THE SANTA FE ENERGY COMPANY (SFEC) OWNS AND OPERATES AN OIL RECOVERY FACILITY NEAR BAKERSFIELD IN KERN COUNTY, CALIFORNIA. SFEC IS SUBJECT TO A PREVENTION OF SIGNIFICANT DETERIORATION (PSD) PERMIT ISSUED BY EPA IN 1984. THE PSD PERMIT AUTHORIZES THE CONSTRUCTION OF FIVE STEAM GENERATORS AND REQUIRES THAT, PRIOR TO START-UP, SFEC INSTALL A CONTINUOUS EMISSION MONITORING SYSTEM (CEMS) FOR NITROGEN OXIDES (NOX). IN ADDITION, THE PERMIT REQUIRES THE SUBMISSION OF QUARTERLY EXCESS EMISSION REPORTS. SINCE ITS ACQUISITION OF THE PROPERTY AND PSD PERMIT IN 1987, SFEC HAS BEEN IN VIOLATION OF THESE PERMIT CONDITIONS. REGION 9 INTENDS TO RESOLVE THIS CASE THROUGH A CONSENT DECREE THAT PROVIDES FOR A PENALTY IN THE RANGE OF $96,000. IN ADDITION, SFEC WILL BE REQUIRED TO INSTALL A NOX CEMS WHICH COMPLIES WITH THE PSD PERMIT CONDITIONS. IN THE ALTERNATIVE, SFEC COULD OBTAIN A FEDERALLY ENFORCEABLE KERN COUNTY AIR POLLUTION CONTROL DISTRICT (KCAPCD) PERMIT WITH RESTRICTIONS THAT ENSURE MINOR SOURCE STATUS.