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# / R Incorporated Providing Environmental Technical Support Since 1989

501 Eastowne Drive, Suite 25 0  Chapel Hill, North Carolina 2751 4

Telephone: (919)484

- 0222  Fax: (919) 484

- 0122 MEMORANDUM

Date: May 28 , 2010

Subject: Summary of the March 1 8 , 2010 Meeting Between the EPA and BP

Representatives Regarding the Exploration and Production Segments of

the Oil and Natural Gas Industry

From: Robert Vogt, EC/R Incorporated

To: Bruce Moo re, EPA/OAQPS/SPPD/CCG

I. PURPOSE

The purpose of this memorandum is to summarize the March 1 8 , 2010 meeting between

the Environmental Protection Agency (EPA) and industry representatives from BP. The purpose

of the meeting wa s to gain information about the e xploration and production segments of the Oil

and Gas Industry.

II. DATE

The meeting took place on March 1 8 , 2010 from 9:00 a.m. to 12:30 p.m. at the United

States Environmental Protection Agency in Research Triangle Park, North Carolina.

III. ATTENDEES

The fo llowing individuals participated in the meeting.

BP

Dana Wood, Sr. Environmental Technical Advisor

Karen St. John, Director, Regulatory Affairs

Reid Smith, Sr . Environmental Advisor

U.S. Environmental Protection Agency (EPA /OAQPS )

Alex MacPherson , Health and Environmental Impacts Division, Air Benefit and Cost Group

Bruce Moore , Sector Policies and Programs Division, Coatings and Chemicals Group

David Salman

, Sector Policies and Programs Division, Coatings and Chemicals Group

David Solomon , Sector Policies and Programs Division, Program Design Group

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# / R Incorporated Providing Environmental Technical Support Since 1989

501 Eastowne Drive, Suite 25 0  Chapel Hill, North Carolina 2751 4

Telephone: (919)484

- 0222  Fax: (919) 484

- 0122 Jodi Howard , Sector Policies and Programs Division, Coatings and Chemicals Group

Nick Parsons , Sector Poli cies and Programs Division, Coatings and Chemicals Group

Rachel Agnew , Sector Policies and Programs Division, Measurement Policy Group

EC/R Incorporated

Heather Brown

Phil Norwood

Robert Vogt

IV. SUMMARY OF DISCUSSION

Mr. Smith led the discussion using a P owerPoint presentation on the existing information

sources from the Exploration and Production segment of the Oil and Gas Industry (See

Attachment 2 ) . Th e sources identified in Mr. Smith’s presentation include d details on the

Western Regional Air Partnersh ip (WRAP) Phase II and Phase III emissions inventor y , the

Central Regional Air Planning Association (CENRAP) o il and gas emissions inventory , the Four

Corners Interagency Air Quality Task Force emissions inventory , and environmental impact

statement emissi ons inventories

. Smith’s discussion focused mainly on the WRAP and Four

Corners Interagency Air Quality Task Force studies

. The WRAP and the Four Corners Task

Force utilized local equipment counts and activity survey data from permitted and unpermitted

sou rces within participating states , as well as equipment manufacturer data to calculate emissions

estimates for criteria pollutants, including NO

x , SO

x , VOCs , and GHGs

. The WRAP identified

the following as pollutant sources for Phase III assessment and emiss ions estimates:

 Well Completions

 Fugitive Emissions

 Completion Venting

 Well Blowdowns

 Dehydration Units

 Amine Units

 Hydrocarbon Liquid Loading

 Landfarms

 Water Treatment/Injection

 Flaring

 Pneumatic Devices

 Produced Water Tanks

 Truck Hydrocarbon Loading

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# / R Incorporated Providing Environmental Technical Support Since 1989

501 Eastowne Drive, Suite 25 0  Chapel Hill, North Carolina 2751 4

Telephone: (919)484

- 0222  Fax: (919) 484

- 0122 Under Phase III, the WRAP is gathering detailed data for all these emission sources. At

this time, Phase III baseline and projection studies have been completed for the Denver

Julesburg Basin, the Piceance Basin, The Uinta Basin, the North San Juan Basin, and the South

Sa n Juan Basin. The study area encompasses Colorado, Montana, New Mexico, North Dakota,

Utah, and Wyoming.

Smith stated that regional air emissions modeling studies such as the WRAP and the Four

Corners Interagency Air Quality Task Force are essential for establishing baseline and future

data on oil and gas emissions sources and quantities. Mr. Smith also expressed the importance of

incorporating basin

- specific data, including oil and gas stream composition, to make more

accurate calculations of air emissi ons from the oil and gas industry

.

Mr. Smith continued the discussion of Oil and Gas exploration and production by

outlining the typical life c ycle of an oil or gas well , focusing on events that result in air

emissions

. The typical trajectories of wel l operations were described as follows :

a) Initial s eismic / geological studies, well exploration

b) Site construction and drilling pad placement

c) Drilling rig placement

d) Installation of well casing

e) Commencement of drilling

f) Hydraulic f

racture well stimulation

g) Ga s well flaring

h) Well completion

i) Well cleanup

j) Commencement of production phase

k) Liquid/gas separation

l) Refracturing

m) Well workovers

n) Product transmission

o) Well decommissioning

More detailed discussions were held on the following topics :

 Unconventional well drilling practices

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# / R Incorporated Providing Environmental Technical Support Since 1989

501 Eastowne Drive, Suite 25 0  Chapel Hill, North Carolina 2751 4

Telephone: (919)484

- 0222  Fax: (919) 484

- 0122  Well completions and cleanups

 Typical life cycle of a well

 Hydraulic fracturing

 Quality of air emissions data sources