# 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)]
Prepared for: 

## Devon Energy Production Company, L.P. Clear Creek Road



## P.O. Box 2606 Havre, MT 59501

(406) 357-2233

Preparedby:

# ~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 Regulationshttp://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 fourfactors includedin 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 primarypurposes ofthis subpart are . . .to assure reasonable progress toward meeting the nationalgoal ofpreventing any future, and remedying any existing, impairment ofvisibility 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: "Foreach mandatory Class I Federalarea ... , the State must establish goals . .. thatprovide forreasonable progress towards achieving natural visibilityconditions. The reasonable progress goals mustprovide for 

### an improvementin visibility for the most impaireddays . .. " [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 ofReasonable 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 tun ina) 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" upgradedignition system alldair-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-RaudMixing 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-RtllldMixing 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 H2 0 8 NH, + 6 N02 7 N2+ 12 H2 0 2 NO, + 4 NH, + 0, 3 N2+ 6 H2 0 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 miffair-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-RundMixing KitfOr 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-IlolldMixing 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-RandMixing KifpIllS

### 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 ofNOx 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 ofCOlltrol 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 primarypurposes 

### of this subpart are ... to assure reasonable progress towardmeeting the nationalgoal

### 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. "Foreach mandatory Class I Federal area . .. , the State must establish goals . .. thatprovide forreasonable progress towards achieving natural visibility conditions. The reasonabte progress goals mustprovide for 

### an improvementin visibilityfor the most impaireddays . .. ' 

### [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 PM 10 PM 2.5 (Ibs/h') (Ibs/h') (Ibs/h') (Ibs/hr) 0.0045 84.9 0.073 0.073

2 For reference, the nearest mandatory Class 1 area 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.

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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 overall performance, delivering the fastest return on upgrade capital through lowering fuel consumption, downtime and easy compliance with upcoming emission standards. Updating the above technology can also extend the engines maintenance lifecycle while reducing operating costs associated with consumables such as oil, sparkplugs, catalyst elements and more. Unlike other technology suppliers, Oasis has the unique capabilities to perform "as found" testing, to better diagnose the need for upgrades; and post installation testing, to demonstrate actual improvements in performance. Our patented real time emission testing software lets us configure device set-points determined with precision as the engine is monitored by state of the art testing equipment. To fulfill the above objective, Oasis suggests the following items:**OA<;l~ £MI"~ION**  CONSULTANTS

ITEM #1: INOUCTIVE IGNITION SYSTEM GlllINSTRUMENTS: GS12 IGNITION X2 www.oasisemission.com

The GS12 is a robust, solid-state electronic ignition module that provides highly accurate and extremely powerful inductive based spark. When tailored with the Gill range of ignition coils, the GS12 produces spark durations well in excess of any capacitor discharge ignition system. longer spark duration produces a better combustion kernel and larger flame front. Having the longer duration spark is especially important for lean burn engines and application with poor fuel quality/mixing. The inductive nature of the Ignition system inherently sends less wasted energy to the plug, extending the longevity of spark-plugs, leads and coils. This system is suited for either naturally aspirated or turbo-charged engines, on rich or lean combustion engines.

For this application, the GS12 comprises the following components: 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 1609-PK 100 - SP 1494-00-023 1609-00-020 1609-PK-027 1609-30-028 $ 11,004.00 $650.00 $820.00 $170.00
This unit will be using 2 ignition systems and will be interfaced for safely turning on and off both units. Should 1 fail they will both shut down. If currently using an Altronic II - then a base mount Altronic III can be installed for triggering both units - this is a special unit we fabricate. If using a disc on the cam then 2 pickups will be required (1 for each system) - I believe that the KVR is gear driven at the mag drive - not chain driven. If it is chain driven then we may wish to look at a cam disc. This is not an ·off-the-shelf' item - it would need to be fabricated.'TANTS www.oasiscmission.com EASY, UPFRONT INSTALLATION An initial inspection of the Unit before the project which will take approximately 2 hrs. The following peripheral engine components must be verified for adequate performance before installation of the SG12 ignition system:
• 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 • Properly operating engine governor. This project involves shutting the unit down to disconnect and exchange the existing equipment. The installation process will require approximately 8 hours to perform the following:
• Removing the existing ignition, coils and sparkplugs. • Installing and wiring the GS12 to the engine. • Installing the pick-ups or magneto conversion kit. • Mounting the replacement ignition module and Display in the existing panel. • Tying the required power supply into the new ignition. • Installing the ignition harness with routing back to the control box through existing conduit or in a neat ;)nd tidy manner not to interfere with the function of any other control devices. • Set-up and programming • Commissioning the installation TERMS AND CONDITIONS Terms: Prices: Taxes: Delivery: Validity: Net 30 Days Canadian Funds Extra Stock 90 DaysQASlSEMlSSlON 0 TA

Labour RATES $100.00/ PER HOUR FOR ON-SITE & TRAVEL FROM MEDICINE HAT $1.40/ KM FOR TRAVEL FROM MEDICINE HAT www.oasisemission.com

We appreciate the opportunity to quote you these top of the line industrial engine technologies. I look forward to working with you show that Oasis Emission Consultants can make your compression equipment run better. Please contact me for clarifications or for anything else I can help you with.
Best regards,
Greg Hunter V.P. Operations

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## 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 

### i4.20 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 

### cbartcI s(fficala1 vticco III

### bustian.com Lori Coenen Director or EIlCJinecrin!! leoene**r~ata** 

### I vticco III

### busti0

### n.com John Robinson VP- Catalyst Technology j 

### robi11

### son@catalvticcombustion.com Best Regards, Keith I-Ierbcn. VI' - Sales

Page 1 Providing QualityAirPollution Control Systems Since 1950January 14,2011-0T02616 

# ProposalNotes The equipment propoS<ll we have provided in this document is based on our understanding of your requiremenlS. The following sections review the design ofthe 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 QualityAirPollution Control Systems Since 1950January 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 ifdesired. 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 ifthat 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) Expansionjoint 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 QualityAirPollution Control Systems Since 1950January 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 ofthis 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 vaporcapacity =22 LbsIHr Distribution Manifold Hcadcr:

The unit will consist of the following: • One (1) vertical duct mounted manifold-single side feed design • 4n diameter 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 QualityAirPollution Control Systems Since 1950January 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 QualityAirPollution Control Systems Since 1950January 14,2011 - QT02616

$ 291.500 EACH $ 25.600 

# EquipmentBudgetPricing 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 oforder, net 30 days 30 % due 8 weeks nner order, net 30 days 40% due upon shipment or notification ofreadiness LO ship. net 30 days



### Page 6 $ 20.000

S 3.500 ea.

Providing QualityAirPollution 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 ofwork, 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 ofWork 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 (Mechanicalsubcontractor 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.
II L 

### 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 Estimatedproj8ct timelifl8: OptionA • 14 - 18 weeks (engIneering, procurement) • 3-5 weeks Installation/commissioning (perengine) Option B • 16--20 weeks (engineering, procurement) • 4-8 weeks Installation/commissioning (perengine) 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 of5

# 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 forlaborperfonnedin the field will apply to hours overtile standard 8 hourdayon weekdays andall hours over40/ perweek at a rate of 1.5 times the standardrate. 

### • Double time rates forfaborperformedin the field will apply to hours worked on DresserRand (local) holidays. • All

### rates include hand tools andspecial 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 1 

### Dav Emissions Test Trailer & 

### Expendables 

### $ 1,375.00 

## vac Analvzer Istand-alone\ & 

### Exoendables 

### $ 575.00 Portable Analyzer & 

### Expendables 

### $ 675.00 Enaine Analvzer 

### $ 550.00 Instrumentation 1

### Calibration Suooort Kit 

### $ 120.00 Shippinq Cost Cost + 

### 10% Trailer Transoortation $2.801 

### mile

• Expendables include calibration gases, filter, carnergases, hoses andconsumab/es. Special Notes: • Allabove rates applicable within North America andpayable in U.S. dollars. • Forall flights oversixhours. business class will be booked. • Subject to change without notice. • Refer to international rate sheet for work outside ofNorth 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 laborperformedin the field will applyto hours overIhe slandard

### 8 hourdayon weekdays and allhours over

### 40/ perweek

### al a rale of 1.5 times Ihe slandard rale. • Double lime rales for laborperformed in Ihe field will apply

### 10 hours worked on Dresser-Rand (local) holidays. Special Notes: • All above rates applicable within North America andpayable in U.S. dollars. • Forall flights oversix hours, business class will be booked. • Subject

### to change withoutnotice. • Refer to international rate sheet for work outside ofNorth America. Last Update: 12/2010DRESSER-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 1 CfNJ:Il.:\L SeI..... """"' ... _ .. .- ..... _.I

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