Control Option Cost and Emission Reduction Impacts for NSPS Alternatives - Single Typical Year Impacts

Option 1 Option 2 Completions - Category 1 Fracked Gas Wells (Flare/REC) YES YES Completions - Category 2 Fracked Gas Wells (Gas Flared) YES YES Workovers - Fracked Gas Wells (on new source wells) YES YES Workovers - Fracked Gas Wells (on existing wells) NO YES Completions - Conventional Gas Wells NO NO Workovers - Conventional Gas Wells NO NO Completions- Oil Wells NO NO Workovers - Oil Wells NO NO
Equipment Leaks - Processing Plants Reciprocating Compressors - Gathering & Boosting Stations YES YES Reciprocating Compressors - Processing Plants YES YES Reciprocating Compressors - Transmission Compressor Stations YES YES Reciprocating Compressors - Underground Storage Facilities YES YES Centrifigal Compressors - Processing Plants YES YES Centrifigal Compressors - Transmission Compressor Stations YES YES Pneumatic Controllers - Oil and Gas Production YES YES Pneumatic Controllers -Transmission and Storage YES YES

Pneumatic Controllers -Processing Plantsb Storage Vessels - High Emissions (>= 6.66 tpy or above throughput cutoffs of 1 bbl condesate per day or 20.7 bbl crude oil per day) YES YES

NO NO NO NO

Without Revenue from Additional Product Storage Vessels - Low Emissions (<6.66 tpy and below thorughput cutoffs of 1 bbl condensate/day or 20.7 bbl crude oil/day) Emission Point Regulatory OptionNSPS, Oil and Gas Industry, Regulatory Options/Impacts Option 1 Option 2 (proposed) Engineering Annual Costs350,036,452750,545,380 VOC Reductions (tpy) 505,420 1,007,940 CH4 Reduction (tpy) 1,729,923 3,542,319 HAP Reductions (tpy) 18,886 37,917

VOC C/E $692.57 $744.63 CH4 C/E $202.34 $211.88 HAP C/E$18,533.79 $19,794.66Control Option Cost and Emission Reduction Impacts for NSPS Alternatives - Single Typical Year Impacts

Option 3 VOC Methane HAP

YES 44.0 158.3 1.662 9,313 YES 44.0 158.3 1.662 446 YES 44.0 158.3 1.662 976 YES 44.0 158.3 1.66239 12,050 NO 0.21208 0.76 0.00801 7,694 NO 0.01420 0.05 0.00054 10,817 NO 0.00424 0.02 0.00016 12,193 NO 0.00056 0.002 0.00002 10,666

14.3 51.4 0.54 29 YES 3.4 12.3 0.13 210 YES 6.5 23.3 0.24 375 YES 0.8 27.1 0.022 199 YES 0.8 28.2 0.023 9 YES 21 228 0.7 16 YES 3.5 126 0.10 14 YES 1.92 6.91 0.073 13,632 YES 0.10 3.43 0.028 67

4.17 15.02 0.158 15
YES 103 22 3.0 304

NO 17,086 NO 17,086 Total Nationwide New Source Baseline Without Revenue from Additional Product With Revenue from Additional Product 0.46 0.10 0.014 Baseline Emissions from Representative New Source or Unit (tpy)a Number of New Sources or Units Expected Per Yeara Regulatory OptionOption 3 Option 1 Option 2 (proposed) Option 3 880,723,817 -40,789,387 -66,970,959 54,226,495 1,021,187 505,420 1,007,940 1,021,187 3,598,449 1,729,923 3,542,319 3,598,449 38,414 18,886 37,917 38,414 $862.45 -$80.70 -$66.44 $53.10 $244.75 -$23.58 -$18.91 $15.07 $22,927.40 -$2,159.72 -$1,766.27 $1,411.65VOC Methane HAP VOC Methane

409,919 1,474,528 15,483 REC/ Combustion 41.7 150.41 19,630 70,612 741 Combustion 41.8 150.41 42,955 154,514 1,622 REC/Combustion 41.7 150.41 530,364 1,907,78520,031.7 REC/Combustion 41.7 150.41 1,632 5,870 62 Combustion 0.20 0.72 154 553 6 Combustion 0.01 0.05 52 186 2 Combustion 0.004 0.014 6 21 0 Combustion 0.001 0.002

415 1,491 16 NSPS Subpart VVa 13.5 48.6 719 2,587 27 Replace Packing Every 3 Years of Operation 1.9 6.8 2,430 8,740 92 Replace Packing Every 3 Years of Operation 5.2 18.6 149 5,399 4 Replace Packing Every 3 Years of Operation 0.6 21.7 7 240 0.2 Replace Packing Every 3 Years of Operation 0.6 21.8 328 3,640 12 Convert to Dry Seals 18 199 49 1,768 1.5 Convert to Dry Seals 3.1 110 26,191 94,211 989 Low Bleed 1.85 6.65 6 229 1.9 Low Bleed 0.09 3.17

63 939 148 Instrument Air System 4.17 15.02 31,215 6,832 922 95% control 98 21
7,922 1,734 234 95% control 0.4 0.09 7,922 1,734 234 Inspection/Maintenance 1,098,3693,811,67441,241 unable to quantify Nationwide Baseline Emission - Uncontrolled Sources (tpy)a Control Option Emission Reduction Per Unit (tpy)HAP Natural Gas Savings (Mcf) Condensate

(bbl) Natural Gas

(Assume $4/Mcf) Condensate

(Assumes $70/bbl) Total Value

of Recovered Saleable Product 1.579 8,258 34 33,030 2,380 35,410 33,237 1.579 3,523 1.579 8,258 34 33,030 2,380 35,410 33,237 1.579 8,258 34 33,030 2,380 35,410 33,237 0.01 3,523 0.001 3,523 0.0002 3,523 0.00002 3,523

0.51 2,819 none 11,276
- 11,276 7,522 0.072 397 none 1,587
- 1,587 5,346 0.195 1,079 none 4,317
- 4,317 4,050 0.018 1,122 none - - - 5,346 0.018 1,130 none - - - 7,290 0.6 11,527 none 46,109
- 46,109 75,000 0.09 5,716 none - - - 75,000 0.07 385.50 none 1,542
- 1,542 165 0.003 165

0.16 72.5 none 290 - 290 16,972
3 146 none

estimated 582 none estimated 582 65,243

0.01 65,243 0 No product recovered No product recovered

none

unable to quantify Emission Reduction Per Unit

(tpy) Total Capital Cost Per Unit ($) Product Recovery Value of Product RecoveryDRAFT - May 16, 2011

w/o savings w/

savings w/o

savings w/ savings w/o savings w/ savings VOC Methane HAP
33,237 (2,173) 797 (52) 221 (14) 388,398 1,400,80214,708.4 3,523 3,523 84 84 23 23 18,649 67,081 704.4 33,237 (2,173) 797 (52) 221 (14) 40,700 146,788 1,541.3 33,237 (2,173) 797 (52) 221 (14) 502,520 1,812,39619,030.2 3,523 3,523 17,485 17,485 4,861 4,861 1,550 5,576 59 3,523 3,523 261,141 261,141 72,597 72,597 146 525 6 3,523 3,523 874,270 243,047 243,047 243,047 49 177 2 3,523 3,523 6,675,4171,855,766 1,855,766 1,855,766 6 20 0
45,160 33,884 3,343 2,508 928 697 392 1,411 15 1,653 67 870 35 242 10 399 1,436 15.1 1,400 (2,917) 270 (563) 75 (157) 1,943 6,975 73.1 1,653 1,653 2,756 2,756 76 76 119 4,318 3.5 2,255 2,255 3,733 3,733 103 103 5 185 0.2 10,678(123,730) 593 (6,874) 54 (622) 288 3,183 10 10,678 (77,622) 3,495 (25,405) 97 (1,121) 49 1,766 1 23 (1,519) 13 (821) 4 (228) 25,210 90,685 952 23 23 262 262 7 7 6 212 0.2
11,090 10,800 2,659 2,590 738 719 62.550 225.270 2.363 14,528 13,946 149 143 680 652 29,654 6,490 876.4
14,528 13,946 36,298 34,844 165,843 159,199 6,838 1,497 202.1 639 639 TOTALS for Proposed Options 1,008,3323,543,73037,931 Methane Cost Effectiveness

($/ton) Nationwide Emission Reductions (tpy)

unable to quantify unable to quantify Total Annual Cost Per Unit ($/yr)VOC Cost Effectiveness ($/ton)Capital ($) Annual w/o savings ($/yr) Annual w/

savings ($/yr) 309,553,517 309,553,517(20,235,748) 1,571,188 1,571,188 1,571,188 32,437,733 32,437,733 (2,120,479) 400,508,928 400,508,928(26,181,572) 27,104,761 27,104,761 27,104,761 38,106,603 38,106,603 38,106,603 42,954,036 42,954,036 42,954,036 37,574,653 37,574,653 37,574,653
218,140 1,309,650 982,648 1,122,660 347,223 14,056 1,518,750 524,980 (1,093,727) 1,063,854 329,035 329,035 61,965 19,165 19,165 1,200,000 170,853 (1,979,687) 1,050,000 149,496 (1,086,704) 2,249,221 320,071 (20,699,918) 11,039 1,539 1,539
254,576 166,351 162,004 19,811,872 4,411,587 4,234,856
1,114,746,863248,225,012238,280,976 0 10,911,911 10,917,937 772,633,444 752,021,381 -65,826,308 Total Nationwide Costs