best practices implemented in the barnett shale practices implemented in the barnett shale darren...

Best Practices Implemented in the Barnett ShaleDarren Smith – Devon Energy

Brian Boerner – Chesapeake Energy

April 18, 2011

Objectives

● What is the impact of natural gas operations on ozone

non-attainment and SIP development?

● Discuss Best Management Practices in the Barnett Shale

– Road and pad construction

– Drilling and completion

– Hydraulic fracturing

– Production

– Pipelines

– Process/sale water disposal

– Compression

2

North America’s New Source of Abundance

Mowry

Hillard-Baxter

Excello/Mulky

Cody

GammonAntrim

Marcellus

Utica

Huran

Chattanooga

Floyd

Eagleford

New Albany

Woodford

BarnettBarnett &

Woodford

Fayetteville

Caney

Haynesville

Bend

Palo Duro

Pearsall

Mancos

Lewis

Hermosa

Cane Creek Pierre

Horn River

Montney

Big Horn

CBM

MonterreyMcClure

33

Two Issues

● Ozone non-attainment

– NOx dependent

– Additional controls are not needed to demonstrate attainment

by 2012

● Demonstration of reasonable further progress

– NOx requirements met for 2011 and 2012

– VOC requirements anticipate a shortfall

– Using assumed emissions data

– Emission Inventory submitted January 2011 will not be

incorporated until July 2011

What are VOCs?

For the purpose of SIP planning, ozone non-attainment,

and the evaluation of the region’s demonstration of

“Reasonable Further Progress,” a VOC is:

● Any compound of carbon (with some exceptions) which

participates in atmospheric photochemical reactions

– Does not include methane and ethane, which have been

determined to have negligible photochemical reactivity

– 40 CFR 51.100(s)

Barnett Shale By The Numbers

● Active wells ~15,675 (December 31, 2010)

● Active rigs (April 8, 2011)

– ~82 in the Barnett Shale

– ~45 in the non-attainment area

● 12 operators

● 24 counties within the Barnett Shale

– 5 counties within the

non-attainment area

TCCD North, Hurst

Dry and Wet Zones of the Barnett Shale

“Dry” Gas = Lean Gas

● Free of condensate

● 95%+ methane

● Minimal potential for presence

of VOC

“Wet” Gas = Rich Gas

● Condensate present

● 75%+ methane

● Increased potential for presence

of VOC

DFW Non-

Attainment Area

One size does not fit all

Best practices are unique to the area

of the play that you operate

Review of Best Practices

● Evaluate each stage of gas drilling and production

● Outline potential sources of NOx and VOC

● Outline best practices currently being used

● EPA’s Natural Gas STAR program

8

General Air Quality Considerations

● NOx sources are heavily regulated

– Compressor Engines

● Texas Commission on Environmental Quality

– Title 30 Part 1 Chapter 117 Subchapter D Division 2

– Combustion control at minor sources in ozone non-attainment areas

● Environmental Protection Agency

– 40 CFR 60 Subpart JJJJ

● New Source Performance Standards – Spark Ignition Reciprocating Internal

Combustion Engines

– 40 CFR 63 Subpart ZZZZ

● National Emissions Standards for Hazardous Air Pollutants for Stationary

Reciprocating Internal Combustion Engines

– Vehicle Engines

● EPA Tier 3 and 4 diesel emission standards

General Air Quality Considerations

● VOC sources have permitted thresholds

– Permit by Rule

– Standard Permit

– Title V

– 40C FR 63 Subpart HH – Dehydration control requirement

● In revision to include many more sources

Road and Pad Construction

Emission source

● On-road and non-road vehicles

– Seismic trucks

– Concrete trucks

– Construction equipment

Suggested emissions control strategy

● Use of idling limitations

● Replacement/repower/retrofit of

vehicles/equipment

11

Road and Pad Construction BMP

Devon

● Idling minimized

– Contract equipment is kept working

– Standby time is minimized

12

Road and Pad Construction BMP

Chesapeake

● Contracted service

– Equipment is kept working

– Standby/idling time is minimized

13

Drilling and Completion

Emission source

● Generators and portable diesel engines

● Tanks

● Flare and vent lines

Suggested emission control strategy

● Replacement with electric motors

(where available)

● Replacement/repower/retrofit of engines

● Use of lower emission fuels

● Use of vapor recovery units (VRUs) or recover to reuse/resell

● Use of enclosed flares in condensate tanks

● Use of “Green Completions” process (collect and filter gas/liquids back to

the surface to reuse in production pipelines)

14

Drilling and Completion BMP

Chesapeake

● Electric drilling rigs

– Insufficient grid and supply to ensure quality power supply without causing

brownouts and blackouts in neighboring communities

– Displacing emissions from pad sites to facilities

● Potential for greater emissions at generating facility

● Green Completion

– Industry Best Practice

● Flare one well per pad or area to measure well flow volume and pressure

– DFW: 1 well flared/115 completed

● Put subsequent wells in to sales line

● VRU

– Operate one VRU unit on well with liquids present

– Not effective in “dry” gas areas

– Can create hazardous condition if an insufficient gas supply present

15

Drilling and Completion BMP

Devon

● Green completion on

approximately 85% of wells

– Own and operate the gathering system

– Wells of sufficient bottom hole pressure

to overcome gathering pressure

● VRU

– Prefer VRU over flare when emissions

exceed regulatory threshold

– For wells below this threshold, vapor

volume is insufficient to operate VRU

16

Hydraulic Fracturing

Emission source

● Trucks

● Pumps

● Internal combustion engines


● Replacement/repower/retrofit of vehicles


● Conversion of pneumatic devices to electric/compressed

air/mechanical

● Replacement with electric motors (where available)


17

Hydraulic Fracturing BMP

Devon

● Frac jobs are of short duration

– Designed to optimize horsepower and fuel use

● Fuel use is tracked, as it is a significant expense

● Switching this portable, contract fleet to electricity is

impractical

– Electric service would only be used for a few days and may not

be available for the next job

18

Hydraulic Fracturing BMP

Chesapeake

● Contracted operation

19

Production

Emission sources

● Lift compressors

● Condensate tank vapors

● Fugitive leaks from valves,

connectors, flanges, pipe

connectors, compressors

and pumps, pipelines

● Dehydrators

● Pneumatic devices

20

Production


● Use of electric motors and/or electric starters, or other lower

emission fuel (i.e. compressed air, solar power, electric, refined

natural gas)

● Use of VRUs or recover to reuse/resell

● Use of annual inspection program to detect damages and leaks

● Use of enhanced leak detection and repair program

● Conversion of dehydrator pumps to lower emission fuel (i.e.

compressed air, solar power, electric, refined natural gas)

21

Production

Suggested emission control strategy (continued)

● Use of VRUs or recover to reuse/resell

● Replacement of pneumatic devices with low-bleed/no-

bleed devices

● Retrofit of high-bleed devices

● Maintenance of pneumatic devices

22

Production BMP

Chesapeake

● VRU – not effective in “dry” gas areas

● Plunger Lifts

● Low-bleed pneumatic valves

– Current industry practice

● Actively installed in new facilities

● Used to replace standard valves as

part of site maintenance

● Housekeeping

– Pumpers

● On site daily

● Site maintenance

● FLIR 2X per year

– SCADA

23

Production BMP

Devon

● VRU is used when feasible

● Low-bleed pneumatic valves

● Housekeeping

– Inspected by lease operators

– SCADA

● IR camera inspection

● Note:

– Use of compressed air in

hydrocarbon service is

dangerous

– Use of solar equipment is not

practical for 24-hour operations

24

Pipelines

Emission sources

● Leaks from damaged pipelines

● Pressure relief vents

● Construction machinery for laying pipe


● Use of plastic pipes or plastic

liners/protective coating around

metal pipes

● Use of composite wrap to repair non-leaking

damages

● Optimization of pressure levels

● Use of idling restrictions

● Replacement/repower/retrofit of equipment

25

Pipelines BMP

Devon

● “One Call” used to avoid pipe damage

● Coated pipe is repaired if damaged

● Poly (plastic) pipe

– Has a low pressure rating

– Not as durable as plastic pipe

26

Pipelines BMP

Chesapeake

● Participate in Dig-Tess

/Texas811/One Call to avoid

pipeline damage

● Install DOT Class 4 pipe

● Routing maintenance and repair

● Installation

– Bore

– Open Cut

27

Process / Salt Water Disposal

Emission source

● Trucks

● Retention ponds and tanks


● Replacement/repower/retrofit of vehicles

● Optimization of route efficiency/reduction

of deadhead miles


● Capture of evaporative emissions

28

Process / Salt Water Disposal BMP

Devon

● Very little VOC from produced water

● Contract trucking companies maximize profit by making

operations efficient

– Fuel is a high cost item

29

Process/Salt Water Disposal BMP

Chesapeake

● Contracted service

– Routed for efficiency

● Use City-approved/

mandated routes

30

Compression

Emission source

● Compressor engines



● Use of electric motors

● Use of lower-emission fuels

31

Compression

Chesapeake● Pneumatic start on select engines

● Fuel stream bleed system

● Electric compressor engines

– Insufficient grid and supply to ensure quality

power supply without causing brownouts and

blackouts in neighboring communities

– Displacing emissions from padsites to facilities

● Potential for greater emissions at

generating facility

● Glycol recycling units

– Partially fueled by VOC emissions

● Low-bleed valves

– Installing and replacing in maintenance

32

Compression

Devon● Compressor engines are highly regulated

33

EPA’s Natural Gas Star Program

34

● Focus on best practices

● Information sharing and technology transfer

● Technical guidance

● Peer networking

● Voluntary record of reductions

● Public recognition

A voluntary partnership that

promotes practices that reduce

emissions of methane

Chesapeake Recognized by EPA

Source: www.epa.gov/gasstar/, October 15, 2009

Chesapeake has employed numerous EPA-recommended best

practices to reduce emissions, including:

● Identified and implemented opportunities for immediate methane emissions

reductions, including installing vapor recovery units in areas where needed

● Piloted and installed Mizer retrofit valves in most districts, reducing the

amount of gas emitted from process controllers

● Purchased infrared FLIR cameras and Apogee technology to detect VOC

emissions while implementing a formal company-wide emissions inspection

program

Chesapeake was selected by the EPA as the Natural Gas

STAR Production Partner of the Year for 2009

Chesapeake employee Andrew McCalmont received the EPA’s

Implementation Manager of the Year award for 2009

Directed Inspection and Maintenance

Retrofit Technology

Lean Burn Technology Solar Technology

Technology Driven

Keys to Success – Gas STARBest Practices – High Environmental Standards – Efficiency Improvements

● Research and understanding of the Gas STAR Program

● Articulate goals and scope

● Develop an implementation plan to achieve goals

● Commit resources – key individuals, capital and executive

leadership

● Engage, challenge and empower operations teams -

accountability

● Technology driven – new and proven

● Economics driven

● Quality driven

● Feedback and continual improvement

CHK strives to provide industry leadership in all we do

2008 Chesapeake Reductions by BMP

59%11%

9%

6%5%

3%2%

5%

RECs Pipeline Leak Repair

Low Bleed Pneumatic Level Controllers Recover Dehy Flash Gas

Plunger Lifts No-Bleed Chem Pump

Optimize Glycol Circ Rate Other

Methane Reduction Activity % Reductions

Reduced Emission Completions 59%

Pipeline Leak Repair 11%

Low Bleed Pneumatic Level Controllers 9.0%

Recover Dehy Flash Gas 6.4%

Plunger Lifts 5.2%

No-Bleed Chem Pump 2.6%

Optimize Glycol Circ Rate 1.7%

Replace Prod Unit w/Mech Dump Sep 1.3%

Workover - Green Re-Completion 0.9%

VRU 0.7%

De-Water/Unload with Foaming Agents 0.6%

Pressure/Hydraulic SWAB 0.5%

Install Elec Glycol Pump 0.3%

Vert Seps - Install Mech Dumps 0.1%

De-Water/Unload with Cap String 0.1%

Snubbing Operations 0.1%

Replace Gas Driver w/ Elec Motor - Compressors 0.1%

Flir Camera Leak Repair 0.1%

Remove/Bypass Prod Unit or Sep 0.1%

Low Bleed Pressure Controllers 0.1%

Recover Dehy FG to Suction 0.1%

Replace Gas Driver w/ Elec Motor - Pumping Units 0.07%

Blow Down to Sales 0.04%

No-Vent Gathering System Tie-In 0.03%

Engine Starter Change 0.02%

Pipeline Hot Tap 0.01%

De-Water/Unload with CVR String 0.004%

De-Water/Unload with Pumping Unit 0.004%

De-Water/Unload with Compression 0.001%

De-Water/Unload with Gas Lift 0.001%

Total 100%

Other Task Force Considerations

● Closer salt water disposal wells

– Limited number needed in Tarrant County

– Strategically located

– Highly regulated

● Promote piping of produced water to centralized

containment and disposal site

– Eliminate trucking emissions

39

Thank You!

40

best practices implemented in the barnett shale practices implemented in the barnett shale darren...

Documents