§

SLawson

exploration company, inc,

Thursday, May 31 , 2012

Carl Daly, Director Air Program

U.S. EPA Region 8

1595 Wynkoop St.

Denver, CO 80208-1129

RE: Request for Information Pertaining to Emissions Control Equipment at Oil and

Gas Production Facilities on the Fort Berthoud Indian Reservation

Dear Mr. Daly,

Slawson Exploration Company, Inc., (SECI) presents the following reply to the

above request for information.

In answer to 3, "describe the source of the data and methodology used in

calculating items 2(a) through 2{f)", SECI is using a combination of actual costs,

actual bids from manufacturers, annualized estimates, and best guess

engineering practices estimates based on real life experience.

Actual final estimates are not possible as SECI has not had enough time for a full

year of costs, sales, etc. of the variables associated with this project.

If you need any further information regarding this issue, please contact me at

(720) 259-6402 or via email atrgorka@slwasoncompanies.com .

Sincerely,

Raymond M. Gorka

Environmental/Regulatory Analyst

Slawson Exploration Company, Inc.

Ene.

Rocky Mountain Division

1675 Broadway, Suite 1600

Denver, Colorado 80202

(303) 592-8880 - FAX (303) 592-8881
Attachment A

STATEMENT OF CERTIFICATION

I certify under penalty oflaw that I have personally examined and am familiar with the information

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

immediately responsible for obtaining information, I believe that the information is true, accurate, and

complete. I am aware that there are signiticant penalties for submitting false infomlation. including the

possibility of fine or imprisonment.

D1:?J 6/) dO/"d-
Question: Items: Shop Manufactured Flare 90% Cost:

Purchased Equipment Costs:

Flare: $ 2,500.00

2) d) Auto-Ignition System: $

2) e) Pilot Flame w/ Monitoring System: $

Auxilary Equipment: $ 75.00

(Includes KO Drum and Internal Piping)

Sum -A $ 2,575.00

Istrumentation: 0.10A $ 257.50

Sales Tax: 0.03 A $ 77.25

Freight: 0.05A $ 128.75

2) a) Purchased Equipment Cost =B $ 3,038.50

Direct Installation Costs:

Foundation & Supports: 0.12 B $ 364.62

Handeling & Erection: 0.40 B $ 1,215.40

Electrical Connections: 0.01 B $ 30.39

Piping Connections: 0.02 B $ 60.77

Insulation: 0.01 B $ 30.39

Painting: 0.01 B $ 30.39

Direct Installation Cost: $ 1,731.95

Site Preperation: $

Facilities and Buildings: $

3) a) Total Capital Cost - C $ 4,770.45

Annual Cost For Shop Manufactured Flare 90%

Item: Cost:

Direct Annual Cost, DC: Hours: Rate:

Operating Labor 630.0 Hrs/Yr 15.64 $ 9,853.20

Supervisor =15% of Operaing Labor 94.5 Hrs/Yr 15.64 $ 1,477.98

Maintainence Labor 547.5 Hrs/Yr 17.21 $ 9,422.48

3) c) labor Costs: $ 20,753.66

Operating Materials: Price: Annual Usage:

Maintainence Materials: N/A N/A $ 9,422.48

Electricity: 0.00 $/KWHr 0.00 KWHr/Yr $

Purge Gas: 3.03 $/MCF 0.00 MCF/Yr $

Pilot Gas: 3.03 $/MCF 613.20 MCF/Yr $ 1,858.00

Steam: 4.65 $/Ib O.OOlb/yr $

Total Direct Cost: $ 32,034.13

Indirect Annual Costs, IC

Overhead: 0.60 C $ 19,220.48

Administrative Costs: 0.02 C $ 95.41

Property Tax: 0.01 C $ 47.70

Insurance: 0.01 C $ 47.70

Capital Recovery =CRF(Total Capital Cost): $ 3,714.00

Total Indirect Cost: $ 23,125.29

3) d) Total Non-labor Cost: $ 34,405.76

3) b) Totral Annual Cost: $ 55,159.42
Question: Items: Zeeco Inc. MJ Flare 98% Cost:

Purchased Equipment Costs:

Engineered Flare: $ 36,550.00

2) d) Auto-Ignition System: $ 3,575.00

2) e) Pilot Flame w/ Monitoring System: $ 3,575.00

Auxilary Equipment: $ 1,096.50

(Includes KO Drum and Internal Piping)

Sum -A $ 44,796.50

Istrumentation: 0.10A $ 4,479.65

Sales Tax: 0.03 A $ 1,343.90

Freight: 0.05A $ 2,239.83

2) b) Purchased Equipment Cost - B $ 52,859.87

Direct Installation Costs:

Foundation & Supports: 0.12 B $ 6,343.18

Handeling & Erection: 0.40 B $ 21,143.95

Electrical Connections: 0.01 B $ 528.60

Piping Connections: 0.02 B $ 1,057.20

Insulation: 0.01 B $ 528.60

Painting: 0.01 B $ 528.60

Direct Installation Cost: $ 30,130.13

Site Preperation: $

Facilities and Buildings: $

3) a) Total Capital Cost =C $ 82,990.00

Annual Cost For Zeeco Inc. MJ Flare 98%

Item: Cost:

Direct Annual Cost, DC: Hours: Rate:

Operating Labor 630.0 Hrs/Yr 15.64 $ 9,853.20

Supervisor =15% of Operaing Labor 94.5 Hrs/Yr 15.64 $ 1,477.98

Maintainence Labor 547.5 Hrs/Yr 17.21 $ 9,422.48

3) c) Labor Costs: $ 20,753.66

Operating Materials: Price: Annual Usage:

Maintainence Materials: N/A N/A $ 9,422.48

Electricity: 0.00 $/KWHr 0.00 KWHr/Yr $

Purge Gas: 3.03 $/MCF 0.00 MCF/Yr $

Pilot Gas: 3.03 $/MCF 613.20 MCF/Yr $ 1,858.00

Steam: 4.65 $/Ib O.OOlb/yr $

Total Direct Cost: $ 32,034.13

Indirect Annual Costs, IC

Overhead: 0.60 C $ 19,220.48

Administrative Costs: 0.02 C $ 1,659.80

Property Tax: 0.01 C $ 829.90

Insurance: 0.01 C $ 829.90

Capital Recovery =CRF(Total Capital Cost): $ 3,714.00

Total Indirect Cost: $ 26,254.08

3) d) Total Non-Labor Cost: $ 37,534.55

3) b) Totral Annual Cost: $ 58,288.20
Question: Items: Cost:

2) d)

2) e)

2) c)

MESSCO VOCinerator 98%

Purchased Equipment Costs:

Combustor:

Auto-Ignition System:

Pilot Flame w/ Monitoring System:

Auxilary Equipment:

(Includes KO Drum and Internal Piping)

Istrumentation:

Sales Tax:

Freight:

Sum =A

O.lOA

0.03 A

0.05 A

Purchased Equipment Cost = B

$ 47,408.00

$ 3,575.00

$ 3,575.00

$ 1,422.24

$ 55,980.24

$ 5,598.02

$ 1,679.41

$ 2,799.01

$ 66,056.68

Direct Installation Costs:

Foundation & Supports:

Handeling & Erection:

Electrical Connections:

Piping Connections:

Insulation:

Painting:

Direct Installation Cost:

Site Preperation:

Facilities and Buildings:

0.12 B

0.40 B

0.01 B

0.02 B

0.01 B

0.01 B

$

$

$

$

$

$

$

$

$

7,926.80

26,422.67

660.57

1,321.13

660.57

660.57

37,652.31

3) a)

Annual Cost For MESSCO VOCinerator 98%

Item:

Direct Annual Cost, DC: Hours:

Total Capital Cost = C

Rate:

$ 103,708.99

Cost:

Operating Labor

Supervisor = 15% of Operaing Labor

Maintainence Labor

630.0 Hrs/Yr

94.5 Hrs/Yr

547.5 Hrs/Yr

15.64 $

15.64 $

17.21 $

9,853.20

1,477.98

9,422.48

3) c)

Operating Materials:

Maintainence Materials:

Electricity:

Purge Gas:

Pilot Gas:

Steam:

Indirect Annual Costs, IC

Labor Costs: $

Price: Annual Usage:

NM NM $

0.00 $/KWHr 0.00 KWHr/Yr $

3.03 $/MCF 0.00 MCF/Yr $

3.03 $/MCF 613.20 MCF/Yr $

4.65 $/Ib 0.00 Ib/Yr $

Total Direct Cost: $

20,753.66

9,422.48

1,858.00

32,034.13

3) d)

3) b)

Overhead:

Administrative Costs:

Property Tax:

Insurance:

Capital Recovery = CRF(Total Capital Cost):

Totral Annual Cost:

0.60 C $

0.02 C $

0.01 C $

0.01 C $

$

Total Indirect Cost: $

Total Non-Labor Cost: $

$

19,220.48

2,074.18

1,037.09

1,037.09

3,714.00

27,082.84

38,363.31

59,116.96
Cost:

3,575.00

2,974.83

Question: Items:

2) d)

2) e)

2) c)

VRU Engineered Concepts 98%

Purchased Equipment Costs:

Vapor Recovery Unit

Auto-Ignition System:

Monitoring System:

Auxilary Equipment:

(Includes KO Drum and Internal Piping)

Istrumentation:

Sales Tax:

Freight:

5um=A

0.10A

0.03 A

0.05 A

Purchased Equipment Cost = B

$ 99,161.00

$

$

$

$ 105,710.83

$ 10,571.08

$ 3,171.32

$ 5,285.54

$ 124,738.78

2) f) $ 195,839.88

Direct Installation Costs:

Foundation & Supports:

Handeling & Erection:

Electrical Connections:

Piping Connections:

Insulation:

Painting:

Direct Installation Cost:

Site Preperation:

Facilities and Buildings:

0.12 B

0.40 B

0.01 B

0.02 B

0.01 B

0.01 B

Total Capital Cost = C

$

$

$

$

$

$

$

$

$

14,968.65

49,895.51

1,247.39

2,494.78

1,247.39

1,247.39

71,101.10

2,000.00

3) c)

Annual Cost For VRU Engineered Concepts 98%

Item:

Direct Annual Cost, DC:

Operating Labor

Supervisor = 15% of Operaing Labor

Maintainence Labor

Operating Materials:

Maintainence Materials:

Electricity:

Purge Gas:

Pilot Gas:

Steam:

Indirect Annual Costs, IC

Cost:

Hours: Rate:

630.0 Hrs/Yr 15.64 $/Hr $ 9,853.20

94.5 Hrs/Yr 15.64 $/Hr $ 1,477.98

547.5 Hrs/Yr 17.21 $/Hr $ 9,422.48

Labor Costs: $ 20,753.66

Price: Annual Usage:

N/A N/A $ 9,422.48

0.00 $/KWHr 0.00 KWHr/Yr $

3.03 $/MCF 0.00 MCF/Yr $

3.03 $/MCF 613.20 MCF/Yr $ 1,858.00

4.65 $/Ib O.OOlb/Yr $

Total Direct Cost: $ 32,034.13

3) d)

3) b)

Overhead:

Administrative Costs:

Property Tax:

Insurance:

Capital Recovery = CRF(Total Capital Cost):

Totral Annual Cost:

0.60 C $ 19,220.48

0.02 C $ 3,916.80

0.01 C $ 1,958.40

0.01 C $ 1,958.40

$ 3,714.00

Total Indirect Cost: $ 30,768.07

Total Non-Labor Cost: $ 42,048.54

$ 62,802.20