Records are reviewed during every inspection (or upon request) and must be retained for 5 years.

By operating in compliance, you are doing your part to improve air quality for all Valley residents.

For assistance, please contact District Compliance staff at any of the telephone numbers listed below.

Northern Region

4800 Enterprise Way

Modesto, CA 95356-8718

Tel:12091557-6400 FAX: (209) 557-6475

Seyed Sadredin

Executive DirectorMir Pollution Control Officer

Control Region (Main Office)

1990 E. Gettysburg Avenue

Fresno, CA 93726.0244

Tel: (5591 230-6000 FAX: (559) 230.6061

Southern Region

34946 Flyover Court

Bakersfield, CA 93308-9725

Tel: 661-392•5500 FAX: 661•392•5585

www.valloyair.org www.healthyairfiving.com Noted al rmrds1pkw.

Page 5: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

San Joaquin Valley NM AIR POLLUTION CONTROL DISTRICT HEALTHY MR LIVING

AUTHORITY TO CONSTRUCT PERMIT NO: S-1738-498-0

LEGAL OWNER OR OPERATOR: MAILING ADDRESS:

LOCATION:

ISSUANCE DATE: 02/11/2015

CALIFORNIA RESOURCES PRODUCTION CORP. 9600 MING AVENUE, SUITE 300 BAKERSFIELD, CA 93311

LIGHT OIL WESTERN STATIONARY SOURCE KERN COUNTY CA

EQUIPMENT DESCRIPTION: 233 BHP WAUKESHA MODEL F-1905 (OR EQUIVALENT) NATURAL GAS- FIRED IC ENGINE WITH CATALYTIC CONVERTER AND AIR FUEL RATIO CONTROLLER POWERING A WELL PUMPING UNIT

CONDITIONS 1. This Authority to Construct serves as a written certificate of conformity with the procedural requirements of 40 CFR

70.7 and 70.8 and with the compliance requirements of 40 CFR 70.6(c). [District Rule 2201] Federally Enforceable Through Title V Permit

2. Prior to operating with modifications authorized by this Authority to Construct, the facility shall submit an application to modify the Title V permit with an administrative amendment in accordance with District Rule 2520 Section 5.3.4. [District Rule 2520, 5.3.4] Federally Enforceable Through Title V Permit

3. Prior to operating equipment under this Authority to Construct, permittee shall surrender NOX emission reduction credits for the following quantity of emissions: 1st quarter - 103 lb, 2nd quarter - 103 lb, 3rd quarter - 103 lb, and fourth quarter - 103 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

4. Prior to operating equipment under this Authority to Construct, permittee shall surrender VOC emission reduction credits for the following quantity of emissions: 1st quarter - 179 lb, 2nd quarter - 179 lb, 3rd quarter - 179 lb, and fourth quarter - 179 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

YOU MUST NOTIFY THE DISTRICT COMPLIANCE DIVISION AT (661) 392-5500 WHEN CONSTRUCTION IS COMPLETED AND PRIOR TO OPERATING THE EQUIPMENT OR MODIFICATIONS AUTHORIZED BY THIS AUTHORITY TO CONSTRUCT. This is NOT a PERMIT TO OPERATE. Approval or denial of a PERMIT TO OPERATE will be made after an inspection to verify that the equipment has been constructed in accordance with the approved plans, specifications and conditions of this Authority to Construct, and to determine if the equipment can be operated in compliance with all Rules and Regulations of the San Joaquin Valley Unified Air Pollution Control District. Unless construction has commenced pursuant to Rule 2050, this Authority to Construct shall expire and application shall be cancelled two years from the date of issuance. The applicant is responsible for complying with all laws, ordinances and regulations of all other governmental agencies which may pertain to the above equipment.

Seyed Sadredin, Executive Director / APCO

aud Marjollet, Director of Permit Services 5.173040SO : Fell 2015 .564N — .1001 Insp.:000 NOT Reqtamd

Southern Reaional Office • 34946 Flyover Court • Bakersfield, CA 93308 • (661) 392-5500 • Fax (661) 392-5585

Page 6: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-498-0 (continued) Page 2 of 5

5. ERC Certificate Numbers C-1291-2 and S-4302-I (or certificates split from these certificates) shall be used to supply the required NOX, and VOC offsets, unless a revised offsetting proposal is received and approved by the District, upon which this Authority to Construct shall be reissued, administratively specifying the new offsetting proposal. Original public noticing requirements, if any, shall be duplicated prior to reissuance of this Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

6. The permittee shall obtain written District approval for the use of any equivalent equipment not specifically approved by this Authority to Construct. Approval of the equivalent equipment shall be made only after the District's determination that the submitted design and performance of the proposed alternate equipment is equivalent to the specifically authorized equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

7. The permittee's request for approval of equivalent equipment shall include the make, model, manufacturer's maximum rating, manufacturer's guaranteed emission rates, equipment drawing(s), and operational characteristics/parameters. [District Rule 22011 Federally Enforceable Through Title V Permit

8. Alternate equipment shall be of the same class and category of source as the equipment authorized by the Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

9. No emission factor and no emission shall be greater for the alternate equipment than for the proposed equipment. No changes in the hours of operation, operating rate, throughput, or firing rate may be authorized for any alternate equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

10. IC engine is authorized to operate Only in the South Half of Section 25, Section 35, and Section 36 in Township 11N, Range 21 W, and the West Half of Section 30, Township IIN, Range 20W. [District Rule 22011 Federally Enforceable Through Title V Permit

11. Permittee shall notify the District Compliance Division of each location at which the IC engine is located in excess of 24 hours. Such notification shall be made no later than 48 hours after starting operation at the location. [District Rule 1070] Federally Enforceable Through Title V Permit

12. This engine shall be equipped with an operational nonresettable elapsed time meter or other APCO approved alternative. [District Rule 4702] Federally Enforceable Through Title V Permit

13. This engine shall be operated and maintained in proper operating condition per the manufacturer's requirements as specified on the Inspection and Monitoring (I&M) plan submitted to the District. [District Rule 47021 Federally Enforceable Through Title V Permit

14. The operator shall collect data through the I&M plan in a form approved by the APCO. [District Rule 4702] Federally Enforceable Through Title V Permit

15. The exhaust stack shall vent vertically upward. The vertical exhaust flow shall not be impeded by a rain cap (flapper ok), roof overhang, or any other obstruction. [District Rule 4102]

16. Unit shall not be operated within 1,000 feet of any K-12 school. [CH&SC 42301.6]

17. Emissions rates shall not exceed any of the following: PM10: 0.01 g/bhp-hr; NOx (as NO2): 5 ppmvd @15% 02; VOC (as CH4): 25 pprnvd @15% 02; CO: 50 ppmvd @15% 02; or SOx (as S02): 0.0438 g/bhp-hr. Emission limits are on a 15 minute average. [District Rules 2201, 4701, and 4702] Federally Enforceable Through Title V Permit

18. Sulfur content of produced natural gas fuel shall not exceed 5.2 grains S/100 dscf. [District Rules 2201, 4702, and 4801] Federally Enforceable Through Title V Permit

19. The permittee shall monitor and record the stack concentration of NOx (as NO2), CO, and 02 at least once every calendar quarter using a portable emission monitor that meets District specifications. Monitoring shall be performed not less than once every month for 12 months if 2 consecutive deviations are observed during quarterly monitoring. Monitoring shall not be required if the engine is not in operation, i.e. the engine need not be started solely to perform monitoring. Monitoring shall be performed within 1 day of restarting the engine unless monitoring has been performed within the last month if on a monthly monitoring schedule, or within the last quarter if on a quarterly monitoring schedule. Records must be maintained of the dates of non-operation to validate extended monitoring frequencies. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE S-17364911-0 Fall 2016 &NAM - ECKIENILR

Page 7: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-498-0 (continued) Page 3 of 5

20. If the NOx and/or CO concentrations corrected to 15% 02, as measured by the portable analyzer, exceed the permitted emission concentration, the permittee shall return the emissions to within the acceptable range as soon as possible, but no longer than 8 hours after detection. If the portable analyzer readings continue to exceed the allowable emissions concentration after 8 hours, the permittee shall notify the District within the following 1 hour, and conduct a certified source test within 60 days of the first exceedance. In lieu of conducting a source test, the permittee may stipulate a violation has occurred, subject to enforcement action. The permittee must then correct the violation, show compliance has been re-established, and resume monitoring procedures. If the deviations are the result of a qualifying breakdown condition pursuant to Rule 1100, the permittee may fully comply with Rule 1100 in lieu of the performing the notification and testing required by this condition. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

21. All alternate monitoring parameter emission readings shall be taken with the unit operating either at conditions representative of normal operations or conditions specified in the permit-to-operate. The analyzer shall be calibrated, maintained, and operated in accordance with the manufacturer's specifications and recommendations or a protocol approved by the APCO. Emission readings taken shall be averaged over a 15 consecutive-minute period by either taking a cumulative 15 consecutive-minute sample reading or by taking at least five (5) readings, evenly spaced out over the 15 consecutive-minute period. [District Rule 4702] Federally Enforceable Through Title V Permit

22. The permittee shall maintain records of: (1) the date and time of NOx, CO, and 02 measurements, (2) the 02 concentration in percent and the measured NOx and CO concentrations corrected to 15% 02, (3) make and model of exhaust gas analyzer, (4) exhaust gas analyzer calibration records, and (5) a description of any corrective action taken to maintain the emissions within the acceptable range. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

23. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified at least 30 days prior to any compliance source test, and a source test plan must be submitted for approval at least 15 days prior to testing. [District Rule 1081] Federally Enforceable Through Title V Permit

24. Source testing to measure NOx, CO, and VOC emissions from this unit shall be conducted within 60 days of initial start-up. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

25. Source testing to measure natural gas-combustion NOx, CO, and VOC emissions from this unit shall be measured not less than once every 24 months. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

26. Compliance with NOx, CO, and VOC emission limits may be demonstrated by submission of annual source test results from one or more representative IC engines as approved by the APCO. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

27. For representative testing, an engine operating log shall be maintained for each engine in the group. The log shall include, on a monthly basis, the total hours of operation, and maintenance or modifications performed. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

28. Should any representative engines exceed the required emission limits, each engine in the group shall demonstrate compliance by emissions testing. Failure to complete emissions testing within 90 days of the failed test shall result in the untested engines being considered in violation of this rule. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

29. Compliance demonstration (source testing) shall be by District witnessed, or authorized, sample collection by ARB certified testing laboratory. [District Rule 1081] Federally Enforceable Through Title V Permit

30. Emissions source testing shall be conducted with the engine operating either at conditions representative of normal operations or conditions specified in the Permit to Operate. [District Rule 4702] Federally Enforceable Through Title V Permit

31. For emissions source testing, the arithmetic average of three 30-consecutive-minute test runs shall apply. If two of three runs are above an applicable limit, the test cannot be used to demonstrate compliance with an applicable limit. VOC emissions shall be reported as methane. VOC, NOx, and CO concentrations shall be reported in ppmv, corrected to 15% oxygen. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE 6.17364660: Fan 2019 11511/4.4- EDGEHILR

Page 8: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-498-0 (continued) Page 4 of 5

32. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified 30 days prior to any compliance source test, and a source test plan must be submitted for approval 15 days prior to testing. [District Rule 10811 Federally Enforceable Through Title V Permit

33. The results of each source test shall be submitted to the District within 60 days thereafter. [District Rule 1081] Federally Enforceable Through Title V Permit

34. The following test methods shall be used: NOx (ppmv) - EPA Method 7E or ARB Method 100, CO (ppmv) - EPA Method 10 or ARB Method 100, stack gas oxygen - EPA Method 3 or 3A or ARB Method 100, and VOC (ppmv) - EPA Method 25 or EPA Method 18 referenced as methane. [District Rules 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

35. Permittee shall maintain records of either operating hours per day, location (e.g. well number) at which IC engine is operated, source test results, monitoring data, and other information deemed necessary by the APCO to demonstrate compliance with Rules 4701 and 4702 for a period of five years and shall make such records readily available for District inspection upon request. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

36. Portable analyzers will be maintained and calibrated according to the manufacturer's specifications in order to ensure they operate properly and their accuracy remains within specification. EPA protocol calibration gases will be utilized to ensure proper calibration. After a successful calibration, the accuracy of the analyzer may be verified by utilizing reference gases that most closely approximate the emission limit to be checked. Between calibrations, the analyzer shall be checked before each use with reference gases to ensure its sensor cells are operational and accurate. [District Rule 4702] Federally Enforceable Through Title V Permit

37. Emissions for this unit shall be calculated using the arithmetic mean, pursuant to District Rule 1081 (Amended December 16, 1993), of 3 thirty-minute test runs for NOx, and CO. [District Rule 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

38. The following conditions must be met for representative units to be used to test for pollutant (N0x) emissions for a group of units: 1) all units are initially source tested and emissions from each unit in the group are less than 90% of the permitted value and vary 25% or less from the average of all runs, 2) all units in the group are similar in terms of rated brake horsepower, make and series, operational conditions, fuel used, and control method, 3) the group is owned by a single owner and located at a single stationary source, and 4) the selection of the representative units is approved by the District prior to testing. [District Rule 4702] Federally Enforceable Through Title V Permit

39. All units in a group for which representative units are annually source tested for NOx and CO emissions shall have received the same maintenance and tune-up procedures as the representative units. [District Rule 4702] Federally Enforceable Through Title V Permit

40. The number of representative units source tested for NOx and CO emissions shall be at least 30% of the total number of units in the group. The units included in the 30% shall be rotated; such that in 3 years, all units in the entire group will have been tested at least once. [District Rule 4702] Federally Enforceable Through Title V Permit

41. Particulate emissions shall not exceed at the point of discharge, 0.1 gridscf. [District Rule 42011 Federally Enforceable Through Title V Permit

42. If the IC engine is fired on PUC-regulated natural gas, then maintain on file copies of all natural gas bills. [District Rule 2201] Federally Enforceable Through Title V Permit

43. If the engine is not fired exclusively on PUC-regulated natural gas, then the sulfur content of the gas being fired in the IC engine shall be determined using ASTM method D1072, D3031, D4084 or D3246. [District Rule 2201] Federally Enforceable Through Title V Permit

44. If the engine is not fired exclusively on PUC-regulated natural gas, the sulfur content of each fuel source shall be tested annually and whenever a change in the fuel source is made. [District Rules 2201 and 4702] Federally Enforceable Through Title V Permit

45. Pennittee shall monitor and record, on a monthly basis, the catalyst inlet and outlet temperatures. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE ft,CDPID

Page 9: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-498-0 (continued) Page 5 of 5

46. The acceptable catalyst temperature differential shall be established by source testing this unit or other representative units as approved by the District. The normal range/level shall be any temperature increase across the catalyst unless compliance with applicable NOx and CO emissions limits have been demonstrated through source testing at a similar temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

47. Permittee shall maintain records of the date and time of temperature measurements and the measured temperatures. The records shall also include a description of any corrective action taken to maintain the temperature differential at the acceptable level. [District Rule 4702] Federally Enforceable Through Title V Permit

48. If the catalyst temperature differential is outside of the normal range/level, the permittee shall notify the District and take corrective action (i.e. temperature differential returned to normal range/level) with one (1) hour of detection. If the catalyst temperature differential rate is not immediately corrected, the permittee shall conduct a source test within 60 days, to demonstrate compliance with the applicable emissions limits at the new temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

49. The permittee shall update the I&M plan for this engine prior to any planned change in operation. The permittee must notify the District no later than seven days after changing the I&M plan and must submit an updated I&M plan to the APCO for approval no later than 14 days after the change. The date and time of the change to the I&M plan shall be recorded in the engine's operating log. For modifications, the revised I&M plan shall be submitted to and approved by the APCO prior to issuance of the Permit to Operate. The permittee may request a change to the I&M plan at any time. [District Rule 4702] Federally Enforceable Through Title V Permit

50. Permittee shall maintain an engine operating log, on a monthly basis, which includes the following information; total hours of operation, type and quantity of fuel used, maintenance or modifications performed, monitoring data, compliance source test results, and any other information necessary to demonstrate compliance with Rule 4702. [District Rule 4702] Federally Enforceable Through Title V Permit

51. All records shall be maintained and retained on-site for a minimum of five (5) years, and shall be made available for District inspection upon request. [District Rule 4702] Federally Enforceable Through Title V Permit

S-17311-5011-0 : Fall 2015 11511A51- EDGE1111.1i

Page 10: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

4IA San Joaquin Valley MO AIR POLLUTION CONTROL DISTRICT

rWr HEALTHY AIR LIVING-

AUTHORITY TO CONSTRUCT PERMIT NO: S-1738 -499-0 ISSUANCE DATE: 02/11/2015

LEGAL OWNER OR OPERATOR: CALIFORNIA RESOURCES PRODUCTION CORP. MAILING ADDRESS: 9600 MING AVENUE, SUITE 300

BAKERSFIELD, CA 93311

LOCATION: LIGHT OIL WESTERN STATIONARY SOURCE KERN COUNTY CA

EQUIPMENT DESCRIPTION: 233 BHP WAUKESHA MODEL F-1905 (OR EQUIVALENT) NATURAL GAS- FIRED IC ENGINE WITH CATALYTIC CONVERTER AND AIR FUEL RATIO CONTROLLER POWERING A WELL PUMPING UNIT

CONDITIONS 1. This Authority to Construct serves as a written certificate of conformity with the procedural requirements of 40 CFR

70.7 and 70.8 and with the compliance requirements of 40 CFR 70.6(c). [District Rule 2201] Federally Enforceable Through Title V Permit

2. Prior to operating with modifications authorized by this Authority to Construct, the facility shall submit an application to modify the Title V permit with an administrative amendment in accordance with District Rule 2520 Section 5.3.4. [District Rule 2520, 5.3.4] Federally Enforceable Through Title V Permit

3. Prior to operating equipment under this Authority to Construct, permittee shall surrender NOX emission reduction credits for the following quantity of emissions: 1st quarter - 103 lb, 2nd quarter - 103 lb, 3rd quarter - 103 lb, and fourth quarter - 103 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

4. Prior to operating equipment under this Authority to Construct, permittee shall surrender VOC emission reduction credits for the following quantity of emissions: 1st quarter - 179 lb, 2nd quarter - 179 lb, 3rd quarter - 179 lb, and fourth quarter - 179 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

YOU MUST NOTIFY THE DISTRICT COMPLIANCE DIVISION AT (661) 392-5500 WHEN CONSTRUCTION IS COMPLETED AND PRIOR TO OPERATING THE EQUIPMENT OR MODIFICATIONS AUTHORIZED BY THIS AUTHORITY TO CONSTRUCT. This is NOT a PERMIT TO OPERATE. Approval or denial of a PERMIT TO OPERATE will be made after an inspection to verify that the equipment has been constructed In accordance with the approved plans, specifications and conditions of this Authority to Construct, and to determine if the equipment can be operated in compliance with all Rules and Regulations of the San Joaquin Valley Unified Air Pollution Control District. Unless construction has commenced pursuant to Rule 2050, this Authority to Construct shall expire and application shall be cancelled two years from the date of issuance. The applicant is responsible for complying with all laws, ordinances and regulations of all other governmental agencies - which may pertain to the above equipment.

Seyed Sadredin, Executive Director / APCO

'aud Marjollet, Director of Permit Services 1738409-0 Fwb 11 7D15 0:55A1.1 — EDGEMR : km% Inspection NOT Rewind

Southern Reoional Office • 34946 Flyover Court • Bakersfield. CA 93308 • (661) 392-5500 • Fax (661) 392-5585

Page 11: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-499-0 (continued) Page 2 of 5

5. ERC Certificate Numbers C-1291-2 and S-4302-I (or certificates split from these certificates) shall be used to supply the required NOX, and VOC offsets, unless a revised offsetting proposal is received and approved by the District, upon which this Authority to Construct shall be reissued, administratively specifying the new offsetting proposal. Original public noticing requirements, if any, shall be duplicated prior to reissuance of this Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

6. The permittee shall obtain written District approval for the use of any equivalent equipment not specifically approved by this Authority to Construct. Approval of the equivalent equipment shall be made only after the District's determination that the submitted design and performance of the proposed alternate equipment is equivalent to the specifically authorized equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

7. The permittee's request for approval of equivalent equipment shall include the make, model, manufacturer's maximum rating, manufacturer's guaranteed emission rates, equipment drawing(s), and operational characteristics/parameters. [District Rule 220]] Federally Enforceable Through Title V Permit

8. Alternate equipment shall be of the same class and category of source as the equipment authorized by the Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

9. No emission factor and no emission shall be greater for the alternate equipment than for the proposed equipment. No changes in the hours of operation, operating rate, throughput, or firing rate may be authorized for any alternate equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

10. IC engine is authorized to operate only in the South Half of Section 25, Section 35, and Section 36 in Township 11N, Range 21 W, and the West Half of Section 30, Township 11N, Range 20W. [District Rule 2201] Federally Enforceable Through Title V Permit

11. Permittee shall notify the District Compliance Division of each location at which the IC engine is located in excess of 24 hours. Such notification shall be made no later than 48 hours after starting operation at the location. [District Rule 1070] Federally Enforceable Through Title V Permit

12. This engine shall be equipped with an operational nonresettable elapsed time meter or other APCO approved alternative. [District Rule 47021 Federally Enforceable Through Title V Permit

13. This engine shall be operated and maintained in proper operating condition per the manufacturer's requirements as specified on the Inspection and Monitoring (I&M) plan submitted to the District. [District Rule 4702] Federally Enforceable Through Title V Permit

14. The operator shall collect data through the I&M plan in a form approved by the APCO. [District Rule 4702] Federally Enforceable Through Title V Permit

15. The exhaust stack shall vent vertically upward. The vertical exhaust flow shall not be impeded by a rain cap (flapper ok), roof overhang, or any other obstruction. [District Rule 4102]

16. Unit shall not be operated within 1,000 feet of any K-12 school. [CH&SC 42301.6]

17. Emissions rates shall not exceed any of the following: PM10: 0.01 g/bhp-hr; NOx (as NO2): 5 ppmvd @IS% 02; VOC (as CH4): 25 ppmvd @15% 02; CO: 50 ppmvd @15% 02; or SOx (as S02): 0.0438 g/bhp-hr. Emission limits are on a 15 minute average. [District Rules 2201, 4701, and 4702] Federally Enforceable Through Title V Permit

18. Sulfur content of produced natural gas fuel shall not exceed 5.2 grains S/100 dscf. [District Rules 2201, 4702, and 4801] Federally Enforceable Through Title V Permit

19. The permittee shall monitor and record the stack concentration of NOx (as NO2), CO, and 02 at least once every calendar quarter using a portable emission monitor that meets District specifications. Monitoring shall be performed not less than once every month for 12 months if 2 consecutive deviations are observed during quarterly monitoring. Monitoring shall not be required if the engine is not in operation, i.e. the engine need not be started solely to perform monitoring. Monitoring shall be performed within 1 day of restarting the engine unless monitoring has been performed within the last month if on a monthly monitoring schedule, or within the last quarter if on a quarterly monitoring schedule. Records must be maintained of the dates of non-operation to validate extended monitoring frequencies. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE 5-1/25-4054 . FY4 112015 e501W-EDGE/OLR

Page 12: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-499-0 (continued) Page 3 of 5

20. If the NOx and/or CO concentrations corrected to 15% 02, as measured by the portable analyzer, exceed the permitted emission concentration, the permittee shall return the emissions to within the acceptable range as soon as possible, but no longer than 8 hours after detection. If the portable analyzer readings continue to exceed the allowable emissions concentration after 8 hours, the permittee shall notify the District within the following 1 hour, and conduct a certified source test within 60 days of the first exceedance. In lieu of conducting a source test, the permittee may stipulate a violation has occurred, subject to enforcement action. The permittee must then correct the violation, show compliance has been re-established, and resume monitoring procedures. If the deviations are the result of a qualifying breakdown condition pursuant to Rule 1100, the permittee may fully comply with Rule 1100 in lieu of the performing the notification and testing required by this condition. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

21. All alternate monitoring parameter emission readings shall be taken with the unit operating either at conditions representative of normal operations or conditions specified in the permit-to-operate. The analyzer shall be calibrated, maintained, and operated in accordance with the manufacturer's specifications and recommendations or a protocol approved by the APCO. Emission readings taken shall be averaged over a 15 consecutive-minute period by either taking a cumulative 15 consecutive-minute sample reading or by taking at least five (5) readings, evenly spaced out over the 15 consecutive-minute period. [District Rule 4702] Federally Enforceable Through Title V Permit

22. The permittee shall maintain records of: (1) the date and time of NOx, CO, and 02 measurements, (2) the 02 concentration in percent and the measured NOx and CO concentrations corrected to 15% 02, (3) make and model of exhaust gas analyzer, (4) exhaust gas analyzer calibration records, and (5) a description of any corrective action taken to maintain the emissions within the acceptable range. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

23. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified at least 30 days prior to any compliance source test, and a source test plan must be submitted for approval at least 15 days prior to testing. [District Rule 1081] Federally Enforceable Through Title V Permit

24. Source testing to measure NOx, CO, and VOC emissions from this unit shall be conducted within 60 days of initial start-up. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

25. Source testing to measure natural gas-combustion NOx, CO, and VOC emissions from this unit shall be measured not less than once every 24 months. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

26. Compliance with NOx, CO, and VOC emission limits may be demonstrated by submission of annual source test results from one or more representative IC engines as approved by the APCO. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

27. For representative testing, an engine operating log shall be maintained for each engine in the group. The log shall include, on a monthly basis, the total hours of operation, and maintenance or modifications performed. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

28. Should any representative engines exceed the required emission limits, each engine in the group shall demonstrate compliance by emissions testing. Failure to complete emissions testing within 90 days of the failed test shall result in the untested engines being considered in violation of this rule. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

29. Compliance demonstration (source testing) shall be by District witnessed, or authorized, sample collection by ARB certified testing laboratory. [District Rule 1081] Federally Enforceable Through Title V Permit

30. Emissions source testing shall be conducted with the engine operating either at conditions representative of normal operations or conditions specified in the Permit to Operate. [District Rule 4702] Federally Enforceable Through Title V Permit

31. For emissions source testing, the arithmetic average of three 30-consecutive-minute test runs shall apply. If two of three runs are above an applicable limit, the test cannot be used to demonstrate compliance with an applicable limit. VOC emissions shall be reported as methane. VOC, NOx, and CO concentrations shall be reported in ppmv, corrected to 15% oxygen. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE 0.171.111.4q13.11• Ca.,, WIC MARALI FIM.C1411

Page 13: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-499-0 (continued) Page 4 of 5

32. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified 30 days prior to any compliance source test, and a source test plan must be submitted for approval 15 days prior to testing. [District Rule 1081] Federally Enforceable Through Title V Permit

33. The results of each source test shall be submitted to the District within 60 days thereafter. [District Rule 1081] Federally Enforceable Through Title V Permit

34. The following test methods shall be used: NOx (ppmv) - EPA Method 7E or ARB Method 100, CO (ppmv) - EPA Method 10 or ARB Method 100, stack gas oxygen - EPA Method 3 or 3A or ARB Method 100, and VOC (ppmv) - EPA Method 25 or EPA Method 18 referenced as methane. [District Rules 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

35. Permittee shall maintain records of either operating hours per day, location (e.g. well number) at which IC engine is operated, source test results, monitoring data, and other information deemed necessary by the APCO to demonstrate compliance with Rules 4701 and 4702 for a period of five years and shall make such records readily available for District inspection upon request. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

36. Portable analyzers will be maintained and calibrated according to the manufacturer's specifications in order to ensure they operate properly and their accuracy remains within specification. EPA protocol calibration gases will be utilized to ensure proper calibration. After a successful calibration, the accuracy of the analyzer may be verified by utilizing reference gases that most closely approximate the emission limit to be checked. Between calibrations, the analyzer shall be checked before each use with reference gases to ensure its sensor cells are operational and accurate. [District Rule 4702] Federally Enforceable Through Title V Permit

37. Emissions for this unit shall be calculated using the arithmetic mean, pursuant to District Rule 1081 (Amended December 16, 1993), of 3 thirty-minute test runs for NOx, and CO. [District Rule 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

38. The following conditions must be met for representative units to be used to test for pollutant (N0x) emissions for a group of units: 1) all units are initially source tested and emissions from each unit in the group are less than 90% of the permitted value and vary 25% or less from the average of all runs, 2) all units in the group are similar in terms of rated brake horsepower, make and series, operational conditions, fuel used, and control method, 3) the group is owned by a single owner and located at a single stationary source, and 4) the selection of the representative units is approved by the District prior to testing. [District Rule 4702] Federally Enforceable Through Title V Permit

39. All units in a group for which representative units are annually source tested for NOx and CO emissions shall have received the same maintenance and tune-up procedures as the representative units. [District Rule 4702] Federally Enforceable Through Title V Permit

40. The number of representative units source tested for NOx and CO emissions shall be at least 30% of the total number of units in the group. The units included in the 30% shall be rotated; such that in 3 years, all units in the entire group will have been tested at least once. [District Rule 4702] Federally Enforceable Through Title V Permit

41. Particulate emissions shall not exceed at the point of discharge, 0.1 gr/dscf. [District Rule 4201] Federally Enforceable Through Title V Permit

42. If the IC engine is fired on PUC-regulated natural gas, then maintain on file copies of all natural gas bills. [District Rule 2201] Federally Enforceable Through Title V Permit

43. If the engine is not fired exclusively on PUC-regulated natural gas, then the sulfur content of the gas being fired in the IC engine shall be determined using ASTM method D1072, D3031, D4084 or D3246. [District Rule 2201] Federally Enforceable Through Title V Permit

44. If the engine is not fired exclusively on PUC-regulated natural gas, the sulfur content of each fuel source shall be tested annually and whenever a change in the fuel source is made. [District Rules 2201 and 4702] Federally Enforceable Through Title V Permit

45. Permittee shall monitor and record, on a monthly basis, the catalyst inlet and outlet temperatures. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

Page 14: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-499-0 (continued) Page 5 of 5

46. The acceptable catalyst temperature differential shall be established by source testing this unit or other representative units as approved by the District. The normal range/level shall be any temperature increase across the catalyst unless compliance with applicable NOx and CO emissions limits have been demonstrated through source testing at a similar temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

47. Permittee shall maintain records of the date and time of temperature measurements and the measured temperatures. The records shall also include a description of any corrective action taken to maintain the temperature differential at the acceptable level. [District Rule 4702] Federally Enforceable Through Title V Permit

48. If the catalyst temperature differential is outside of the normal range/level, the permittee shall notify the District and take corrective action (i.e. temperature differential returned to normal range/level) with one (1) hour of detection. If the catalyst temperature differential rate is not immediately corrected, the permittee shall conduct a source test within 60 days, to demonstrate compliance with the applicable emissions limits at the new temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

49. The permittee shall update the ULM plan for this engine prior to any planned change in operation. The permittee must notify the District no later than seven days after changing the I&M plan and must submit an updated I&M plan to the APCO for approval no later than 14 days after the change. The date and time of the change to the I&M plan shall be recorded in the engine's operating log. For modifications, the revised I&M plan shall be submitted to and approved by the APCO prior to issuance of the Permit to Operate. The permittee may request a change to the I&M plan at any time. [District Rule 4702] Federally Enforceable Through Title V Permit

50. Permittee shall maintain an engine operating log, on a monthly basis, which includes the following information; total hours of operation, type and quantity of fuel used, maintenance or modifications performed, monitoring data, compliance source test results, and any other information necessary to demonstrate compliance with Rule 4702. [District Rule 4702] Federally Enforceable Through Title V Permit

51. All records shall be maintained and retained on-site for a minimum of five (5) years, and shall be made available for District inspection upon request. [District Rule 4702] Federally Enforceable Through Title V Permit

9-17361094): Feb 11 3015 115111/4—EDGE116/1

Page 15: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

mpg, San Joaquin Valley MN AIR POLLUTION CONTROL DISTRICT

Y1 HEALTHY MR LIVINGm

AUTHORITY TO CONSTRUCT PERMIT NO: S-1738-500-0

LEGAL OWNER OR OPERATOR: MAILING ADDRESS:

LOCATION:

ISSUANCE DATE: 02/11/2015

CALIFORNIA RESOURCES PRODUCTION CORP. 9600 MING AVENUE, SUITE 300 BAKERSFIELD, CA 93311

LIGHT OIL WESTERN STATIONARY SOURCE KERN COUNTY CA

EQUIPMENT DESCRIPTION: 233 BHP WAUKESHA MODEL F-1905 (OR EQUIVALENT) NATURAL GAS- FIRED IC ENGINE WITH CATALYTIC CONVERTER AND AIR FUEL RATIO CONTROLLER POWERING A WELL PUMPING UNIT

CONDITIONS I. This Authority to Construct serves as a written certificate of conformity with the procedural requirements of 40 CFR

70.7 and 70.8 and with the compliance requirements of 40 CFR 70.6(c). [District Rule 2201] Federally Enforceable Through Title V Permit

2. Prior to operating with modifications authorized by this Authority to Construct, the facility shall submit an application to modify the Title V permit with an administrative amendment in accordance with District Rule 2520 Section 5.3.4. [District Rule 2520, 5.3.4] Federally Enforceable Through Title V Permit

3. Prior to operating equipment under this Authority to Construct, permittee shall surrender NOX emission reduction credits for the following quantity of emissions: 1st quarter - 103 lb, 2nd quarter - 103 lb, 3rd quarter - 103 lb, and fourth quarter - 103 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

4. Prior to operating equipment under this Authority to Construct, permittee shall surrender VOC emission reduction credits for the following quantity of emissions: 1st quarter - 179 lb, 2nd quarter - 179 lb, 3rd quarter - 179 lb, and fourth quarter - 179 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

YOU MUST NOTIFY THE DISTRICT COMPLIANCE DIVISION AT (661) 392-5500 WHEN CONSTRUCTION IS COMPLETED AND PRIOR TO OPERATING THE EQUIPMENT OR MODIFICATIONS AUTHORIZED BY THIS AUTHORITY TO CONSTRUCT. This is NOT a PERMIT TO OPERATE. Approval or denial of a PERMIT TO OPERATE will be made after an inspection to verify that the equipment has been constructed in accordance with the approved plans, specifications and conditions of this Authority to Construct, and to determine if the equipment can be operated in compliance with all Rules and Regulations of the San Joaquin Valley Unified Air Pollution Control District. Unless construction has commenced pursuant to Rule 2050, this Authority to Construct shall expire and application shall be cancelled two years from the date of Issuance. The applicant is responsible for complying with all laws, ordinances and regulations of all other governmental agencies which may pertain to the above equipment.

Seyed Sadredin, Executive Director / APCO

.-/.4irraud Marjollet, Director of Permit Services S-17111.5130-0: Fa 111015 IMAM - EOGEMFI bud Malaita NOT naplIFOS

Southern Regional Office • 34946 Flyover Court • Bakersfield, CA 93308 • (661) 392-5500 • Fax (661) 392-5585

Page 16: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-500-0 (continued) Page 2 of 5

5. ERC Certificate Numbers C-I291-2 and S-4302-I (or certificates split from these certificates) shall be used to supply the required NOX, and VOC offsets, unless a revised offsetting proposal is received and approved by the District, upon which this Authority to Construct shall be reissued, administratively specifying the new offsetting proposal. Original public noticing requirements, if any, shall be duplicated prior to reissuance of this Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

6. The perm ittee shall obtain written District approval for the use of any equivalent equipment not specifically approved by this Authority to Construct. Approval of the equivalent equipment shall be made only after the District's determination that the submitted design and performance of the proposed alternate equipment is equivalent to the specifically authorized equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

7. The permittee's request for approval of equivalent equipment shall include the make, model, manufacturer's maximum rating, manufacturer's guaranteed emission rates, equipment drawing(s), and operational characteristics/parameters. [District Rule 2201] Federally Enforceable Through Title V Permit

8. Alternate equipment shall be of the same class and category of source as the equipment authorized by the Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

9. No emission factor and no emission shall be greater for the alternate equipment than for the proposed equipment. No changes in the hours of operation, operating rate, throughput, or firing rate may be authorized for any alternate equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

10. IC engine is authorized to operate only in the South Half of Section 25, Section 35, and Section 36 in Township I IN, Range 21 W, and the West Half of Section 30, Township 11N, Range 20W. [District Rule 2201] Federally Enforceable Through Title V Permit

11. Permittee shall notify the District Compliance Division of each location at which the IC engine is located in excess of 24 hours. Such notification shall be made no later than 48 hours after starting operation at the location. [District Rule 1070] Federally Enforceable Through Title V Permit

12. This engine shall be equipped with an operational nonresettable elapsed time meter or other APCO approved alternative. [District Rule 4702] Federally Enforceable Through Title V Permit

13. This engine shall be operated and maintained in proper operating condition per the manufacturer's requirements as specified on the Inspection and Monitoring (I&M) plan submitted to the District. [District Rule 4702] Federally Enforceable Through Title V Permit

14. The operator shall collect data through the l&M plan in a form approved by the APCO. [District Rule 4702] Federally Enforceable Through Title V Permit

15. The exhaust stack shall vent vertically upward. The vertical exhaust flow shall not be impeded by a rain cap (flapper ok), roof overhang, or any other obstniction. [District Rule 4102]

16. Unit shall not be operated within 1,000 feet of any K-12 school. [CH&SC 42301.6]

17. Emissions rates shall not exceed any of the following: PM10: 0.01 g/bhp-hr; NOx (as NO2): 5 ppmvd @15% 02; VOC (as CH4): 25 ppmvd @15% 02; CO: 50 ppmvd @15% 02; or SOx (as S02): 0.0438 g/bhp-hr. Emission limits are on a 15 minute average. [District Rules 2201, 4701, and 4702] Federally Enforceable Through Title V Permit

18. Sulfur content of produced natural gas fuel shall not exceed 5.2 grains S/I00 dscf. [District Rules 2201, 4702, and 4801] Federally Enforceable Through Title V Permit

19. The permittee shall monitor and record the stack concentration of NOx (as NO2), CO, and 02 at least once every calendar quarter using a portable emission monitor that meets District specifications. Monitoring shall be performed not less than once every month for 12 months if 2 consecutive deviations are observed during quarterly monitoring. Monitoring shall not be required if the engine is not in operation, i.e. the engine need not be started solely to perform monitoring. Monitoring shall be performed within 1 day of restarting the engine unless monitoring has been performed within the last month if on a monthly monitoring schedule, or within the last quarter if on a quarterly monitoring schedule. Records must be maintained of the dates of non-operation to validate extended monitoring frequencies. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

Page 17: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-500-0 (continued) Page 3 of 5

20. If the NOx and/or CO concentrations corrected to 15% 02, as measured by the portable analyzer, exceed the permitted emission concentration, the permittee shall return the emissions to within the acceptable range as soon as possible, but no longer than 8 hours after detection. If the portable analyzer readings continue to exceed the allowable emissions concentration after 8 hours, the permittee shall notify the District within the following 1 hour, and conduct a certified source test within 60 days of the first exceedance. In lieu of conducting a source test, the permittee may stipulate a violation has occurred, subject to enforcement action. The perm ittee must then correct the violation, show compliance has been re-established, and resume monitoring procedures. If the deviations are the result of a qualifying breakdown condition pursuant to Rule 1100, the permittee may fully comply with Rule 1100 in lieu of the performing the notification and testing required by this condition. [District Rules 4701 and 4702] Federally Enforceable Through Title

V Permit

21. All alternate monitoring parameter emission readings shall be taken with the unit operating either at conditions representative of normal operations or conditions specified in the permit-to-operate. The analyzer shall be calibrated, maintained, and operated in accordance with the manufacturer's specifications and recommendations or a protocol approved by the APCO. Emission readings taken shall be averaged over a 15 consecutive-minute period by either taking a cumulative 15 consecutive-minute sample reading or by taking at least five (5) readings, evenly spaced out over the 15 consecutive-minute period. [District Rule 4702] Federally Enforceable Through Title V Permit

22. The permittee shall maintain records of: (1) the date and time of NOx, CO, and 02 measurements, (2) the 02 concentration in percent and the measured NOx and CO concentrations corrected to 15% 02, (3) make and model of exhaust gas analyzer, (4) exhaust gas analyzer calibration records, and (5) a description of any corrective action taken to maintain the emissions within the acceptable range. [District Rules 4701 and 4702] Federally Enforceable Through

Title V Permit

23. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified at least 30 days prior to any compliance source test, and a source test plan must be submitted for approval at least 15 days prior to testing. [District Rule 1081] Federally Enforceable Through Title V Permit

24. Source testing to measure NOx, CO, and VOC emissions from this unit shall be conducted within 60 days of initial start-up. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

25. Source testing to measure natural gas-combustion NOx, CO, and VOC emissions from this unit shall be measured not less than once every 24 months. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

26. Compliance with NOx, CO, and VOC emission limits may be demonstrated by submission of annual source test results from one or more representative IC engines as approved by the APCO. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

27. For representative testing, an engine operating log shall be maintained for each engine in the group. The log shall include, on a monthly basis, the total hours of operation, and maintenance or modifications performed. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

28. Should any representative engines exceed the required emission limits, each engine in the group shall demonstrate compliance by emissions testing. Failure to complete emissions testing within 90 days of the failed test shall result in the untested engines being considered in violation of this rule. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

29. Compliance demonstration (source testing) shall be by District witnessed, or authorized, sample collection by ARB certified testing laboratory. [District Rule 1081] Federally Enforceable Through Title V Permit

30. Emissions source testing shall be conducted with the engine operating either at conditions representative of normal operations or conditions specified in the Permit to Operate. [District Rule 4702] Federally Enforceable Through Title

V Permit

31. For emissions source testing, the arithmetic average of three 30-consecutive-minute test runs shall apply. If two of three runs are above an applicable limit, the test cannot be used to demonstrate compliance with an applicable limit. VOC emissions shall be reported as methane. VOC, NOx, and CO concentrations shall be reported in ppmv, corrected to 15% oxygen. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

Page 18: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-500-0 (continued) Page 4 of 5

32. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified 30 days prior to any compliance source test, and a source test plan must be submitted for approval 15 days prior to testing. [District Rule 1081] Federally Enforceable Through Title V Permit

33. The results of each source test shall be submitted to the District within 60 days thereafter. [District Rule 1081] Federally Enforceable Through Title V Permit

34. The following test methods shall be used: NOx (ppmv) - EPA Method 7E or ARB Method 100, CO (ppmv) - EPA Method 10 or ARB Method 100, stack gas oxygen - EPA Method 3 or 3A or ARE Method 100, and VOC (ppmv) - EPA Method 25 or EPA Method 18 referenced as methane. [District Rules 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

35. Permittee shall maintain records of either operating hours per day, location (e.g. well number) at which IC engine is operated, source test results, monitoring data, and other information deemed necessary by the APCO to demonstrate compliance with Rules 4701 and 4702 for a period of five years and shall make such records readily available for District inspection upon request. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

36. Portable analyzers will be maintained and calibrated according to the manufacturer's specifications in order to ensure they operate properly and their accuracy remains within specification. EPA protocol calibration gases will be utilized to ensure proper calibration. After a successful calibration, the accuracy of the analyzer may be verified by utilizing reference gases that most closely approximate the emission limit to be checked. Between calibrations, the analyzer shall be checked before each use with reference gases to ensure its sensor cells are operational and accurate. [District Rule 4702] Federally Enforceable Through Title V Permit

37. Emissions for this unit shall be calculated using the arithmetic mean, pursuant to District Rule 1081 (Amended December 16, 1993), of 3 thirty-minute test runs for NOx, and CO. [District Rule 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

38. The following conditions must be met for representative units to be used to test for pollutant (N0x) emissions for a group of units: 1) all units are initially source tested and emissions from each unit in the group are less than 90% of the permitted value and vary 25% or less from the average of all runs, 2) all units in the group are similar in terms of rated brake horsepower, make and series, operational conditions, fuel used, and control method, 3) the group is owned by a single owner and located at a single stationary source, and 4) the selection of the representative units is approved by the District prior to testing. [District Rule 4702] Federally Enforceable Through Title V Permit

39. All units in a group for which representative units are annually source tested for NOx and CO emissions shall have received the same maintenance and tune-up procedures as the representative units. [District Rule 4702] Federally Enforceable Through Title V Permit

40. The number of representative units source tested for NOx and CO emissions shall be at least 30% of the total number of units in the group. The units included in the 30% shall be rotated; such that in 3 years, all units in the entire group will have been tested at least once. [District Rule 4702] Federally Enforceable Through Title V Permit

41. Particulate emissions shall not exceed at the point of discharge, 0.1 gr/dscf. [District Rule 4201] Federally Enforceable Through Title V Permit

42. If the IC engine is fired on PUC-regulated natural gas, then maintain on file copies of all natural gas bills. [District Rule 2201] Federally Enforceable Through Title V Permit

43. If the engine is not fired exclusively on PUC-regulated natural gas, then the sulfur content of the gas being fired in the IC engine shall be determined using ASTM method D1072, D3031, D4084 or D3246. [District Rule 2201] Federally Enforceable Through Title V Permit

44. If the engine is not fired exclusively on PUC-regulated natural gas, the sulfur content of each fuel source shall be tested annually and whenever a change in the fuel source is made. [District Rules 2201 and 4702] Federally Enforceable Through Title V Permit

45. Permittee shall monitor and record, on a monthly basis, the catalyst inlet and outlet temperatures. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

Page 19: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-500-0 (continued) Page 5 of 5

46. The acceptable catalyst temperature differential shall be established by source testing this unit or other representative units as approved by the District. The normal range/level shall be any temperature increase across the catalyst unless compliance with applicable NOx and CO emissions limits have been demonstrated through source testing at a similar temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

47. Permittee shall maintain records of the date and time of temperature measurements and the measured temperatures. The records shall also include a description of any corrective action taken to maintain the temperature differential at the acceptable level. [District Rule 4702] Federally Enforceable Through Title V Permit

48. If the catalyst temperature differential is outside of the normal range/level, the permittee shall notify the District and take corrective action (i.e. temperature differential returned to normal range/level) with one (1) hour of detection. If the catalyst temperature differential rate is not immediately corrected, the permittee shall conduct a source test within 60 days, to demonstrate compliance with the applicable emissions limits at the new temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

49. The perrnittee shall update the I&M plan for this engine prior to any planned change in operation. The permittee must notify the District no later than seven days after changing the l&M plan and must submit an updated l&M plan to the APCO for approval no later than 14 days after the change. The date and time of the change to the l&M plan shall be recorded in the engine's operating log. For modifications, the revised l&M plan shall be submitted to and approved by the APCO prior to issuance of the Permit to Operate. The permittee may request a change to the l&M plan at any time. [District Rule 4702] Federally Enforceable Through Title V Permit

50. Perrnittee shall maintain an engine operating log, on a monthly basis, which includes the following information; total hours of operation, type and quantity of fuel used, maintenance or modifications performed, monitoring data, compliance source test results, and any other information necessary to demonstrate compliance with Rule 4702. [District Rule 4702] Federally Enforceable Through Title V Permit

51. All records shall be maintained and retained on-site for a minimum of five (5) years, and shall be made available for District inspection upon request. [District Rule 4702] Federally Enforceable Through Title V Permit

8-17365040: Feb 11 2015 tt UNA - EDGEN5.18

Page 20: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

„NW San Joaquin Valley AIR POLLUTION CONTROL DISTRICT HEALTHY AIR LIVING

AUTHORITY TO CONSTRUCT PERMIT NO: S-1738-501-0

LEGAL OWNER OR OPERATOR: MAILING ADDRESS:

LOCATION:

ISSUANCE DATE: 02111/2015

CALIFORNIA RESOURCES PRODUCTION CORP. 9600 MING AVENUE, SUITE 300 BAKERSFIELD, CA 93311

LIGHT OIL WESTERN STATIONARY SOURCE KERN COUNTY CA

EQUIPMENT DESCRIPTION: 233 BHP WAUKESHA MODEL F-1905 (OR EQUIVALENT) NATURAL GAS- FIRED IC ENGINEWITH CATALYTIC CONVERTER AND AIR FUEL RATIO CONTROLLER POWERING A WELL PUMPING UNIT

CONDITIONS 1. This Authority to Construct serves as a written certificate of conformity with the procedural requirements of 40 CFR

70.7 and 70.8 and with the compliance requirements of 40 CFR 70.6(c). [District Rule 2201] Federally Enforceable Through Title V Permit

2. Prior to operating with modifications authorized by this Authority to Construct, the facility shall submit an application to modify the Title V permit with an administrative amendment in accordance with District Rule 2520 Section 5.3.4. [District Rule 2520, 5.3.4] Federally Enforceable Through Title V Permit

3. Prior to operating equipment under this Authority to Construct, permittee shall surrender NOX emission reduction credits for the following quantity of emissions: 1st quarter - 103 lb, 2nd quarter - 103 lb, 3rd quarter - 103 lb, and fourth quarter - 103 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

4. Prior to operating equipment under this Authority to Construct, permittee shall surrender VOC emission reduction credits for the following quantity of emissions: 1st quarter - 179 lb, 2nd quarter - 179 lb, 3rd quarter - 179 lb, and fourth quarter - 179 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

YOU MUST NOTIFY THE DISTRICT COMPLIANCE DIVISION AT (661) 392-5500 WHEN CONSTRUCTION IS COMPLETED AND PRIOR TO OPERATING THE EQUIPMENT OR MODIFICATIONS AUTHORIZED BY THIS AUTHORITY TO CONSTRUCT. This Is NOT a PERMIT TO OPERATE. Approval or denial of a PERMIT TO OPERATE will be made after an inspection to verify that the equipment has been constructed in accordance with the approved plans, specifications and conditions of this Authority to Construct, and to determine if the equipment can be operated in compliance with all Rules and Regulations of the San Joaquin Valley Unified Air Pollution Control District. Unless construction has commenced pursuant to Rule 2050, this Authority to Construct shall expire and application shall be cancelled two years from the date of issuance. The applicant is responsible for complying with all laws, ordinances and regulations of all other governmental agencies which may pertain to the above equipment.

Seyed Sadredin, Executive Director / APCO

4 maud Marjollet, Director of Permit Services SIMS-5014 : FM 11 XIS IMSAla - EDOENILR : Mit Impel:16a NOT Itsgdied

Snu [them Reninnni Offine • 34946 Flyover Court • Bakersfield. CA 93308 • (661) 392-5500 • Fax (661) 392-5585

Page 21: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-501-0 (continued) Page 2 of 5

5. ERC Certificate Numbers C-1291-2 and S-4302-1 (or certificates split from these certificates) shall be used to supply the required NOX, and VOC offsets, unless a revised offsetting proposal is received and approved by the District, upon which this Authority to Construct shall be reissued, administratively specifying the new offsetting proposal. Original public noticing requirements, if any, shall be duplicated prior to reissuance of this Authority to Construct. [District

Rule 2201] Federally Enforceable Through Title V Permit

6. The permittee shall obtain written District approval for the use of any equivalent equipment not specifically approved by this Authority to Construct. Approval of the equivalent equipment shall be made only after the District's determination that the submitted design and performance of the proposed alternate equipment is equivalent to the specifically authorized equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

7. The permittee's request for approval of equivalent equipment shall include the make, model, manufacturer's maximum rating, manufacturer's guaranteed emission rates, equipment drawing(s), and operational characteristics/parameters. [District Rule 2201] Federally Enforceable Through Title V Permit

8. Alternate equipment shall be of the same class and category of source as the equipment authorized by the Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

9. No emission factor and no emission shall be greater for the alternate equipment than for the proposed equipment. No changes in the hours of operation, operating rate, throughput, or firing rate may be authorized for any alternate equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

10. IC engine is authorized to operate only in the South Half of Section 25, Section 35, and Section 36 in Township I IN, Range 21 W, and the West Half of Section 30, Township 11N, Range 20W. [District Rule 2201] Federally Enforceable

Through Title V Permit

11. Permittee shall notify the District Compliance Division of each location at which the IC engine is located in excess of 24 hours. Such notification shall be made no later than 48 hours after starting operation at the location. [District Rule 1070] Federally Enforceable Through Title V Permit

12. This engine shall be equipped with an operational nonresettable elapsed time meter or other APCO approved alternative. [District Rule 4702] Federally Enforceable Through Title V Permit

13. This engine shall be operated and maintained in proper operating condition per the manufacturer's requirements as specified on the Inspection and Monitoring (I&M) plan submitted to the District. [District Rule 4702] Federally Enforceable Through Title V Permit

14. The operator shall collect data through the I&M plan in a form approved by the APCO. [District Rule 4702] Federally Enforceable Through Title V Permit

15. The exhaust stack shall vent vertically upward. The vertical exhaust flow shall not be impeded by a rain cap (flapper ok), roof overhang, or any other obstruction. [District Rule 4102]

16. Unit shall not be operated within 1,000 feet of any K-12 school. [CH&SC 42301.6]

17. Emissions rates shall not exceed any of the following: PM10: 0.01 g/bhp-hr; NOx (as NO2): 5 ppmvd @15% 02; VOC (as CH4): 25 ppmvd @15% 02; CO: 50 ppmvd @15% 02; or SOx (as S02): 0.0438 g/bhp-hr. Emission limits are on a 15 minute average. [District Rules 2201, 4701, and 4702] Federally Enforceable Through Title V Permit

18. Sulfur content of produced natural gas fuel shall not exceed 5.2 grains S/100 dscf. [District Rules 2201, 4702, and 4801] Federally Enforceable Through Title V Permit

19. The permittee shall monitor and record the stack concentration of NOx (as NO2), CO, and 02 at least once every calendar quarter using a portable emission monitor that meets District specifications. Monitoring shall be performed not less than once every month for 12 months if 2 consecutive deviations are observed during quarterly monitoring. Monitoring shall not be required if the engine is not in operation, i.e. the engine need not be started solely to perform monitoring. Monitoring shall be performed within 1 day of restarting the engine unless monitoring has been performed within the last month if on a monthly monitoring schedule, or within the last quarter if on a quarterly monitoring schedule. Records must be maintained of the dates of non-operation to validate extended monitoring frequencies. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

Page 22: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-501-0 (continued) Page 3 of 5

20. If the NOx and/or CO concentrations corrected to 15% 02, as measured by the portable analyzer, exceed the permitted emission concentration, the perm ittee shall return the emissions to within the acceptable range as soon as possible, but no longer than 8 hours after detection. If the portable analyzer readings continue to exceed the allowable emissions concentration after 8 hours, the permittee shall notify the District within the following 1 hour, and conduct a certified source test within 60 days of the first exceedance. In lieu of conducting a source test, the permittee may stipulate a violation has occurred, subject to enforcement action. The permittee must then correct the violation, show compliance has been re-established, and resume monitoring procedures. If the deviations are the result of a qualifying breakdown condition pursuant to Rule 1100, the permittee may fully comply with Rule 1100 in lieu of the performing the notification and testing required by this condition. [District Rules 4701 and 4702] Federally Enforceable Through Title

V Permit

21. All alternate monitoring parameter emission readings shall be taken with the unit operating either at conditions representative of normal operations or conditions specified in the permit-to-operate. The analyzer shall be calibrated, maintained, and operated in accordance with the manufacturer's specifications and recommendations or a protocol approved by the APCO. Emission readings taken shall be averaged over a 15 consecutive-minute period by either taking a cumulative 15 consecutive-minute sample reading or by taking at least five (5) readings, evenly spaced out over the 15 consecutive-minute period. [District Rule 4702] Federally Enforceable Through Title V Permit

22. The permittee shall maintain records of: (1) the date and time of NOx, CO, and 02 measurements, (2) the 02 concentration in percent and the measured NOx and CO concentrations corrected to 15% 02, (3) make and model of exhaust gas analyzer, (4) exhaust gas analyzer calibration records, and (5) a description of any corrective action taken to maintain the emissions within the acceptable range. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

23. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified at least 30 days prior to any compliance source test, and a source test plan must be submitted for approval at least 15 days prior to testing. [District Rule 1081] Federally Enforceable Through Title V Permit

24. Source testing to measure NOx, CO, and VOC emissions from this unit shall be conducted within 60 days of initial start-up. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

25. Source testing to measure natural gas-combustion NOx, CO, and VOC emissions from this unit shall be measured not less than once every 24 months. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

26. Compliance with NOx, CO, and VOC emission limits may be demonstrated by submission of annual source test results from one or more representative IC engines as approved by the APCO. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

27. For representative testing, an engine operating log shall be maintained for each engine in the group. The log shall include, on a monthly basis, the total hours of operation, and maintenance or modifications performed. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

28. Should any representative engines exceed the required emission limits, each engine in the group shall demonstrate compliance by emissions testing. Failure to complete emissions testing within 90 days of the failed test shall result in the untested engines being considered in violation of this rule. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

29. Compliance demonstration (source testing) shall be by District witnessed, or authorized, sample collection by ARB certified testing laboratory. [District Rule 1081] Federally Enforceable Through Title V Permit

30. Emissions source testing shall be conducted with the engine operating either at conditions representative of normal operations or conditions specified in the Permit to Operate. [District Rule 4702] Federally Enforceable Through Title V Permit

31. For emissions source testing, the arithmetic average of three 30-consecutive-minute test runs shall apply. If two of three runs are above an applicable limit, the test cannot be used to demonstrate compliance with an applicable limit. VOC emissions shall be reported as methane. VOC, NOx, and CO concentrations shall be reported in ppmv, corrected to 15% oxygen. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE 0.1711.40.1, 00. II 1/11g • 58• ■■ C11701.01

Page 23: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-501-0 (continued) Page 4 of 5

32. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified 30 days prior to any compliance source test, and a source test plan must be submitted for approval 15 days prior to testing. [District Rule 10811 Federally Enforceable Through Title V Permit

33. The results of each source test shall be submitted to the District within 60 days thereafter. [District Rule 1081] Federally Enforceable Through Title V Permit

34. The following test methods shall be used: NOx (ppmv) - EPA Method 7E or ARB Method 100, CO (ppmv) - EPA Method 10 or ARB Method 100, stack gas oxygen - EPA Method 3 or 3A or ARB Method 100, and VOC (ppmv) - EPA Method 25 or EPA Method 18 referenced as methane. [District Rules 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

35. Permittee shall maintain records of either operating hours per day, location (e.g. well number) at which IC engine is operated, source test results, monitoring data, and other information deemed necessary by the APCO to demonstrate compliance with Rules 4701 and 4702 for a period of five years and shall make such records readily available for District inspection upon request. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

36. Portable analyzers will be maintained and calibrated according to the manufacturer's specifications in order to ensure they operate properly and their accuracy remains within specification. EPA protocol calibration gases will be utilized to ensure proper calibration. After a successful calibration, the accuracy of the analyzer may be verified by utilizing reference gases that most closely approximate the emission limit to be checked. Between calibrations, the analyzer shall be checked before each use with reference gases to ensure its sensor cells are operational and accurate. [District Rule 4702] Federally Enforceable Through Title V Permit

37. Emissions for this unit shall be calculated using the arithmetic mean, pursuant to District Rule 1081 (Amended December 16, 1993), of 3 thirty-minute test runs for NOx, and CO. [District Rule 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

38. The following conditions must be met for representative units to be used to test for pollutant (N0x) emissions for a group of units: 1) all units are initially source tested and emissions from each unit in the group are less than 90% of the permitted value and vary 25% or less from the average of all runs, 2) all units in the group are similar in terms of rated brake horsepower, make and series, operational conditions, fuel used, and control method, 3) the group is owned by a single owner and located at a single stationary source, and 4) the selection of the representative units is approved by the District prior to testing. [District Rule 4702] Federally Enforceable Through Title V Permit

39. All units in a group for which representative units are annually source tested for NOx and CO emissions shall have received the same maintenance and tune-up procedures as the representative units. [District Rule 4702] Federally Enforceable Through Title V Permit

40. The number of representative units source tested for NOx and CO emissions shall be at least 30% of the total number of units in the group. The units included in the 30% shall be rotated; such that in 3 years, all units in the entire group will have been tested at least once. [District Rule 4702] Federally Enforceable Through Title V Permit

41. Particulate emissions shall not exceed at the point of discharge, 0.1 gr/dscf. [District Rule 42011 Federally Enforceable Through Title V Permit

42. If the IC engine is fired on PUC-regulated natural gas, then maintain on file copies of all natural gas bills. [District Rule 2201] Federally Enforceable Through Title V Permit

43. If the engine is not fired exclusively on PUC-regulated natural gas, then the sulfur content of the gas being fired in the IC engine shall be determined using ASTM method D1072, D3031, D4084 or D3246. [District Rule 2201] Federally Enforceable Through Title V Permit

44. If the engine is not fired exclusively on PUC-regulated natural gas, the sulfur content of each fuel source shall be tested annually and whenever a change in the fuel source is made. [District Rules 2201 and 4702] Federally Enforceable Through Title V Permit

45. Permittee shall monitor and record, on a monthly basis, the catalyst inlet and outlet temperatures. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

Page 24: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-501-0 (continued) Page 5 of 5

46. The acceptable catalyst temperature differential shall be established by source testing this unit or other representative units as approved by the District. The normal range/level shall be any temperature increase across the catalyst unless compliance with applicable NOx and CO emissions limits have been demonstrated through source testing at a similar temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

47. Permittee shall maintain records of the date and time of temperature measurements and the measured temperatures. The records shall also include a description of any corrective action taken to maintain the temperature differential at the acceptable level. [District Rule 4702] Federally Enforceable Through Title V Permit

48. If the catalyst temperature differential is outside of the normal range/level, the permittee shall notify the District and take corrective action (i.e. temperature differential returned to normal range/level) with one (1) hour of detection. If the catalyst temperature differential rate is not immediately corrected, the permittee shall conduct a source test within 60 days, to demonstrate compliance with the applicable emissions limits at the new temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

49. The permittee shall update the l&M plan for this engine prior to any planned change in operation. The permittee must notify the District no later than seven days after changing the 1&M plan and must submit an updated I&M plan to the APCO for approval no later than 14 days after the change. The date and time of the change to the I&M plan shall be recorded in the engines operating log. For modifications, the revised I&M plan shall be submitted to and approved by the APCO prior to issuance of the Permit to Operate. The permittee may request a change to the I&M plan at any time. [District Rule 4702] Federally Enforceable Through Title V Permit

50. Permittee shall maintain an engine operating log, on a monthly basis, which includes the following information; total hours of operation, type and quantity of fuel used, maintenance or modifications performed, monitoring data, compliance source test results, and any other information necessary to demonstrate compliance with Rule 4702. [District Rule 4702] Federally Enforceable Through Title V Permit

51. All records shall be maintained and retained on-site for a minimum of five (5) years, and shall be made available for District inspection upon request. [District Rule 4702] Federally Enforceable Through Title V Permit

R.17WWIA,VemliMISR-ckW—CIV:MM

Page 25: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT HEALTHY AIR LIVING'

AUTHORITY TO CONSTRUCT PERMIT NO: S-1738-502-0

LEGAL OWNER OR OPERATOR: MAILING ADDRESS:

LOCATION:

ISSUANCE DATE: 02/11/2015

CALIFORNIA RESOURCES PRODUCTION CORP. 9600 MING AVENUE, SUITE 300 BAKERSFIELD, CA 93311

LIGHT OIL WESTERN STATIONARY SOURCE KERN COUNTY CA

EQUIPMENT DESCRIPTION: 233 BHP WAUKESHA MODEL F-1905 (OR EQUIVALENT) NATURAL GAS- FIRED IC ENGINE WITH CATALYTIC CONVERTER AND AIR FUEL RATIO CONTROLLER POWERING A WELL PUMPING UNIT

CONDITIONS I. This Authority to Construct serves as a written certificate of conformity with the procedural requirements of 40 CFR

70.7 and 70.8 and with the compliance requirements of 40 CFR 70.6(c). [District Rule 2201] Federally Enforceable Through Title V Permit

2. Prior to operating with modifications authorized by this Authority to Construct, the facility shall submit an application to modify the Title V permit with an administrative amendment in accordance with District Rule 2520 Section 5.3.4. [District Rule 2520, 5.3.4] Federally Enforceable Through Title V Permit

3. Prior to operating equipment under this Authority to Construct, permittee shall surrender NOX emission reduction credits for the following quantity of emissions: 1st quarter - 103 lb, 2nd quarter - 103 lb, 3rd quarter - 103 lb, and fourth quarter - 103 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

4. Prior to operating equipment under this Authority to Construct, permittee shall surrender VOC emission reduction credits for the following quantity of emissions: 1st quarter - 179 lb, 2nd quarter - 179 lb, 3rd quarter - 179 lb, and fourth quarter - 179 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

YOU MUST NOTIFY THE DISTRICT COMPLIANCE DIVISION AT (661) 392-5500 WHEN CONSTRUC110N IS COMPLETED AND PRIOR TO OPERATING THE EQUIPMENT OR MODIFICATIONS AUTHORIZED BY THIS AUTHORITY TO CONSTRUCT. This is NOT a PERMIT TO OPERATE. Approval or denial of a PERMIT TO OPERATE will be made after an inspection to verify that the equipment has been constructed in accordance with the approved plans, specifications and conditions of this Authority to Construct, and to determine if the equipment can be operated in compliance with all Rules and Regulations of the San Joaquin Valley Unified Air Pollution Control District. Unless construction has commenced pursuant to Rule 2050, this Authority to Construct shall expire and application shall be cancelled two years from the date of issuance. The applicant is responsible for complying with all laws, ordinances and regulations of all other governmental agencies which may pertain to the above equipment.

Seyed Sadredin, Executive Director / APCO

ud Marfolle1, Director of Permit Services 5-17354W-C: Fem 11 2015 656•51— ECCIE/d1R JoInlinsomaisn NOT Rewind

Southern Regional Office • 34946 Flyover Court • Bakersfield, CA 93308 • (661) 392-5500 • Fax (661) 392-5585

Page 26: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-502-0 (continued) Page 2 of 5

5. ERC Certificate Numbers C-1291-2 and S-4302-1 (or certificates split from these certificates) shall be used to supply the required NOX, and VOC offsets, unless a revised offsetting proposal is received and approved by the District, upon which this Authority to Construct shall be reissued, administratively specifying the new offsetting proposal. Original public noticing requirements, if any, shall be duplicated prior to reissuance of this Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

6. The permittee shall obtain written District approval for the use of any equivalent equipment not specifically approved by this Authority to Construct. Approval of the equivalent equipment shall be made only after the District's determination that the submitted design and performance of the proposed alternate equipment is equivalent to the specifically authorized equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

7. The permittee's request for approval of equivalent equipment shall include the make, model, manufacturer's maximum rating, manufacturer's guaranteed emission rates, equipment drawing(s), and operational characteristics/parameters. [District Rule 2201] Federally Enforceable Through Title V Permit

8. Alternate equipment shall be of the same class and category of source as the equipment authorized by the Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

9. No emission factor and no emission shall be greater for the alternate equipment than for the proposed equipment. No changes in the hours of operation, operating rate, throughput, or firing rate may be authorized for any alternate equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

10. IC engine is authorized to operate only in the South Half of Section 25, Section 35, and Section 36 in Township 11N, Range 21 W, and the West Half of Section 30, Township 11N, Range 20W. [District Rule 2201] Federally Enforceable Through Title V Permit

II. Perrnittee shall notify the District Compliance Division of each location at which the IC engine is located in excess of 24 hours. Such notification shall be made no later than 48 hours after starting operation at the location. [District Rule 1070] Federally Enforceable Through Title V Permit

12. This engine shall be equipped with an operational nonresettable elapsed time meter or other APCO approved alternative. [District Rule 4702] Federally Enforceable Through Title V Permit

13. This engine shall be operated and maintained in proper operating condition per the manufacturer's requirements as specified on the Inspection and Monitoring (I&M) plan submitted to the District. [District Rule 4702] Federally Enforceable Through Title V Permit

14. The operator shall collect data through the l&M plan in a form approved by the APCO. [District Rule 4702] Federally Enforceable Through Title V Permit

15. The exhaust stack shall vent vertically upward. The vertical exhaust flow shall not be impeded by a rain cap (flapper ok), roof overhang, or any other obstruction. [District Rule 4102]

16. Unit shall not be operated within 1,000 feet of any K-12 school. [CH&SC 42301.6]

17. Emissions rates shall not exceed any of the following: PM10: 0.01 g/bhp-hr; NOx (as NO2): 5 ppmvd @I5% 02; VOC (as CH4): 25 ppmvd @15% 02; CO: 50 ppmvd @15% 02; or SOx (as S02): 0.0438 g/bhp-hr. Emission limits are on a 15 minute average. [District Rules 2201, 4701, and 4702] Federally Enforceable Through Title V Permit

18. Sulfur content of produced natural gas fuel shall not exceed 5.2 grains S/100 dscf. [District Rules 2201, 4702, and 4801] Federally Enforceable Through Title V Permit

19. The permittee shall monitor and record the stack concentration of NOx (as NO2), CO, and 02 at least once every calendar quarter using a portable emission monitor that meets District specifications. Monitoring shall be performed not less than once every month for 12 months if 2 consecutive deviations are observed during quarterly monitoring. Monitoring shall not be required if the engine is not in operation, i.e. the engine need not be started solely to perform monitoring. Monitoring shall be performed within 1 day of restarting the engine unless monitoring has been performed within the last month if on a monthly monitoring schedule, or within the last quarter if on a quarterly monitoring schedule. Records must be maintained of the dates of non-operation to validate extended monitoring frequencies. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

Page 27: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-502-0 (continued) Page 3 of 5

20. If the NOx and/or CO concentrations corrected to 15% 02, as measured by the portable analyzer, exceed the permitted emission concentration, the permittee shall return the emissions to within the acceptable range as soon as possible, but no longer than 8 hours after detection. If the portable analyzer readings continue to exceed the allowable emissions concentration after 8 hours, the permittee shall notify the District within the following 1 hour, and conduct a certified source test within 60 days of the first exceedance. In lieu of conducting a source test, the permittee may stipulate a violation has occurred, subject to enforcement action. The permittee must then correct the violation, show compliance has been re-established, and resume monitoring procedures. If the deviations are the result of a qualifying breakdown condition pursuant to Rule 1100, the permittee may fully comply with Rule 1100 in lieu of the performing the notification and testing required by this condition. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

21. All alternate monitoring parameter emission readings shall be taken with the unit operating either at conditions representative of normal operations or conditions specified in the permit-to-operate. The analyzer shall be calibrated, maintained, and operated in accordance with the manufacturer's specifications and recommendations or a protocol approved by the APCO. Emission readings taken shall be averaged over a 15 consecutive-minute period by either taking a cumulative 15 consecutive-minute sample reading or by taking at least five (5) readings, evenly spaced out over the 15 consecutive-minute period. [District Rule 4702] Federally Enforceable Through Title V Permit

22. The permittee shall maintain records of: (1) the date and time of NOx, CO, and 02 measurements, (2) the 02 concentration in percent and the measured NOx and CO concentrations corrected to 15% 02, (3) make and model of exhaust gas analyzer, (4) exhaust gas analyzer calibration records, and (5) a description of any corrective action taken to maintain the emissions within the acceptable range. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

23. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified at least 30 days prior to any compliance source test, and a source test plan must be submitted for approval at least 15 days prior to testing. [District Rule 1081] Federally Enforceable Through Title V Permit

24. Source testing to measure NOx, CO, and VOC emissions from this unit shall be conducted within 60 days of initial start-up. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

25. Source testing to measure natural gas-combustion NOx, CO, and VOC emissions from this unit shall be measured not less than once every 24 months. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

26. Compliance with NOx, CO, and VOC emission limits may be demonstrated by submission of annual source test results from one or more representative IC engines as approved by the APCO. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

27. For representative testing, an engine operating log shall be maintained for each engine in the group. The log shall include, on a monthly basis, the total hours of operation, and maintenance or modifications performed. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

28. Should any representative engines exceed the required emission limits, each engine in the group shall demonstrate compliance by emissions testing. Failure to complete emissions testing within 90 days of the failed test shall result in the untested engines being considered in violation of this rule. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

29. Compliance demonstration (source testing) shall be by District witnessed, or authorized, sample collection by ARB certified testing laboratory. [District Rule 1081] Federally Enforceable Through Title V Permit

30. Emissions source testing shall be conducted with the engine operating either at conditions representative of normal operations or conditions specified in the Permit to Operate. [District Rule 4702] Federally Enforceable Through Title V Permit

31. For emissions source testing, the arithmetic average of three 30-consecutive-minute test runs shall apply. If two of three runs are above an applicable limit, the test cannot be used to demonstrate compliance with an applicable limit. VOC emissions shall be reported as methane. VOC, NOx, and CO concentrations shall be reported in ppmv, corrected to 15% oxygen. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE 0.1710.011.11- CIO. I I "MC 0006..1- LIVICI411

Page 28: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-502-0 (continued) Page 4 of 5

32. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified 30 days prior to any compliance source test, and a source test plan must be submitted for approval 15 days prior to testing. [District Rule 1081] Federally Enforceable Through Title V Permit

33. The results of each source test shall be submitted to the District within 60 days thereafter. [District Rule 1081] Federally Enforceable Through Title V Permit

34. The following test methods shall be used: NOx (ppmv) - EPA Method 7E or ARB Method 100, CO (ppmv) - EPA Method 10 or ARB Method 100, stack gas oxygen - EPA Method 3 or 3A or ARB Method 100, and VOC (ppmv) - EPA Method 25 or EPA Method 18 referenced as methane. [District Rules 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

35. Permittee shall maintain records of either operating hours per day, location (e.g. well number) at which IC engine is operated, source test results, monitoring data, and other information deemed necessary by the APCO to demonstrate compliance with Rules 4701 and 4702 for a period of five years and shall make such records readily available for District inspection upon request. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

36. Portable analyzers will be maintained and calibrated according to the manufacturer's specifications in order to ensure they operate properly and their accuracy remains within specification. EPA protocol calibration gases will be utilized to ensure proper calibration. After a successful calibration, the accuracy of the analyzer may be verified by utilizing reference gases that most closely approximate the emission limit to be checked. Between calibrations, the analyzer shall be checked before each use with reference gases to ensure its sensor cells are operational and accurate. [District Rule 4702] Federally Enforceable Through Title V Permit

37. Emissions for this unit shall be calculated using the arithmetic mean, pursuant to District Rule 1081 (Amended December 16, 1993), of 3 thirty-minute test runs for NOx, and CO. [District Rule 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

38. The following conditions must be met for representative units to be used to test for pollutant (N0x) emissions for a group of units: 1) all units are initially source tested and emissions from each unit in the group are less than 90% of the permitted value and vary 25% or less from the average of all runs, 2) all units in the group are similar in terms of rated brake horsepower, make and series, operational conditions, fuel used, and control method, 3) the group is owned by a single owner and located at a single stationary source, and 4) the selection of the representative units is approved by the District prior to testing. [District Rule 4702] Federally Enforceable Through Title V Permit

39. All units in a group for which representative units are annually source tested for NOx and CO emissions shall have received the same maintenance and tune-up procedures as the representative units. [District Rule 4702] Federally Enforceable Through Title V Permit

40. The number of representative units source tested for NOx and CO emissions shall be at least 30% of the total number of units in the group. The units included in the 30% shall be rotated; such that in 3 years, all units in the entire group will have been tested at least once. [District Rule 4702] Federally Enforceable Through Title V Permit

41. Particulate emissions shall not exceed at the point of discharge, 0.1 gridscf. [District Rule 4201] Federally Enforceable Through Title V Permit

42. If the IC engine is fired on PUC-regulated natural gas, then maintain on file copies of all natural gas bills. [District Rule 2201] Federally Enforceable Through Title V Permit

43. If the engine is not fired exclusively on PUC-regulated natural gas, then the sulfur content of the gas being fired in the IC engine shall be determined using ASTM method D1072, D3031, D4084 or D3246. [District Rule 2201] Federally Enforceable Through Title V Permit

44. If the engine is not fired exclusively on PUC-regulated natural gas, the sulfur content of each fuel source shall be tested annually and whenever a change in the fuel source is made. [District Rules 2201 and 4702] Federally Enforceable Through Title V Permit

45. Permittee shall monitor and record, on a monthly basis, the catalyst inlet and outlet temperatures. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

Page 29: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-502-0 (continued) Page 5 of 5

46. The acceptable catalyst temperature differential shall be established by source testing this unit or other representative units as approved by the District. The normal range/level shall be any temperature increase across the catalyst unless compliance with applicable NOx and CO emissions limits have been demonstrated through source testing at a similar temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

47. Permittee shall maintain records of the date and time of temperature measurements and the measured temperatures. The records shall also include a description of any corrective action taken to maintain the temperature differential at the acceptable level. [District Rule 4702] Federally Enforceable Through Title V Permit

48. If the catalyst temperature differential is outside of the normal range/level, the pennittee shall notify the District and take corrective action (i.e. temperature differential returned to normal range/level) with one (1) hour of detection. If the catalyst temperature differential rate is not immediately corrected, the permittee shall conduct a source test within 60 days, to demonstrate compliance with the applicable emissions limits at the new temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

49. The permittee shall update the I&M plan for this engine prior to any planned change in operation. The permittee must notify the District no later than seven days after changing the I&M plan and must submit an updated I&M plan to the APCO for approval no later than 14 days after the change. The date and time of the change to the I&M plan shall be recorded in the engines operating log. For modifications, the revised I&M plan shall be submitted to and approved by the APCO prior to issuance of the Permit to Operate. The permittee may request a change to the 1&M plan at any time. [District Rule 4702] Federally Enforceable Through Title V Permit

50. Permittee shall maintain an engine operating log, on a monthly basis, which includes the following information; total hours of operation, type and quantity of fuel used, maintenance or modifications performed, monitoring data, compliance source test results, and any other information necessary to demonstrate compliance with Rule 4702. [District Rule 4702] Federally Enforceable Through Title V Permit

51. All records shall be maintained and retained on-site for a minimum of five (5) years, and shall be made available for District inspection upon request. [District Rule 4702] Federally Enforceable Through Title V Permit

S.17311.502-0: Feb 11 201$ &UNA — EIMEHILR

Page 30: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

„Cr San Joaquin Valley OM AIR POLLUTION CONTROL DISTRICT HEALTHY MR LIVING'

AUTHORITY TO CONSTRUCT PERMIT NO: S-1738-503-0

ISSUANCE DATE: 02/11/2015

LEGAL OWNER OR OPERATOR: CALIFORNIA RESOURCES PRODUCTION CORP. MAILING ADDRESS: 9600 MING AVENUE, SUITE 300

BAKERSFIELD, CA 93311

LOCATION: LIGHT OIL WESTERN STATIONARY SOURCE KERN COUNTY CA

EQUIPMENT DESCRIPTION: 233 BHP WAUKESHA MODEL F-1905 (OR EQUIVALENT) NATURAL GAS- FIRED IC ENGINE WITH CATALYTIC CONVERTER AND AIR FUEL RATIO CONTROLLER POWERING A WELL PUMPING UNIT

CONDITIONS 1. This Authority to Construct serves as a written certificate of conformity with the procedural requirements of 40 CFR

70.7 and 70.8 and with the compliance requirements of 40 CFR 70.6(c). [District Rule 2201] Federally Enforceable Through Title V Permit

2. Prior to operating with modifications authorized by this Authority to Construct, the facility shall submit an application to modify the Title V permit with an administrative amendment in accordance with District Rule 2520 Section 5.3.4. [District Rule 2520, 5.3.4] Federally Enforceable Through Title V Permit

3. Prior to operating equipment under this Authority to Construct, permittee shall surrender NOX emission reduction credits for the following quantity of emissions: 1st quarter - 103 lb, 2nd quarter - 103 lb, 3rd quarter - 103 lb, and fourth quarter - 103 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

4. Prior to operating equipment under this Authority to Construct, permittee shall surrender VOC emission reduction credits for the following quantity of emissions: 1st quarter - 179 lb, 2nd quarter - 179 lb, 3rd quarter - 179 lb, and fourth quarter - 179 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

YOU MUST NOTIFY THE DISTRICT COMPLIANCE DIVISION AT (661) 392-5500 WHEN CONSTRUCTION IS COMPLETED AND PRIOR TO OPERATING THE EQUIPMENT OR MODIFICATIONS AUTHORIZED BY THIS AUTHORITY TO CONSTRUCT. This is NOT a PERMIT TO OPERATE. Approval or denial of a PERMIT TO OPERATE will be made after an inspection to verify that the equipment has been constructed in accordance with the approved plans, specifications and conditions of this Authority to Construct, and to determine if the equipment can be operated in compliance with all Rules and Regulations of the San Joaquin Valley Unified Air Pollution Control District. Unless construction has commenced pursuant to Rule 2050, this Authority to Construct shall expire and application shall be cancelled two years from the date of issuance. The applicant is responsible for complying with all laws, ordinances and regulations of all other governmental agencies which may pertain to the above equipment.

Seyed Sadredin, Executive Director / APCO

ud Marjollet, Director of Permit Services s-17385034- Fab 112015 &SUM — EDGEHILA : Joint Impecton NOT Routed

Southern Reaional Office • 34946 Flyover Court • Bakersfield. CA 93308 • (661) 392-5500 • Fax (661) 392-5585

Page 31: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-503-0 (continued) Page 2 of 5

5. ERC Certificate Numbers C-1291-2 and S-4302-I (or certificates split from these certificates) shall be used to supply the required NOX, and VOC offsets, unless a revised offsetting proposal is received and approved by the District, upon which this Authority to Construct shall be reissued, administratively specifying the new offsetting proposal. Original public noticing requirements, if any, shall be duplicated prior to reissuance of this Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

6. The permittee shall obtain written District approval for the use of any equivalent equipment not specifically approved by this Authority to Construct. Approval of the equivalent equipment shall be made only after the District's determination that the submitted design and performance of the proposed alternate equipment is equivalent to the specifically authorized equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

7. The permittee's request for approval of equivalent equipment shall include the make, model, manufacturer's maximum rating, manufacturer's guaranteed emission rates, equipment drawing(s), and operational characteristics/parameters. [District Rule 2201] Federally Enforceable Through Title V Permit

8. Alternate equipment shall be of the same class and category of source as the equipment authorized by the Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

9. No emission factor and no emission shall be greater for the alternate equipment than for the proposed equipment. No changes in the hours of operation, operating rate, throughput, or firing rate may be authorized for any alternate equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

10. IC engine is authorized to operate only in the South Half of Section 25, Section 35, and Section 36 in Township 11N, Range 21 W, and the West Half of Section 30, Township 11N, Range 20W. [District Rule 2201] Federally Enforceable Through Title V Permit

11. Permittee shall notify the District Compliance Division of each location at which the IC engine is located in excess of 24 hours. Such notification shall be made no later than 48 hours after starting operation at the location. [District Rule 1070] Federally Enforceable Through Title V Permit

12. This engine shall be equipped with an operational nonresettable elapsed time meter or other APCO approved alternative. [District Rule 4702] Federally Enforceable Through Title V Permit

13. This engine shall be operated and maintained in proper operating condition per the manufacturer's requirements as specified on the Inspection and Monitoring (I&M) plan submitted to the District. [District Rule 4702] Federally Enforceable Through Title V Permit

14. The operator shall collect data through the I&M plan in a form approved by the APCO. [District Rule 4702] Federally Enforceable Through Title V Permit

15. The exhaust stack shall vent vertically upward. The vertical exhaust flow shall not be impeded by a rain cap (flapper ok), roof overhang, or any other obstruction. [District Rule 4102]

16. Unit shall not be operated within 1,000 feet of any K-12 school. [CH&SC 42301.6]

17. Emissions rates shall not exceed any of the following: PM10: 0.01 g/bhp-hr; NOx (as NO2): 5 ppmvd @15% 02; VOC (as CH4): 25 ppmvd @15% 02; CO: 50 ppmvd @15% 02; or SOx (as S02): 0.0438 g/bhp-hr. Emission limits are on a 15 minute average. [District Rules 2201, 4701, and 4702] Federally Enforceable Through Title V Permit

18. Sulfur content of produced natural gas fuel shall not exceed 5.2 grains S/100 dscf. [District Rules 2201, 4702, and 4801] Federally Enforceable Through Title V Permit

19. The permittee shall monitor and record the stack concentration of NOx (as NO2), CO, and 02 at least once every calendar quarter using a portable emission monitor that meets District specifications. Monitoring shall be performed not less than once every month for 12 months if 2 consecutive deviations are observed during quarterly monitoring. Monitoring shall not be required if the engine is not in operation, i.e. the engine need not be started solely to perform monitoring. Monitoring shall be performed within 1 day of restarting the engine unless monitoring has been performed within the last month if on a monthly monitoring schedule, or within the last quarter if on a quarterly monitoring schedule. Records must be maintained of the dates of non-operation to validate extended monitoring frequencies. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

Page 32: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-503-0 (continued) Page 3 of 5

20. If the NOx and/or CO concentrations corrected to 15% 02, as measured by the portable analyzer, exceed the permitted emission concentration, the pennittee shall return the emissions to within the acceptable range as soon as possible, but no longer than 8 hours after detection. If the portable analyzer readings continue to exceed the allowable emissions concentration after 8 hours, the permittee shall notify the District within the following 1 hour, and conduct a certified source test within 60 days of the first exceedance. In lieu of conducting a source test, the permittee may stipulate a violation has occurred, subject to enforcement action. The permittee must then correct the violation, show compliance has been re-established, and resume monitoring procedures. If the deviations are the result of a qualifying breakdown condition pursuant to Rule 1100, the pennittee may fully comply with Rule 1100 in lieu of the performing the notification and testing required by this condition. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

21. All alternate monitoring parameter emission readings shall be taken with the unit operating either at conditions representative of normal operations or conditions specified in the permit-to-operate. The analyzer shall be calibrated, maintained, and operated in accordance with the manufacturer's specifications and recommendations or a protocol approved by the APCO. Emission readings taken shall be averaged over a 15 consecutive-minute period by either taking a cumulative 15 consecutive-minute sample reading or by taking at least five (5) readings, evenly spaced out over the 15 consecutive-minute period. [District Rule 4702] Federally Enforceable Through Title V Permit

22. The permittee shall maintain records of: (1) the date and time of NOx, CO, and 02 measurements, (2) the 02 concentration in percent and the measured NOx and CO concentrations corrected to 15% 02, (3) make and model of exhaust gas analyzer, (4) exhaust gas analyzer calibration records, and (5) a description of any corrective action taken to maintain the emissions within the acceptable range. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

23. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified at least 30 days prior to any compliance source test, and a source test plan must be submitted for approval at least 15 days prior to testing. [District Rule 1081] Federally Enforceable Through Title V Permit

24. Source testing to measure NOx, CO, and VOC emissions from this unit shall be conducted within 60 days of initial start-up. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

25. Source testing to measure natural gas-combustion NOx, CO, and VOC emissions from this unit shall be measured not less than once every 24 months. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

26. Compliance with NOx, CO, and VOC emission limits may be demonstrated by submission of annual source test results from one or more representative IC engines as approved by the APCO. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

27. For representative testing, an engine operating log shall be maintained for each engine in the group. The log shall include, on a monthly basis, the total hours of operation, and maintenance or modifications performed. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

28. Should any representative engines exceed the required emission limits, each engine in the group shall demonstrate compliance by emissions testing. Failure to complete emissions testing within 90 days of the failed test shall result in the untested engines being considered in violation of this rule. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

29. Compliance demonstration (source testing) shall be by District witnessed, or authorized, sample collection by ARB certified testing laboratory. [District Rule 1081] Federally Enforceable Through Title V Permit

30. Emissions source testing shall be conducted with the engine operating either at conditions representative of normal operations or conditions specified in the Permit to Operate. [District Rule 4702] Federally Enforceable Through Title V Permit

31. For emissions source testing, the arithmetic average of three 30-consecutive-minute test runs shall apply. If two of three runs are above an applicable limit, the test cannot be used to demonstrate compliance with an applicable limit. VOC emissions shall be reported as methane. VOC, NOx, and CO concentrations shall be reported in ppmv, corrected to 15% oxygen. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

Page 33: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for 3-1738-503-0 (continued) Page 4 of 5

32. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified 30 days prior to any compliance source test, and a source test plan must be submitted for approval 15 days prior to testing. [District Rule 1081] Federally Enforceable Through Title V Permit

33. The results of each source test shall be submitted to the District within 60 days thereafter. [District Rule 1081] Federally Enforceable Through Title V Permit

34. The following test methods shall be used: NOx (ppmv) - EPA Method 7E or ARB Method 100, CO (ppmv) - EPA Method 10 or ARB Method 100, stack gas oxygen - EPA Method 3 or 3A or ARB Method 100, and VOC (ppmv) - EPA Method 25 or EPA Method 18 referenced as methane. [District Rules 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

35. Permittee shall maintain records of either operating hours per day, location (e.g. well number) at which IC engine is operated, source test results, monitoring data, and other information deemed necessary by the APCO to demonstrate compliance with Rules 4701 and 4702 for a period of five years and shall make such records readily available for District inspection upon request. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

36. Portable analyzers will be maintained and calibrated according to the manufacturer's specifications in order to ensure they operate properly and their accuracy remains within specification. EPA protocol calibration gases will be utilized to ensure proper calibration. After a successful calibration, the accuracy of the analyzer may be verified by utilizing reference gases that most closely approximate the emission limit to be checked. Between calibrations, the analyzer shall be checked before each use with reference gases to ensure its sensor cells are operational and accurate. [District Rule 4702] Federally Enforceable Through Title V Permit

37. Emissions for this unit shall be calculated using the arithmetic mean, pursuant to District Rule 1081 (Amended December 16, 1993), of 3 thirty-minute test runs for NOx, and CO. [District Rule 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

38. The following conditions must be met for representative units to be used to test for pollutant (N0x) emissions for a group of units: 1) all units are initially source tested and emissions from each unit in the group are less than 90% of the permitted value and vary 25% or less from the average of all runs, 2) all units in the group are similar in terms of rated brake horsepower, make and series, operational conditions, fuel used, and control method, 3) the group is owned by a single owner and located at a single stationary source, and 4) the selection of the representative units is approved by the District prior to testing. [District Rule 4702] Federally Enforceable Through Title V Permit

39. All units in a group for which representative units are annually source tested for NOx and CO emissions shall have received the same maintenance and tune-up procedures as the representative units. [District Rule 4702] Federally Enforceable Through Title V Permit

40. The number of representative units source tested for NOx and CO emissions shall be at least 30% of the total number of units in the group. The units included in the 30% shall be rotated; such that in 3 years, all units in the entire group will have been tested at least once. [District Rule 4702] Federally Enforceable Through Title V Permit

41. Particulate emissions shall not exceed at the point of discharge, 0.1 gridscf. [District Rule 4201] Federally Enforceable Through Title V Permit

42. If the IC engine is fired on PUC-regulated natural gas, then maintain on file copies of all natural gas bills. [District Rule 2201] Federally Enforceable Through Title V Permit

43. If the engine is not fired exclusively on PUC-regulated natural gas, then the sulfur content of the gas being fired in the IC engine shall be determined using ASTM method D1072, D3031, D4084 or D3246. [District Rule 2201] Federally Enforceable Through Title V Permit

44. If the engine is not fired exclusively on PUC-regulated natural gas, the sulfur content of each fuel source shall be tested annually and whenever a change in the fuel source is made. [District Rules 2201 and 4702] Federally Enforceable Through Title V Permit

45. Permittee shall monitor and record, on a monthly basis, the catalyst inlet and outlet temperatures. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

Page 34: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-503-0 (continued) Page 5 of 5

46. The acceptable catalyst temperature differential shall be established by source testing this unit or other representative units as approved by the District. The normal range/level shall be any temperature increase across the catalyst unless compliance with applicable NOx and CO emissions limits have been demonstrated through source testing at a similar temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

47. Permittee shall maintain records of the date and time of temperature measurements and the measured temperatures. The records shall also include a description of any corrective action taken to maintain the temperature differential at the acceptable level. [District Rule 4702] Federally Enforceable Through Title V Permit

48. If the catalyst temperature differential is outside of the normal range/level, the permittee shall notify the District and take corrective action (i.e. temperature differential returned to normal range/level) with one (1) hour of detection. If the catalyst temperature differential rate is not immediately corrected, the permittee shall conduct a source test within 60 days, to demonstrate compliance with the applicable emissions limits at the new temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

49. The permittee shall update the l&M plan for this engine prior to any planned change in operation. The permittee must notify the District no later than seven days after changing the 1&M plan and must submit an updated l&M plan to the APCO for approval no later than 14 days after the change. The date and time of the change to the MEM plan shall be recorded in the engine's operating log. For modifications, the revised I&M plan shall be submitted to and approved by the APCO prior to issuance of the Permit to Operate. The permittee may request a change to the I&M plan at any time. [District Rule 47021 Federally Enforceable Through Title V Permit

50. Permittee shall maintain an engine operating log, on a monthly basis, which includes the following information; total hours of operation, type and quantity of fuel used, maintenance or modifications performed, monitoring data, compliance source test results, and any other information necessary to demonstrate compliance with Rule 4702. [District Rule 4702] Federally Enforceable Through Title V Permit

51. All records shall be maintained and retained on-site for a minimum of five (5) years, and shall be made available for District inspection upon request. [District Rule 4702] Federally Enforceable Through Title V Permit

9-1735-503-0: Feb 112015 It 51A81— EDGEHLR

Page 35: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Nipl" San Joaquin Valley ME AIR POLLUTION CONTROL DISTRICT HEALTHY AIR LIVING'

AUTHORITY TO CONSTRUCT PERMIT NO: S- 1738-504-0 ISSUANCE DATE: 02/11/2015

LEGAL OWNER OR OPERATOR: CALIFORNIA RESOURCES PRODUCTION CORP. MAILING ADDRESS: 9600 MING AVENUE, SUITE 300

BAKERSFIELD, CA 93311

LOCATION: LIGHT OIL WESTERN STATIONARY SOURCE KERN COUNTY CA

EQUIPMENT DESCRIPTION: 233 BHP WAUKESHA MODEL F-1905 (OR EQUIVALENT) NATURAL GAS- FIRED IC ENGINE WITH CATALYTIC CONVERTER AND AIR FUEL RATIO CONTROLLER POWERING A WELL PUMPING UNIT

CONDITIONS 1. This Authority to Construct serves as a written certificate of conformity with the procedural requirements of 40 CFR

70.7 and 70.8 and with the compliance requirements of 40 CFR 70.6(c). [District Rule 2201] Federally Enforceable Through Title V Permit

2. Prior to operating with modifications authorized by this Authority to Construct, the facility shall submit an application to modify the Title V permit with an administrative amendment in accordance with District Rule 2520 Section 5.3.4. [District Rule 2520, 5.3.4] Federally Enforceable Through Title V Permit

3. Prior to operating equipment under this Authority to Construct, permittee shall surrender NOX emission reduction credits for the following quantity of emissions: 1st quarter - 103 lb, 2nd quarter - 103 lb, 3rd quarter - 103 lb, and fourth quarter - 103 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

4. Prior to operating equipment under this Authority to Construct, permittee shall surrender VOC emission reduction credits for the following quantity of emissions: 1st quarter - 179 lb, 2nd quarter - 179 lb, 3rd quarter - 179 lb, and fourth quarter - 179 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/2)/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

YOU MUST NOTIFY THE DISTRICT COMPLIANCE DIVISION AT (661) 392-5500 WHEN CONSTRUCTION IS COMPLETED AND PRIOR TO OPERATING THE EQUIPMENT OR MODIFICATIONS AUTHORIZED BY THIS AUTHORITY TO CONSTRUCT. This is NOT a PERMIT TO OPERATE. Approval or denial of a PERMIT TO OPERATE will be made after an inspection to verify that the equipment has been constructed in accordance with the approved plans, specifications and conditions of this Authority to Construct, and to determine if the equipment can be operated in compliance with all Rules and Regulations of the San Joaquin Valley Unified Air Pollution Control District Unless construction has commenced pursuant to Rule 2050, this Authority to Construct shall expire and application shall be cancelled two years from the date of issuance. The applicant is responsible for complying with all laws, ordinances and regulations of all other governmental agencies which may pertain to the above equipment.

Seyed Sadredin, Executive Director / APCO

aud Marjollet, Director of Permit Services 6.1 720-504.0 Fob 11 2016 &save - EDGE2111.16 ' Jake Inspeclan NOT Reword

Southern Regional Office • 34946 Flyover Court • Bakersfield, CA 93308 • (661) 392-5500 • Fax (661) 392-5585

Page 36: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-504-0 (continued) Page 2 of 5

5. ERC Certificate Numbers C-1291-2 and S-4302-1 (or certificates split from these certificates) shall be used to supply the required NOX, and VOC offsets, unless a revised offsetting proposal is received and approved by the District, upon which this Authority to Construct shall be reissued, administratively specifying the new offsetting proposal. Original public noticing requirements, if any, shall be duplicated prior to reissuance of this Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

6. The permittee shall obtain written District approval for the use of any equivalent equipment not specifically approved by this Authority to Construct. Approval of the equivalent equipment shall be made only after the District's determination that the submitted design and performance of the proposed alternate equipment is equivalent to the specifically authorized equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

7. The permittee's request for approval of equivalent equipment shall include the make, model, manufacturer's maximum rating, manufacturer's guaranteed emission rates, equipment drawing(s), and operational characteristics/parameters. [District Rule 2201] Federally Enforceable Through Title V Permit

8. Alternate equipment shall be of the same class and category of source as the equipment authorized by the Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

9. No emission factor and no emission shall be greater for the alternate equipment than for the proposed equipment. No changes in the hours of operation, operating rate, throughput, or firing rate may be authorized for any alternate equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

10. IC engine is authorized to operate only in the South Half of Section 25, Section 35, and Section 36 in Township 11N, Range 21 W, and the West Half of Section 30, Township I IN, Range 20W. [District Rule 2201] Federally Enforceable Through Title V Permit

11. Permittee shall notify the District Compliance Division of each location at which the IC engine is located in excess of 24 hours. Such notification shall be made no later than 48 hours after starting operation at the location. [District Rule 1070] Federally Enforceable Through Title V Permit

12. This engine shall be equipped with an operational nonresettable elapsed time meter or other APCO approved alternative. [District Rule 4702] Federally Enforceable Through Title V Permit

13. This engine shall be operated and maintained in proper operating condition per the manufacturer's requirements as specified on the Inspection and Monitoring (I&M) plan submitted to the District. [District Rule 4702] Federally Enforceable Through Title V Permit

14. The operator shall collect data through the l&M plan in a form approved by the APCO. [District Rule 4702] Federally Enforceable Through Title V Permit

15. The exhaust stack shall vent vertically upward. The vertical exhaust flow shall not be impeded by a rain cap (flapper ok), roof overhang, or any other obstruction. [District Rule 4102]

16. Unit shall not be operated within 1,000 feet of any K-12 school. [CH&SC 42301.6]

17. Emissions rates shall not exceed any of the following: PM10: 0.01 g/bhp-hr; NOx (as NO2): 5 ppmvd @15% 02; VOC (as CH4): 25 ppmvd @15% 02; CO: 50 ppmvd @15% 02; or SOx (as S02): 0.0438 g/bhp-hr. Emission limits are on a 15 minute average. [District Rules 2201, 4701, and 4702] Federally Enforceable Through Title V Permit

18. Sulfur content of produced natural gas fuel shall not exceed 5.2 grains S/100 dscf. [District Rules 2201, 4702, and 4801] Federally Enforceable Through Title V Permit

19. The permittee shall monitor and record the stack concentration of NOx (as NO2), CO, and 02 at least once every calendar quarter using a portable emission monitor that meets District specifications. Monitoring shall be performed not less than once every month for 12 months if 2 consecutive deviations are observed during quarterly monitoring. Monitoring shall not be required if the engine is not in operation, i.e. the engine need not be started solely to perform monitoring. Monitoring shall be performed within 1 day of restarting the engine unless monitoring has been performed within the last month if on a monthly monitoring schedule, or within the last quarter if on a quarterly monitoring schedule. Records must be maintained of the dates of non-operation to validate extended monitoring frequencies. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE C00010110

Page 37: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-504-0 (continued) Page 3 of 5

20. If the NOx and/or CO concentrations corrected to 15% 02, as measured by the portable analyzer, exceed the permitted emission concentration, the permittee shall return the emissions to within the acceptable range as soon as possible, but no longer than 8 hours after detection. If the portable analyzer readings continue to exceed the allowable emissions concentration after 8 hours, the permittee shall notify the District within the following 1 hour, and conduct a certified source test within 60 days of the first exceedance. In lieu of conducting a source test, the permittee may stipulate a violation has occurred, subject to enforcement action. The permittee must then correct the violation, show compliance has been re-established, and resume monitoring procedures. If the deviations are the result of a qualifying breakdown condition pursuant to Rule 1100, the permittee may fully comply with Rule 1100 in lieu of the performing the notification and testing required by this condition. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

21. All alternate monitoring parameter emission readings shall be taken with the unit operating either at conditions representative of normal operations or conditions specified in the permit-to-operate. The analyzer shall be calibrated, maintained, and operated in accordance with the manufacturer's specifications and recommendations or a protocol approved by the APCO. Emission readings taken shall be averaged over a 15 consecutive-minute period by either taking a cumulative 15 consecutive-minute sample reading or by taking at least five (5) readings, evenly spaced out over the 15 consecutive-minute period. [District Rule 4702] Federally Enforceable Through Title V Permit

22. The permittee shall maintain records of: (1) the date and time of NOx, CO, and 02 measurements, (2) the 02 concentration in percent and the measured NOx and CO concentrations corrected to 15% 02, (3) make and model of exhaust gas analyzer, (4) exhaust gas analyzer calibration records, and (5) a description of any corrective action taken to maintain the emissions within the acceptable range. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

23. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified at least 30 days prior to any compliance source test, and a source test plan must be submitted for approval at least 15 days prior to testing. [District Rule 1081] Federally Enforceable Through Title V Permit

24. Source testing to measure NOx, CO, and VOC emissions from this unit shall be conducted within 60 days of initial start-up. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

25. Source testing to measure natural gas-combustion NOx, CO, and VOC emissions from this unit shall be measured not less than once every 24 months. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

26. Compliance with NOx, CO, and VOC emission limits may be demonstrated by submission of annual source test results from one or more representative IC engines as approved by the APCO. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

27. For representative testing, an engine operating log shall be maintained for each engine in the group. The log shall include, on a monthly basis, the total hours of operation, and maintenance or modifications performed. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

28. Should any representative engines exceed the required emission limits, each engine in the group shall demonstrate compliance by emissions testing. Failure to complete emissions testing within 90 days of the failed test shall result in the untested engines being considered in violation of this rule. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

29. Compliance demonstration (source testing) shall be by District witnessed, or authorized, sample collection by ARB certified testing laboratory. [District Rule 1081] Federally Enforceable Through Title V Permit

30. Emissions source testing shall be conducted with the engine operating either at conditions representative of normal operations or conditions specified in the Permit to Operate. [District Rule 4702] Federally Enforceable Through Title V Permit

31. For emissions source testing, the arithmetic average of three 30-consecutive-minute test runs shall apply. If two of three runs are above an applicable limit, the test cannot be used to demonstrate compliance with an applicable limit. VOC emissions shall be reported as methane. VOC, NOx, and CO concentrations shall be reported in ppmv, corrected to 15% oxygen. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE C. 44 4104 •04.11 0110C1421 0

Page 38: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-504-0 (continued) Page 4 of 5

32. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified 30 days prior to any compliance source test, and a source test plan must be submitted for approval 15 days prior to testing. [District Rule 1081] Federally Enforceable Through Title V Permit

33. The results of each source test shall be submitted to the District within 60 days thereafter. [District Rule 1081] Federally Enforceable Through Title V Permit

34. The following test methods shall be used: NOx (ppm) - EPA Method 7E or ARB Method 100, CO (ppmv) - EPA Method 10 or ARB Method 100, stack gas oxygen - EPA Method 3 or 3A or ARB Method 100, and VOC (ppmv) - EPA Method 25 or EPA Method 18 referenced as methane. [District Rules 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

35. Permittee shall maintain records of either operating hours per day, location (e.g. well number) at which IC engine is operated, source test results, monitoring data, and other information deemed necessary by the APCO to demonstrate compliance with Rules 4701 and 4702 for a period of five years and shall make such records readily available for District inspection upon request. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

36. Portable analyzers will be maintained and calibrated according to the manufacturer's specifications in order to ensure they operate properly and their accuracy remains within specification. EPA protocol calibration gases will be utilized to ensure proper calibration. After a successful calibration, the accuracy of the analyzer may be verified by utilizing reference gases that most closely approximate the emission limit to be checked. Between calibrations, the analyzer shall be checked before each use with reference gases to ensure its sensor cells are operational and accurate. [District Rule 4702] Federally Enforceable Through Title V Permit

37. Emissions for this unit shall be calculated using the arithmetic mean, pursuant to District Rule 1081 (Amended December 16, 1993), of 3 thirty-minute test runs for NOx, and CO. [District Rule 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

38. The following conditions must be met for representative units to be used to test for pollutant (N0x) emissions for a group of units: 1) all units are initially source tested and emissions from each unit in the group are less than 90% of the permitted value and vary 25% or less from the average of all runs, 2) all units in the group are similar in terms of rated brake horsepower, make and series, operational conditions, fuel used, and control method, 3) the group is owned by a single owner and located at a single stationary source, and 4) the selection of the representative units is approved by the District prior to testing. [District Rule 4702] Federally Enforceable Through Title V Permit

39. All units in a group for which representative units are annually source tested for NOx and CO emissions shall have received the same maintenance and tune-up procedures as the representative units. [District Rule 4702] Federally Enforceable Through Title V Permit

40. The number of representative units source tested for NOx and CO emissions shall be at least 30% of the total number of units in the group. The units included in the 30% shall be rotated; such that in 3 years, all units in the entire group will have been tested at least once. [District Rule 4702] Federally Enforceable Through Title V Permit

41. Particulate emissions shall not exceed at the point of discharge, 0.1 gr/dscf. [District Rule 4201] Federally Enforceable Through Title V Permit

42. If the IC engine is fired on PUC-regulated natural gas, then maintain on file copies of all natural gas bills. [District Rule 2201] Federally Enforceable Through Title V Permit

43. If the engine is not fired exclusively on PUC-regulated natural gas, then the sulfur content of the gas being fired in the IC engine shall be determined using ASTM method D1072, D3031, D4084 or D3246. [District Rule 2201] Federally Enforceable Through Title V Permit

44. If the engine is not fired exclusively on PUC-regulated natural gas, the sulfur content of each fuel source shall be tested annually and whenever a change in the fuel source is made. [District Rules 2201 and 4702] Federally Enforceable Through Title V Permit

45. Permittee shall monitor and record, on a monthly basis, the catalyst inlet and outlet temperatures. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

Page 39: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-504-0 (continued) Page 5 of 5

46. The acceptable catalyst temperature differential shall be established by source testing this unit or other representative units as approved by the District. The normal range/level shall be any temperature increase across the catalyst unless compliance with applicable NOx and CO emissions limits have been demonstrated through source testing at a similar temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

47. Permittee shall maintain records of the date and time of temperature measurements and the measured temperatures. The records shall also include a description of any corrective action taken to maintain the temperature differential at the acceptable level. [District Rule 4702] Federally Enforceable Through Title V Permit

48. If the catalyst temperature differential is outside of the normal range/level, the permittee shall notify the District and take corrective action (i.e. temperature differential returned to normal range/level) with one (1) hour of detection. If the catalyst temperature differential rate is not immediately corrected, the permittee shall conduct a source test within 60 days, to demonstrate compliance with the applicable emissions limits at the new temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

49. The perm ittee shall update the I&M plan for this engine prior to any planned change in operation. The permittee must notify the District no later than seven days after changing the I&M plan and must submit an updated I&M plan to the APCO for approval no later than 14 days after the change. The date and time of the change to the l&M plan shall be recorded in the engine's operating log. For modifications, the revised I&M plan shall be submitted to and approved by the APCO prior to issuance of the Permit to Operate. The permittee may request a change to the I&M plan at any time. [District Rule 4702] Federally Enforceable Through Title V Permit

50. Permittee shall maintain an engine operating log, on a monthly basis, which includes the following information; total hours of operation, type and quantity of fuel used, maintenance or modifications performed, monitoring data, compliance source test results, and any other information necessary to demonstrate compliance with Rule 4702. [District Rule 4702] Federally Enforceable Through Title V Permit

51. All records shall be maintained and retained on-site for a minimum of five (5) years, and shall be made available for District inspection upon request. [District Rule 4702] Federally Enforceable Through Title V Permit

8.1738404.0: Feb 11 2015 &SIAM— EDGE_H1LR

Page 40: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

„Cr San Joaquin Valley a. AIR POLLUTION CONTROL DISTRICT

91Z , HEALTHY AIR LIVING

AUTHORITY TO CONSTRUCT PERMIT NO: S-1738-505-0 ISSUANCE DATE: 02/11/2015

LEGAL OWNER OR OPERATOR: CALIFORNIA RESOURCES PRODUCTION CORP. MAILING ADDRESS: 9600 MING AVENUE, SUITE 300

BAKERSFIELD, CA 93311

LOCATION: LIGHT OIL WESTERN STATIONARY SOURCE KERN COUNTY CA

EQUIPMENT DESCRIPTION: 233 BHP WAUKESHA MODEL F-1905 (OR EQUIVALENT) NATURAL GAS-FIRED IC ENGINE WITH CATALYTIC CONVERTER AND AIR FUEL RATIO CONTROLLER POWERING A WELL PUMPING UNIT

CONDITIONS 1. This Authority to Construct serves as a written certificate of conformity with the procedural requirements of 40 CFR

70.7 and 70.8 and with the compliance requirements of 40 CFR 70.6(c). [District Rule 2201] Federally Enforceable Through Title V Permit

2. Prior to operating with modifications authorized by this Authority to Construct, the facility shall submit an application to modify the Title V permit with an administrative amendment in accordance with District Rule 2520 Section 5.3.4. [District Rule 2520, 5.3.4] Federally Enforceable Through Title V Permit

3. Prior to operating equipment under this Authority to Construct, permittee shall surrender NOX emission reduction credits for the following quantity of emissions: 1st quarter - 103 lb, 2nd quarter - 103 lb, 3rd quarter - 103 lb, and fourth quarter - 103 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

4. Prior to operating equipment under this Authority to Construct, permittee shall surrender VOC emission reduction credits for the following quantity of emissions: 1st quarter - 179 lb, 2nd quarter - 179 lb, 3rd quarter - 179 lb, and fourth quarter - 179 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

YOU MUST NOTIFY THE DISTRICT COMPLIANCE DIVISION AT (661) 392-5500 WHEN CONSTRUCTION IS COMPLETED AND PRIOR TO OPERATING THE EQUIPMENT OR MODIFICATIONS AUTHORIZED BY THIS AUTHORITY TO CONSTRUCT. This is NOT a PERMIT TO OPERATE. Approval or denial of a PERMIT TO OPERATE will be made after an inspection to verify that the equipment has been constructed In accordance with the approved plans, specifications and conditions of this Authority to Construct, and to determine If the equipment can be operated in compliance with all Rules and Regulations of the San Joaquin Valley Unified Air Pollution Control District. Unless construction has commenced pursuant to Rule 2050, this Authority to Construct shall expire and application shall be cancelled two years from the date of issuance. The applicant is responsible for complying with all laws, ordinances and regulations of all other governmental agencies which may pertain to the above equipment.

Seyed Sadredin, Executive Director / APCO

"aud Marjollet, Director of Permit Services S:1733405-0: Feb 11 2015 mum — ELCDOLR eniet Inspeenon NOT Requlme

Southern Regional Office • 34946 Flyover Court • Bakersfield, CA 93308 • (661) 392-5500 • Fax (661) 392-5585

Page 41: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-505-0 (continued) Page 2 of 5

5. ERC Certificate Numbers C-1291-2 and S-4302-1 (or certificates split from these certificates) shall be used to supply the required NOX, and VOC offsets, unless a revised offsetting proposal is received and approved by the District, upon which this Authority to Construct shall be reissued, administratively specifying the new offsetting proposal. Original public noticing requirements, if any, shall be duplicated prior to reissuance of this Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

6. The permittee shall obtain written District approval for the use of any equivalent equipment not specifically approved by this Authority to Construct. Approval of the equivalent equipment shall be made only after the District's determination that the submitted design and performance of the proposed alternate equipment is equivalent to the specifically authorized equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

7. The permittee's request for approval of equivalent equipment shall include the make, model, manufacturer's maximum rating, manufacturer's guaranteed emission rates, equipment drawing(s), and operational characteristics/parameters. [District Rule 2201] Federally Enforceable Through Title V Permit

8. Alternate equipment shall be of the same class and category of source as the equipment authorized by the Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

9. No emission factor and no emission shall be greater for the alternate equipment than for the proposed equipment. No changes in the hours of operation, operating rate, throughput, or firing rate may be authorized for any alternate equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

10. IC engine is authorized to operate only in the South Half of Section 25, Section 35, and Section 36 in Township I IN, Range 21 W, and the West Half of Section 30, Township 11N, Range 20W. [District Rule 2201] Federally Enforceable Through Title V Permit

11. Permittee shall notify the District Compliance Division of each location at which the IC engine is located in excess of 24 hours. Such notification shall be made no later than 48 hours after starting operation at the location. [District Rule 1070] Federally Enforceable Through Title V Permit

12. This engine shall be equipped with an operational nonresettable elapsed time meter or other APCO approved alternative. [District Rule 4702] Federally Enforceable Through Title V Permit

13. This engine shall be operated and maintained in proper operating condition per the manufacturer's requirements as specified on the Inspection and Monitoring (I&M) plan submitted to the District. [District Rule 4702] Federally Enforceable Through Title V Permit

14. The operator shall collect data through the l&M plan in a form approved by the APCO. [District Rule 4702] Federally Enforceable Through Title V Permit

15. The exhaust stack shall vent vertically upward. The vertical exhaust flow shall not be impeded by a rain cap (flapper ok), roof overhang, or any other obstruction. [District Rule 4102]

16. Unit shall not be operated within 1,000 feet of any K-12 school. [CH&SC 42301.6]

17. Emissions rates shall not exceed any of the following: PM10: 0.01 g/bhp-hr; NOx (as NO2): 5 ppmvd @15% 02; VOC (as CH4): 25 ppmvd @15% 02; CO: 50 ppmvd @15% 02; or SOx (as SO2): 0.0438 g/bhp-hr. Emission limits are on a 15 minute average. [District Rules 2201, 4701, and 4702] Federally Enforceable Through Title V Permit

18. Sulfur content of produced natural gas fuel shall not exceed 5.2 grains S/100 dscf. [District Rules 2201, 4702, and 4801] Federally Enforceable Through Title V Permit

19. The permittee shall monitor and record the stack concentration of NOx (as NO2), CO, and 02 at least once every calendar quarter using a portable emission monitor that meets District specifications. Monitoring shall be performed not less than once every month for 12 months if 2 consecutive deviations are observed during quarterly monitoring.

Monitoring shall not be required if the engine is not in operation, i.e. the engine need not be started solely to perform monitoring. Monitoring shall be performed within 1 day of restarting the engine unless monitoring has been performed within the last month if on a monthly monitoring schedule, or within the last quarter if on a quarterly monitoring schedule. Records must be maintained of the dates of non-operation to validate extended monitoring frequencies. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

3.11311-505-0: F013 11 2015 1155A1.1 - EDGEH011

Page 42: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-505-0 (continued) Page 3 of 5

20. If the NOx and/or CO concentrations corrected to 15% 02, as measured by the portable analyzer, exceed the permitted emission concentration, the permittee shall return the emissions to within the acceptable range as soon as possible, but no longer than 8 hours after detection. If the portable analyzer readings continue to exceed the allowable emissions concentration after 8 hours, the permittee shall notify the District within the following 1 hour, and conduct a certified source test within 60 days of the first exceedance. In lieu of conducting a source test, the permittee may stipulate a violation has occurred, subject to enforcement action. The permittee must then correct the violation, show compliance has been re-established, and resume monitoring procedures. If the deviations are the result of a qualifying breakdown condition pursuant to Rule 1100, the permittee may fully comply with Rule 1100 in lieu of the performing the notification and testing required by this condition. [District Rules 4701 and 4702] Federally Enforceable Through Title

V Permit

21. All alternate monitoring parameter emission readings shall be taken with the unit operating either at conditions representative of normal operations or conditions specified in the permit-to-operate. The analyzer shall be calibrated, maintained, and operated in accordance with the manufacturer's specifications and recommendations or a protocol approved by the APCO. Emission readings taken shall be averaged over a 15 consecutive-minute period by either taking a cumulative 15 consecutive-minute sample reading or by taking at least five (5) readings, evenly spaced out over the 15 consecutive-minute period. [District Rule 4702] Federally Enforceable Through Title V Permit

22. The permittee shall maintain records of: (1) the date and time of NOx, CO, and 02 measurements, (2) the 02 concentration in percent and the measured NOx and CO concentrations corrected to 15% 02, (3) make and model of exhaust gas analyzer, (4) exhaust gas analyzer calibration records, and (5) a description of any corrective action taken to maintain the emissions within the acceptable range. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

23. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified at least 30 days prior to any compliance source test, and a source test plan must be submitted for approval at least 15 days prior to testing. [District Rule 1081] Federally Enforceable Through Title V Permit

24. Source testing to measure NOx, CO, and VOC emissions from this unit shall be conducted within 60 days of initial start-up. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

25. Source testing to measure natural gas-combustion NOx, CO, and VOC emissions from this unit shall be measured not less than once every 24 months. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

26. Compliance with NOx, CO, and VOC emission limits may be demonstrated by submission of annual source test results from one or more representative IC engines as approved by the APCO. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

27. For representative testing, an engine operating log shall be maintained for each engine in the group. The log shall include, on a monthly basis, the total hours of operation, and maintenance or modifications performed. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

28. Should any representative engines exceed the required emission limits, each engine in the group shall demonstrate • compliance by emissions testing. Failure to complete emissions testing within 90 days of the failed test shall result in

the untested engines being considered in violation of this rule. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

29. Compliance demonstration (source testing) shall be by District witnessed, or authorized, sample collection by ARB certified testing laboratory. [District Rule 1081] Federally Enforceable Through Title V Permit

30. Emissions source testing shall be conducted with the engine operating either at conditions representative of normal operations or conditions specified in the Permit to Operate. [District Rule 4702] Federally Enforceable Through Title V Permit

31. For emissions source testing, the arithmetic average of three 30-consecutive-minute test runs shall apply. If two of three runs are above an applicable limit, the test cannot be used to demonstrate compliance with an applicable limit. VOC emissions shall be reported as methane. VOC, NOx, and CO concentrations shall be reported in ppmv, corrected to 15% oxygen. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

Page 43: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-505-0 (continued) Page 4 of 5

32. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified 30 days prior to any compliance source test, and a source test plan must be submitted for approval 15 days prior to testing. [District Rule 1081] Federally Enforceable Through Title V Permit

33. The results of each source test shall be submitted to the District within 60 days thereafter. [District Rule 1081] Federally Enforceable Through Title V Permit

34. The following test methods shall be used: NOx (ppmv) - EPA Method 7E or ARB Method 100, CO (ppmv) - EPA Method 10 or ARB Method 100, stack gas oxygen - EPA Method 3 or 3A or ARB Method 100, and VOC (ppmv) - EPA Method 25 or EPA Method 18 referenced as methane. [District Rules 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

35. Permittee shall maintain records of either operating hours per day, location (e.g. well number) at which IC engine is operated, source test results, monitoring data, and other information deemed necessary by the APCO to demonstrate compliance with Rules 4701 and 4702 for a period of five years and shall make such records readily available for District inspection upon request. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

36. Portable analyzers will be maintained and calibrated according to the manufacturer's specifications in order to ensure they operate properly and their accuracy remains within specification. EPA protocol calibration gases will be utilized to ensure proper calibration. After a successful calibration, the accuracy of the analyzer may be verified by utilizing reference gases that most closely approximate the emission limit to be checked. Between calibrations, the analyzer shall be checked before each use with reference gases to ensure its sensor cells are operational and accurate. [District Rule 4702] Federally Enforceable Through Title V Permit

37. Emissions for this unit shall be calculated using the arithmetic mean, pursuant to District Rule 1081 (Amended December 16, 1993), of 3 thirty-minute test runs for NOx, and CO. [District Rule 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

38. The following conditions must be met for representative units to be used to test for pollutant (N0x) emissions for a group of units: 1) all units are initially source tested and emissions from each unit in the group are less than 90% of the permitted value and vary 25% or less from the average of all runs, 2) all units in the group are similar in terms of rated brake horsepower, make and series, operational conditions, fuel used, and control method, 3) the group is owned by a single owner and located at a single stationary source, and 4) the selection of the representative units is approved by the District prior to testing. [District Rule 4702] Federally Enforceable Through Title V Permit

39. All units in a group for which representative units are annually source tested for NOx and CO emissions shall have received the same maintenance and tune-up procedures as the representative units. [District Rule 4702] Federally Enforceable Through Title V Permit

40. The number of representative units source tested for NOx and CO emissions shall be at least 30% of the total number of units in the group. The units included in the 30% shall be rotated; such that in 3 years, all units in the entire group will have been tested at least once. [District Rule 4702] Federally Enforceable Through Title V Permit

41. Particulate emissions shall not exceed at the point of discharge, 0.1 gr/dscf. [District Rule 4201] Federally Enforceable Through Title V Permit

42. If the IC engine is fired on PUC-regulated natural gas, then maintain on file copies of all natural gas bills. [District Rule 2201] Federally Enforceable Through Title V Permit

43. If the engine is not fired exclusively on PUC-regulated natural gas, then the sulfur content of the gas being fired in the IC engine shall be determined using ASTM method Dl 072, D3031, D4084 or D3246. [District Rule 2201] Federally Enforceable Through Title V Permit

44. If the engine is not fired exclusively on PUC-regulated natural gas, the sulfur content of each fuel source shall be tested annually and whenever a change in the fuel source is made. [District Rules 2201 and 4702] Federally Enforceable Through Title V Permit

45. Perm ittee shall monitor and record, on a monthly basis, the catalyst inlet and outlet temperatures. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

Page 44: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-505-0 (continued) Page 5 of 5

46. The acceptable catalyst temperature differential shall be established by source testing this unit or other representative units as approved by the District. The normal range/level shall be any temperature increase across the catalyst unless compliance with applicable NOx and CO emissions limits have been demonstrated through source testing at a similar temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

47. Permittee shall maintain records of the date and time of temperature measurements and the measured temperatures. The records shall also include a description of any corrective action taken to maintain the temperature differential at the acceptable level. [District Rule 4702] Federally Enforceable Through Title V Permit

48. If the catalyst temperature differential is outside of the normal range/level, the permittee shall notify the District and take corrective action (i.e. temperature differential returned to normal range/level) with one (I) hour of detection. If the catalyst temperature differential rate is not immediately corrected, the permittee shall conduct a source test within 60 days, to demonstrate compliance with the applicable emissions limits at the new temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

49. The permittee shall update the l&M plan for this engine prior to any planned change in operation. The permittee must notify the District no later than seven days after changing the l&M plan and must submit an updated I&M plan to the APCO for approval no later than 14 days after the change. The date and time of the change to the I&M plan shall be recorded in the engines operating log. For modifications, the revised l&M plan shall be submitted to and approved by the APCO prior to issuance of the Permit to Operate. The permittee may request a change to the l&M plan at any time. [District Rule 4702] Federally Enforceable Through Title V Permit

50. Permittee shall maintain an engine operating log, on a monthly basis, which includes the following information; total hours of operation, type and quantity of fuel used, maintenance or modifications performed, monitoring data, compliance source test results, and any other information necessary to demonstrate compliance with Rule 4702. [District Rule 4702] Federally Enforceable Through Title V Permit

51. All records shall be maintained and retained on-site for a minimum of five (5) years, and shall be made available for District inspection upon request [District Rule 4702] Federally Enforceable Through Title V Permit

8-17311-505-0 Fa 11 2015 A- SW& -FM:FM 0

Page 45: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

AINFI San Joaquin Valley am AIR POLLUTION CONTROL DISTRICT HEALTHY IR

AUTHORITY TO CONSTRUCT PERMIT NO: S-1738-506-0

ISSUANCE DATE: 02/11/2015

LEGAL OWNER OR OPERATOR: CALIFORNIA RESOURCES PRODUCTION CORP MAILING ADDRESS: 9600 MING AVENUE, SUITE 300

BAKERSFIELD, CA 93311

LOCATION: LIGHT OIL WESTERN STATIONARY SOURCE KERN COUNTY CA

EQUIPMENT DESCRIPTION: 233 BHP WAUKESHA MODEL F-1905 (OR EQUIVALENT) NATURAL GAS FIRED IC ENGINE WITH CATALYTIC CONVERTER AND AIR FUEL RATIO CONTROLLER POWERING A WELL PUMPING UNIT

CONDITIONS 1. This Authority to Construct serves as a written certificate of conformity with the procedural requirements of 40 CFR

70.7 and 70.8 and with the compliance requirements of 40 CFR 70.6(c). [District Rule 2201] Federally Enforceable Through Title V Permit

2. Prior to operating with modifications authorized by this Authority to Construct, the facility shall submit an application to modify the Title V permit with an administrative amendment in accordance with District Rule 2520 Section 5.3.4. [District Rule 2520, 5.3.4] Federally Enforceable Through Title V Permit

3. Prior to operating equipment under this Authority to Construct, permittee shall surrender NOX emission reduction credits for the following quantity of emissions: 1st quarter - 103 lb, 2nd quarter - 103 lb, 3rd quarter - 103 lb, and fourth quarter - 103 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

4. Prior to operating equipment under this Authority to Construct, permittee shall surrender VOC emission reduction credits for the following quantity of emissions: 1st quarter - 179 lb, 2nd quarter - 179 lb, 3rd quarter - 179 lb, and fourth quarter - 179 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

YOU MUST NOTIFY THE DISTRICT COMPLIANCE DIVISION AT (661) 392-5500 WHEN CONSTRUCTION IS COMPLETED AND PRIOR TO OPERATING THE EQUIPMENT OR MODIFICATIONS AUTHORIZED BY THIS AUTHORITY TO CONSTRUCT. This is NOT a PERMIT TO OPERATE. Approval or denial of a PERMIT TO OPERATE will be made after an inspection to verify that the equipment has been constructed in accordance with the approved plans, specifications and conditions of this Authority to Construct, and to determine If the equipment can be operated in compliance with all Rules and Regulations of the San Joaquin Valley Unified Air Pollution Control District. Unless construction has commenced pursuant to Rule 2050, this Authority to Construct shall expire and application shall be cancelled two years from the date of Issuance. The applicant is responsible for complying with all laws, ordinances and regulations of all other governmental agencies which may pertain to the above equipment.

Seyed Sadredin, Executive Director / APCO

Arnaud Marjollet, Director of Permit Services 3-1738400-0 • Foo I, 7015 0.51M1— =EMMA . Joh Inspection NOT RovuOsa

Southern Reaional Office • 34946 Flyover Court • Bakersfield, CA 93308 • (661) 392-5500 • Fax (661) 392-5585

Page 46: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-506-0 (continued) Page 2 of 5

5. ERC Certificate Numbers C-I291-2 and S-4302-1 (or certificates split from these certificates) shall be used to supply the required NOX, and VOC offsets, unless a revised offsetting proposal is received and approved by the District, upon which this Authority to Construct shall be reissued, administratively specifying the new offsetting proposal. Original public noticing requirements, if any, shall be duplicated prior to reissuance of this Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

6. The pennittee shall obtain written District approval for the use of any equivalent equipment not specifically approved by this Authority to Construct. Approval of the equivalent equipment shall be made only after the District's determination that the submitted design and performance of the proposed alternate equipment is equivalent to the specifically authorized equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

7. The permittee's request for approval of equivalent equipment shall include the make, model, manufacturer's maximum rating, manufacturer's guaranteed emission rates, equipment drawing(s), and operational characteristics/parameters. [District Rule 2201] Federally Enforceable Through Title V Permit

8. Alternate equipment shall be of the same class and category of source as the equipment authorized by the Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

9. No emission factor and no emission shall be greater for the alternate equipment than for the proposed equipment. No changes in the hours of operation, operating rate, throughput, or firing rate may be authorized for any alternate equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

10. IC engine is authorized to operate only in the South Half of Section 25, Section 35, and Section 36 in Township 11N, Range 21 W, and the West Half of Section 30, Township 11N, Range 20W. [District Rule 2201] Federally Enforceable

Through Title V Permit

11. Permittee shall notify the District Compliance Division of each location at which the IC engine is located in excess of 24 hours. Such notification shall be made no later than 48 hours after starting operation at the location. [District Rule

1070] Federally Enforceable Through Title V Permit

12. This engine shall be equipped with an operational nonresettable elapsed time meter or other APCO approved alternative. [District Rule 4702] Federally Enforceable Through Title V Permit

13. This engine shall be operated and maintained in proper operating condition per the manufacturer's requirements as specified on the Inspection and Monitoring (I&M) plan submitted to the District. [District Rule 4702] Federally

Enforceable Through Title V Permit

14. The operator shall collect data through the I&M plan in a form approved by the APCO. [District Rule 4702] Federally Enforceable Through Title V Permit

15. The exhaust stack shall vent vertically upward. The vertical exhaust flow shall not be impeded by a rain cap (flapper ok), roof overhang, or any other obstruction. [District Rule 4102]

16. Unit shall not be operated within 1,000 feet of any K-12 school. [CH&SC 42301.6]

17. Emissions rates shall not exceed any of the following: PM10: 0.01 g/bhp-hr; NOx (as NO2): 5 ppmvd @15% 02; VOC (as CH4): 25 ppmvd @15% 02; CO: 50 ppmvd @15% 02; or SOx (as S02): 0.0438 g/bhp-hr. Emission limits are on a 15 minute average. [District Rules 2201, 4701, and 4702] Federally Enforceable Through Title V Permit

18. Sulfur content of produced natural gas fuel shall not exceed 5.2 grains S/100 dscf. [District Rules 2201, 4702, and 4801] Federally Enforceable Through Title V Permit

19. The permittee shall monitor and record the stack concentration of NOx (as NO2), CO, and 02 at least once every calendar quarter using a portable emission monitor that meets District specifications. Monitoring shall be performed not less than once every month for 12 months if 2 consecutive deviations are observed during quarterly monitoring. Monitoring shall not be required if the engine is not in operation, i.e. the engine need not be started solely to perform monitoring. Monitoring shall be performed within 1 day of restarting the engine unless monitoring has been performed within the last month if on a monthly monitoring schedule, or within the last quarter if on a quarterly monitoring schedule. Records must be maintained of the dates of non-operation to validate extended monitoring frequencies. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

Page 47: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-506-0 (continued) Page 3 of 5

20. If the NOx and/or CO concentrations corrected to 15% 02, as measured by the portable analyzer, exceed the permitted emission concentration, the permittee shall return the emissions to within the acceptable range as soon as possible, but no longer than 8 hours after detection. If the portable analyzer readings continue to exceed the allowable emissions concentration after 8 hours, the permittee shall notify the District within the following 1 hour, and conduct a certified source test within 60 days of the first exceedance. In lieu of conducting a source test, the permittee may stipulate a violation has occurred, subject to enforcement action. The perm ittee must then correct the violation, show compliance has been re-established, and resume monitoring procedures. If the deviations are the result of a qualifying breakdown condition pursuant to Rule 1100, the permittee may fully comply with Rule 1100 in lieu of the performing the notification and testing required by this condition. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

21. All alternate monitoring parameter emission readings shall be taken with the unit operating either at conditions representative of normal operations or conditions specified in the permit-to-operate. The analyzer shall be calibrated, maintained, and operated in accordance with the manufacturer's specifications and recommendations or a protocol approved by the APCO. Emission readings taken shall be averaged over a 15 consecutive-minute period by either taking a cumulative 15 consecutive-minute sample reading or by taking at least five (5) readings, evenly spaced out over the 15 consecutive-minute period. [District Rule 4702] Federally Enforceable Through Title V Permit

22. The permittee shall maintain records of: (1) the date and time of NOx, CO, and 02 measurements, (2) the 02 concentration in percent and the measured NOx and CO concentrations corrected to 15% 02, (3) make and model of exhaust gas analyzer, (4) exhaust gas analyzer calibration records, and (5) a description of any corrective action taken to maintain the emissions within the acceptable range. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

23. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified at least 30 days prior to any compliance source test, and a source test plan must be submitted for approval at least 15 days prior to testing. [District Rule 1081] Federally Enforceable Through Title V Permit

24. Source testing to measure NOx, CO, and VOC emissions from this unit shall be conducted within 60 days of initial start-up. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

25. Source testing to measure natural gas-combustion NOx, CO, and VOC emissions from this unit shall be measured not less than once every 24 months. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

26. Compliance with NOx, CO, and VOC emission limits may be demonstrated by submission of annual source test results from one or more representative IC engines as approved by the APCO. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

27. For representative testing, an engine operating log shall be maintained for each engine in the group. The log shall include, on a monthly basis, the total hours of operation, and maintenance or modifications performed. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

28. Should any representative engines exceed the required emission limits, each engine in the group shall demonstrate compliance by emissions testing. Failure to complete emissions testing within 90 days of the failed test shall result in the untested engines being considered in violation of this rule. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

29. Compliance demonstration (source testing) shall be by District witnessed, or authorized, sample collection by ARB certified testing laboratory. [District Rule 1081] Federally Enforceable Through Title V Permit

30. Emissions source testing shall be conducted with the engine operating either at conditions representative of normal operations or conditions specified in the Permit to Operate. [District Rule 4702] Federally Enforceable Through Title V Permit

31. For emissions source testing, the arithmetic average of three 30-consecutive-minute test runs shall apply. If two of three runs are above an applicable limit, the test cannot be used to demonstrate compliance with an applicable limit. VOC emissions shall be reported as methane. VOC, NOx, and CO concentrations shall be reported in ppmv, corrected to 15% oxygen. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE S-17311400.0 • Fall 2015 &LIAM - ErY1FRil R

Page 48: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-506-0 (continued) Page 4 of 5

32. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified 30 days prior to any compliance source test, and a source test plan must be submitted for approval 15 days prior to testing. [District Rule 1081] Federally Enforceable Through Title V Permit

33. The results of each source test shall be submitted to the District within 60 days thereafter. [District Rule 1081] Federally Enforceable Through Title V Permit

34. The following test methods shall be used: NOx (ppmv) - EPA Method 7E or ARB Method 100, CO (ppmv) - EPA Method 10 or ARB Method 100, stack gas oxygen - EPA Method 3 or 3A or ARB Method 100, and VOC (ppmv) - EPA Method 25 or EPA Method 18 referenced as methane. [District Rules 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

35. Permittee shall maintain records of either operating hours per day, location (e.g. well number) at which IC engine is operated, source test results, monitoring data, and other information deemed necessary by the APCO to demonstrate compliance with Rules 4701 and 4702 for a period of five years and shall make such records readily available for District inspection upon request. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

36. Portable analyzers will be maintained and calibrated according to the manufacturer's specifications in order to ensure they operate properly and their accuracy remains within specification. EPA protocol calibration gases will be utilized to ensure proper calibration. After a successful calibration, the accuracy of the analyzer may be verified by utilizing reference gases that most closely approximate the emission limit to be checked. Between calibrations, the analyzer shall be checked before each use with reference gases to ensure its sensor cells are operational and accurate. [District Rule 4702] Federally Enforceable Through Title V Permit

37. Emissions for this unit shall be calculated using the arithmetic mean, pursuant to District Rule 1081 (Amended December 16, 1993), of 3 thirty-minute test runs for NOx, and CO. [District Rule 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

38. The following conditions must be met for representative units to be used to test for pollutant (N0x) emissions for a group of units: 1) all units are initially source tested and emissions from each unit in the group are less than 90% of the permitted value and vary 25% or less from the average of all runs, 2) all units in the group are similar in terms of rated brake horsepower, make and series, operational conditions, fuel used, and control method, 3) the group is owned by a single owner and located at a single stationary source, and 4) the selection of the representative units is approved by the District prior to testing. [District Rule 4702] Federally Enforceable Through Title V Permit

39. All units in a group for which representative units are annually source tested for NOx and CO emissions shall have received the same maintenance and tune-up procedures as the representative units. [District Rule 4702] Federally Enforceable Through Title V Permit

40. The number of representative units source tested for NOx and CO emissions shall be at least 30% of the total number of units in the group. The units included in the 30% shall be rotated; such that in 3 years, all units in the entire group will have been tested at least once. [District Rule 4702] Federally Enforceable Through Title V Permit

41. Particulate emissions shall not exceed at the point of discharge, 0.1 gr/dscf. [District Rule 4201] Federally Enforceable Through Title V Permit

42. If the IC engine is fired on PUC-regulated natural gas, then maintain on file copies of all natural gas bills. [District Rule 2201] Federally Enforceable Through Title V Permit

43. If the engine is not fired exclusively on PUC-regulated natural gas, then the sulfur content of the gas being fired in the IC engine shall be determined using ASTM method D1072, D3031, D4084 or D3246. [District Rule 2201] Federally Enforceable Through Title V Permit

44. If the engine is not fired exclusively on PUC-regulated natural gas, the sulfur content of each fuel source shall be tested annually and whenever a change in the fuel source is made. [District Rules 2201 and 4702] Federally Enforceable Through Title V Permit

45. Permittee shall monitor and record, on a monthly basis, the catalyst inlet and outlet temperatures. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE RA PAP.PAILA • F.E. Ii MIS II•PARLI Frinr1.111

Page 49: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-506-0 (continued) Page 5 of 5

46. The acceptable catalyst temperature differential shall be established by source testing this unit or other representative units as approved by the District. The normal range/level shall be any temperature increase across the catalyst unless compliance with applicable NOx and CO emissions limits have been demonstrated through source testing at a similar temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

47. Permittee shall maintain records of the date and time of temperature measurements and the measured temperatures. The records shall also include a description of any corrective action taken to maintain the temperature differential at the acceptable level. [District Rule 4702] Federally Enforceable Through Title V Permit

48. If the catalyst temperature differential is outside of the normal range/level, the permittee shall notify the District and take corrective action (i.e. temperature differential returned to normal range/level) with one (1) hour of detection. If the catalyst temperature differential rate is not immediately corrected, the permittee shall conduct a source test within 60 days, to demonstrate compliance with the applicable emissions limits at the new temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

49. The permittee shall update the I&M plan for this engine prior to any planned change in operation. The permittee must notify the District no later than seven days after changing the I&M plan and must submit an updated I&M plan to the APCO for approval no later than 14 days after the change. The date and time of the change to the I&M plan shall be recorded in the engine's operating log. For modifications, the revised I&M plan shall be submitted to and approved by the APCO prior to issuance of the Permit to Operate. The permittee may request a change to the I&M plan at any time. [District Rule 4702] Federally Enforceable Through Title V Permit

50. Permittee shall maintain an engine operating log, on a monthly basis, which includes the following information; total hours of operation, type and quantity of fuel used, maintenance or modifications performed, monitoring data, compliance source test results, and any other information necessary to demonstrate compliance with Rule 4702. [District Rule 47021 Federally Enforceable Through Title V Permit

51. All records shall be maintained and retained on-site for a minimum of five (5) years, and shall be made available for District inspection upon request. [District Rule 4702] Federally Enforceable Through Title V Permit

0.1171.04'0.0 • C II 0.1.0[ • SZO0 G•1102101 0

Page 50: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

irAli San Joaquin Valley AIR POLLUTION CONTROL DISTRICT ih Hi.111 nn

AUTHORITY TO CONSTRUCT PERMIT NO: S-1738-507-0

LEGAL OWNER OR OPERATOR: MAILING ADDRESS:

LOCATION:

ISSUANCE DATE: 02/11/2015

CALIFORNIA RESOURCES PRODUCTION CORP. 9600 MING AVENUE, SUITE 300 BAKERSFIELD, CA 93311

LIGHT OIL WESTERN STATIONARY SOURCE KERN COUNTY CA

EQUIPMENT DESCRIPTION: 233 BHP WAUKESHA MODEL F-1905 (OR EQUIVALENT) NATURAL GAS FIRED IC ENGINE WITH CATALYTIC CONVERTER AND AIR FUEL RATIO CONTROLLER POWERING A WELL PUMPING UNIT

CONDITIONS I. This Authority to Construct serves as a written certificate of conformity with the procedural requirements of 40 CFR

70.7 and 70.8 and with the compliance requirements of 40 CFR 70.6(c). [District Rule 2201] Federally Enforceable Through Title V Permit

2. Prior to operating with modifications authorized by this Authority to Construct, the facility shall submit an application to modify the Title V permit with an administrative amendment in accordance with District Rule 2520 Section 5.3.4. [District Rule 2520, 5.3.4] Federally Enforceable Through Title V Permit

3. Prior to operating equipment under this Authority to Construct, permittee shall surrender NOX emission reduction credits for the following quantity of emissions: 1st quarter - 103 lb, 2nd quarter - 103 lb, 3rd quarter - 103 lb, and fourth quarter - 103 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

4. Prior to operating equipment under this Authority to Construct, permittee shall surrender VOC emission reduction credits for the following quantity of emissions: 1st quarter - 179 lb, 2nd quarter - 179 lb, 3rd quarter - 179 lb, and fourth quarter - 179 lb. These amounts include the applicable offset ratio specified in Rule 2201 Section 4.8 (as amended 4/21/11) for the ERC specified below. [District Rule 2201] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

YOU MUST NOTIFY THE DISTRICT COMPLIANCE DIVISION AT (661) 392-5500 WHEN CONSTRUCTION IS COMPLETED AND PRIOR TO OPERATING THE EQUIPMENT OR MODIFICATIONS AUTHORIZED BY THIS AUTHORITY TO CONSTRUCT. This is NOT a PERMIT TO OPERATE. Approval or denial of a PERMIT TO OPERATE will be made after .an inspection to verify that the equipment has been constructed in accordance with the approved plans, specifications and conditions of this Authority to Construct, and to determine if the equipment can be operated in compliance with all Rules and Regulations of the San Joaquin Valley Unified Air Pollution Control District. Unless construction has commenced pursuant to Rule 2050, this Authority to Construct shall expire and application shall be cancelled two years from the date of issuance. The applicant is responsible for complying with all laws, ordinances and regulations of all other governmental agencies which may pertain to the above equipment.

Seyed Sadredin, Executive Director / APCO

ud Marjollet, Director of Permit Services 5.1731407-0 . Feb 11 2015 111AM — EDGEHILA Jeri Inspocbon NOT Requited

Southern Regional Office • 34946 Flyover Court • Bakersfield, CA 93308 • (661) 392-5500 • Fax (661) 392-5585

Page 51: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-507-0 (continued) Page 2 of 5

5. ERC Certificate Numbers C-I291-2 and S-4302-1 (or certificates split from these certificates) shall be used to supply the required NOX, and VOC offsets, unless a revised offsetting proposal is received and approved by the District, upon which this Authority to Construct shall be reissued, administratively specifying the new offsetting proposal. Original public noticing requirements, if any, shall be duplicated prior to reissuance of this Authority to Construct. [District Rule 2201] Federally Enforceable Through Title V Permit

6. The permittee shall obtain written District approval for the use of any equivalent equipment not specifically approved by this Authority to Construct. Approval of the equivalent equipment shall be made only after the District's determination that the submitted design and performance of the proposed alternate equipment is equivalent to the specifically authorized equipment. [District Rule 2201] Federally Enforceable Through Title V Permit

7. The permittee's request for approval of equivalent equipment shall include the make, model, manufacturer's maximum rating, manufacturer's guaranteed emission rates, equipment drawing(s), and operational characteristics/parameters. [District Rule 2201] Federally Enforceable Through Title V Permit

8. Alternate equipment shall be of the same class and category of source as the equipment authorized by the Authority to Construct. [District Rule 22011 Federally Enforceable Through Title V Permit

9. No emission factor and no emission shall be greater for the alternate equipment than for the proposed equipment. No changes in the hours of operation, operating rate, throughput, or firing rate may be authorized for any alternate equipment. [District Rule 22011 Federally Enforceable Through Title V Permit

10. IC engine is authorized to operate only in the South Half of Section 25, Section 35, and Section 36 in Township 11N, Range 21 W, and the West Half of Section 30, Township 11N, Range 20W. [District Rule 2201] Federally Enforceable Through Title V Permit

11. Permittee shall notify the District Compliance Division of each location at which the IC engine is located in excess of 24 hours. Such notification shall be made no later than 48 hours after starting operation at the location. [District Rule 1070] Federally Enforceable Through Title V Permit

12. This engine shall be equipped with an operational nonresettable elapsed time meter or other APCO approved alternative. [District Rule 4702] Federally Enforceable Through Title V Permit

13. This engine shall be operated and maintained in proper operating condition per the manufacturer's requirements as specified on the Inspection and Monitoring (I&M) plan submitted to the District. [District Rule 4702] Federally Enforceable Through Title V Permit

14. The operator shall collect data through the I&M plan in a form approved by the APCO. [District Rule 4702] Federally Enforceable Through Title V Permit

15. The exhaust stack shall vent vertically upward. The vertical exhaust flow shall not be impeded by a rain cap (flapper ok), roof overhang, or any other obstruction. [District Rule 4102]

16. Unit shall not be operated within 1,000 feet of any K-12 school. [CH&SC 42301.6]

17. Emissions rates shall not exceed any of the following: PM10: 0.01 g/bhp-hr; NOx (as NO2): 5 ppmvd @15% 02; VOC (as CH4): 25 ppmvd @15% 02; CO: 50 ppmvd @15% 02; or SOx (as S02): 0.0438 g/bhp-hr. Emission limits are on a 15 minute average. [District Rules 2201, 4701, and 4702] Federally Enforceable Through Title V Permit

18. Sulfur content of produced natural gas fuel shall not exceed 5.2 grains S/100 dscf. [District Rules 2201, 4702, and 4801] Federally Enforceable Through Title V Permit

19. The permittee shall monitor and record the stack concentration of NOx (as NO2), CO, and 02 at least once every calendar quarter using a portable emission monitor that meets District specifications. Monitoring shall be performed not less than once every month for 12 months if 2 consecutive deviations are observed during quarterly monitoring. Monitoring shall not be required if the engine is not in operation, i.e. the engine need not be started solely to perform monitoring. Monitoring shall be performed within 1 day of restarting the engine unless monitoring has been performed within the last month if on a monthly monitoring schedule, or within the last quarter if on a quarterly monitoring schedule. Records must be maintained of the dates of non-operation to validate extended monitoring frequencies. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE 54736507-0 : Feb II 2015 1[58.4k1- ECCIEHILR

Page 52: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-507-0 (continued) Page 3 of 5

20. If the NOx and/or CO concentrations corrected to 15% 02, as measured by the portable analyzer, exceed the permitted emission concentration, the permittee shall return the emissions to within the acceptable range as soon as possible, but no longer than 8 hours after detection. If the portable analyzer readings continue to exceed the allowable emissions concentration after 8 hours, the permittee shall notify the District within the following 1 hour, and conduct a certified source test within 60 days of the first exceedance. In lieu of conducting a source test, the permittee may stipulate a violation has occurred, subject to enforcement action. The permittee must then correct the violation, show compliance has been re-established, and resume monitoring procedures. If the deviations are the result of a qualifying breakdown condition pursuant to Rule 1100, the perrnittee may fully comply with Rule 1100 in lieu of the performing the notification and testing required by this condition. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

21. All alternate monitoring parameter emission readings shall be taken with the unit operating either at conditions representative of normal operations or conditions specified in the permit-to-operate. The analyzer shall be calibrated, maintained, and operated in accordance with the manufacturer's specifications and recommendations or a protocol approved by the APCO. Emission readings taken shall be averaged over a 15 consecutive-minute period by either taking a cumulative 15 consecutive-minute sample reading or by taking at least five (5) readings, evenly spaced out over the 15 consecutive-minute period. [District Rule 4702] Federally Enforceable Through Title V Permit

22. The permittee shall maintain records of: (1) the date and time of NOx, CO, and 02 measurements, (2) the 02 concentration in percent and the measured NOx and CO concentrations corrected to 15% 02, (3) make and model of exhaust gas analyzer, (4) exhaust gas analyzer calibration records, and (5) a description of any corrective action taken to maintain the emissions within the acceptable range. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

23. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified at least 30 days prior to any compliance source test, and a source test plan must be submitted for approval at least 15 days prior to testing. [District Rule 10811 Federally Enforceable Through Title V Permit

24. Source testing to measure NOx, CO, and VOC emissions from this unit shall be conducted within 60 days of initial start-up. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

25. Source testing to measure natural gas-combustion NOx, CO, and VOC emissions from this unit shall be measured not less than once every 24 months. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

26. Compliance with NOx, CO, and VOC emission limits may be demonstrated by submission of annual source test results from one or more representative IC engines as approved by the APCO. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

27. For representative testing, an engine operating log shall be maintained for each engine in the group. The log shall include, on a monthly basis, the total hours of operation, and maintenance or modifications performed. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

28. Should any representative engines exceed the required emission limits, each engine in the group shall demonstrate compliance by emissions testing. Failure to complete emissions testing within 90 days of the failed test shall result in the untested engines being considered in violation of this rule. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

29. Compliance demonstration (source testing) shall be by District witnessed, or authorized, sample collection by ARB certified testing laboratory. [District Rule 1081] Federally Enforceable Through Title V Permit

30. Emissions source testing shall be conducted with the engine operating either at conditions representative of normal operations or conditions specified in the Permit to Operate. [District Rule 4702] Federally Enforceable Through Title V Permit

31. For emissions source testing, the arithmetic average of three 30-consecutive-minute test runs shall apply. If two of three runs are above an applicable limit, the test cannot be used to demonstrate compliance with an applicable limit. VOC emissions shall be reported as methane. VOC, NOx, and CO concentrations shall be reported in ppmv, corrected to 15% oxygen. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

Page 53: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-507-0 (continued) Page 4 of 5

32. Source testing shall be conducted using the methods and procedures approved by the District. The District must be notified 30 days prior to any compliance source test, and a source test plan must be submitted for approval 15 days prior to testing. [District Rule 1081] Federally Enforceable Through Title V Permit

33. The results of each source test shall be submitted to the District within 60 days thereafter. [District Rule 1081] Federally Enforceable Through Title V Permit

34. The following test methods shall be used: NOx (ppmv) - EPA Method 7E or ARB Method 100, CO (ppmv) - EPA Method 10 or ARB Method 100, stack gas oxygen - EPA Method 3 or 3A or ARB Method 100, and VOC (ppmv) - EPA Method 25 or EPA Method 18 referenced as methane. [District Rules 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

35. Permittee shall maintain records of either operating hours per day, location (e.g. well number) at which IC engine is operated, source test results, monitoring data, and other information deemed necessary by the APCO to demonstrate compliance with Rules 4701 and 4702 for a period of five years and shall make such records readily available for District inspection upon request. [District Rules 4701 and 4702] Federally Enforceable Through Title V Permit

36. Portable analyzers will be maintained and calibrated according to the manufacturer's specifications in order to ensure they operate properly and their accuracy remains within specification. EPA protocol calibration gases will be utilized to ensure proper calibration. After a successful calibration, the accuracy of the analyzer may be verified by utilizing reference gases that most closely approximate the emission limit to be checked. Between calibrations, the analyzer shall be checked before each use with reference gases to ensure its sensor cells are operational and accurate. [District Rule 4702] Federally Enforceable Through Title V Permit

37. Emissions for this unit shall be calculated using the arithmetic mean, pursuant to District Rule 1081 (Amended December 16, 1993), of 3 thirty-minute test runs for NOx, and CO. [District Rule 1081, 4701, and 4702] Federally Enforceable Through Title V Permit

38. The following conditions must be met for representative units to be used to test for pollutant (N0x) emissions for a group of units: I) all units are initially source tested and emissions from each unit in the group are less than 90% of the permitted value and vary 25% or less from the average of all runs, 2) all units in the group are similar in terms of rated brake horsepower, make and series, operational conditions, fuel used, and control method, 3) the group is owned by a single owner and located at a single stationary source, and 4) the selection of the representative units is approved by the District prior to testing. [District Rule 4702] Federally Enforceable Through Title V Permit

39. All units in a group for which representative units are annually source tested for NOx and CO emissions shall have received the same maintenance and tune-up procedures as the representative units. [District Rule 4702] Federally Enforceable Through Title V Permit

40. The number of representative units source tested for NOx and CO emissions shall be at least 30% of the total number of units in the group. The units included in the 30% shall be rotated; such that in 3 years, all units in the entire group will have been tested at least once. [District Rule 4702] Federally Enforceable Through Title V Permit

41. Particulate emissions shall not exceed at the point of discharge, 0.1 gridscf. [District Rule 4201] Federally Enforceable Through Title V Permit

42. If the IC engine is fired on PUC-regulated natural gas, then maintain on file copies of all natural gas bills. [District Rule 2201] Federally Enforceable Through Title V Permit

43. If the engine is not fired exclusively on PUC-regulated natural gas, then the sulfur content of the gas being fired in the IC engine shall be determined using ASTM method D1072, D3031, D4084 or D3246. [District Rule 2201] Federally Enforceable Through Title V Permit

44. If the engine is not fired exclusively on PUC-regulated natural gas, the sulfur content of each fuel source shall be tested annually and whenever a change in the fuel source is made. [District Rules 2201 and 4702] Federally Enforceable Through Title V Permit

45. Permittee shall monitor and record, on a monthly basis, the catalyst inlet and outlet temperatures. [District Rule 4702] Federally Enforceable Through Title V Permit

CONDITIONS CONTINUE ON NEXT PAGE

Page 54: a San Joaquin Valley sm AIR POLLUTION CONTROL DISTRICT

Conditions for S-1738-507-0 (continued) Page 5 of 5

46. The acceptable catalyst temperature differential shall be established by source testing this unit or other representative units as approved by the District. The normal range/level shall be any temperature increase across the catalyst unless compliance with applicable NOx and CO emissions limits have been demonstrated through source testing at a similar temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

47. Permittee shall maintain records of the date and time of temperature measurements and the measured temperatures. The records shall also include a description of any corrective action taken to maintain the temperature differential at the acceptable level. [District Rule 4702] Federally Enforceable Through Title V Permit

48. If the catalyst temperature differential is outside of the normal range/level, the permittee shall notify the District and take corrective action (i.e. temperature differential returned to normal range/level) with one (I) hour of detection. If the catalyst temperature differential rate is not immediately corrected, the permittee shall conduct a source test within 60 days, to demonstrate compliance with the applicable emissions limits at the new temperature differential. [District Rule 4702] Federally Enforceable Through Title V Permit

49. The pennittee shall update the I&M plan for this engine prior to any planned change in operation. The permittee must notify the District no later than seven days after changing the l&M plan and must submit an updated I&M plan to the APCO for approval no later than 14 days after the change. The date and time of the change to the I&M plan shall be recorded in the engine's operating log. For modifications, the revised I&M plan shall be submitted to and approved by the APCO prior to issuance of the Permit to Operate. The permittee may request a change to the I&M plan at any time. [District Rule 4702] Federally Enforceable Through Title V Permit

50. Permittee shall maintain an engine operating log, on a monthly basis, which includes the following information; total hours of operation, type and quantity of fuel used, maintenance or modifications performed, monitoring data, compliance source test results, and any other information necessary to demonstrate compliance with Rule 4702. [District Rule 4702] Federally Enforceable Through Title V Permit

51. All records shall be maintained and retained on-site for a minimum of five (5) years, and shall be made available for District inspection upon request. [District Rule 4702] Federally Enforceable Through Title V Permit

0.171.0-507.1% C. It .104 {11,1,1_ CNICIAll 0