# Draft Control Te chniques Guidelines for the Oil and Natural Gas Source

Category
Interagency Review Introductory Briefing

July 29, 2015

## Deliberative - Do Not Cite or Quote 

# Overview ► 

# Purpose of this Briefing ► 

# Oil and Gas Sector Description ► 

# Scope of Coverage - Control Te chniques Guidelines vs NSPS ► 

# Background/Implementation ► 

# Summary of RACTRecommendations ► 

# Model Rule ► 

# Estimate of Reductions and Cost ► 

# Schedule

2

## Deliberative - Do Not Cite or Quote Source: Adapted from American Gas Association and EPA Natural Gas STAR Program **Crude Oil to Refineries (**  **not included in this source**  **category )**  

# Production & Processing 1. Drilling and Well Completion 2. Producing Wells 3. Gathering Lines 4. Gathering and Boosting Stations 5. Gas Processing Plant **3 1**  **2**

**4 5** 

**6 7** 

**8 10a**  **10b**

**10c**

**10d 9**  

# Natural Gas **Tr ansmission & Storage**  6. Transmission Compressor Stations 7. Transmission Pipeline 8. Underground Storage


# Distribution 9. Distribution Mains 10. Regulators and Meters for: a. City Gate b. Large Volume Customers c. Residential Customers d. Commercial Customer 

# Natural ga s systems encompass wells, g as g athering and processing facilities, storage, and transmission and distribution pipelines . 

# Oil and Gas Sector Description

Natural ga s distribution is currently out of the scope of the white papers and 2015 NSPS Proposed Rule

## Deliberative - Do Not Cite or Quote 

# Background/Implementation ► 

# Control T

echniques Guidelines (CTG): ► 

# Provide guidance to state, local and tribal air agencies to assist them in determining reasonably available control technology for volatile organic compounds from select sources. ► 

# Applies to existing sources in ozone moderate, and higher, nonattainment areas and the Ozone Transport Region (OTR). • Currently 151 counties are designated moderate or higher 

# • States in OTR - VA , P A, DC, MD, DE, NJ, NY , VT , NH, MA, RI, CT , ME 

# ► 

# States are required to submit revisions to their state implementation plans after a CTG is finalized. ► 

# Ti meline set when CTG is finalized ► 

# Ty pically given one year to submit revisions ► 

# States have flexibility to adopt RACTrecommendations or can use them to inform their own determination.
4

## Deliberative - Do Not Cite or Quote 

# Scope of Coverage – Draft CTG vs. NSPS

5 

# Emission Sour**ce CT** **G (V** **OC) 2012,**  **2015 NSPS Pr** **oposal (V** **OC and/** **or GHG/Methane**  **) Stor** **age Ve**  **ssels** Across source category Across source category (VOC only) **Compressor s**  Production and pr ocessing, exc luding well site compressors Across the source category , e xc luding well site compressors **Pneumatic Contr oller** **s** We llhead through natural gas processing plant Across the source category **Pneumatic Pumps**  Production and processing Across the source category **We ll Completions**  Not covered Hy draulically fractured gas wells and hyd ra ulically fractured oil wells **Equipment Leaks**  **Fugitives** Natural gas processing plants We ll sites and compr essor stations (Production and processing) Natural gas processing plants, well sites, and compressor stations **Liquids Unloading**  Not covered Not covered

## Deliberative - Do Not Cite or Quote 

# Summary of RACTRecommendations ► 

# Storage vessels ► 

# Across source category ► 

# Ninety

five percent reduction of VOC emissions from storage vessels with potential to emit greater than 6 tpy ► 

# Compressors ► 

# Production and processing, excluding well site ► 

# Centrifugal Compressors • Wet seal – Reduce VOC emissions by 95% 

# • Dry seal – not covered ► 

# Reciprocating Compressors • Reduce VOC emissions by replacing rod packing after 26,000 hours of operation or 36 calendar months, or 

# • Route emissions from the rod packing to a process through a closed vent system under negative pressure 

# ► 

# Pneumatic controllers ► 

# Natural gas processing plants • Natural gas bleed rate of zero standard cubic feet per hour ( scfh ) ► 

# We llhead to natural gas processing plant • Natural gas bleed rate less than or equal to 6 scfh

6

## Deliberative - Do Not Cite or Quote 

# Model Rule ► 

# CTG includes model rule language ► 

# Provides example regulatory text for air agencies to use in writing enforceable requirements ► 

# Includes: ► 

# Key definitions ► 

# Identification of af

fected facilities (applicability) ► 

# Emission control requirements ► 

# Compliance and test methods ► 

# Recordkeeping, reporting and monitoring ► 

# Based on approach included in other CTG documents (e.g. Coating Operations at Aerospace Manufacturing and Rework Operations (December 1997))

## Deliberative - Do Not Cite or Quote 

# Estimate of Reductions and Cost ► 

# Potential emission reductions: ► 

# VOC – 11 3,974 tons per year ► 

# Methane – 338,381 tons per year ► 

# HAP – 4,227 tons per year ► 

# Potential costs: ► 

# Capital - $446M ► 

# Annual (without savings) - $278M ► 

# Annual (with savings) - $206M ► 

# Based on current ozone moderate, and higher, nonattainment areas and the OTR.

9

# 10 **Table 5**  **- 1. Summary of**  **the ONG VOC RACT Emission Reductions and Cost s** 

**VOC Me**  **tha ne**  **HA P**  **w/o sa vings**  **w/ s avings**  **VOC Me**  **tha ne**  **HA P**  **Ca pit**  **al ($**  **) Annual w/**  **o sa** **vings ($ /y** **r) Annua**  **l w /** 

**savings ($ /y**  **r)** Fugi ti ve E mi ssio ns - Ga s We ll Si tes Se mi an nua l OG I 0. 76 2. 72 0. 03 $2, 945 $2, 111 31, 424 113, 046 1, 184 33, 244, 088 92, 555, 240 66, 350, 133 Fugi ti ve E mi ssio ns - Oi l We ll Si tes Se mi an nua l OG I 0. 18 0. 65 0. 01 $12, 294 $11, 460 7,877 28, 338 297 34, 783, 471 96, 841, 052 90, 272, 109 Fugi ti ve E mi ssio ns - Ga th er in g a nd Boos ti ng Sta ti ons Se mi an nua l OG I 5. 86 21. 09 0. 22 $2, 710 $1, 876 5,047 18, 155 190 9, 465, 294 13, 673, 740 9, 465, 294 Eq ui pm en t Lea ks - Processin g Pl ants NS PS Subpa rt V Va 4. 56 16. 39 0. 17 $2, 844 $2, 010 228 820 9 424, 950 647, 957 457, 974 Re ci proca ti ng Com pre sso rs - Ga ther in g a nd Boos ti ng Sta ti ons Re pl acePa cki ng Af ter3 Yea rs 1. 90 6. 84 0. 07 $1, 132 $298 7,371 26, 518 278 21, 888, 661 8, 340, 711 2, 193, 981 Re ci proca ti ng Com pre sso rs - Processin g Re pl acePa cki ng Af ter3 Yea rs 4. 89 17. 58 0. 18 $334 ($500) 2,267 8,156 85 1, 986, 033 756, 827 (1,1 33, 746) Ce nt ri fi ga l Compr es so rs w/ Wet Se als - Processin g 95% Contr ol , Ex ist in g Com bus ti on Devi ce 18. 15 200. 45 2. 10 $182 $182 985 10, 883 114 1, 262, 361 179, 756 179, 756
Na tu ral Ga s- Dri ve n Pne uma ti c Cont rol le rs -Oi l an d Ga s Product io n Rep lacew/ Low Bl eed 1. 41 5. 10 0. 05 $210 ($627) 30, 933 111, 616 1, 169 59, 046, 994 6, 483, 043 (19, 390, 451) Na tu ral Ga s- Dri ve n Pne uma ti c Cont rol le rs - Processin g Ex ist in g I ns tr um en t Ai r Sys tem 0. 28 1. 00 0. 01 $1, 018 $190 3 11 0 22, 277 3,175 592
Na tu ral Ga s- Dri ve n Pne uma ti c Pumps - Product io n - Di ap hra m 95% Contr ol , Ex ist in g Com bus ti on Devi ce 0. 91 3. 29 0. 03 $312 $312 4,008 14, 419 151 8, 773, 271 1, 250, 191 1, 250, 191 Na tu ral Ga s- Dri ve n Pne uma ti c Pumps - Product io n - Pi ston 95% Contr ol , Ex ist in g Com bus ti on Devi ce 0. 10 0. 36 0. 00 $2, 840 $2, 840 439 1,578 17 8, 742, 833 1, 245, 854 1, 245, 854
Stor ag e Ves se ls 95% Contr ol , Com bus ti on/VRU a a a a a 23, 392 4,842 734 266, 116, 280 56, 228, 139 55, 911, 683 

### Total **113, 974**  **338, 381**  **4, 227**  **445, 756,**  **512 278,**  **205, 683**  **206, 803,**  **370** a - Ther e a rea wi de

va rietyof s tor ag e ves se l siz es , a s we ll as rates of t hroughput for each ta nk.Emi ssio ns a nd cos ts a redi re ct lyre lat ed to t hethr oughput of l iq ui ds for a gi ven s tor ag e ves se l.I n l ie u of us in g emi ssio n reduct io ns a nd c os ts pe r st or ag e ves se l,we u se d product io n ra te b rack et s devel ope d by t heU.S. Ene rgy I nform at io n Adm in ist rat io n (EI A) for our e mi ssio n e st im ates a nd cos ts (s ee Atta chm en ts 2 a nd 3). **Em ission Re**  **duc**

**ti ons (t**  **py )**  **Cost s ($**  **) Em**  **ission Sour ce**  **Typ e**  **of Cont rol**  **Em ission Re**  **duc ti**  **on Pe r U**  **nit (t**  **py) VOC Cost of Control**  **($ /to**  **n)**

No te: Mi nor di ffe re nces ma y re su lt fromroundi ng.

## Deliberative - Do Not Cite or Quote 

# Schedule

11 

# Milestones **Dates** Interagency Review July 2015 Draft Available for Comment Summer 2015 Final Spring 2016