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This is No Longer Your Daddy’s Oilfield – Environmental Regulations on the Rise
Ron Truelove, Director Oil and Gas Sector Services
October 4, 2013 Environmental Federation of Oklahoma
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Introduction
˃ Ron Truelove, Director, Oil and Gas Sector Services v 13 years as an EHS Manager with Devon Energy v 6 years of air quality consulting v 10 years in various environmental engineering and
air quality technical roles with Conoco in corporate roles and at 2 different refineries
v Chemical Engineer
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Trinity Consultants Offices
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Environmental Quality is a Dynamic, Changing Field
Always be certain to obtain the latest forms, policies, and regulations from the appropriate
regulatory authority before determining permitting and compliance needs for your site. The information provided in this webinar, while up-to-date when developed, is subject to change as regulatory authorities update forms, policies and regulations. You are encouraged to use this
information as an educational reference, but it is not a substitute for independent research and
verification, and the application of sound professional judgment and analysis in real-time
permitting and compliance situations.
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Courtesy of YouTube…
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Those Were the Days…
h#p://www.ark,mes.com/ArkansasBlog/archives/2011/11/08/the-‐good-‐old-‐days-‐of-‐deregula,on
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Those were the days…
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Big Changes in the Last 13 Years
˃ My perspective from the 80’s… v E&P = Excluded Petroleum…
˃ Historical focus in the industry has been worker safety and spill prevention
˃ New environmental regulations have been hitting the industry hard over the last several years
˃ Public involvement has hit an all time high for the industry
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Public Perception Influenced
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Big Changes in the Last 13 Years… ˃ Air Quality Issues
v Indian Lands Minor Source Permitting v NSPS Subpart JJJJ and NESHAP Subpart ZZZZ v NESHAP Subpart HH v NSPS Subpart OOOO v Subpart W
˃ Other Environmental Issues v National Enforcement Initiative v SPCC
˃ Safety – FRC and silica exposure
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Indian Lands Minor Source Permitting ˃ Dates:
v Proposed August 21, 2006 v Signed June 10, 2011 v Published in the Federal Register July 1, 2011.
˃ A Federal Implementation Plan for “Review of New Sources and Modifications in Indian Country”
˃ Establishes a minor New Source Review (NSR) program (minor preconstruction permits and minor modifications at major sources) and a major nonattainment New Source Review program for sources of air emissions located in Indian country
˃ Applies to sources in Indian Country throughout the United States, except for those areas where a Tribal Implementation Plan (TIP) is in place
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Minor Source Thresholds
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NSPS Subpart JJJJ Engine Rules
Type Size Affected Date Any (except LB 500 <
hp < 1350 > 500 hp 7/1/2007
LB 500 < hp < 1350 1/1/2008 Any < 500 hp 7/1/2008
Emergency > 25 1/1/2009
ICE constructed, modified, or reconstructed aPer 6/12/2006 and manufactured aPer the specified date:
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NESHAP Subpart ZZZZ Engine Rules ˃ Regulated pollutants: CO (surrogate) and HCHO ˃ Affected source is each RICE ˃ Existing source cutoff dates:
v > 500 hp at major sources – 12/19/02 v ≤ 500 hp at major sources – 6/12/06 v All at area sources – 6/12/06
˃ Existing determination is based on the date you “commence construction” which is date the engine is ordered
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Ini$al compliance dates: May 3, 2013 for 2010 CI RICE rule October 19, 2013 for 2010 SI RICE rule
Source: EPA RICE MACT presenta,on (Dec-‐2011)
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NESHAP Subparts HH vs. HHHH Source Categories
HHH
HH
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NESHAP Subpart HH General Applicability
Rule Standards Major Sources Area Sources Subpart HH Overall
Applicability YES YES
Glycol Dehy Units YES YES
Storage Vessels with Poten,al for Flash Emissions
YES NO
Compressors and Ancillary Equipment in VOHAP
Service
YES NO
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Major Source – Affected Facilities
˃ Each dehydration unit as follows v All large units (> 3 MMscfd and > 1.0 tpy
benzene) v Small dehy units constructed before 8/23/2011
are existing v Small dehy units constructed after 8/23/2011
are new ˃ Each storage vessel with the potential for
flash emissions ˃ Compressors and ancillary equipment in
volatile HAP service (only at gas processing plants)
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Major Source Compliance Dates
˃ Sources Constructed Before 2/6/1998 (Existing) v No later than June 17, 2002
˃ Sources Constructed After 2/6/1998 (New) v Upon startup or June 17, 1999, whichever is later
˃ Small Dehy Units Constructed Before 8/23/2011 (Existing) v No later than October 15, 2015
˃ Small Dehy Units Constructed After 8/23/2011 (New) v Upon startup or October 15, 2012, whichever is
later
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Subpart OOOO Applicability NSPS OOOO Affected Facility
Produc?on (Well Site) Gathering
Gas Processing Transmission
Gas Well X
Centrifugal Compressors X X
Reciproca,ng Compressors X X
Pneuma,c Controller X X X
Storage Vessels X X X X
Equipment Leaks X
Sweetening Units X
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Final Rule Compliance Schedule NSPS OOOO Affected Facility Standard Compliance Date
Hydraulically fractured wildcat and delinea,on wells Comple,on combus,on October 15, 2012
Hydraulically fractured low pressure non-‐wildcat and non-‐delinea,on wells Comple,on combus,on October 15, 2012
Other hydraulically fractured wells Comple,on combus,on Before 1/1/2015
Other hydraulically fractured wells REC and comple,on combus,on APer 1/1/2015
Centrifugal compressors with wet seals 95% reduc,on October 15, 2012
Reciproca,ng compressors Change rod packing October 15, 2012
Pneuma,c controllers at NG processing plants Zero bleed rate October 15, 2012
Pneuma,c controllers between wellhead and NG processing plants 6 sch bleed rate October 15, 2013
Group 2 and 1 Storage Vessels 95% reduc,on April 15, 2014/2015
Equipment Leaks LDAR program October 15, 2012
Sweetening Units Reduce SO2 as calculated October 15, 2012
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Subpart W
˃ GHG emission reporting on a basin-wide basis
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NEI’s for 2011-2013 and 2014-2016 Fiscal Years ˃ Keeping raw sewage and contaminated stormwater
out of our nation’s waters ˃ Preventing animal waste from contaminating surface
and ground waters ˃ Cutting toxic pollution that affects communities’
health v Emphasis is on flares
˃ Reducing widespread air pollution from the largest sources, especially the coal-fired utility, cement, glass, and acid factors
˃ Reducing pollution from mineral processing operations
˃ Assuring energy extraction sector compliance with environmental laws
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Common EPA Oil and Gas Sector Findings – Risk Factors ˃ Spills into navigable waters or tributaries ˃ Failure to implement a SPCC plan or an
inadequate SPCC plan ˃ Failure to apply for air quality permits for new
construction or modifications to existing facilities ˃ Failure to properly control air emissions ˃ Failure to perform required inspections or
monitoring and keep proper records ˃ Visible items that the public can see (e.g., flares
and spills) ˃ Operations on Indian lands
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Increased Regulations…
˃ Equals increased costs to oil and gas operating companies
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Questions?
For Further Information: Ron Truelove
OKC office: 405-848-3724 Cell: 405-203-3557