# Date: February 26, 2015 Meeting: ExxonMobil!Methane Rule(s) Discussed: Written Materials? Yes/No Name Organization Phone Number 

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# • Subsidiary of ExxonMobil Corporation

• Founded in 1986 in Fort Worth, Texas

• Over 5,000 employees • 7 Divisions across the US, Canada, & Argentina

• USA's leading oil and natural gas producer

• Large unconvent i onal portfolio 2 

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# ExxonMobil Subsidiary

# Views 

# i!!Pv Sound science approach . Seeking outcomes that achieve regulatory objectives and enable business sustainability . New Sources

: VOC regulation with methane co-benefit supports the existing regulatory framework (NSPS 0000

, NSPS 1111 and JJJJ, NESHAP HH and ZZZZ)

• Oil well reduced emission completions (REC)

• Pneumatic Pumps

- Limit to large diaphragm size pumps

• Equipment leak detection

- Method flexibility and program efficiency for production sites Existing Sources

: • Formalizing a company program • IR Camera leak detection and repair/replace (valves, flanges , seals

, PRVs)

• High bleed pneumatic controller replacement Engage on Ozone NAAQS, DOT Natural Gas P/L safety standards , and BLM flare/vent order

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## An 

# ExxonMobil Subsidiary

## Informed by recent studies 

# ;[!Pv 2013 ExxonMobil Life Cycle Assessment confirms natural gas has a 50 °/o lower GHG footprint relative to coal and a similar footprint to conventional gas

. 2013-2014 University of Texas Direct Methane Measurement studies indicate methane leakage from well pads is -0.4 %> of production and i dentifies a ' fat tail ' distribution for several sources

. 2013-2014

University of Texas Phase 1 and Phase 2 Studies- 0

. 4° /o leakage rate

• Pneumatics : 96 °/o of emissions from 20 °/o of sources

• Unloadings : 65-83°/o of emissions from 20°/o of (different plunger lift sources) 2014 American Geophys i cal Union -City of Fort Worth Study

-

•

Production : 99 .4°/o of emissions from 0

. 3 °/o of devices. Pneumatics , tanks 2015 Colorado State and Environmental Defense Fund

• Gathering & Processing

- 80°/o emissions from 30 °/o sources ; < 1 °/o Leakage

• Transmission & Distribution

- 50° /o emissions from 1 0 °/o sources 2015 NOAA Study reveals over half of US shale gas production with leakage rate averaging 1.1 °/o which is comparable to the 1

. 0 o/o calculated from the EPA 2012 GHG bottom up emissions inventory for natural gas systems

. 4 An ExxonMobil Subsidiary

# New Sources Oil well reduced emission completions (REC) Pneumatic Pumps

- Limit to large diaphragm size pumps Equipment leak detection

- Method fle x ibility and program efficiency for production sites
• Ability to monitor and repair at production sites (find and fix) • Effectiveness to detect most emissions and definitely fat tail emissions • Fit-for-purpose monitoring and documentation 5 '• ' **-~** 

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# ;ltg FLIR Infrared Camera IR Camera Image

- PRV 

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## ExxonMobil Subsidiary

## Leak Detection

- State Rules and Conditions 

# ;{!~ Wyoming (Upper Green River Basin)
• Requires operators to implement LDAR on a quarterly basis with infrared cameras (IR) or other hydrocarbon detection instruments . Colorado • Requires LDAR for all sources on various frequencies (IR or Method 21 allowed) . Pennsylvania • Initial LDAR demonstration for new wells. Annual LDAR requirement for all unconventional wells and associated equipment. Quarterly LDAR for compressor stations and processing facilities . (IR allowed) Ohio • LDAR general permitting conditions at new unconventional oil and gas wells on a quarterly basis

. (IR allowed) 6 IR Camera Image

- Before IR Camera Image -After An 

### ExxonMobil Subsidiary

# Existing Sources Company driven program (Voluntary) Pneumatic Controllers- High bleed replacement and ensuring functionality . Equipment leak detection

- Method flexibility and program efficiency • • 

## Monitor and repair using IR camera to effectively eliminate fat tail and other leaks Fit-for-purpose monitoring and documentation Other Proposed Rulemakings Ozone NAAQS DOT Natural Gas P / L safety standards 

# rBLM FlareNent Order 

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# ;[!9 Estimated Annual Emissions from Upstream Natural Ga s

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lftol.-- ) 510 Other Dewlcai!O Total of 2180 §g or 0 .3 8% of 2012 U.S

. natural gas withdrawals and production **1~** 

# An ExxonMobil SubsidiaryBLM: Onshore Order 9 Update: Flaring and Venting 

### ~TO **~~ RGY**  Focus : Waste Prevention/Royalty Assurance and Methane. Timeline? Casinghead gas flaring is typically due to infrastructure, line/plant capacity issues

, or low volume . New Sources • Completions: Regulated by NSPS 0000 via reduced emission completions (REC) and flaring . Oil well completion requirements are expected to mimic NSPS 0000 gas well completion requirements

. •

Storage vessels and pneumatic controllers are appropriately regulated by NSPS 0000

.

•

Liquid unloadings: A plunger lift is a well optimization device in which its design is determined by reservoir and wellbore characteristics. Unloading frequency can range from annual to several times/day Existing Sources • Voluntary programs are most effective means for reducing methane

. IR camera focus has enabled ability to eliminate fat tail. 8 An ExxonMobil Subsidiary

# Upcoming and Proposed Studies Top-Down and Bottom-Up Reconciliation NREL/Colorado School of Mines Study 

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- Negotiating faci lit y access for aircraft and mobile vehicle measurements

- Soliciting for industry participation Penn State / DOE Study - Marcel lu s Basin tower, aircraft , and mobile vehicle measurements

- First study t o address methane seeps

- Soliciting for industry participation Methane Monitoring and Measurement Petroleum Environmental Research Forum (PERF)

- Study led by Chevron; includes Los Alamos NL 

## & NASA Jet Propulsion Lab

- Methane sensor development and measurement study ExxonMobil research program focus on methane 9 

## An ExxonMobil Subsidiary