Steffes Engineered Flare System

Presented by Todd Mayer, Steffes Corporation

Steffes Engineered Flare System AgendaWhy discuss this?• Regulations put in place last year that required operators to look at gas being vented or

burned on their production sites

Clarification of the specific gases are we talking aboutTypes of devices for burning the gasesTypes of devices required for given production levels

How has Steffes addressed these regulations? • Development of the Steffes Engineered Flare system that will be 3rd party tested in June

2012. This is only one option available to operators. • Combustor, air assist flares, gas assist flares, and multi-orfice flares (not discussing today)

Regulations on bridge load capacity???

What regulations were put in place requiring operators to look at gas being

vented or burned on their production sites?Bakken Pool Oil and Gas Production Facilities Air Pollutions Control Permitting & Compliance Guidance Document• Issued by ND Department of Health, Division of Air Quality• Effective Date May 2, 2011

2 Main Requirements need to be met:• The overall well Potential to Emit (PTE) of VOC, CO, and Nox needs to be less than 100

Tons per Year (TPY) Greater than 100 TPY requires a permit to construct and Title V application.

• Oil Tank Potential to Emit (PTE) of VOCs: Tank PTE < 20 TPY—Ground Flare Acceptable Tank PTE >20 TPY—Utility Flare Required

What regulations were put in place requiring operators to look at gas being

vented or burned on their production sites?

What are VOCs?Volatile Organic CompoundsOrganic Compounds—Compounds containing carbonOne way to destroy VOCs is to burn them using flares. One way flares are rated is their Destruction and Removal Efficiency (DRE). A flare with a 98% DRE is burning 98% of the VOCs contained in the incoming gas.

Sources of VOCS on an Oil SiteOil/Condensate TanksProduced Water TanksTreater FlaresHeater/BurnersTruck LoadingReciprocating Internal Combustion Engine (RICE) Pneumatic PumpsPneumatic ControllersToday we will focus on VOCs from tanks and treater flares

Burning VOCsNorth Dakota specifies 3 classifications of devices for burning VOCs:

Ground Pit Flare (includes, but not limited to pit flares or shop built flares). 90% DRE allowed.Enclosed Smokeless Combustor. 98% Destruction and Removal Efficiency (DRE) allowed.Utility Flare or Other 98% DRE device

At a minimum, all treater gas and tank gas must be burned with a ground pit flare.We will be focusing on the utility flare (the Steffes Engineered Flare is a utility flare) today.

Definition of a Utility Flare (reference 40 CFR 60.18)

Operates with no visible emissions (smoke) except for periods not to exceed a total of 5 minutes during any 2 consecutive hours.Operates with a flame present at all times.Gas exits the flare at a velocity within a specified range.

What control device is needed on a particular site?

The overall well Potential to Emit (PTE) of VOC, CO, and Nox:Needs to be less than 100 Tons per Year (TPY). Greater than 100 TPY requires a permit to construct and Title V application.

Oil Tank Potential to Emit (PTE) of VOCs:Tank PTE < 20 TPY—Ground Flare AcceptableTank PTE >20 TPY—Utility Flare Required

What does all this mean in terms of production numbers?

0 100 200 300 400 500 600 700 800 900 10000

100

200

300

400

500

600

700

800

900Acceptable Combinations of Oil and Gas Flow Rates to stay below 100

TPY Limit of VOC emissions

Average Oil Flow Rate (bopd)

Flar

ed T

reat

er G

as F

low

Rat

e (m

scfd

)

98% DRE Tank Gas, 98% DRE Treater Gas98% DRE Tank Gas, 90% DRE Treater Gas

90% DRE Tank Gas, 90% DRE Treater Gas 90% DRE Tank Gas, 98% DRE Treater Gas

Included in analysis (default values from state):• Treater Flare Gas, Tank Vent Gas,

Treater Burner• And Truck Loading

Example: A well produces an average of 500 bopd during its first month of production. A ground flare is not acceptable because flow is greater than 118 bopd. Allowable treater gas to be burned is 663 mscfd if burned with a utility flare (98% DRE) or 154 mscfd if burned with a ground flare (90% DRE).118 bopd limit for using

a ground pit flare (90% DRE) on tank gas. Above this limit, VOC emissions would be greater that 20 TPY.

What is a Steffes engineered flare?One system to burn both tank and treater gas. Both burners qualify as utility flares (98% DRE).

Also possible to use each burner as a stand alone system Includes ignition system and monitored standing pilotHandles a wide range of gas flow ratesOpen FlareMeets all requirements of EPA 40 CFR 60.18

SmokelessFlame present at all timesExit Velocity Requirements

Simple, Reliable, Easy to Maintain, and SafeA flare that does not run destroys 0% of VOCs

Easy to set-up. Everything is included to make the system work.Options to log or communicate with existing SCADA systems.

Overview of the Flare System

Ignition, Data Logging, and Monitoring

Electric Fencer or Burner

Management System to provide high voltage pulse

to igniter

Thermocouple Data Logger or

SCADA interface

High Temperature

Insulated Stainless Steel

Conductor

Optional pressure gages for system

monitoring

Powder Coated Steel

Stands

Overview of Flare System

Flare and Pilot Tips

High Pressure Treater Gas Tip.

3-8 psi.

Low Pressure Tank Gas Tip. 4 osi

Standing Pilot 8-10 psi

All tips are modular meaning that it is possible to configure to only burn treater gas or to only burn tank gas.

High Pressure Flare TipThe high pressure flare tip is a pressure assisted flare. When gas exits under pressure at a higher velocity than a typical pit flare, it burns with a pale orange smokeless flame.

1. Gas fills main barrel of flare and builds to a pressure of 3 psi. This pressure is based on the weight of the plunger and preload of spring pack.

2. Plunger lifts a distance proportional to the gas flow.

3. Gas exits through the annular gap and is guided upward by the plunger radius. As the gas is guided around the radius, significant combustion air is drawn in prior to ignition.

Low Pressure Flare TipSimilar operation to the high pressure

flare tip, but needs to operate at a much lower pressure to handle tank vent gas.

1. Gas fills main barrel of flare and builds to a pressure of 4 osi. This pressure is based on the weight of the plunger only.

2. Plunger lifts a distance proportional to the gas flow.

3. Gas exits through the annular gap and is guided upward by the plunger radius. As the gas is guided around the radius, significant combustion air is drawn in prior to ignition.

Standing Pilot Overview

Pilot SystemHigh Temperature

Thermocouple

Looking in end of pilot nozzle

High Temperature Ignition Rod

Pilot Gas

Ignition Conductor

Thermocouple

Steffes Engineered Flare

Pilot

Low Pressure Tank Gas High Pressure Treater Gas

Engineered Flare System

Flare Tips in Berm

Electric Fencer

High Pressure Flare Tip Burning Approximately 800 mscfd

Very Low Gas Flow

Low Pressure Flare Tip Burning Approximately 30 mscfd

Low Pressure Tank Vent Gas Flare TipPilot

SummaryToday we have discussed regulations that are in place guiding operators on what needs to be done with gas emitted from production oil sites.

The Steffes Engineered Flare is one tool that is available to help operators meet these regulations. The system will be 3rd party tested in June 2012.

Steffes is working with customers to develop other flaring technologies such as air assist flares, gas assist flares, and multi-orifice flares. More technologies will be introduced as regulations continue to evolve.

QUESTIONS?