Date: February 26, 2015 

Meeting: ExxonMobil!Methane 

Rule(s) Discussed: 

Written Materials? Yes/No 

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XTO Energy Overview 

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" Eagle Ford 

XTO at a Glance 

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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 unconventional portfolio 

2 An ExxonMo
Views 

Sound science approach. Seeking outcomes that achieve regulatory objectiv

business sustainability. 

New Sources : VOC regulation with methane co-benefit supports the existing 

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 pr

Existing Sources: 

• Formalizing a company program 

• IR Camera leak detection and repair/replace (valves, flanges, seals, P

• High bleed pneumatic controller replacement 

Engage on Ozone NAAQS, DOT Natural Gas P/L safety standards, and BLM 

3 An ExxonMo
Informed by recent studies 

2013 ExxonMobil Life Cycle Assessment confirms natural gas has a 50°/o lower 

relative to coal and a similar footprint to conventional gas. 

2013-2014 University of Texas Direct Methane Measurement studies indicate m

from well pads is -0.4%> of production and identifies a 'fat tail' distribution for se

2013-2014 University of Texas Phase 1 and Phase 2 Studies- 0.4°/o leakage ra

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

• Unloadings : 65-83°/o of emissions from 20°/o of (different plunger lift sou

2014 American Geophysical 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 ra

1.1 °/o which is comparable to the 1.0o/o calculated from the EPA 2012 GHG botto

emissions inventory for natural gas systems. 

4 An ExxonMo
New Sources 

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 

• 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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FLIR Infrared C

IR Camera Image 

An ExxonMo
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 Camer

IR Came

An ExxonMo
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 I 

Estimated Annual Emissions from Upstream Nat

7 

P d t• S ·t ' th U 't d St t 

ro UC IOn ec or In e nl e a es 

(Gg Methane) 

Total of 2180 §g or 0.38% of 2012 U.S. natural gas with

An ExxonMo
BLM: Onshore Order 9 Update: Flaring and Ventin

Focus: Waste Prevention/Royalty Assurance and Methane. Timeline? 

Casinghead gas flaring is typically due to infrastructure, line/plant capacity issues

volume. 

New Sources 

• Completions: Regulated by NSPS 0000 via reduced emission completions 

flaring. Oil well completion requirements are expected to mimic NSPS 0000 

completion requirements. 

• Storage vessels and pneumatic controllers are appropriately regulated by NS

• Liquid unloadings: A plunger lift is a well optimization device in which its desig

determined by reservoir and wellbore characteristics. Unloading frequency ca

annual to several times/day 

Existing Sources 

• Voluntary programs are most effective means for reducing methane. IR came

enabled ability to eliminate fat tail. 

8 An ExxonMo
Upcoming and Proposed Studies 

Top-Down and Bottom-Up Reconciliation 

NREL/Colorado School of Mines Study 

- Negotiating facility access for aircraft and mobile vehicle meas

- Soliciting for industry participation 

Penn State/DOE Study 

- Marcellus Basin tower, aircraft, and mobile vehicle measurem

- First study to 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 P

- Methane sensor development and measurement study 

ExxonMobil research program focus on methane 

9 An ExxonMo