This is No Longer Your Daddy’s Oilfield – Environmental Regulations on the Rise

Ron Truelove, Director Oil and Gas Sector Services

October 4, 2013 Environmental Federation of Oklahoma

Introduction

˃  Ron Truelove, Director, Oil and Gas Sector Services v  13 years as an EHS Manager with Devon Energy v  6 years of air quality consulting v  10 years in various environmental engineering and

air quality technical roles with Conoco in corporate roles and at 2 different refineries

v  Chemical Engineer

Trinity Consultants Offices

Environmental Quality is a Dynamic, Changing Field

Always be certain to obtain the latest forms, policies, and regulations from the appropriate

regulatory authority before determining permitting and compliance needs for your site. The information provided in this webinar, while up-to-date when developed, is subject to change as regulatory authorities update forms, policies and regulations. You are encouraged to use this

information as an educational reference, but it is not a substitute for independent research and

verification, and the application of sound professional judgment and analysis in real-time

permitting and compliance situations.

Courtesy of YouTube…

Those Were the Days…

h#p://www.ark,mes.com/ArkansasBlog/archives/2011/11/08/the-­‐good-­‐old-­‐days-­‐of-­‐deregula,on    

Those were the days…

Big Changes in the Last 13 Years

˃  My perspective from the 80’s… v  E&P = Excluded Petroleum…

˃  Historical focus in the industry has been worker safety and spill prevention

˃  New environmental regulations have been hitting the industry hard over the last several years

˃  Public involvement has hit an all time high for the industry

Public Perception Influenced

Big Changes in the Last 13 Years… ˃  Air Quality Issues

v  Indian Lands Minor Source Permitting v  NSPS Subpart JJJJ and NESHAP Subpart ZZZZ v  NESHAP Subpart HH v  NSPS Subpart OOOO v  Subpart W

˃  Other Environmental Issues v  National Enforcement Initiative v  SPCC

˃  Safety – FRC and silica exposure

Indian Lands Minor Source Permitting ˃  Dates:

v  Proposed August 21, 2006 v  Signed June 10, 2011 v  Published in the Federal Register July 1, 2011.

˃  A Federal Implementation Plan for “Review of New Sources and Modifications in Indian Country”  

˃  Establishes a minor New Source Review (NSR) program (minor preconstruction permits and minor modifications at major sources) and a major nonattainment New Source Review program for sources of air emissions located in Indian country

˃  Applies to sources in Indian Country throughout the United States, except for those areas where a Tribal Implementation Plan (TIP) is in place

Minor Source Thresholds

NSPS Subpart JJJJ Engine Rules

Type   Size   Affected  Date  Any  (except  LB  500  <  

hp  <  1350    >  500  hp   7/1/2007  

LB   500  <  hp  <  1350   1/1/2008  Any   <  500  hp   7/1/2008  

Emergency   >  25   1/1/2009  

ICE  constructed,  modified,  or  reconstructed  aPer  6/12/2006  and  manufactured  aPer  the  specified  date:  

NESHAP Subpart ZZZZ Engine Rules ˃  Regulated pollutants: CO (surrogate) and HCHO ˃  Affected source is each RICE ˃  Existing source cutoff dates:

v  > 500 hp at major sources – 12/19/02 v  ≤ 500 hp at major sources – 6/12/06 v  All at area sources – 6/12/06

˃  Existing determination is based on the date you “commence construction” which is date the engine is ordered

Ini$al  compliance  dates:    May  3,  2013  for  2010  CI  RICE  rule    October  19,  2013  for  2010  SI  RICE  rule        

Source:  EPA  RICE  MACT  presenta,on  (Dec-­‐2011)  

NESHAP Subparts HH vs. HHHH Source Categories

HHH

HH

NESHAP Subpart HH General Applicability

Rule  Standards   Major  Sources   Area  Sources  Subpart  HH  Overall  

Applicability  YES   YES  

Glycol  Dehy  Units   YES   YES  

Storage  Vessels  with  Poten,al  for  Flash  Emissions  

YES   NO  

Compressors  and  Ancillary  Equipment  in  VOHAP  

Service  

YES   NO  

Major Source – Affected Facilities

˃  Each dehydration unit as follows v  All large units (> 3 MMscfd and > 1.0 tpy

benzene) v  Small dehy units constructed before 8/23/2011

are existing v  Small dehy units constructed after 8/23/2011

are new ˃  Each storage vessel with the potential for

flash emissions ˃  Compressors and ancillary equipment in

volatile HAP service (only at gas processing plants)

Major Source Compliance Dates

˃  Sources Constructed Before 2/6/1998 (Existing) v  No later than June 17, 2002

˃  Sources Constructed After 2/6/1998 (New) v  Upon startup or June 17, 1999, whichever is later

˃  Small Dehy Units Constructed Before 8/23/2011 (Existing) v  No later than October 15, 2015

˃  Small Dehy Units Constructed After 8/23/2011 (New) v  Upon startup or October 15, 2012, whichever is

later

Subpart OOOO Applicability NSPS  OOOO  Affected  Facility  

Produc?on  (Well  Site)   Gathering  

Gas  Processing   Transmission  

Gas  Well   X  

Centrifugal  Compressors   X   X  

Reciproca,ng  Compressors   X   X  

Pneuma,c  Controller   X   X   X  

Storage  Vessels   X   X   X   X  

Equipment  Leaks   X  

Sweetening  Units   X  

Final Rule Compliance Schedule NSPS  OOOO  Affected  Facility   Standard   Compliance  Date  

Hydraulically  fractured  wildcat  and  delinea,on  wells   Comple,on  combus,on   October  15,  2012  

Hydraulically  fractured  low  pressure  non-­‐wildcat  and  non-­‐delinea,on  wells   Comple,on  combus,on   October  15,  2012  

Other  hydraulically  fractured  wells   Comple,on  combus,on   Before  1/1/2015  

Other  hydraulically  fractured  wells   REC  and  comple,on  combus,on   APer  1/1/2015  

Centrifugal  compressors  with  wet  seals   95%  reduc,on   October  15,  2012  

Reciproca,ng  compressors   Change  rod  packing   October  15,  2012  

Pneuma,c  controllers  at  NG  processing  plants   Zero  bleed  rate   October  15,  2012  

Pneuma,c  controllers  between  wellhead  and  NG  processing  plants   6  sch  bleed  rate   October  15,  2013  

Group  2  and  1  Storage  Vessels   95%  reduc,on   April  15,  2014/2015  

Equipment  Leaks   LDAR  program   October  15,  2012  

Sweetening  Units   Reduce  SO2  as  calculated   October  15,  2012  

Subpart W

˃  GHG emission reporting on a basin-wide basis

NEI’s for 2011-2013 and 2014-2016 Fiscal Years ˃  Keeping raw sewage and contaminated stormwater

out of our nation’s waters ˃  Preventing animal waste from contaminating surface

and ground waters ˃  Cutting toxic pollution that affects communities’

health v  Emphasis is on flares

˃  Reducing widespread air pollution from the largest sources, especially the coal-fired utility, cement, glass, and acid factors

˃  Reducing pollution from mineral processing operations

˃  Assuring energy extraction sector compliance with environmental laws

Common EPA Oil and Gas Sector Findings – Risk Factors ˃  Spills into navigable waters or tributaries ˃  Failure to implement a SPCC plan or an

inadequate SPCC plan ˃  Failure to apply for air quality permits for new

construction or modifications to existing facilities ˃  Failure to properly control air emissions ˃  Failure to perform required inspections or

monitoring and keep proper records ˃  Visible items that the public can see (e.g., flares

and spills) ˃  Operations on Indian lands

Increased Regulations…

˃  Equals increased costs to oil and gas operating companies

Questions?

For Further Information: Ron Truelove

rtruelove@trinityconsultants.com

OKC office: 405-848-3724 Cell: 405-203-3557