oil well flared ng electirc generation economics

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NG firing rate 1,000 scfh 871 scfh NG Delivery Pressure 7.50 psig 7.00 psig Fuel Firing Pressure Fluctuation Frequency 72 hrs NG Methane% 97% NG Low Heat Value 982 Btu/scf Average Firing Rate 0.92 MMBtu/hr Generator Heat Rate 15,514 Btu/kWh Methane Emissions 148 tons/yr @ 23.0 ton CO2/ton Energy Value of Emissions 7,152 MMBtu/yr @ $7.00 is equal to Methane Emissions Sales Price $0.80 $/$ equivalent traded Utility Electric Sales Price $0.023 /kWh Customer Electric Sales Price $0.025 /kWh CO2 Cap & Trade Start Date 2012 CO2 Cap & Trade Starting Price $15.00 $/ton CO2 Annual Capacity Factor 90% Average Annual Operating Hours 7,889 hrs/yr Generator Rating 59.20 kW Average Annual Generation Surge Tank Volume ??? ft3 Client Consumption (Well Pump & extras) 20 hp Net Generation 44.28 kW 349,374 kWh/yr Waste Heat Generated 0.18 MMBtu/hr (is there a market for this? Hot wate Capex Generator $45,000 /project $760.16 /kW Operating Truck $45,000 Cost of Capital 7.50% interest Opex Number of Projects 50 Number of Personel 2 @ $35.00 fully burdened Truck & Tools 200 miles/day @ $0.65 /mi Generator Filters & Lube $3,500 /year Revenues Electric Generation $8,035.59 Emissions Avoidance $3,518.39 (volatile) Customer Electric Sales $8,734.34 Waste Heat $3,622.73 (valued at $2.50/therm) TOTAL REVENUES $23,911.05 Operating Costs Salaries & Wages $2,912.00 O&M $4,150.00 Debt Service Max Min

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Page 1: Oil Well Flared NG Electirc Generation Economics

NG firing rate 1,000 scfh 871 scfhNG Delivery Pressure 7.50 psig 7.00 psigFuel Firing Pressure Fluctuation Frequency 72 hrsNG Methane% 97%NG Low Heat Value 982 Btu/scfAverage Firing Rate 0.92 MMBtu/hr

Generator Heat Rate 15,514 Btu/kWhMethane Emissions 148 tons/yr @ 23.0 ton CO2/ton CH4Energy Value of Emissions 7,152 MMBtu/yr @ $7.00 is equal toMethane Emissions Sales Price $0.80 $/$ equivalent tradedUtility Electric Sales Price $0.023 /kWhCustomer Electric Sales Price $0.025 /kWhCO2 Cap & Trade Start Date 2012CO2 Cap & Trade Starting Price $15.00 $/ton CO2Annual Capacity Factor 90%

Average Annual Operating Hours 7,889 hrs/yr

Generator Rating 59.20 kWAverage Annual GenerationSurge Tank Volume ??? ft3

Client Consumption (Well Pump & extras) 20 hpNet Generation 44.28 kW 349,374 kWh/yrWaste Heat Generated 0.18 MMBtu/hr (is there a market for this? Hot water?, etc.)

CapexGenerator $45,000 /project $760.16 /kWOperating Truck $45,000Cost of Capital 7.50% interest

OpexNumber of Projects 50Number of Personel 2 @ $35.00 fully burdenedTruck & Tools 200 miles/day @ $0.65 /miGenerator Filters & Lube $3,500 /year

RevenuesElectric Generation $8,035.59Emissions Avoidance $3,518.39 (volatile)Customer Electric Sales $8,734.34Waste Heat $3,622.73 (valued at $2.50/therm)TOTAL REVENUES $23,911.05

Operating CostsSalaries & Wages $2,912.00O&M $4,150.00

Debt Service

Max Min

Page 2: Oil Well Flared NG Electirc Generation Economics

Generator $6,409.90Truck $10,820.49

Net Before Depreciation & Taxes ($381.34) (ouch…)

Page 3: Oil Well Flared NG Electirc Generation Economics

(does this make sense to put a surge tank on to stabilize flow of gas to engine or if we place a slight back pressure, will the gas end up messing up the oil pumping operation?)(or does predicting a project life minimum pressure tell us when to pull off the job…a term in a contract, watch out for deception by the client to kick us off the job)

ton CO2/ton CH4$50,065 /yr

(is there a market for this? Hot water?, etc.)

10 yr life5 yr life

Page 4: Oil Well Flared NG Electirc Generation Economics
Page 5: Oil Well Flared NG Electirc Generation Economics

(does this make sense to put a surge tank on to stabilize flow of gas to engine or if we place a slight back pressure, will the gas end up messing up the oil pumping operation?)(or does predicting a project life minimum pressure tell us when to pull off the job…a term in a contract, watch out for deception by the client to kick us off the job)

Page 6: Oil Well Flared NG Electirc Generation Economics

40441 NC Town of Murphy Electric Power ATTN: J Carringer P O Box 130

1307 ND Basin Electric Power Coop ATTN: Zane Zuther

2394 ND Burke-Divide Electric Coop Inc ATTN: Keith Berg P O Box 6

2985 ND Capital Electric Coop, Inc ATTN: Ordean Nygren P O Box 730

3138 ND Cavalier Rural Elec Coop, Inc ATTN: Duane L Otto P O Box 749

3186 ND City of Cavalier ATTN: Diane Vistad P O Box 750

7318 ND Goldenwest Electric Coop, Inc ATTN: John L Sokoloski P O Box 177

7444 ND City of Grafton ATTN: Brent McMillan P O Box 578

8628 ND Hillsboro Municipal Utilities ATTN: Auditor P O Box 400

9067 ND City of Hope ATTN: Bill Carroll Box 189

9619 ND James Valley Electric Coop Inc ATTN: Kari Coon

10153 ND KEM Electric Cooperative, Inc ATTN: Dennis Svanes P O Box 790

10629 ND City of Lakota ATTN: Ruth Hatten P O Box 505

11272 ND Lower Yellowstone R E A, Inc ATTN: Donald J Prevost Box 1047

11470 ND City of Maddock ATTN: Jean A Mosser P O Box 276

12087 ND McKenzie Electric Coop, Inc ATTN: James E Tveter P O Box 649

12090 ND McLean Electric Coop, Inc ATTN: Randall Miller P O Box 399

12199 ND MDU Resources Group, Inc ATTN: Travis Jacobson

12301 ND Nodak Electric Coop, Inc ATTN: Tom Edwards P O Box 13000

12658 ND Minnkota Power Coop, Inc ATTN: Craig Rustad P O Box 13200

12899 ND Mor-Gran-Sou Electric Coop Inc ATTN: Connie Rossow Box 297

13196 ND Northern Plains Electric Coop P O Box 608

13694 ND North Central Elec Coop, Inc ATTN: Wayne Martian

13781 ND Northern States Power Company ATTN: Paul Johnson

13816 ND City of Northwood ATTN: Marcy Douglas P O Box 397

14088 ND Oliver-Mercer Elec Coop, Inc ATTN: James J Mutzenberger

14232 ND Otter Tail Power Company ATTN: Stacie M Hebert P O Box 496

14474 ND City of Park River ATTN: Janice L Englerth P O Box C

15967 ND R S R Electric Coop, Inc Jay Jacobson Box 159

16105 ND City of Riverdale P O Box 507

16759 ND Sheridan Electric Coop, Inc ATTN: Donna Tompt P O Box 227

17045 ND Sharon Light & Power ATTN: Donna Smith P O Box 22

17146 ND Sheyenne Valley Elec Coop, Inc ATTN: Marilyn J Strand Box 217

17261 ND Slope Electric Coop, Inc ATTN: Lynette Nieuwsma P O Box 338

19060 ND Traverse Electric Coop, Inc ATTN: Earl Steffens

19687 ND Valley City Public Works ATTN: Wayne D Nelson

19790 ND Verendrye Electric Coop, Inc ATTN: Business Manager

20395 ND West Plains Electric Coop, Inc ATTN: Vickie Simons P O Box 1038

20413 ND Mountrail-Williams Elec Coop ATTN: Chris Brostuen P O Box 1346

24949 ND Cass County Electric Coop, Inc ATTN: Chad T Sapa

27000 ND Western Area Power Admin ATTN: C J McNichols A8100 P O Box 281213

40440 ND Stanton Municipal Power Sys ATTN: Kerry Miller P O Box 156

Page 7: Oil Well Flared NG Electirc Generation Economics

Murphy NC 28906 John Carringer

1717 East Interstate Avenue Bismarck ND 58501 Zane Zuther

Columbus ND 58727 Keith Berg

4111 State Street Bismarck ND 58502-0730 Gary M VerDouw

1111 Ninth Avenue Langdon ND 58249-0749 Duane L Otto

Cavalier ND 58220-0750 Mark Doyle

Wibaux MT 59353 John L Sokoloski

5 East 4th Street Grafton ND 58237 Brent McMillan

Hillsboro ND 58045 Auditor

Hope ND 58046 Bill Carroll

7296 Highway 281 Edgeley ND 58433 Kari Coon

Linton ND 58552 Dennis Svanes

Lakota ND 58344 Ruth Hatten

Sidney MT 59270 Donald J Prevost

Second Street & Dako ta Avenue Maddock ND 58348 Jean A Mosser

Watford City ND 58854 James E Tveter

Garrison ND 58540 Randall Miller

400 North Fourth Str eet Bismarck ND 58501-4092 Travis Jacobson

4000 32nd Ave S Grand Forks ND 58206-3000 Tom Edwards

Grand Forks ND 58208-3200 Craig Rustad

Flasher ND 58535 Connie Rossow

609 Fourth Avenue Cando ND 58324-0608 Dale Axvig

501 11th Street W Bottineau ND 58318 Wayne Martian

414 Nicollet Mall Minneapolis MN 55401 Stephanie S Illg

Northwood ND 58267 Marcy Douglas

800 Highway Drive Hazen ND 58545-4737 James J Mutzenberger

215 South Cascade St reet Fergus Falls MN 56537 Stacie M Hebert

Park River ND 58270-0702 Janice L Englerth

14051 Hwy 13 Milnor ND 58060 Kari Coon

Riverdale ND 58565 Bev Leingang

Medicine Lake MT 59247 Donna Tompt

Sharon ND 58277 Gary D Johnson

Finley ND 58230 Marilyn J Strand

New England ND 58647 Lynette Nieuwsma

T N 27 & 17th Street Wheaton MN 56296 Earl Steffens

840 Third Avenue Nor theast Valley City ND 58072 Wayne D Nelson

615 HWY 52W Velva ND 58790-7417 Ollie Glasoe

2156 Fourth Avenue E ast Dickinson ND 58602-1038 Jackie Kovash

Williston ND 58802 Chris Brostuen

4100 32nd Ave SW Fargo ND 58104 Chad T Sapa

12155 W Alameda Pkwy Lakewood CO 80228-8213 C J McNichols A8100

109 Harmon Avenue Stanton ND 58571-0156 Kerry Miller

Page 8: Oil Well Flared NG Electirc Generation Economics

(704)837-2211

(701)223-0441 2256

(701)939-6671

(701)223-1513 12

(701)256-5511

(701)265-8668

(406)796-2423

(701)352-2180

(701)436-4620

(701)945-2772

(701)493-2281 13

(701)254-4666

(701)247-2454

(406)488-1602

(701)438-2252

(701)842-2311 27

(701)463-2291

(701)222-7847

(701)746-4461

(701)795-4000 265

(701)597-3301

(701)652-3156

(701)228-2202

(612)330-7920

(701)587-5370

(701)748-2293 214

(218)739-8754

(701)284-6150

(701)427-5242

(701)654-7636

(406)789-2231

(701)524-2377

(701)524-1110

(701)579-4191

(320)563-8616

(701)845-0652

(701)338-2855 306

(701)483-5111

(701)572-3765 0

(701)277-4400 4406

(720)962-7445

(701)745-3202