devon

February 25, 2011

Ms. Vanessa Hinkle

U.S. Environmental Protection Agency

Region 8

1595 Wynkoop Street

Denver, CO 80202-1129

Dear Ms. Hinkle:

Otvon En~1Y Production (ompan~, LP,

20 North Br~dw~

Oklahoma (tty, OK 1)102

The attached report is in response to your letter requesting additional Reasonable Progress

Information for the Devon Energy Production, LP (Devon) Blaine County #1 Compressor

Station (BC #1) facility located near Havre, Montana. Devon has conducted an analysis of

control options for the potentially affected units at the BC #1 facility and included the four

factors included in 40 CFR §51.308(d)(1)(i)(A): the costs of compliance, the time necessary

for compliance, the energy and non-air quality impacts of compliance, and the remaining

useful life of the potentially affected sources.

As an addendum to the required factors and report, Devon also ran a CALPUFF dispersion

model considering the current site configuration with no additional controls. The

modeling analysis has shown that current emission rates result in impacts well below the

1.0 deciview level EPA employs as a level to indicate that a source causes a visibility

impact and are also below the 0.5 deciview level that EPA has proposed as the level at

which a source may contribute to a visibility impact. According to general guidance, if a

facility's impact, by itself, is less than 0.5 dv, then the facility's impact is considered de

minimis. Additional model runs were completed utilizing several of the control measures

evaluated and the reductions showed no improvement to regional haze.

Please contact Scott Wallace at 405-228-8397 if you need any further information.

Sincerely

-(....,. {" --:r-

:;

Tracy Carter

Vice President of Regional Operations

Cc: Chris HHtunen, Bison Engineering; Ron Watson, Havre Pipel1ne
STATEMENT OF CERTIFICATION

I certify under penalty of law that I have personally examined and am familiar with the

information submitted in this document and all attachments and that, based on my inquiry

of those immediately responsible for obtaining this information, I believe that the

information is true, accurate and complete. I am aware that there are significant penalties

for submitting false information, including the possibility affine or imprisonment.

Signature: __-,-I=/",v"':r~.c""-",,,--r-"'L- _ - J

Title: R.d'< V,;. ,;"""",,_J o

Date: ~h'i III
RESPONSE TO REQUEST FOR ADDITIONAL

REASONABLE PROGRESS INFORMATION FOR

DEVON ENERGY PRODUCTION COMPANY, L.P.

BLAINE COUNTY #1 NATURAL GAS

COMPRESSOR STATION

PURSUANT TO SECTION 114(A) OF THE CLEAN

AJR ACT [42 U.S.C. SECTION 7414(A)]

Preparedfor:

Devon Energy Production Company, L.P.

Clear Creek Road

P.O. Box 2606

Havre, MT 59501

(406) 357-2233

Prepared by:

~BISON ENGINEERING. INC.

1400 Il'h Avenue

Helena, MT 59601

406-442-5768

www.bison-cng.com

February 25, 20 I I
TABLE OF CONTENTS

DEFINITIONS AND ABBREViATIONS "'

1.0 INTRODUCTION 1

1.1 Introduction 1

1.2 Regulatory Summary 1

1.3 Selection of Reasonable Progress 2

2.0 COSTS OF COMPLIANCE .4

2.1 Natural Gas Compressor Engine Information .4

2.2 Nitrogen Oxides .4

3.0 TIME NECESSARY FOR COMPLIANCE 8

4.0 ENERGY AND NON-AIR QUALITY IMPACTS OF COMPLIANCE. 9

5.0 REMAINING USEFUL LIFE OF THE POTENTIALLY AFFECTED SOURCES .. 11

6.0 VISIBILITY MODELING 12

7.0 RESULTS 14

8.0 SUMMARy 16

APPENDIX A: DISPERSION MODELING REPORT

APPENDIX B: COSTS OF COMPLIANCE ANALYSIS

APPENDIX C: MANUFACTURER'S DATA

Devon Energy Production Company, l.P.

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule Section 114 Response

Page ii
DEFINITIONS AND ABBREVIATIONS

BC1

Devon

CFR

EPA

MAQP

MDEQ

OP

Devon - Blaine County #1 Compressor Station

Devon Energy Production Company, L.P.

Code 01 Federal Regulations

http://eclr.gpoaccess.gov/cgiltltexUtextidx?&c=eclr&lpl-/ecfrbrowsefTitle40/40tab 02.tpl

u.S. Environmental Protection Agency

Montana Air Quality Permit

Montana Department 01 Environmental Quality

Title V Operating Permit

Devon Energy Production Company, LP.

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule Section 114 Response

Page iii
1.0 INTRODUCTION

1.1 Introduction

On November 5, 2010, Devon Energy Production Company, l.P. (Devon) received a

letter from EPA requesting an analysis of control options for the Blaine County #1

facility. The letter was written pursuant to Section 114(a) of the Federal Clean Air Act.

The letter notes that, in 2006, the Montana Department of Environmental Quality

(MDEQ) withdrew its development of a state implementation plan (SIP) for regional

haze under the Regional Haze Rule (RHR).' EPA stated in their November letter that, in

order to develop the technical and policy work to implement RHR, the agency requested

information from Devon and other affected facilities in January of 2009. Devon complied

wrth the 2009 information request and provided EPA Region 8 with the requested

information. After reviewing the information provided, EPA has now requested Devon

conduct further analysis on its two 5,500-hp Ingersoll Rand KVR 616 natural gas

compressor engines for the purposes of meeting the reasonable progress goals (RP) of

the RHR. More specifically, EPA has requested "an analysis of control options." The

November letter goes on to ask that the analysis "address the four factors included in 40

CFR §51.308(d)(l)(i)(A)." These factors are summarized as:

(1) The costs of compliance,

(2) The time necessary for compliance,

(3) The energy and non-air quality impacts of compliance, and

(4) The remaining useful life of the potentially affected sources.

This report serves as Devon's response to EPA's information request. The remainder of

this document provides the requested analysis.

1.2 Regulatory Summary

Before analyzing EPA's request, it is instructive to review the nature and purpose of the

visibility protection program in order to ascertain important criteria that will lead to the

selection of specific Reasonable Progress requirements.

We begin the summary by observing that the entire program of protecting visibility is

found at 40 CFR 51, Subpart P (subsections 300 through 309). A review of Subpart P

indicates the purpose and goals of the program. The overall purpose of the program is

outlined as follows:

"The primary purposes of this subpart are . . .to assure reasonable

progress toward meeting the national goal of preventing any future, and

remedying any existing, impairment of visibility in mandatory Class I

Federal areas ... " [40 CFR 51.300(a)].

I The RHR is a reference to the visibility protection program outlined in 40 CFR 51.308. The entire

visibility program, including RHR, is found in 40 CFR 51, Subpart P

Devon Energy Production Company, L.P.

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule Section 114 Response

Page 1
For convenience, the visibility program may then be thought of as the implementation of

two sub-programs. One regards new source review (PSD, etc.) and the other addresses

regional haze. Regional haze may further be broken down into the BART program and

the Reasonable Progress program. The underlying reason for EPA's leller to Devon is

to address the Reasonable Progress portion of visibility protection.

In that regard, the RHR [§308(d)] outlines what it refers to as: "the core requirements"

for the implementation of regional haze. More specifically, §308(d)(1) states:

"For each mandatory Class I Federal area ..., the State must establish

goals . .. that provide for reasonable progress towards achieving natural

visibility conditions. The reasonable progress goals must provide for

an improvement in visibility for the most impaired days . .." [40 CFR

51.308(d)(1 II.

The rules go on to provide states (EPA in this case) with what must be considered in

developing reasonable progress. These details were outlined above and in the

November 5 leller.

1.3 Selection of Reasonable Progress

EPA is tasked to establish Reasonable Progress in carrying out the visibility protection

program. Section 1.2 outlines the purpose of the program along with some core

elements. To that end, EPA has asked for "an analysis of control options" which will, we

assume, be used in order to establish a set of specific control strategies that create

"reasonable progress."

The review of control options notwithstanding, it seems the visibility program is clear as

to its intent. That is, the purpose of the program is to protect (remedy, prevent or

otherwise) visibility in mandatory Class I areas. Based on the language contained in the

rule, it is also quite clear that any activity (proposed or otherwise) that does not "improve

visibility" is not a candidate for those "reasonable progress" goals.

As a result, we believe an analysis that only provides emission control options is not

sufficient for inclusion into reasonable progress elements unless those emission

controls improve visibility. It would be foolhardy to include an emission control scenario

as part of a regional progress goal without an improvement in regional haze (i.e., a

discernible change in deciviews).

To that end, we have chosen to not only analyze various control options using the four

factor tests outlined in the November leller, we have also conducted a brief analysis of

the impacts this facility has on the nearest mandatory Class I areas. This was

accomplished to determine if any of the possible control options would fulfill the

underlying need of the program which would "provide for an improvement in

visibility.'"

'40 CFR 51.308(d)(1).

Devon Energy Production Company, L.P.

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule Section 114 Response

Page 2
The visibility impact of Devon or any of the control options, via dispersion modeling, is

presented in subsequent sections of this document. The reader is referred to those

sections for details on the analysis method and the results of those investigations.

Devon Energy Production Company, L.P.

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule Section 114 Response

Page 3
2.0 COSTS OF COMPLIANCE

This section of the RHR Section 114 response will describe the costs of compliance to

meet the reasonable progress goals and strategies of the RHR. EPA has requested that

Devon determine the four factors for nitrogen oxides (NOx) at Blaine County #1 Natural

Gas Compressor Station (BC1).

2.1 Natural Gas Compressor Engine Information

Devon operates two 5,500-hp Ingersoll Rand 616 natural gas compressor engines at

BC1. The engines began operation in 1972 and combust natural gas. Emissions from

the engines each exit through a separate, 45 foot stack. More detailed information was

provided in the March 6, 2009, Section 114 response provided to EPA.

2.2 Nitrogen Oxides

Applicable NOx control technologies can be divided into two main categories:

combustion controls, which limit NO, production, and post-combustion controls, which

destroy NOx after formation.

Current Conditions

Devon currently controls NOx emissions using an electronic air/fuel controller, as well

as electronic fuel valves and ignition. Emissions are adjusted through manual setpoint

control of the air-to-fuel ratio. Using the current emission controls, the existing engines

can meet an emission rate of 7.0 g/bhp-hr over a full range of operating and weather

conditions. In 2009, Devon estimated the emissions at 6.7 g/bhp-hr for the first Section

114 data submittal.

Emissions tests were performed in 2002 and 2010. It was determined that emissions

testing results from 2002 were not representative of current engine conditions due to the

installation of an electronic air-fuel ratio controller in 2004. In December 2010, Devon

performed a two-part stack test for NOx on one of the KVRs, with results listed below in

Table 2-1. Run 1 was performed on the engine as it stood. Run 2 was performed on the

engine after it was tuned for maximum NOx control. These tests were performed to get

a realistic emission rate baseline, rather than using estimates. The tests were

performed on a cold December day. Based on operating experience, Devon believes

the numbers would be biased somewhat higher on a hot summer day. Devon believes it

is therefore appropriate to use a baseline emission rate of 7.0 g/bhp-hr to represent an

NOx emissions rate that could be achieved under any circumstance.

Devon Energy Production Company, L.P.

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule Section 114 Response

Page4
Table 2-1. 2010 NOx Emission Testing Results on

KVR#2

NOx lo/bhp-hr) NOx Ibs/hr)

Date of Test Run 1 Run 2 Run1 Run 2

(before {after (before (after

tuninal tunina) tunina) tunina}

December 2,2010 6.2 5.3 66.3 55.6

Control Technologies Considered

The following are combustion controls that are considered technically feasible and

available:

• Continuous Exhaust Monitoring System with an upgraded ignition system and

air-fuel ratio control;

• Dresser-Rand Mixing Krt for each power cylinder;

• Dresser-Rand Mixing Kit plus Screw in Prechambers.

The following are post-combustion controls that are considered technically feasible

and available:

• Selective Catalytic Reduction (SCR) with oxidation catalyst.

A discussion of each technology follows. Manufacturer's data for each system can be

found in Appendix C. Please note that emissions levels in this data are not guarantees,

and cost data provided in this data are not quotes, only estimates.

COlt/iII/lOllS Exhaust Monitoring SJ1stem lVitl, a" upgraded ignition system alld air-fuel

ratio cOlltrol

This system involves continuous monitoring of the exhaust stack gases and making the

necessary automatic adjustments to the ignition timing and air-fuel ratio to ensure

optimization of the combustion cycle within the power cylinders. Load changes on the

engine would be compensated for in real time as opposed to the manual adjustments

that currently take place.

It is estimated that this system could achieve a 12% reduction in NOx from the baseline

case. This technology is available from Oasis Emissions Consultants and has been

used in the past on similar engines.

Dresser-Raud Mixing Kit (or each power CYlinder

This system, supplied by the engine manufacturer, improves the fuel delivery system to

enhance fuellair mixing which improves exhaust NOx levels and combustion stability.

Devon Energy Production Company, L.P.

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule Section 114 Response

Page 5
Dresser-Rand estimates that this system could achieve a 14% reduction in NOx from

the baseline case.

})resser-Rtllld Mixing Kif pills Screw-ill PreclUllllbers

This system adds Screw-in Prechambers, a new turbocharger and cooling system to the

hardware of the Mixing Kit. This system further leans out the combustion of the existing

engine to improve NOx emissions performance.

Dresser-Rand estimates that this system could achieve a 78% reduction in NOx from

the baseline case.

Selecl;"e C"t"lvt;c Retl"ct;"" (SCm

An SCR unit selectively reduces NOx emissions by injecting either liquid anhydrous

ammonia or aqueous ammonium hydroxide into the exhaust gas stream prior to the gas

stream reaching the catalyst. The basic ammonia reactions are:

4 NH, + 4 NO + O2 4 N2+ 6 H20

8 NH, + 6 N02 7 N2+ 12 H20

2 NO, + 4 NH, + 0, 3 N2+ 6 H20

The catalyst is typically made from noble metals, base metal oxides such as vanadium

and titanium, and zeolite-based material. NOx, NH" and O2 react on the surface of the

catalyst to fonm N2 and H2. For an SCR unit to operate properly, the exhaust gas must

be within a particular range (typically between 450·F and 850·F). The catalyst that is

utilized dictates the temperature range. Exhaust gas temperatures greater than the

upper limit will pass the NO, and NH, through the catalyst prior to the reaction. NH,

emissions, called ammonia slip, are a key consideration when specifying an SCR unit.

Typical compressor engines operate at variable loads, thereby creating technical

difficulties for SCR operation leading to periods of ammonia slip or periods of insufficient

ammonia injection.

It is estimated that this system could achieve a 75% reduction in NOx from the baseline

case. This technology is available from Catalytic Combustion, Inc and has been used in

the past on similar engines.

Cost-Effectiveness

Devon consulted with the equipment manufacturers to detenmine cost estimates for

each control option. The cost-effectiveness of the technically feasible NOx control

technologies was estimated using the cost estimation methods available in the Office of

Air Quality Planning and Standards (OAQPS) Pollution Cost Control Manual, 6th Edition.

Devon Energy Production Company, LP,

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule Section 114 Response

Page 6
An NOx emissions baseline of 7.0 g/bhp-hr was used to estimate the cost-effectiveness

of the control options. This emission rate is what the engines can be expected to meet

given any weather and operating conditions. Tesi results for 2010 for KVR Unit #2 have

shown that this is an achievable emissions rate for the engines.

Results of the analysis are presented in Section 7.0 of this report. Detailed cost analysis

and supporting infonmation are provided in Appendix B. Manufacturer's data and cost

estimates are provided in Appendix C.

A summary is presented in Table 2-2 below.

Tublc 2-2. NOx Control Cost Summary

Uncontrolled Control Tons CostTotal Annual Emissions Efficiency Removed Effectiveness

Control Dotion Cost ItDvl t%l ItDvl tSItDnl

Continuous Exhaust $58,200 743.52 12% 89.22 5652

MonitorinQ System

D-R Mixing Kit $221,000 743.52 14% 106.32 52,079

SCR .175% $617,644 743.52 75% 557.64 51,108 Efficiencv

D-R Mixing Kit

plus Screw-in $522,000 743.52 78% 582.18 S897

Prechambers

Devon Energy Production Company, L.P.

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule Section 114 Response

Page 7
3.0 TIME NECESSARY FOR COMPLIANCE

This section of the report discusses the estimated amount of time to install the NOx

control technologies identified previously.

Conti/wow! Exhaust Monitoring System witll Gil upgraded ignition system miff air-fuel

ralio cOlllrol (CMS)

Installation and setup of a Continuous Exhaust Monitoring System is expected to take

approximately 6-8 weeks from the time of order to delivery, plus approximately 1 week

for installation and setup, for a total of g weeks. This option would require little to no

engine downtime.

Dresser-Rund Mixing Kit fOr eac" pOlVer cvlilu/er

Installation of the Mixing Kit would be expected to take between 14 and 18 weeks for

engineering and procurement, plus 3-5 weeks of installation/commissioning, for a total

of 17 to 22 weeks per engine.

Dres.'ier-Ilolld Mixing Kit pills Screw-ill Preclwmbers

Installation of the Mixing Kit plus Screw-in Prechambers would be expected to take

between 16 and 20 weeks for engineering and procurement, plus 4 to 6 weeks for

installation and commissioning, for a total of 20 to 26 weeks per engine.

Seleclive Clllalvlic Redllclioll (SCm

Installation of the SCR would be expected to take at least 25 weeks, with approximately

4-5 weeks of downtime. From the time of order, it is expected to take approximately 4-5

weeks for completion of drawings and 14-16 weeks for shipment to be made after the

drawings are approved. After shipment is made, it is expected to take approximately 4-5

weeks to install each SCR, with each engine being non-operational during installation.

Devon Energy Production Company, L.P.

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule SecUon 114 Response

Page 8
4.0 E ERGY AND NON-AIR QUALITY lMPACTS OF

COMPLlA CE

Continuous Exhaust Monitoring System with all upgratled iguition s)/slem aud ai, (uel

rallo COIIITOI (CMS)

Energy Impacts

There are no direct energy impacts of this system. A slight improvement in fuel

consumption of the engine would likely occur.

Non·Air Quality Impacts

There are no other environmental impacts of this system.

Dresser-Ralll[ Mixing Kit (or each power CYlinder

Energy Impacts

There are no direct energy impacts of this system.

Non·Air Quality Impacts

There are no other environmental impacts of this system.

Dresser-Rand Mixing Kif pIllS Screw-ill Prechambers

Energy Impacts

There are no direct energy impacts of this system.

Non·Air Quality Impacts

There are no other environmental impacts of this system.

SeleclI"e COlit/VIIc Redllctloll (SCR)

Energy Impacts

Installation and use of SCR would cause backpressure on the engine exhausts which

would lead to a reduction of available power and an increase in engine fuel use.

Devon Energy Production Company, L.P.

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule Section 114 Response

Page 9
Non-Air Quality Impacts

The operation of the SCR will result in some amount of ammonia slip. Ammonia slip can

cause perceptible visibility impacts near the stack, and ammonia is also a pre-cursor for

PM" formation. This can contribute to visibility degradation further away from the stack.

There is also the possibility for spills or releases with the storage and handling of an

ammonia type agent on-site.

Devon Energy Production Company. L.P

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule Section 114 Response

Page 10
5.0 REMAINING USEFUL LIFE OF THE POTENTlALLY

AFFECTED SOURCES

As described in the 2009 Section 114 submittal to EPA, Devon estimated the total

useful life of the KVR engines to be 25 years from the submittal of that information.

Therefore, the remaining useful life of the engines is projected to be 23 years, with

replacement required in 2024.

Devon Energy Production Company, L.P,

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule Section 114 Response

Page 11
6.0 VISIBILITY MODELING

To assess visibility impacts the modeling procedures generally described in the BART

program were used.3 Devon used a baseline emission rate of 7.0 g/bhp-hr for NOx.

While S02 and particulate emission contributions were modeled to detemnine the total

visibility impact, only the contributions from NOx emissions are analyzed below. Details

of the modeling effort are presented in Appendix A. Table 6-1 summarizes the emission

rates used in the baseline visibility modeling analysis.

Table 6-1: Modeled Emission Rates, Per Engine

NOx PM10 PM2.5

SOx IIbs/hrl IIbs/hrl IIbs/hrl IIbs/hr)

0.0045 84.9 0.073 0.073

Visibility impacts were determined for the following Federal Class I Areas: Glacier

National Park, UL Bend Wilderness Area and the Gates of the Mountains Wilderness

Area. Table 6-2 summarizes the 98'" percentile visibility impact from 2001-2003

(meteorological year) on these mandatory Class I Areas.

Table 6-2: Baseline Visibility Impacts (Without Additional Control)

Year of Visibility Impact Class I Area Highest

Impact (6DV)

Glacier National Park 2003 0.024

Ul Bend 2001 0.170

Gates of the Mountains 2002 0.091

The highest modeled impact was detemnined to be 0.17 deciviews at the UL Bend

Wilderness. This is below the 0.5 deciview level that EPA has proposed as a level at

which a source may contribute to a visibility impact and well below the 1.0 deciview

level EPA employs as a level to indicate that a source will cause a visibility impact.'

3The BART procedures are outlined in 40 CFR 51, Appendix Y.

<4 See 40 CFR 51, Appendix Y and elsewhere.

Devon Energy Production Company,l.P.

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule Secbon 114 Response

Page 12
The data in the table shows that Devon, by itself and as currently configured, has no

perceptible change in visibility at any mandatory Class I area. It is reasonable to

conclude that the addition of any emission controls will not change that conclusion.

Since the purpose of the program is to improve regional haze and given Devon does not

impact regional haze, no additional controls are warranted. The addition of controls

would not serve the program's purpose of creating "reasonable progress' toward the

national goal, since no measurable progress would be created.

Devon Energy Production Company, loP,

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule Section 114 Response

Page 13
7.0 RESULTS

Table 7-1 summarizes the results of the potential addition of each of the technically

feasible NOx controls, including a combination of combustion controls and SCR along

with their emission reductions.

Table 7-1: Cost-Effectiveness of NOx Controls

Tons

NOx

Control Total Annual Control Emitted Tons CostOption Capital Operating Efficiency after NOx Effectiveness

Investment Cost ('!o) Control Reduced ($Ilon)

Continuous

Exhaust $62,000 $58,200 743.52 12% 89.22 $652 Monitoring

System

D·R Mixing $920,000 $221,000 743.52 14% 106.32 $2,079 Kit

SCR at 75% $1,188,190 $617,644 743.52 75% 557.64 $1,108 Efficiency

D-R Mixing

Kit plus $2,830,000 $522,000 743.52 78% 582.18 $897 Screw-in

Prechambers

The visibility impacts of installing each of the analyzed control options were determined

by modeling the reduced annual NOx emission rate. Table 7-2 summarizes what the

effects to visibility would be if each control option was installed and the costeffectiveness of this option in $/deciview.

Devon Energy Production Company, L. P.

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule Section 114 Response

Page 14
Table 7-2: Cost-Effectiveness of COlltrol Optiolls ill $/Deeiview

98 Percentile Visibility Control Option

U.L. Bend Improvement Due to Annual Control CostVisibility Impact Add~On Controls Option Cost for Effectiveness

Control Option (Delta mil (Delta DVI Two Units ($}' ($/DV}'

Baseline 0.170 N/A N/A N/A

Continuous

Exhaust

Monitoring

System 0.148 0.022 558,200 $2645455

D-R Mixing Kit

0.043 0.127 5617,644 $4863338

SCR at 75%

Efficiency 0.145 0.025 5221,000 $8,840,000

D-R Mixing Kit

plus Screw·jn

Prechambers 0.037 0.133 $522,000 53,924,812

5 Numbers are rounded for presentation and relative accuracy.

6 Ibid.

Devon Energy Production Company, L.P.

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule Section 114 Response

Page 15
8.0 SUMMARY

As requested by EPA, Devon has analyzed its two KVR 616 natural gas compressor

engines for the purposes of meeting the Reasonable Progress Goals of the Regional

Haze Rule. Devon retained Bison Engineering, Inc., along with a variety of equipment

vendors, to assist Devon in evaluating possible NOx control alternatives at its facility.

The analysis identified four technically feasible controls (Continuous Exhaust Monitoring

System, Dresser-Rand Mixing Kit, Dresser-Rand Mixing Kit plus Screw-in Prechambers

and Selective Catalytic Reduction). As the intent of the Regional Haze Rule is to protect

visibility in Class I Areas, Devon also conducted visibility modeling to assess the

predicted impacts from the KVR 616 engine's current emissions and from the potential

emission reductions from add-on controls.

The modeling analysis has shown that current emission rates result in impacts well

below both the 1.0 deciview level EPA employs as a level to indicate that a source

causes a visibility impact as well as the 0.5 deciview level that EPA has proposed as the

level at which a source may contribute to a visibility impact. The add-on controls

resulted in modeled predictions of a 0.022 deciview improvement from the Continuous

Exhaust Monitoring System, a 0.025 deciview improvement from the Dresser-Rand

Mixing Kit, a 0.133 deciview improvement from the Dresser-Rand Mixing Kit plus Screwin Prechambers and a 0.127 deciview improvement from SCR.

Devon Energy Production Company, LP.

Blaine County #1 Natural Gas Compressor Station

Regional Haze Rule Section 114 Response

Page 16
APPENDIX A: DISPERSION MODELING REPORT
APPENDIX B: COSTS OF COMPLIA CE ANALYSIS
APPENDIX C: MANUFACTURER'S DATA
Appendix A

Dispersion Modeling Report

Visibility Impacts:

Mandatory Class I Areas
1.0 INTRODUCTION

This appendix provides a summary of the dispersion modeling conducted in support of

EPA's November 5, 2010 letter (received by Devon Energy Production Company LP on

November 15, 2010). Since dispersion modeling was not specifically required in

response to the request, this appendix is only a brief summary of the model used and

various options. More details of model options along with all modeling input and output

files are available upon request. For purposes of brevity, only summary information is

provided.

The November letter from EPA asked Devon to "Please submit an analysis of control

options" for the Devon facility located in Blaine County, Montana. The request relates to

EPA's effort to "address requirements under the RHR for reasonable progress (RP)

goals and strategies (see 40 CFR 51.308(d)(l) and 51.308(d)(3))."

Although the request did not specifically seek or address Devon's visibility impacts on

any nearby mandatory Class I areas, we believe that such an analysis is required in

order to meet the underlying requirements of the RHR program.

We note that the entire program of protecting visibility is found at 40 CFR 51, Subpart P

(subsections 300 through 309). A review of Subpart P indicates the purpose and goals

of the program. To begin, the overall purpose of the program is outlined as follows:

"The primary purposes of this subpart are ...to assure reasonable

progress toward meeting the national goal ofpreventing any future, and

remedying any existing, impainnent of visibility in mandatory Class I

Federal areas ... ." [40 CFR 51.300(a)].

Insofar as regional haze is concerned (the underlying requirement that triggered the

EPA request), the following is noted when describing the "core requirements'" for an

implementation plan for regional haze.

"For each mandatory Class I Federal area . .., the State must establish

goals . .. that provide for reasonable progress towards achieving natural

visibility conditions. The reasonabte progress goals must provide for

an improvement in visibility for the most impaired days . ..' [40 CFR

51.308(d)(1»).

The rules go on to provide states (EPA in this case) with what must be considered in

developing reasonable progress. These details were outlined in the November 5 letter.

The review of control options notwithstanding, it seems the visibility program is clear as

to its intent. That is, the purpose of the program is to protect (remedy, prevent or

'40 CFR 51.308(d).

Appendix A

Visibility Modeling Report

Devon 11/15/2010 Section 114 Request

Page A~1
otherwise) visibility in mandatory Class I areas. Based on the language above, it is also

quite clear that any activity (proposed or otherwise) that does not "improve visibility" is

not a candidate for those "reasonable progress" plans.

As a result, we believe an analysis that only provides emission control options is not

sufficient for inclusion into reasonable progress elements unless those emission

controls improve visibility. It would be at odds with the program to include an emission

control scenario that did not improve visibility (i.e., a discernible change in deciviews).

To that end, we have chosen to conduct a brief analysis of the impacts this facility has

on the nearest mandatory Class I areas. In order to conduct the analysis we have

chosen, as a matter of convenience and consistency. to follow the general elements of

the BART dispersion modeling effort. The modeling effort used by BART, including this

submittal, is found in 40 CFR 51, Appendix Y.

Appendix A

Visibility Modeling Report

Devon 11/1512010 Section 114 Request

Page A-2
2.0 MODEL SELECTION

For this analysis, and as generally required by EPA for visibility impacts, we used the

CALPUFF dispersion model system. This is the same system that was applied for the

BART analyses carried out under 40 CFR 51.308(e). BART is, itself, an element of the

regional haze program and an element in the overall protection of visibility found in 40

CFR 51, Subpart P.

CALPUFF is a non-steady-state Lagrangian dispersion model that simulates pollutant

releases as a continuous series of "puffs." It is supported by two primary sub-programs,

CALMET and CALPOST. CALMET is used in refined analyses to create threedimensional wind fields based on multiple sources of geophysical and meteorological

data. The output of the CALPUFF model consists of binary data files with information on

pollutant concentrations, wet and dry flux rates, and visibility parameters. CALPOST

processes these data based on specified input parameters, and reports calculated

impact values.

The CALPUFF analysis utilized for this project are noted below and were obtained from

the CALPUFF developer, Atmospheric Studies Group (ASG) at

http://wvvw.src.com/calpuff/calpuff1.htm.

Geophysical Data Proe:essors

• TERREL (Version 3.311, Level 030709)

• CTGCOMP

• CTGPROC (Version 2.42, Level 030709)

• MAKEGEO (Version 2.22, Level 030709)

Meteorological Preprocessors

• SMERGE (Version 5.31a, Level 040706)

• PXTRACT

• PMERGE (Version 5.31, Level 030528)

• READ62 (Version 5.52, Level 040716)

Main Models

• CALMET (Version 6.211, Level 060414)

• CALPUFF (Version 6.112, Level 060412)

Postprocessors

• CALPOST (Version 6.131, Level 060410)

• PRTMET

• CALSUM

• POSTUTIL

Appendix A

Visibility Modeling Report

Devon 11/15/2010 Section 114 Request

Page A-3
The version and level identifiers for the major modules used for this project are

identified above. Electronic executable files for the primary modules and the primary

electronic input and output files associated with this analysis are available upon request.

Appendix A

Visibility Modeling Report

Devon 11/1512010 Section 114 Request

Page A-4
,

3,0 CALMET

CALMET, the meteorological preprocessor for CALPUFF, was used to compile and

process land use data, terrain data, and meteorological data for use in the CALPUFF

model. The CALMET output files define gridded fields of wind speed, wind direction,

mixing heights, stabilities, micrometeorological parameters, and precipitation - all

parameters required for input to the CALPUFF dispersion model. The following sections

provide a brief description of each of these data sets. The CALMET input files are

provided on the portable hard drives that accompany this dispersion modeling report.

3.1 Land Usc Data

CALMET uses specific land use data developed by the U.S. Geological Survey (USGS)

[available for download from the USGS Earth Resources Observation and Science

(EROS) web site]. The data files used by this project are 1:250,000-scale files. Each

land use cell, typically 200 meters square, is assigned a land use code.

3.2 Terrain Data

CALMET uses USGS 1:250k Digital Elevation Models (OEMs) to determine the terrain

elevation in the model domain. The terrain data are preprocessed into a data set

recognizable by CALMET and used to help create the CALMET output file.

3.3 Meteorological Data

CALMET output files representing meteorological data for the 2001, 2002, and 2003

calendar years were prepared for this analysis. The input surface and upper air

meteorological data and the Mesoscale Model version 5 (MM5) data (processed with

the CALMM5 processor) are those data sets used for the Montana Best Available

Retrofit Technology (BART) modeling conducted by EPA.

3.3.1 MCSOSC:llc Model D:lta

The MM5 meteorological data for the 2001, 2002, and 2003 calendar years were

obtained from the Westem Regional Air Partnership (WRAP) web site at

http://pah.cert.ucr.edu/agm/308/bart.shtml. These data are generated by the CALMM5

processor from MM5 mesoscale meteorological model output files. The CALMM5 data

have a spatial resolution of 36 kilometers. The mesoscale models are limited-area,

nonhydrostatic or hydrostatic, terrain-following sigma-coordinate models designed to

simulate or predict mesoscale and regional-scale atmospheric circulation. The data are

used as a basis for generating an "initial guess field" of multilayer meteorological

parameters in CALMET.

Appendix A

Visibility Modeling Report

Devon 11/15/2010 Section 114 Request

Page A~5
3.3.2 Surfacc I)ala

Hourly surface meteorological data for 2001, 2002, and 2003 also were obtained from

the WRAP internet site. This data set includes data from 39 locations for 2001 and 36

locations for 2002 and 2003. The WRAP data are in the SMERGE fonnat and are ready

for input into CALMET Version 6. The data have been manually converted for use with

CALMET Version 5.8 (involving only minor changes to the header records in the data

files).

Surface data from the following locations were used in the CALMET analysis:

• Badger Peak, MT (2001 only)

• Billings, MT

• Bismarck, ND

• Boise, 10

• Bozeman, MT

• Butte, MT

• Casper, WY

• Coeur d'Alene, ID

• Cut Bank, MT

• Dickinson, NO

• Dillon, MT

• Estevan, SK

• Havre, MT

• Kalispell, MT

• Garfield Peak, MT (2001 only)

• Glacier National Park, MT

• Glasgow, MT

• Great Falls, MT

• Helena, MT

• Havre, MT

• Lander, WY

• Lewistown, MT

• Livingston, MT

• Medicine Hat, AB

• Miles City, MT

• Minot, ND

• Missoula, MT

• Morningstar, MT (2001 only)

• Peabody Coal, MT

• Pocatello, ID

• Rapid City, SD

• Rexburg, ID

Appendix A

Visibility Modeling Report

• Riverton, WY

• Salmon,ID

• Sheridan, WY

• Spokane, WA

• Spring Creek Coal, MT

• Theodore Roosevelt National

Park, ND

• Williston, ND

• Yellowstone National Park, WY

Devon 11/15/2010 Section 114 Request

Page A-6
3.3.3 Upper Air Data

Upper air rawinsonde data collected at seven National Weather Service (NWS) stations

were obtained from the rawinsonde data repository maintained by the National Oceanic

and Atmospheric Administration (NOAA) at http://esrl.noaa.gov/raobsJ. The data were

provided in the standard FSL data format for use in the CALMET system. The Seven

NWS upper air rawinsonde locations used for this project are:

• Bismarck, ND

• Boise,ID

• Glasgow, MT

• Great Falls, MT

• Rapid City, SD

• Riverton, WY

• Spokane, WA

3.3.4 Prccipit:ltion Data

Hourly precipitation data in the National Climatic Data Center (NCDC) TD-3240 format

were obtained from the data set developed by MDEQ for their BART modeling analysis

effort. All precipitation stations located within the CALMET modeling domain were

extracted from the data set and used in the CALMET analysis. A total of 286 stations

were selected for each of the three modeled years. A complete list of precipitation

stations is included in the CALMET input files.

3.4 CALMET Technical Options

The CALMET meteorological processor was executed using the technical options

recommended in the EPNIWAQM guidance, the EPA Model Clearinghouse

memorandum of May 15, 2009, and the EPA-Federal Land Managers (FLM) Model

Clearinghouse clarification memorandum of August 31, 2009. A table of the values used

is available upon request.

Appendix A

Visibility Modeling Report

Devon 11/15/2010 Section 114 Request

Page A-7
4.0 CALPUFF

4.1 CALPUFF Technical Options

CALPUFF applies mathematical algorithms to calculate pollutant concentrations at

specified receptor [ocations. CALPUFF's output files contain concentration values for

every receptor and every hour modeled. These output files must be processed through

CALPOST to evaluate model results against regulatory limits or guideline thresholds.

CALPUFF requires inputs of CALMET data files, source characteristics and emission

rates, and receptor grids to model impacts.

For purposes of brevity, a complete list of the technical options chosen for this modeling

exercise is not presented. As noted earlier, the same options used for the BART

analyses were used here as we[1. A copy of the technical options along with all other

input and output files are available on request.

4.2 Receptors

The receptors chosen for this modeling were three of the nearby mandatory Class I

areas. The mandatory Class I areas chosen were:

• Gates of the Mountain Wilderness

• UL Bend Wilderness Area

• Glacier National Park

These three areas represent the closest areas to the facility and also display a relatively

wide range in direction from the plant.

The specific receptors used for the runs are the same as those generated by the federal

land managers and used in the prior BART analyses. The exact receptor [ocations are

not presented here to keep this report brief. Copies of the receptors are avai[able upon

request.

4.3 Modeled Sources and Emission Rates

The modeled source for this analysis was the BC#1 facility which is located

approximately 15 miles southeast of Havre, Montana. There are two stacks associated

with the facility's KVR 616 Compressor Engines and, thus, there were two point sources

of emissions.

The emission rate for this analysis was based on the same general procedure defined in

the BART analysis. That is, the highest 24-hour emission rate is preferred, less those

days associated with startup and shutdown. To meet that general requirement, we

chose to base our emission rate on 7.0 gramslb-hp hour for NOx. From that data, an

Appendix A

Visibility Modeling Report

Devon 11/15/2010 Section 114 Request

Page A-8
estimate could be made of the impact, including various options, on the nearest

mandatory Class I areas.'

The baseline emission rates' used in the model are shown in the table below.

Table A-I: Modeled Emission Rates

SO, NOx PM10 PM2.5

(Ibs/h') (Ibs/h') (Ibs/h') (Ibs/hr)

0.0045 84.9 0.073 0.073

2 For reference, the nearest mandatory Class 1area was about 140 kilometers from the facility.

.3 Baseline means the emission rate (as discussed in footnote 2 above) and does not include the effect of

the control options discussed elsewhere in this document.

Appendix A

Visibility Modeling Report

Devon 11/15/2010 Section 114 Request

Page A-9
5.0 CALPOST CLASS I VISIBILiTY ASSESSMENT

Visibility impacts (expressed in terms of percentage change in 24-hour average

background extinction relative to natural background visibility) were calculated using the

CALPUFF modeling system and data. The analysis was conducted using concentration

files produced by CALPUFF and CALSUM. The visibility assessment is based solely on

the Devon facility.

The methods recommended in the BART program were followed in the visibility

analyses. CALPOST Version 6.131, Level 060410 was used in these analyses. The

technical options employed in the CALPOST analyses are not presented here for the

sake of brevity. It is noted, however, that some visibility options are specific to the

mandatory Class I area being evaluated. Those area-specific data were applied as

appropriate.

Appendix A

Visibility Modeling Report

Devon 11115/2010 Section 114 Request

Page A~10
6.0 RESULTS- V1SrB1LlTY ANALYSIS

The methodology for the visibility analysis portion of this project is the same as the

methods used for the BART program discussed elsewhere in this appendix. The

analysis is conducted by calculating concentrations of particulate, su~ate, nitrate and

other compounds in the atmosphere from the modeled facility in question. The

concentration of those compounds in the atmosphere is used to estimate changes to

visibility that could occur.

Impacts to natural background visibility, expressed in terms of percentage change in 24-

hour average background extinction (lIBex) were calculated by CALPOST processor

(an integral part of the CALPUFF modeling system). The BART guidelines also

reference 40 CFR §51.301 (a) in asserting that determinations must be made on a

•... case-by-case basis taking into account the geographic extent, intensity, duration,

frequency and time of visibility impairments... ." In accordance with 40 CFR 51,

Appendix Y, the 24-hour average 98th percentile impact results are summarized in the

following table.

To serve as a baseline, the table below shows the results of the CALPUFF modeling

results. The data uses the baseline emission rates and assumes no additional controls

as discussed in the main document. The emission rate is shown in Section 4.3 above.

Table A-2: Visibility Impacts: Baseline Case

Visibility

Class I Area (/lDV)

Glacier National Park 0.024

UL Bend 0.170

Gates of the Mountains 0.091

The results of this analysis are revealing. The deciview values themselves represent the

change in visibility (6DV) that could occur as a result of the facility as currently

configured. The values in the table are all below 0.5 dv. EPA has used this 'threshold"

value for quite some time as a measure of a non-measurable or nil impact. The

modeling analysis has shown that current emission rates result in impacts well below

the 1.0 deciview level EPA employs as a level to indicate that a source causes a

visibilrty impact and are also below the 0.5 deciview level that EPA has proposed as the

level at which a source may contribute to a visibility impact. According to general

guidance, if a facility's impact, by itself, is less than 0.5 dv, then the facility's impact is

considered de minimis.

Appendix A

Visibility Modeling Report

Devon 11/1512010 Section 114 Request

Page A-11
Since the impact predicted from this facility, without the consideration of additional

controls, is de minimis, then clearly the addition of additional controls adds nothing to

the analysis. As a result, no additional controls constitute "reasonable progress" since

the addition of controls does not create any "progress" toward the national goal.

As a matter of interest, it was decided to provide an estimate of the improvement to

visibility, regardless how small, that would be expected to occur, based on the model,

as a result of reducing emissions beyond their current baseline level. Modeling was

performed using control levels equal to each of those available for the engines, which

translated to modeled NOx emissions at 12%, 14%, 75% and 78% reductions from the

uncontrolled value.

Additional model runs were not considered for reductions to any other pollutants, due to

the low levels of emissions that currently exist for those pollutants.

The results of the modeling are shown in the tables below.

Table A-3: Visibility Impacts with NOx Reductions

Visibilitv i.\DV)

Class I Area 12% 14% 75% 78%

Baseline Reduction Reduction Reduction Reduction

Glacier National Park 0.024 0.021 0.021 0.006 0.005

UL Bend 0.170 0.148 0.145 0.043 0.037

Gates of the Mountains 0.091 0.078 0.078 0.023 0.019

The results of additional controls (NOx) to the currently configured facility show no

improvement to regional haze. In fact, the "improvement" is much less than the de

minimis or nil value. Since these controls do not result in any perceivable improvement

to regional haze, clearly the addition of such equipment could not be considered

"reasonable" progress.

Appendix A

Visibility Modeling Report

Devon 11/15/2010 Section 114 Request

Page A-12
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QA EMISSION CONSULTANT'

1020, 2424 4th Street SW Calgary, Alberta T2S 2T4

Phone: 403.245.4152 I Fax: 403.245.4184

www.oasisemission.com

QUOTATION NUMBER; OEC-ll01-D11

DEVON ENERGY.

7525 HIGHWAY 2 WEST

HAVRE, MONTANA. 59501

25 FEBRUARV 2011

ATTENTION: GARRY VISSER 406-357-2334

PROJECT OBJECTives:

EQUIPMENT SCOPE:

I-INSTALL A COMPLETE IGNITION TO REPLACE THE EXISTING SYSTEM

- INGERSOll-RAND KVR· 616

TECHNOLOGY SCOPE:

Dear Garry,

• IGNITION SYSTEM [ITEM #11

We are pleased to provide you the following proposal regarding technology upgrades designed to

improve engine control and lower exhaust emissions. Attaining better engine control will increase

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Unlike other technology suppliers, Oasis has the unique capabilities to perform "as found" testing, to

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The GS12 is a robust, solid-state electronic ignition module that provides highly accurate and extremely

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qUANTITY

2 Ea.

1 Ea.

32 Ea.

2 Ea.

2 Ea.

1 Ea.

OPTIONS:

NOTES:

ITEM DESCRIPTION

GS12 Ignition Control Module

Alt III Dual Pickup Timing Kit

CY 90 SShielded Coil-CSA Approved

EH 12 CSA Approved Enclosure

EH 12 Ignition Connector Pack

EH-12 Programming Cable

COMPONENT TOTAL:

Panel or Surface Mounted Display

Secondary Diagnostics Option

Spare Ignition Coils

PART NUMBER

1500-QO-o30

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This unit will be using 2 ignition systems and will be interfaced for safely turning on and off both units.

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If currently using an Altronic II - then a base mount Altronic III can be installed for triggering both units -

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EASY, UPFRONT INSTALLATION

An initial inspection of the Unit before the project which will take approximately 2 hrs. The following

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• Spark plugs typed & gapped according to manufacturers' recommendations or best past results.

• The method for determining degrees of rotation is installed or magneto conversion kit ordered.

• Rigid ignition harness and primary wiring inspected and replaced it coating is damaged or fragile.

• Conduit connecting the ignition harness to the panel

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This project involves shutting the unit down to disconnect and exchange the existing equipment. The

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• Removing the existing ignition, coils and sparkplugs.

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Greg Hunter

V.P. Operations
E-MAP

COMPREHENSIVE MONITORING SYSTEM
Feb. 19. 201' 12:4JPM Ham Pi ..I", Commy No.8623 P. 3

M-O.N:n:TOR1NG CAJPAJB:n:LITIES

NlAJNTENANCE

PROGIlAMMAIlLR FOR.ANY ITEM INFLUENCED BY

TECHNOLOGY OR. OPEIlATING PRACTICE.

-ENGINE

OIL

CATALYST

SPARK PLUGS & COILS

02 SENSORS

IGNITION COILS

REQ1IIRED EPA CHECKS

-COMPRESSOR

VALVES

LUBRICATION

-AUTOMATION

RELAYS.

SENSORS AND METERS

I/O BOARDS & CARDS

& PERFORMANCE

PR.OGIlAMMABLE FOR ANY PEItFORMANCE INDICATOR.

MEASURED OR CALCULATED.

-AIR POLLUTION

NOX

CO

VOC

-CLIMATE CHANGE

COMBUSTION C02

COMBUSTION CH4

COMBUSTION N20

COMPRESSOR VENTS

lNSTRUMENT VENTS

BLOWDOWN VENT

STARTER VENT

EQlJIPMENT LEAKS

ENERGY EFFICIENCY

VENT GAS DESTRUCTION

WASTE GAS/HEAT TO POWER

COMPRUIEN5lVE MONITORING SYSTEM

FOR All TYFESOF GAS COMPRESSOR PACKAGES
f.b.19. 20n 12:4JPM Havr~ PiJd n~ COrlpany No. 6623 P. L

EM.ISSIONS & EFFICIENCY MAPPING

1.) GATHER CRITICAL DATA

2.) ACCURATILY MAP EXACT OPERATING PARAMETERS

EUMrUj NOX rfiRfOR61ANCfi INDICATOll.

1'0(1'1'1 1~l. tAIIA~lllJlIS

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·rACIllty TOtALS

SIMPLE INSTALlATION & COMMISSIONING PROCESS

A.) BOlT-ON TECHNOLOGY AND ADDITIONAL END DEVICES INSTALL.Eo DURlNG NEXT OIL CHANGE.

It) ACCURATE, AUTOMATED MONITORING METHODS ARE CONFIGURED AND CAUllRATED DURlNG YOUR. NEXT EMISSIONS TEST.

POWLRFUl·PLC WITH EXPANSIVE MEMORY IS NOW READY TO TRACK. CALCULATE AND IlESPQND TO Kl::Y ."MINTENANCE &

P~R.FORMANCE INDICATORS.
f ... 19. 2011 12:48PM 'm. Pi,eli" C,nw, ~,. 8623 P.,

EPA SUBSECTION ZZZZ

END DEVICE CONFIGURATIONS

MlNIMuMAccnPTAnLE MONITORING METHODS

(MAMM)

BEST AVAIlABLE MONITORING METHODS

(BAMM)

oml~ rl"OlU~~a "'lllr~mRl MI

CAlCUlAlTD 1l\'CUl,L\IUNJ:AIlNG Wlnl

nIt Irsru:rll'f tuNOOIHR

~--

C02 & CI-l-l

SIHsnn

(101ft SfHSClM "v},nAllI(:

·N,\\lIC

·Ol

.Nl

US Bl'auch

2730 Commercial Way

Rock Springs, WY 82901

Tel: 307.382.3297

Fax: 307.382.3327

email@oasisemission.com

posI'<:ATIII.\·ST

~M"!1 !'!lUIU

Canadian Bmnch

10202424 Fourth Street SW

Calgary, Alberta TIS 2T4

Tel: 403.245.4152

Fax: 403.229.2087

emai1@oasisemission.com
C A T""~'" TIC

COM"'B~TION

Corporate Headquarters

70921'" Avenue

Bloomer, Wisconsin 54724

USA

Phone: 715-568-2882

Fax: 715-568-2884

sales@calalytlCCOrTlbustion.com

www.calatyticcombustion.com

Date:

Proposal No:

Proposal For:

Application:

Proposed Equipment

January i 4.20 11

QT02616

Garry Visser

Devoll Energy

Blaine County #1

Havre. Montana

770-986-7734

KVR Engine Emissions Reduction

SCR/CO Camlyst Package

Thank you for the opportunity to provide the following proposal for your project.

Should you have any questions regarding this information. please contact me £11888-285-5940. If

for some reason I am unavailable, please feci free to contact any ofthe following individuals for

assistance:

C:lt:llvtic Combustion Contacts

Chris Bartels Aoolications cbartcIs(fficala1vticcoIIIbustian.com

Lori Coenen Director or EIlCJinecrin!! leoene r~ata Ivti ccoIIIbusti 0 n.com

John Robinson VP- Catalyst Technology j robi11 son@catalvticcombustion.com

Best Regards,

Keith I-Ierbcn.

VI' - Sales

Page 1

Providing Quality Air Pollution Control Systems Since 1950
January 14,2011-0T02616

Proposal Notes

The equipment propoS<ll we have provided in this document is based on our understanding of

your requiremenlS. The following sections review the design of the system and dCL.1il the overall

system configuration. The information provided in this proposal may be modified prior to the

delivery of the equipment if required. rr no modifications are required, the system will be

delivered as specified.

Delivery Schedule:

Shipment can be made 14-16 weeks after approved drawings. Drawings for approval can be

submitted 4-5 weeks aftcr order.

Terms and Conditions:

This quotation is offered in accordance with cec's tcnns and conditions of sale. using cec's

standard engineering and manufacturing procedures. It is the purchaser's responsibility to collect

and remit. to the appropriate taxing authority. any applicable sales or usc tax associated with

equipment rental or purchase. CCC may, at CCC's sole discretion, agrec to alternate terms and

conditions as rcquired pending rcview and acceptance.

Page 2

Providing Quality Air Pollution Control Systems Since 1950
January 14,2011 - QT02616

SCR/CO Catalyst Package

The SCR/CO Catalyst Package includes CO calalysllo reduce the CO emissions from the

engine and SCR cmalysl with an anhydrous amlllonia injection system to reduce the NOX

emissions from the engine. We understand there are two engines at the facility. The

following proposal is for one engine. Everything would be doubled for the second engine.

The CO catalyst is included but a deduct price is provided should the CO catalyst not be

required. The scope of this proposal is for equipment only. CCC can support Devon with

the required installation modifications if desired. CCC can work with Devon to expand the

support structure, relocate the stack, elC. This proposal is based 011 a horizontal reactor. The

system could be oriented vertically if that would be preferred.

Base System Components

Catalyst Reactor. stainless steel

CO Catalyst, 9 55 frames

5CR Catalyst, 72 55 modules

CO frame 18X24X2.15"

5CR module 12.375"(cubed)

Reactor is externally insulated/55 clad

5CR module weight-55 Ibs ca.

Three temperature gauges

Three pressure gauges

Aillmonia injection grid

Anhydrous ammonia supply package

Access hatches( three)

Expansion joint

Connecting plate nangcs arc I" CS

Design ~xhausl now

Exhaust now during test (84%)

Design exhaust gas temperature

Jobsite elevation

02, % Dry

1-120,%

NOX emission during test

NOX emission -correctcd to 15% 02

CO cmission during test

CO emission -corrected to 15% 02

SCR catalyst design NOX reduction

CO catalyst type

SCR catalyst type

Engine fuel

Anhydrous NH3 consumption

NH3 slip

Required power supply

Specifications

Page 3

38,200 ACFM

31.818ACFM

800 degrec F.

3000 feel

12.1

9.11

57.3 Ib/hr

496 ppmdv

18.9 Ib/hr

268 ppmdv

75%

Precious metalmol1olith

Ti-V-W

Natural gas

22 Ibs/hr design

6.4 ppmvcl

460/3/60

Providing Quality Air Pollution Control Systems Since 1950
January 14,2011 - OT02616

Anhydrous Ammonia Package Control Unit (APCU)

Note: The APCU design is based on receiving anhydrous ammonia in gaseous

form. The anhydrolls ammonia is generally stored in a storage tank in liquid form. A

separate heater skid vaporizes the liquid and converts it into a gas. It is then piped to the

APCU skid. A slorage tank and heater skid arc not included in the scope of this proposal.

Structural stainless steel tubing skid base assembly with lifting and

grounding lugs:

• Two (2) dilution air regenerative blowers rated al 60 SCFM (60

degF and 14.7 psi)@4S"w.c.;with inlet filler/silencers; motors

shall be TEFC, 460/3/60; one (1) primary and one (1) secondary

unit

• 3" class 150 stainless steel dilution air line with expansion joints,

check valves, manual ball valves, a pressure gauge with a block

and bleed valve, a pressure transmitter with a block and bleed

valve, an orifice flange assembly with a flow transmitter and

manifold, and an internal stainless steel static mixer

• %n class 300 stainless steel ammonia line with manual isolation

ball valves, a pressure gauge with a block and bleed valve, a

strainer, an automated ball valve assembly, a Coriolis mass

meter, a flow control valve wI globe valve bypass, and a drain

valve. The line ties into the dilution air line upstream of the static

mixer.

• W class 150 stainless steel instrument air line with manual

isolation ball valves and a pressure switch to provide actuation of

instruments

• NEMA 4X junction box for the termination of analog and discrete

instrumentation

Note: Field to provide 460/3/60 power to junction box

Maximum Anhydrous ammonia vapor capacity =22 LbsIHr

Distribution Manifold Hcadcr:

The unit will consist of the following:

• One (1) vertical duct mounted manifold-single side feed design

• 4ndiameter header pipe, with a pressure gauge wlblock and

bleed valve, with a 4" 150# RF FLG inlet and three (3) 2" take off

branches. Each branch contains a gate valve, orifice plate

assembly, and Dwyer Capsuhelic pressure gauges for balancing

flow.

• Stainless steel construction

• Estimated header length: 7'-0"

• Estimated length of each take off branch: 5'-0'

Note: al Manifold insulated by others

Page 4

Providing Quality Air Pollution Control Systems Since 1950
January 14,2011 - QT02616

Ammoniu Injection Grid (AIG):

The unit consists of:

• Three (3) lance assemblies with two (2) 2" lances per assembly.

Each assembly has 3" 300# RF FLG connections for duct

interface.

• A tolal of six (6) lances are provided

• Stainless steel construction

• Estimated length of each lance is 6'-6"

Nole: a) Design based on duct gas path: 5'-5" W x 6'-6" H

b) Recommended mixing distance between SCR catalyst and AIG: 9'-0·

Clarific;,tioIlS 011 the APeU, header and ATG:

1. All Structural Welding 10 Conform to ASME section IX Standards.

2. All Pipe and Pipe Fittings to Conform to ANSI Standard. All Welding on the pipe

and pipe fittings to comply with ASME Code. 831.1.

3. Motor starter controllers to be provided by others.

4. All electrical controls to be designed for Non Hazardous. Junction boxes will be

NEMA 4 painted carbon steel construction.

5. Interconnecting piping between ammonia package control unit (APCU) skid and

manifold is provided by others.

Page 5

Providing Quality Air Pollution Control Systems Since 1950
January 14,2011 - QT02616

$ 291.500 EACH

$ 25.600

Equipment Budget Pricing

I) SCR/CO Catalyst Package as Defined Above

A. DcduClIO delete the CO caUllysl

B. Precious metal cost basis: PI at $1800rr.O.

NOTE: THIS PRICE [S FOR EACH ENGINE- FOR TWO ENGINES PRICE IS $583.000

2) Onsitc commissioning. startup and training

A. Includes all travel and living expenses

B. Includes 2 trips and 10 days (lotal) on siLe

C. Required 2 weeks notice for scheduling

2) Estimated Freight. FOB Factory:

A. Estimated freight to Monlana (per unit)

B. Freight to be invoiced at actual cost

C. Customer is responsible for amonding at site

D. Customer is responsible for final placemellt of

equipment at the site

PA YMENT TERMS

30% due upon placement of order, net 30 days

30 % due 8 weeks nner order, net 30 days

40% due upon shipment or notification of readiness LO ship. net 30 days

Page 6

$ 20.000

S 3.500 ea.

Providing Quality Air Pollution Control Systems Since 1950
DRESSER-RAND.

January 13, 2010

To: Scott Wallace

Devon Energy

Havre, MT

ENGINUITY

Control: Devon - Havre, MT - 2 x 616-KVR Emissions Retrofit

Proposal #: Budget Quotation

We appreciate the opportunity to provide this budget quotation to provide emissions retrofit on your 2 x

Ingersoll-Rand 616-KVR reciprocating compressor engines at your Havre, Montana Compressor Station.

For these engine retrofits we've provided a quote for two levels of hardware scope to achieve different

levels of NOx emission guarantees.

At Dresser-Rand Enginuity (ORE) we understand and appreciate the challenges of Devon Energy's

operating environment. We have field proven engine control standards ranging from start-stop

sequencing, PEMS, combustion based air-fuel ratio control, plus many other solutions that lie somewhere

in between. We have provided over 550 emissions reduction projects in the last fifteen years that range

from air/fuel controllers to high-pressure fuel injection systems using the most advanced turbocharger

solutions. By employing sound engineering principles for emissions reduction project and state-of-the-art

automation platforms, we can leverage extensive operating knowledge to Devon Energy's engines.

All materials and labor are budget estimated. ORE will require a site visit to firm up the estimated pricing

for installation and materials. Please let us know a good time to plan a trip to the site to help firm up the

project scope of work, project schedule and project responsibilities.

I. SCOPE OF WORK

Option A: 6.0 gm/bhp·hr NOx

Base Hardware:

Dresser-Rand Enginuity (ORE) will provide a D·R Mixing Kit for each power cylinder. DR's 616-

KVR mixing kit is a fuel delivery system designed for an enhanced mixing event in the power

cylinder to improve exhaust emissions and combustion stability. Only the materials and labor

explicitly stated in the Scope of Work are included in this proposal.

ORE will provide all base hardware for a D-R Mixing Kit including (on a per engine basis):

• Sixteen (16) Fuel gas injection valves. ORE will utilize the existing mechanical fuel valve

bodies and modify for the new cartridge and shroud.

• Sixteen (16) Air inlet valve seats

• Sixteen (16) Air inlet valve stems

• Two (2) Splfneless camshaft assemblies (one for each bank of cylinders), including cam

bushings and replacement gaskets at inspection doors.

• Thirty-Two (32) Fuel valve gaskets

• One (1) Alignment gage for calibrating camshaft position to fuel injection sequencing

• Sixteen (16) Power cylinder head gaskets

NOTE: Camshaft replacement assumes cam followers are in operable condition. Replacement

of cam followers is outside the scope of this proposal and will be charged separately. It is also

assumed the turbocharger is providing adequate air supply or has been recently overhauled.

SJ.!gp-ort Labor / Services:

Page J of5
DRESSER-RAND. ENGINUITY

ORE will provide the following labor services to support the installation on a time and material

basis:

• Project engineering

o Indudes one engineering site visit to the site

o Drawings and P&ID's (provided on ORE title blocks as vendor drawings)

• Installatioo

o Mechanical subcontract labor to provide the retrofit hardware installation and

field supervision

o Based on fifteen (18) days of installatioo, at 10 hours/day, Monday-Saturday

construction sdledule(per engine)

o Includes construction trailer, bathrooms for construction/commissioning labor

• Commissioning

o One Mechanical ORE representative to map the engine over the load and

speed range for emissions compliance.

o Based on two (4) day of commissioning al 10 hours/day, Monday-Saturday

(per engine)

o Includes portable emissions analyzer with calibration gases, sample

conditioning, and portable engine analyzer for checking engine heallh and

compressor load during commissioning

Option B: 1.5 grnlbh~hr NOx

Base Hardware:

In addition to the D-R mixing kit outlined in Option A, Dresser-Rand Enginuity (ORE) will provide

Screw in Pre-dlambers (SIPs), a new turbocharger, and provide a new intercooler water pump to

increase the capacity of the cooling system. Only the materials and labor explicitly stated in the

SCope ofW(l(k are induded in this proposal.

ORE will provide all base hardware for a D-R Mixing Kit induding (on a per engine basis):

• Sixteen (16) Fuel gas injection valves. ORE will utilize the existing mechanical fuel valve

bodies and modify for the new cartridge and shroud.

• Sixteen (16) Air inlet valve seats

• Sixteen (16) Air inlet valve stems

• Two (2) Splineless camshaft assemblies (one for each bank of cylinders), including cam

bushings and replacement gaskets at inspection doors.

• Thirty-Two (32) Fuel valve gaskets

• One (1) Alignment gage for calibrating camshaft position to fuel injection sequencing

• Sixteen (16) Power cylinder head gaskets

ORE will also provide all SIP base hardware and turbocharger system induding (on a per engine

basis):

• Sixteen (16) SIPs with check valves

• Sixteen (16) cylinder head machining for use with the SIP

• Sixteen (16) Modifications to the existing mechanical fuel valves

• Sixteen (16) spark plugs and secondary leads

• One (1) SIP fuel header with biasing regulator for pressure control

• One {1} New turbocharger, support stand to support the required air flow and pressure

necessary to operate with the pre-combustion chambers for low NOx operation

• New turbocharger transition piping for connection to existing air/exhaust manifolds

• New transition and piping necessary to connect to the existing exhaust silencer and air inlet

filter.

• New oil system as required with the new turbocharger

• One (1) New intercooler, sized for additional flow capacity with discharge air piping, inlet and

outlet plenums

Page 20f5
DRESSER-RAND. ENGINUITY

• All necessary mounting supports and fasteners to secure intercooler

• One (1) New water pump to increase water cooling flow capacity

NOTE: Camshaft replacement assumes cam followers are in operable condition. Replacement

of cam followers is outside the scope of this proposal and will be charged separately.

Turbocharger shall be replaced under this option.

Support Labor I Services:

ORE will provide the following Jabor services to support the installation on a time and material

basis:

• Project engineering

o Includes one engineering site visit to the site

o Drawings and P&ID's (provided on ORE title blocks as vendor drawings)

• Installation

o Mechanical subcontract labor to provide the retrofit hardware installation and

field supervision

o Based on fifleen (18) days of installation, al10 hours/day, Monday*Saturday

construction schedule(per engine)

o Includes construction trailer, bathrooms for construction/commissioning labor

• Commissioning

o One Mechanical ORE representative to map the engine over the load and

speed range for emissions compliance.

o Based on two (4) day of commissioning at 10 hours/day, Monday-Saturday

(per engine)

o Includes portable emissions analyzer with calibration gases, sample

.conditioning, and portable engine analyzer for checking engine health and

compressor load during commissioning

11. Pricing

Table 2a provides budgetary pricing for the proposed project. All materials and labor are budget

estimated. Local and state taxes are not included in the quote and will be included in each

invoice unless Customer provides tax certificate. Terms of payment will be net 30 days from date

of invoice in US dollars.

2 x Ingersoll-Rand 616-KVR

Table 1. Opllon Pnclng

Option A Option B

Estimated Firm Bid $650,000 $2,300,000

Pricing

(Engineering and Hardware)

Estimated Time and $270,000 $530,000

Material Pricing

(Mechanical subcontractor

labor, site supervision,

commissioning)

Total $920,000 $2,830,000 ..

Firm Bid * Includes firm price for engineering, project management, procurement and hardware

Time and Material - Estimated price of construction labor, commissioning and field supervision

Page 3 ors
DRESSER-RAND.

IIL performance

ENGINUITY

DRE expected performance for the 616-KVR engines operating with the fuel injection haretv.rare listed

above:

Exhaust Emissions

INOx (gm/bhp-hr)

o tion A

6.0

Table 2: Option Performance

o tion B

I.S

NOTES,

1. Emissions can be guaranteed at other levels depending on the requirements of the project and

the air permit. This may change the scope of the project.

IV. SCHEDULE

Estimated proj8ct timelifl8:

Option A

• 14 - 18 weeks (engIneering, procurement)

• 3-5 weeks Installation/commissioning (per engine)

Option B

• 16--20 weeks (engineering, procurement)

• 4-8 weeks Installation/commissioning (per engine)

V. ASSUMPTIONS I EXCEPTIONS

1. Camshaft replacement assumes cam followers are in operable condition. Replacement of cam

followers is outside the scope of this proposal and will be charged separately. It is also assumed

the turbocharger is providing adequate air supply or has been recently overhauled.

2. Devon Energy to provide PLC hardware, installation, and programming for Unit Control Panel per

ORE's control specifications and communications requirements to support the PCC system.

3. Devon Energy to provide all required non-destructive testing (dead weight testing, x-ray, pressure

lesting, etc) as required for installation of the new hardware.

4. Devon Energy to provide a complete engine analysis report induding emissions, performance

data, BSFC versus compressor horsepower for each unit prior to conversion. Report must be less

than three (3) months old for each engine. ORE can assist with the analysis should Devon

Energy not have the capability.

5. Devon Energy to verify the air and exhaust systems are sized to handle the additional flow

requirements necessary for the emissions upgrades.

6. Devon Energy to allow access to the facility (bathroom, break room, phones, etc.) for construction

and commissioning labor provided by ORE for the duration of on-site activities.

7. Where applicable, taxes are extra and are not induded in above pl'ices.

We appreciate the opportunity to provide this budget quotation; we look forward to discussing this in

greater detail with you. We will be in touch to discuss Ihe quote and answer any questions you may have.

Thank you,

Page 4 ors
DRESSER-RAND.

Alldrew Storer

ENGINUITY

v

DRE55ERilAND

Enginurty, Gas Engine Technology Center

Fort Collins, CO

970-212-2861 Office

970-224-0171 Fax

215-627.{l327 GeII

AS!orer@dresser-rand.com

Page 5 of 5
DRESSER-RAND.

Enginuity, Gas Englno Tochnology Contor

4700 McMurry Avenue. Suite 101

Fort Collins, CO 80525

Phone: 970-224-0170

Fax: 970-224-0171

Professional and Technical Rate Schedule

Effective: 01/01/11 -12/31/11

Labor Classification Rate / Hour

Project Manaaer $140.00

Field Suoerintendent $135.00

Princioal Enaineer $175.00

Senior Enaineer $150.00

Enaineer $140.00

Princioal Automation Enaineer $155.00

Automation Enaineer $140.00

Princioal Automation Soecialist $145.00

Automation Soecialist $125.00

Princioal Mechanical Soecialist $145.00

Mechanical Soecialist $120.00

Technician $85.00

Draftsperson $85.00

Buyer $85.00

Auditor $85.00

Administration $65.00

Other Charaes Rate

Meals $50/ day

Travel & Personal Exoenses Cost + 15%

Company Vehicle Mileaae $1.80/ mile

Commercial Transportation Cost + 15%

Rental Eauipment Cost + 15%

Material and Subcontract Services Cost + 15%

• Overtime rates for labor perfonned in the field will apply to hours over tile standard 8

hour day on weekdays and all hours over 40 / per week at a rate of 1.5 times the

standard rate.

• Double time rates for fabor performed in the field will apply to hours worked on DresserRand (local) holidays.

• All rates include hand tools and special equipment tools except rental equipment.
DRESSER-RAND.

Englnulty, Gas Englno Tochn~ogy Cenlor

4700 McMuny Avenue, SUite 101

Fort CoIins. CO 80525

Phone: 970-224-0170

Fax: 970·224-0171

Test Equipment Rate Schedule

Effective: 01/01/11 -12/31/11

Eouioment Descriotion Rate 1Dav

Emissions Test Trailer & Expendables $ 1,375.00

vac Analvzer Istand-alone\ & Exoendables $ 575.00

Portable Analyzer & Expendables $ 675.00

Enaine Analvzer $ 550.00

Instrumentation 1Calibration Suooort Kit $ 120.00

Shippinq Cost Cost + 10%

Trailer Transoortation $2.801 mile

• Expendables include calibration gases, filter, carner gases, hoses and consumab/es.

Special Notes:

• All above rates applicable within North America and payable in U.S. dollars.

• For all flights over six hours. business class will be booked.

• Subject to change without notice.

• Refer to international rate sheet for work outside of North America.

Last Updato: 121"2010
DRESSER-RAND

Enginulty, Gas Engino Tochnology Contor

4700 McMurry Ave" Suile 101

Fort Collins. CO 80525

Phone: 970-224-0170

Fax:97~224-0171

Consulting Services Rate Schedule

Effective: 01/01/11 -12/31/11

Consultina Service Classification Rate I Hour

Principal $320.00

Principal EnQineer $295.00

Principal Automation EnQineer $265.00

Principal Automation Specialist $240.00

Proiect Manaper $215.00

Administration $80.00

Other Charoes Rate

Meals $50 I dav

Travel & Personal Expenses Cost + 15%

• Overtime rales for labor performed in the field will apply to hours over Ihe

slandard 8 hour day on weekdays and all hours over 40 / per week al a rale of

1.5 times Ihe slandard rale.

• Double lime rales for labor performed in Ihe field will apply 10 hours worked on

Dresser-Rand (local) holidays.

Special Notes:

• All above rates applicable within North America and payable in U.S. dollars.

• For all flights over six hours, business class will be booked.

• Subject to change without notice.

• Refer to international rate sheet for work outside of North America.

Last Update: 12/2010
DRESSER-RAND COMPANY (D-R)

TERMS AND CONDITIONS OF SALE FOR EQUIPMENT, PARTS, FIELD SERVICES AND REPAIRS

"D-R1 00 Terms and Conditions" - Effective Augusl12, 2009

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