Challenge

Demonstrate an implementable product that provides multiple capabilities to producing assets that will:

Enhance Safety for Field personnelMonitor emissions for Safety notification and Regulatory requirementsProvide archived performance and compliance metricsIntegrate into the Control System and Control System PhilosophyShut down critical equipment with crisis emission event encounteredOperate to – 45oF

Solution

ALERT PLUS, LLC

Matt Murdock, Chief Operating Officer

Pinedale, WY 82941

(307) 749-0615

info@alert-plus.com

Alert Plus Aegis 400 Remote Emission Monitoring Station

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AAgenda Coverage

Aegis 400 Remote Monitoring emissions stationProduction Resource Coverage ; Production Supply ChainProduction problem the Aegis solvesMethod alignment with existing compliance methodsExisting Regulatory Compliance and trendsExisting Oil and Gas Methods that Aegis attainsSafety and operations benefitsROI categories for Aegis implementationWork Process Summary of Aegis; implementation andoperationsAegis shutdown technologySummary

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Up and Down the Supply and Production Stream

Where does the Aegis 400 provide benefit ?

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Problem: Monitor and manage fugitive emissions that mitigateoperation, production loss, and safety risk.

Solution:Aegis 400 detects excessive emission events, logs it, andactivates alarms to stakeholdersSite assets shut down if factored in alarm/operationphilosophy.SOP is preserved with data log and data analytics accessCost effective. Fund it with Control System budgetDemonstrable as risk monitoring and assessment resource forRule 49 related operations

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The Regulatory Management Challenge:

What are existing and evolving requirements and howto factor into Operations implementation

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Methane and VOC Emission Sensing

Both Wyoming and Colorado lead to set regulatory andperformance requirementsLDAR at compressor stations and production facilitiesMethod set to identify high emission assets and develop aprogram to mitigate itSuccinct process to assess emission leaks and resolve themStorage Tank Emission Management (STEM) with remoteemission monitoringLeak repair response and recordkeepingProducers have a good knowledge base of where high emittersare in the systemEmphasis on risk assessment and management

*Some content from Mike Silverstein, Colorado Department of Public Health and Environment

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Methane and VOC Emissions - Trends

Other states are establishing emission performance rules: OH,WY, CAColorado methods are akin to a Best PracticeEPA has just released NSPS0000a. Ratification is gearedtowards 2016CTG is released for ozone attainment initiativesThe impetus for emission management is risk assessment andthe risk mitigation plans to protect.Site based solutions that provide continuous monitoring, alert,mobile accessibility, and archival knowledge base harmonizewell with evolving and present regulations

*Some content from Mike Silverstein, Colorado Department of Public Health and Environment

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Integrity Management. Aegis is a tool to fulfillTitle 49 CFR Part 192 (Gas operations)

Established management method for operational risk assessment setby DOT/PHMSA for Midstream.The Risk assessment philosophy can be applied to ProductionoperationsApply the existing precedent for risk based methods to Safety andEmissions management criteriaLifecycle management drives the need for operational risk review.Regular risk review and mitigation (yearly)Objectives• To perform integrity assessments of pipelines in locations where a pipeline

failure could have significant adverse consequences (referred to as HighConsequence Areas or HCAs).

• To improve operator management, analytical, and operational processes tomanage pipeline integrity.

• To increase government’s role in the oversight of operator integritymanagement programs and activities.

• To improve public confidence in pipeline safety.http://primis.phmsa.dot.gov/comm/IM.htm?nocache=8834

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Integrity Management. Aegis is a tool to fulfill

Title 49 CFR Part 192 (Gas operations) (Taken directly from the Rule)

This is Where the Risk Analysis Program Element Comes InComprehensive and systematic risk analysis is a valuable tool to helpoperators identify and determine the significance of previouslyunrecognized threats. Through rigorous analysis of all available data,pipeline operators are required to identify and evaluate all potentialprecursors to pipeline failure and the risks that they pose. Operatorsmust also identify and implement additional preventive or mitigativemeasures to address the most significant threats identified by the riskanalysis. These measures would be dependent on the nature of thethreat and the specifics of the operator’s pipeline system and itsoperation. Some examples include: enhancing damage preventionprograms; improving corrosion control monitoring; enhancing controlcenter operator training; improving leak detection system capability;conducting emergency drills with local emergency responders; andinstalling remotely operated valves to expedite the isolation of a leak orfailure when one is discovered.

http://primis.phmsa.dot.gov/comm/IM.htm?nocache=8834

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Integrity Management. Aegis 400 as an Alarm Alert

ANSI/ISA 18.2 Alarm Management Life-cycle

Emissions Remote Monitoring extends Alarm Management toproduction assets to extend integrity management.Operations unify Control and Situation assessmentAdditional Stake holders provide for comprehensive situationassessment

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Problem: Field emission events create safety threats forField Personnel and communities

Solution:Emission events alert Control Operations and ManagementResponse team is able to be alerted remotelyService Team can check emission levels before entering siteAll response actions are able to be logged, linked to the event,and recorded in data archive

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SRemote Emission and Safety Triage

System level Alert that drives SOP responseRemote access to incident data to drive priority and resourcedecisionsField personnel access emission levels to determineaccessibility to site for service

Crisis Management,

Operations Improvement,

Emergency Response Team

Operations Management

Field Operations

EmissionsOr

Safety Alert

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Proactive Safety Management for Field Emission risks

Demonstrate this to any and all stakeholders as risk mitigation.Gain visibility to Community and Compliance efforts with theinvestmentEvidence of strong company commitment for stewardship

Emission and safety

incident avoidance

Production Operations

Stewardship to community

and lands

Demonstrable archive of

performance

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Problem: How is the Aegis 400 an incremental assetmonitoring resource to present resources ?

Solution:

Aegis 400 is a networked, fixed emission monitoring systemInstantaneous alarm alert notification to stake holders andcontrol operationsAegis product philosophy is compatible with ControlPhilosophy (alarm and event driven action SOP)Data log provides an operations work response archive

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0Return on Investment Opportunities for the Aegis 400

Economically PricedEfficient implementationIntegrate-able with existing assets andcontrol systemsWork Process improvementLoss recoverySafety incident avoidanceRegulatory issue avoidanceDemonstrable as good faith investmentfor Community and BLM

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0Implementation Work Process with the Aegis 400

Identify site emission coverage requirements

Power availability plan for site coverage

Estimate 2 Hours completion time for installation

Identify locational and resource elements and installation is completed quicklyDetermine if a stand alone monitoring station or connection to Control NetworkQuarterly calibration cycle – to integrate with other site based service requirementsSensors to be replaced at 2 – 5 year increments depending on sensor types

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TSWork Process – Assessment and Incident Handling

Emission or Safety Alert

• Remote notification; alert through control network or broadcast

• Stake holders notification

• Trigger SOP (standard operating procedure)

Assess, Deploy

• Does SOP match the alert scope details ?

• Modify the response team to match the threat and incident scope

• Respond accordingly to the threat level alerted

Resolve, Document

• Team deployed matches the scope of the threat . Cost management

• Responsiveness matches the SOP outlined as is documented as such

• Archived alert, response, and closure. Lessons learned can be applied

This is a repeatable Integrity Management processProcess and response discipline is maintainedPotential ROI with dispatch of resources to match the data analysis of the threat alert

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Problem: Cold temperature operations are a challengefor monitoring conditions and operations

Solution:Aegis 400 is a networked, fixed emission monitoring systemOperating temperature range is -45oF to 150oFAlert Plus continues to characterize for even lower operatingtemperatures

Much of NG production exists in cold weather

regions

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Problem: There are other data collection resources anddevices at site locations. How to consolidate ?

Solution:Aegis 400 is a networked, fixed emission monitoring systemMultiple channels enable integration of multiple datacollectionThe Aegis 400 is a PLCProbe data is able to be integrated into channel data collectionon the Aegis 400

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NShut down operations remotely or automatically

Proprietary valve provides “control & command”functionality in one package in extreme conditions.

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Alert Plus Aegis 400

Remote Emission Monitoring Station

Cold Weather Operation to – 40oF

Automatic asset shut down triggered by alarmed emission event

Operation philosophy integrates with CRM and control operation philosophy

Can be integrated into Control system as a PLC

Utilize as continuous improvement compliance resource

Proactive solution to evolving emissions management standards

Practical implementation and investment cost

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-45oC

Aegis 400 Operation Philosophy

PO Box 268; Pinedale, WY 82941Tel. (844) ALERTPLUS

Matt Murdock, Chief Operating OfficerCell: (307) 749-0615

www.alert-plus.com info@alert-plus.com