# § 

# SLawson
exploration company, inc,


## Thursday, May31 , 2012

Carl Daly, DirectorAir 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 yearof costs, sales, etc. ofthe variables associated with this project.

If you need any further information regarding this issue, please contact me at (720) 259-6402 orvia email atrgorka@slwasoncompanies.com

. Sincerely,

Raymond M. Gorka Environmental/RegulatoryAnalyst Slawson Exploration Company, Inc.

Ene.

Rocky Mountain Division

1675 Broadway, Suite 1600 Denver, Colorado 80202 (303) 592-8880

- FAX (303) 592-8881

### AttachmentA



## STATEMENTOF CERTIFICATION

Icertify underpenalty oflawthatIhavepersonally examined and amfamiliarwith theinformation submitted in this documentandall attachments andthat, basedon myinquiry ofthose individuals immediatelyresponsible forobtaining information, Ibelieve thatthe information is true, accurate, and complete. Iam aware that there are signiticant penalties for submitting false infomlation. including the possibility offine or imprisonment.



# D1:?J6/) 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 SalesTax: 0.03 A 

### $ 77.25 Freight: 0.05A 

### $ 128.75 2) a) Purchased EquipmentCost

# =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 ForShop Manufactured Flare 90% Item: Cost: DirectAnnual Cost, DC: Hours: Rate: Operating Labor 630.0 Hrs/Yr 15.64 

### $ 9,853.20 Supervisor

# =15% ofOperaing Labor 94.5 Hrs/Yr 15.64 $ 1,477.98 Maintainence Labor 547.5 Hrs/Yr 17.21 $ 9,422.48 3) c) laborCosts: $ 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 IndirectAnnual Costs, IC Overhead: 0.60 C $ 19,220.48 Administrative Costs: 0.02 C $ 95.41 PropertyTax: 0.01 C $ 47.70 Insurance: 0.01 C $ 47.70 Capital Recovery

# =CRF(Total Capital Cost): $ 3,714.00 Total IndirectCost: $ 23,125.29 3) d) Total Non-laborCost: $ 34,405.76 3) b) Totral Annual Cost: 

### $ 55,159.42Question: Items: Zeeco Inc. MJ Flare 98% Cost: Purchased EquipmentCosts: 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 SalesTax: 0.03 A $ 1,343.90 Freight: 0.05A $ 2,239.83 2) b) Purchased EquipmentCost - 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 ForZeeco Inc. MJ Flare 98% Item: Cost: DirectAnnual Cost, DC: Hours: Rate: Operating Labor 630.0 Hrs/Yr 15.64 $ 9,853.20 Supervisor

# =15% ofOperaing Labor 94.5 Hrs/Yr 15.64 $ 1,477.98 Maintainence Labor 547.5 Hrs/Yr 17.21 $ 9,422.48 3) c) LaborCosts: $ 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 DirectCost: $ 32,034.13 IndirectAnnual Costs, IC Overhead: 0.60 C $ 19,220.48 Administrative Costs: 0.02 C $ 1,659.80 PropertyTax: 0.01 C $ 829.90 Insurance: 0.01 C $ 829.90 Capital Recovery

# =CRF(Total Capital Cost): $ 3,714.00 Total IndirectCost: $ 26,254.08 3) d) Total Non-LaborCost: $ 37,534.55 3) b) Totral Annual Cost: 

### $ 58,288.20Cost: Question: Items:

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: DirectAnnual 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:

IndirectAnnual 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: PropertyTax: Insurance: Capital Recovery = CRF(Total Capital Cost):

Totral Annual Cost: 0.60 C 

### $ 0.02 C 

### $ 0.01 C 

### $ 0.01 C 

### $ 

### $ Total IndirectCost: $ Total Non-LaborCost: $ 

### $ 19,220.48 2,074.18 1,037.09 1,037.09 3,714.00 27,082.84 38,363.31 59,116.96Cost:

3,575.00 2,974.83 Question: Items:



### 2)d) 2) 

### e)

2) 

### c) VRU Engineered Concepts 98% Purchased EquipmentCosts: Vapor Recovery Unit Auto-Ignition System: Monitoring System: Auxilary Equipment: (Includes KO Drum and Internal Piping)

Istrumentation: SalesTax: Freight: 5um=A 0.10A 0.03 A 0.05 A Purchased EquipmentCost= B $ 99,161.00 

### $ $ 

### $

$ 105,710.83 $ 10,571.08 $ 3,171.32 $ 5,285.54 $ 124,738.78

$ 195,839.88 

### 2) 

### f) 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 ForVRU Engineered Concepts 98% Item: DirectAnnual Cost, DC: Operating Labor Supervisor

### =15%ofOperaing Labor Maintainence Labor
Operating Materials: Maintainence Materials: Electricity: Purge Gas: Pilot Gas: Steam:

IndirectAnnual 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 LaborCosts: $ 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 DirectCost: $ 32,034.13

3) d) 3) b) Overhead: Administrative Costs: PropertyTax: 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 IndirectCost: $ 30,768.07 Total Non-Labor Cost: $ 42,048.54 

### $ 62,802.20