Revised Draft Regulation for Greenhouse Gas Emission ... · PDF file1 Public Workshop Revised...
Transcript of Revised Draft Regulation for Greenhouse Gas Emission ... · PDF file1 Public Workshop Revised...
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Public Workshop
Revised Draft Regulation for Greenhouse Gas Emission Standards for
Crude Oil and Natural Gas Facilities
California Air Resources Board Sacramento, California
February 4, 2016
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• Background • Gas Storage Facilities Update • Revised Draft Regulation • Emissions, Reductions, and Costs • Next Steps
Agenda
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Background
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• This draft regulation addresses fugitive and vented emissions from new and existing oil and gas facilities.
• ARB working with air districts to develop control strategies and to craft ways to implement and enforce the new standards.
• ARB also working with US EPA, industry, environmental groups, and other stakeholders to quantify emissions and evaluate different control strategies.
Background
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• August 2014 workshop – Background and kick off
• December 2014 workshop – Source category proposals – Standardized Regulatory Impact Assessment (SRIA) – Environmental Analysis (EA)
• April 2015 workshops (Sacramento & Bakersfield) – Draft regulatory language
Background
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Gas Storage Facilities Update
• Aliso Canyon leak
• DOGGR emergency regulations – ARB working with DOGGR on evaluating
monitoring plans
• This regulation will address early detection and emission reductions for future large leaks
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Revised Draft Regulation
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Overview • Staff received 13 feedback letters in response
to the April 22, 2015 draft regulation.
• Staff has also been working with the local air districts on the requirements and on the implementation and enforcement provisions.
• Feedback submitted is reflected in this revised draft regulation.
Revised Draft Regulation
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• Separator and Tank Systems • Flash Analysis Testing • Vapor Collection Systems & Vapor Control Devices • Circulation Tanks for Well Stimulation Treatments • Reciprocating Compressors • Centrifugal Compressors • Pneumatic Devices and Pumps • Liquids Unloading of Gas Wells • Leak Detection and Repair • New Requirements for Natural Gas Storage Facilities • Implementation & Enforcement
Revised Draft Regulation
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Basic Requirements:
• Applies to separators and tank systems without a vapor collection system.
• Requires flash analysis testing to determine annual methane emissions.
• Systems tested above 10 MT CH4/Yr required to add a vapor collection system.
Separator and Tank Systems
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Major Revisions:
• Clarified terms to better describe separators, tanks, and sumps subject to the vapor collection system requirements.
• Added exemption for systems already controlled using a vapor collection system or that do not contain oil, condensate, or produced water.
Separator and Tank Systems
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Major Revisions (continued):
• Clarified that separators, tanks, or covered sumps subject to these vapor collection requirements must comply with LDAR requirements.
• Clarified when flash testing is required.
Separator and Tank Systems
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Basic Requirements • Requires crude oil, condensate, and produced
water sampling to determine annual methane emissions.
Major Revisions:
• Clarified the two different sampling methods. • New proposed quality control/assurance
requirements for laboratories. • New proposed equipment specifications and
flash analysis procedure for laboratories.
Flash Analysis Testing
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Basic Requirements:
• Collected vapors required to go to one of the following:
– Existing sales gas system – Existing fuel gas system – Existing underground injection well
• Facilities without one of the existing systems are required to install a new vapor control device.
Vapor Collection Systems and Vapor Control Devices
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Major Revisions:
• In non-attainment areas, new proposed NOx standard for any vapor control device receiving vapors related to requirements of this regulation
– Proposed standard allows for the use of a microturbine or a low-NOx incinerator
• Proposal designed to control methane and lower overall NOx emissions while allowing facilities to operate normally.
Vapor Collection Systems and Vapor Control Devices
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Circulation Tanks for Well Stimulation Treatments
Basic Requirements: • Applies to tanks used for well stimulation
treatments only. • Requires tanks to be controlled for vapors.
Major Revisions:
• New proposed LDAR requirements to demonstrate that tanks comply with leak standards.
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Basic Requirements:
• Production field units subject to LDAR testing and 1000 ppmv leak standard per US EPA Method 21 test method.
• All other units also subject to LDAR, but must also measure annual flow rate, and are subject to a 2 scfm replacement standard.
Reciprocating Compressors
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Major Revisions:
• Replaced horsepower rating with type of facility where compressor is used: – Production facilities – Gathering and boosting stations, underground
storage facilities, processing plants, transmission compressor stations
• Rod packing/seal testing requirements clarified. • Clarified that all components are subject to
LDAR testing requirements.
Reciprocating Compressors
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Basic Requirements:
• Compressors with wet seals required to collect vent gas or install a dry seal system.
Major Revisions:
• New proposed wet seal emissions standard and testing requirements.
• New proposed deadline to replace wet seals with dry seals if emissions are not controlled.
• Clarified that components are subject to LDAR.
Centrifugal Compressors
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Basic Requirements: • No bleed or no vent devices required for
continuous bleed devices, or required to use a vapor collection system.
Major Revisions:
• New proposal to allow for low-bleed devices installed before January 1, 2015.
– Low-bleed devices must be tagged/identified • All devices subject to testing requirements.
Pneumatic Devices & Pumps
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Basic Requirements:
• Applies to natural gas wells that are vented to remove accumulated liquids.
• Facilities must capture gas or report emissions.
Major Revisions:
• Added option to use ARB Mandatory Reporting calculation method to estimate emissions.
• New requirement to report equipment used to automatically perform liquids unloading.
Liquids Unloading of Gas Wells
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Basic Requirements:
• Designed to integrate methane components into existing local district LDAR programs.
• Applies to all oil and gas facilities regardless of size or annual throughput:
– Quarterly testing required – US EPA Method 21 test method required
• 1000 ppmv minor leak threshold.
Leak Detection and Repair
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Major Revisions:
• Modified testing frequency and test procedure requirements from:
– Annual Method 21 testing; or, – Quarterly Optical Gas Imaging with Method 21
measurements. • Clarified that requirements do not apply to
components already subject to a local district LDAR program.
• Added new audio-visual inspection requirement.
Leak Detection and Repair
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Major Revisions (continued):
• New proposal to allow facilities that comply with standards to go to annual testing.
• New proposed phase-in standard provides time for facilities to comply with minimum standard.
• Critical component definition and requirements modified.
• Clarified that casing leaks are subject to LDAR.
Leak Detection and Repair
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• DOGGR emergency regulations require a monitoring plan. Need for permanent requirement for early detection of leaks both at wellhead and surface.
• Coordinating with DOGGR
• Requesting stakeholder feedback
New Proposed Natural Gas Storage Facility Requirements
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New Leak Emission Reduction Concept
• Require emission reductions if there is a
large methane leak at any facility covered by this regulation.
• Options include: – Specific emission reduction projects – Development of an emission reduction plan – Other ideas?
• Requesting feedback 26
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Basic Requirements:
• All equipment subject to the proposed regulation must be registered or permitted to ensure compliance with the regulation.
• Only equipment types now under permit must amend their permits.
• All facilities must register with ARB, unless district permit or registration program collects and shares information with ARB.
• Each facility is subject to enforcement action.
Implementation and Enforcement
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Major Revisions:
• Permit section modified to allow facilities and districts to update permits during next renewal cycle.
• Registration section modified to require registration by January 1, 2019.
• New proposed enforcement section that creates separate violation for each metric ton of methane emitted.
Implementation and Enforcement
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Emissions, Reductions, and Costs
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Summary
Category Methane Emission
Reductions (MTCO2e, GWP=72)
Cost per Ton with Natural Gas Savings
($/MTCO2e) Separator & Tank Systems 538,000 $7
Circulation Tanks 5,000 $34
Reciprocating Compressors 67,000 ($0)
Centrifugal Compressors 3,000 ($2)
Pneumatic Devices and Pumps
319,000 $0
LDAR 220,000 $37
Total 1,152,000 $11
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General Approach
• Used best available data for the source category.
• Costs from ICF’s report (Economic Analysis of Methane Emission Reduction Opportunities in the U.S. Onshore Oil and Natural Gas Industries), EPA, and industry.
• Annual costs include one-time costs annualized over lifetime of equipment and annual recurring costs (O&M, labor, etc.).
• Still finalizing.
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Separator and Tank Systems
• Used ARB survey data and ARB and industry flash emission results
• Costs from ICF, EPA Natural Gas Star, and equipment manufacturers
• Vapor recovery added to over 300 uncontrolled tanks over 10 MT CH4/yr at about 20 facilities
• About 10 flares removed and replaced by low-NOx incinerators at about 10 facilities
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Separator and Tank Systems
Methane emissions (MTCO2e, GWP = 72)
566,000
Methane reductions (MTCO2e, GWP = 72)
538,000
Total annual costs $4,674,000 Total annual savings $653,000 Cost per Ton ($/MTCO2e reduced)
$9
Cost per Ton with natural gas savings ($/MTCO2e reduced)
$7
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Circulation Tanks
• Used recent industry source testing data for emissions.
• Used DOGGR data for counts
• Used costs from ICF and equipment manufacturer
• Estimated would need eight control systems statewide
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Circulation Tanks
Methane emissions (MTCO2e, GWP = 72)
5,200
Methane reductions (MTCO2e, GWP = 72)
4,900
Total annual costs $186,000 Total annual savings $17,000 Cost per Ton ($/MTCO2e reduced)
$38
Cost per Ton with natural gas savings ($/MTCO2e reduced)
$34
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Reciprocating Compressors
• Used ARB survey data for counts, utility data reported to ARB for emissions, and ICF for costs
• Estimating replacement of about 90 rod packings per year for the over 1,000 cylinders on more than 300 non-production field compressors
• Production field compressors’ component counts added to LDAR
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Reciprocating Compressors
Methane emissions (MTCO2e, GWP = 72)
426,000
Methane reductions (MTCO2e, GWP = 72)
67,000
Total annual costs $203,000 Total annual savings $230,000 Cost per Ton ($/MTCO2e reduced)
$3
Cost per Ton with natural gas savings ($/MTCO2e reduced)
($0)
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Centrifugal Compressors
• Follow up on ARB survey data showed only one remaining centrifugal compressor with wet seals
• Emissions estimated from operator data
• Costs come from ICF report, which matched operator estimates
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Centrifugal Compressors
Methane emissions (MTCO2e, GWP = 72)
3,600
Methane reductions (MTCO2e, GWP = 72)
3,450
Total annual costs $4,000 Total annual savings $12,000 Cost per Ton ($/MTCO2e reduced)
$1
Cost per Ton with natural gas savings ($/MTCO2e reduced)
($2)
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Pneumatic Devices and Pumps
• ARB surveys for counts and API and EPA for emission factors
• ICF and Natural Gas Star for costs
• Estimate replacing about 1,300 pneumatic devices and pumps with no bleed
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Pneumatic Devices and Pumps
Methane emissions (MTCO2e, GWP = 72)
319,000
Methane reductions (MTCO2e, GWP = 72)
319,000
Total annual costs $1,153,000 Total annual savings $1,043,000 Cost per Ton ($/MTCO2e reduced)
$4
Cost per Ton with natural gas savings ($/MTCO2e reduced)
$0
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Leak Detection and Repair
• Used ARB survey data for counts of components not already being inspected by districts
• Used API component emission factors and “high leaker” emission factors
• Used ICF report for costs and emission reductions, and LDAR contractors for labor hours
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Leak Detection and Repair
Methane emissions (MTCO2e, GWP = 72)
366,000
Methane reductions (MTCO2e, GWP = 72)
220,000
Total annual costs $8,902,000 Total annual savings $756,000 Cost per Ton ($/MTCO2e reduced)
$40
Cost per Ton with natural gas savings ($/MTCO2e reduced)
$37
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Next Steps
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Next Steps
• Requesting feedback on this revised draft regulation by February 18, 2016.
• 45-day comment period with Staff Report and Environmental Analysis begins April 1, 2016.
• Board Meeting May 19, 2016.
• Second Board Meeting tentatively scheduled for September 2016.
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ARB Contacts
Jim Nyarady, Manager, Oil & Gas Section (916) 322-8273 or [email protected] Carolyn Lozo, Manager, Program Assessment Section (916) 445-1104 or [email protected] Joe Fischer, Lead, Oil & Gas Regulation (916) 445-0071 or [email protected] Chris Hurley, Lead, Cost Estimates (916) 324-8178 or [email protected]
Web Site: http://www.arb.ca.gov/oil-gas/oil-gas.htm