Best Operating Practices for Reducing Emissions From Natural Gas STAR Partners Murphy Exploration & Production, Gulf Coast Environmental Affairs Group,

Best Operating Practices Best Operating Practices for Reducing Emissionsfor Reducing Emissions

From Natural Gas STAR PartnersFrom Natural Gas STAR Partners

Murphy Exploration & Production, Murphy Exploration & Production,

Gulf Coast Environmental Affairs Group, Gulf Coast Environmental Affairs Group,

American Petroleum Institute, American Petroleum Institute, andand

EPA’s Natural Gas STAR ProgramEPA’s Natural Gas STAR Program

June 19, 2003June 19, 2003

Page 2Reducing Emissions, Increasing Efficiency, Maximizing Profits

Why Are Best Operating Practices Why Are Best Operating Practices Important?Important?

Many production facilities have identified Many production facilities have identified practical cost effective methane emissions practical cost effective methane emissions practicespractices

Production partners report saving 129 Bcf Production partners report saving 129 Bcf since 1990, 83% from PRO’ssince 1990, 83% from PRO’s

VRU’s account for 30% of PRO emissions VRU’s account for 30% of PRO emissions reductionsreductions


Why Are Best Operating Practices Why Are Best Operating Practices Important?Important?

Simple vehicle for sharing successes and Simple vehicle for sharing successes and continuing program’s future continuing program’s future BMP’s: BMP’s: the consensus best practicesthe consensus best practices PRO’s: PRO’s: Partner Reported OpportunitiesPartner Reported Opportunities Lessons Learned: Lessons Learned: expansion on the most expansion on the most

advantageous BMP’s and PRO’sadvantageous BMP’s and PRO’s All posted on the Gas STAR website: All posted on the Gas STAR website:

http://www.epa.gov/gasstarhttp://www.epa.gov/gasstar


Production Best Management Production Best Management PracticesPractices

BMP 1: Install and Replace High-Bleed BMP 1: Install and Replace High-Bleed PneumaticsPneumatics

BMP 2: Install Flash Tank Separators on BMP 2: Install Flash Tank Separators on Glycol DehydratorsGlycol Dehydrators

BMP 3: Partner Reported Opportunities BMP 3: Partner Reported Opportunities (PRO’s) (PRO’s)


Gas STAR PRO Fact SheetsGas STAR PRO Fact Sheets

PRO Fact Sheets from Annual Reports PRO Fact Sheets from Annual Reports 1994-20021994-2002 54 posted PRO’s54 posted PRO’s 36 PRO’s applicable to Production 36 PRO’s applicable to Production

12 focused on operating practices12 focused on operating practices24 focused on technology24 focused on technology

Several new PRO sheets under developmentSeveral new PRO sheets under development


Lessons LearnedLessons Learned

14 Lessons Learned on website14 Lessons Learned on website 7 applicable to production7 applicable to production

2 focused on operating practices2 focused on operating practices 5 focused on technology5 focused on technology

New Lessons Learned under developmentNew Lessons Learned under development Composite WrapComposite Wrap Desiccant DehydrationDesiccant Dehydration


Best Operating PracticeBest Operating PracticeLessons LearnedLessons Learned

Replacing Gas-Assisted Glycol Pumps with Replacing Gas-Assisted Glycol Pumps with Electric PumpsElectric Pumps

Reducing the Glycol Circulation Rates in Reducing the Glycol Circulation Rates in DehydratorsDehydrators


Production Best Operating Practices Production Best Operating Practices

Compressors & EnginesCompressors & Engines Convert Engine Starting to AirConvert Engine Starting to Air

SAVES…1,356 Mcf/yrSAVES…1,356 Mcf/yr PAYOUT…< 1 yearPAYOUT…< 1 year

Convert Engine Starting to NitrogenConvert Engine Starting to Nitrogen

SAVES… 1,350 Mcf/yrSAVES… 1,350 Mcf/yr PAYOUT…< 1yrPAYOUT…< 1yr


What is the Problem?What is the Problem?

Compressor starts vent methaneCompressor starts vent methane How much methane is emitted?How much methane is emitted?

Up to 135 Mcf per startUp to 135 Mcf per start

How can these losses be reduced?How can these losses be reduced? Alternative operating practicesAlternative operating practices

Use nitrogenUse nitrogen Use airUse air

Alternative technologyAlternative technology Use electric startersUse electric starters Convert to electric driveConvert to electric drive


Partner Experience Partner Experience

Compressor starts vent methane Compressor starts vent methane Partners report 1,350 Mcf/yr savings per Partners report 1,350 Mcf/yr savings per

compressor using air or nitrogen assuming ten compressor using air or nitrogen assuming ten starts per yearstarts per year Availability and cost of air and nitrogen are issues Availability and cost of air and nitrogen are issues Capital costs for electric starters reduce payoutCapital costs for electric starters reduce payout Coordinating starts and shutdowns with Coordinating starts and shutdowns with

maintenance schedules are an option maintenance schedules are an option Modification of purge procedures to recover gas Modification of purge procedures to recover gas

prior to venting can also gain savings with low prior to venting can also gain savings with low costscosts


More Operating PracticesMore Operating Practices

OtherOther Eliminate Unnecessary Equipment or SystemsEliminate Unnecessary Equipment or Systems

SAVES… 2,000 Mcf/yrSAVES… 2,000 Mcf/yr PAYOUT… < 1yr PAYOUT… < 1yr

Begin Directed Inspection and Maintenance at Remote Begin Directed Inspection and Maintenance at Remote FacilitiesFacilities SAVES… 362 Mcf/yrSAVES… 362 Mcf/yr PAYOUT… 1-3 yrsPAYOUT… 1-3 yrs

Lower Heater-Treater TemperaturesLower Heater-Treater Temperatures SAVES… 142 Mcf/yrSAVES… 142 Mcf/yr PAYOUT… < 1yrPAYOUT… < 1yr



Unnecessary equipment or systemsUnnecessary equipment or systemsprovide sources of methane emissionsprovide sources of methane emissions How much methane is emittedHow much methane is emitted??

One unnecessary process controller vents 1 cfm One unnecessary process controller vents 1 cfm or 0.5 MMcf/yror 0.5 MMcf/yr

Other benefitsOther benefits Increases efficiency Increases efficiency Lowers operating & maintenance costsLowers operating & maintenance costs


Partner ExperiencePartner Experience

Unnecessary equipment or systemsUnnecessary equipment or systemsprovide sources of methane emissions provide sources of methane emissions

One partner reports savings of 7,940 Mcf/yr One partner reports savings of 7,940 Mcf/yr by eliminating 31 dehydrators with an by eliminating 31 dehydrators with an average of 4 controller loops eachaverage of 4 controller loops each

Payback was < 1 yearPayback was < 1 year



TanksTanks Consolidate Crude Oil Production & Water Tank Consolidate Crude Oil Production & Water Tank

StorageStorage SAVES… 4,200 Mcf/yrSAVES… 4,200 Mcf/yr PAYOUT… < 1 yrPAYOUT… < 1 yr

Convert Water Tank Blanket to Produced C0Convert Water Tank Blanket to Produced C022 SAVES… 2,000 Mcf/yrSAVES… 2,000 Mcf/yr PAYOUT… 1-3 yearsPAYOUT… 1-3 years



Tankage is a large source of methane Tankage is a large source of methane emissions emissions How much methane is emitted?How much methane is emitted?

EPA Guideline 42 or API “E&P TANK” Program EPA Guideline 42 or API “E&P TANK” Program provide specific guidance. Partners report up to provide specific guidance. Partners report up to 1,000 Mcf/yr1,000 Mcf/yr

How can these losses be reduced?How can these losses be reduced? Tankage consolidation reduces maintenance Tankage consolidation reduces maintenance

costs and promotes justification of vapor recovery costs and promotes justification of vapor recovery or alternative blanketing with produced COor alternative blanketing with produced CO2 2


Partner ExperiencePartner Experience

Tankage is a large source of methane Tankage is a large source of methane emissions emissions One partner reports 32,600 Mcf/yr by One partner reports 32,600 Mcf/yr by converting water tank blankets on 9 units at converting water tank blankets on 9 units at a water treatment station from fuel gas to a water treatment station from fuel gas to CO2 -rich produced gas. Payback was 1-3 CO2 -rich produced gas. Payback was 1-3 yearsyears Capital costs are a major factor but gas Capital costs are a major factor but gas savings are usually substantialsavings are usually substantial



ValvesValves Inspect & Repair Compressor Station Inspect & Repair Compressor Station

Blowdown ValvesBlowdown Valves SAVES…2,000 Mcf/yrSAVES…2,000 Mcf/yr PAYOUT… < 1 yrPAYOUT… < 1 yr

Test & Repair RV’sTest & Repair RV’s SAVES…170 Mcf/yrSAVES…170 Mcf/yr PAYOUT… < 1 yrPAYOUT… < 1 yr

Test & Repair Gate Station RV’s with NitrogenTest & Repair Gate Station RV’s with Nitrogen SAVES… 8 Mcf/yrSAVES… 8 Mcf/yr PAYOUT… >10 yrsPAYOUT… >10 yrs



Leaking valves are another large sourceLeaking valves are another large source How much methane is emitted?How much methane is emitted?

As RV components wear or foul leakage occursAs RV components wear or foul leakage occurs Estimate 200 Mcf/yr per leakerEstimate 200 Mcf/yr per leaker

How can these losses be reduced?How can these losses be reduced? Leak check & repair on a planned scheduleLeak check & repair on a planned schedule


Partner Experience Partner Experience

Leaking valves are another large sourceLeaking valves are another large source

One partner reports saving 3,907 Mcf/yr by One partner reports saving 3,907 Mcf/yr by repairing 7 RV’s. Payback was immediaterepairing 7 RV’s. Payback was immediate

Another partner reports saving 853 Mcf/yr by Another partner reports saving 853 Mcf/yr by repairing compressor RV’srepairing compressor RV’s

Another Partner reports saving 10 Mcf/yr by Another Partner reports saving 10 Mcf/yr by using nitrogen to test 120 RV’s versus using nitrogen to test 120 RV’s versus “popping” off with natural gas “popping” off with natural gas


One of the Newer Operating PracticesOne of the Newer Operating Practices

Begin Directed Inspection and Maintenance Begin Directed Inspection and Maintenance at Remote Facilitiesat Remote Facilities SAVES… 362 Mcf/yrSAVES… 362 Mcf/yr PAYOUT … 1-3 yrsPAYOUT … 1-3 yrs

Bubble test on leaking valve Source: CLEARSTONE ENGINEERING LTD



Gas leaks are Gas leaks are invisibleinvisible, , unregulatedunregulated and and go unnoticedgo unnoticed STAR partners find that valves, connectors, compressor STAR partners find that valves, connectors, compressor

seals and open-ended lines (OEL) are major sourcesseals and open-ended lines (OEL) are major sources 27 Bcf of methane are emitted per year by reciprocating 27 Bcf of methane are emitted per year by reciprocating

compressors seals and OELscompressors seals and OELs Open ended lines contribute half these emissionsOpen ended lines contribute half these emissions

Facility fugitive methane emissions depend on operating Facility fugitive methane emissions depend on operating practices, equipment age and maintenancepractices, equipment age and maintenance


Natural Gas Losses by SourceNatural Gas Losses by Source

Combustion Equipment9.9%

Amine Vents0.5%

Flare Systems24.4%

Non-leaking Components0.1%

NRU Vents0.3%

Storage Tanks11.8%

Leaking Components53.1%

Source: Clearstone Engineering, 2002


Natural Gas Losses by Equipment TypeNatural Gas Losses by Equipment Type

Control Valves4.0%

Open-Ended Lines11.1%

Other Flow Meters0.2%

Orifice Meters0.1%

Pressure Relief Valves3.5%

Valves26.0%

Blowdowns

0.8%

Connectors24.4%

Compressor Seals23.4%

Crankcase Vents4.2%

Pump Seals1.9%

Pressure Regulators0.4%

Source: Clearstone Engineering, 2002


How Much Methane is Emitted?How Much Methane is Emitted?

Methane Emissions from Leaking Components at Gas Processing Plants

Component Type % of Total Methane

Emissions

% Leaks

Estimated Average Meth-ane Emissions per Leaking

Component (Mcf/Year)

Valves (Block & Control) 26.0 % 7.4 % 66

Connectors 24.4 % 1.2 % 80

Compressor Seals 23.4 % 81.1 % 372

Open-ended Lines 11.1 % 10.0 % 186

Pressure Relief Valves 3.5 % 2.9 % 844 Source: Clearstone Engineering, 2002, Identification and Evaluation of Opportunities to Reduce Methane Losses at Four Gas Processing Plants. Report of results from field study of 4 gas processing plants in WY and TX to evaluate opportunities to economically reduce methane emissions.


How Much Methane is Emitted?How Much Methane is Emitted?

Summary of Natural Gas Losses from the Top Ten Leakers1.

Plant No. Gas Losses From Top 10

Leakers (Mcfd)

Gas Losses From All Equipment

Leakers (Mcfd)

Contribution By Top 10 Leakers

(%)

Contribution By Total Leakers

(%) 1 43.8 122.5 35.7 1.78

2 133.4 206.5 64.6 2.32 3 224.1 352.5 63.6 1.66

4 76.5 211.3 36.2 1.75 Combined 477.8 892.84 53.5 1.85

1Excluding leakage into flare system


How Can These Losses Be Reduced?How Can These Losses Be Reduced?

Implementing a Directed Inspection and Implementing a Directed Inspection and Maintenance (DI&M) ProgramMaintenance (DI&M) Program

Source: CLEARSTONE ENGINEERING LTD


What is a DI&M Program?What is a DI&M Program?

Implementing a Directed Inspection and Implementing a Directed Inspection and Maintenance ProgramMaintenance Program VoluntaryVoluntary program to identify and fix leaks that program to identify and fix leaks that

are cost effective to repairare cost effective to repair Outside of mandatory LDAR Outside of mandatory LDAR Survey cost will pay out in the first yearSurvey cost will pay out in the first year Provides valuable data on leakersProvides valuable data on leakers


How Do You Implement A DI&M Program?How Do You Implement A DI&M Program?

SCREEN and MEASURE leaks

Estimate repair cost, fix to a PAYBACK criteria

Develop a PLAN for future DI&M

Record savings/REPORT to Gas Star

CONDUCT Baseline survey

FIX on the spot leaks


Screening and MeasurementScreening and Measurement

Summary of Screening and Measurement Techniques

Instrument/

Technique Effectiveness

Approximate

Capital Cost

Soap Solution

$

Electronic Gas Detectors

$$

Acoustic Detection/ Ultrasound Detection

$$$

TVA (FID)

$$$

Bagging

$$$

High Volume Sampler

$$$

Rotameter

$$

Source: EPA’s Lessons Learned Study


Cost-Effective RepairsCost-Effective Repairs

Repair the Cost Effective Components

Component Value of

Lost gas1 ($)

Estimated Repair cost

($)

Payback (Months)

Plug Valve: Valve Body 12,641 200 0.2

Union: Fuel Gas Line 12,155 100 0.1

Threaded Connection 10,446 10 0.0

Distance Piece: Rod Packing 7,649 2,000 3.1

Open-Ended Line 6.959 60 0.1

Compressor Seals 5,783 2,000 4.2

Gate Valve 4,729 60 0.2

Source: Hydrocarbon Processing, May 2002 1Based on $3/Mcf gas price


DI&M - Partner ExperienceDI&M - Partner Experience

Partner APartner A: A leaking cylinder head was : A leaking cylinder head was tightened, which reduced the methane tightened, which reduced the methane emissions from almost 64,000 Mcf/yr per emissions from almost 64,000 Mcf/yr per year to 3,300 Mcf/yryear to 3,300 Mcf/yr The repair required 9 man-hours of labor and the The repair required 9 man-hours of labor and the

annualized gas savings were approximately 60.7 annualized gas savings were approximately 60.7 MMcf/yr At $3.00/Mcf, the estimated value of the MMcf/yr At $3.00/Mcf, the estimated value of the gas saved was $182,100/yeargas saved was $182,100/year

Partner BPartner B: A one-inch pressure relief valve : A one-inch pressure relief valve emitted almost 36,774 Mcf/yremitted almost 36,774 Mcf/yr Five man-hours of labor and $125 of materials Five man-hours of labor and $125 of materials

eliminated the leak. The annualized value of the eliminated the leak. The annualized value of the gas saved was more than $110,300 at $3.00/Mcfgas saved was more than $110,300 at $3.00/Mcf


DI&M - Partner ExperienceDI&M - Partner Experience

Partner CPartner C: A blowdown valve leaked almost 14,500 : A blowdown valve leaked almost 14,500 Mcf/yrMcf/yr Rather than replace the expensive valve, the Partner spent just Rather than replace the expensive valve, the Partner spent just

$720 on labor and materials to reduce the emissions to $720 on labor and materials to reduce the emissions to approximately 100 Mcf/yr approximately 100 Mcf/yr

The gas saved was approximately 14,400 Mcf/year, worth The gas saved was approximately 14,400 Mcf/year, worth $43,200 at $3.00/Mcf$43,200 at $3.00/Mcf

Partner DPartner D: A tube fitting leaked at a rate of 4,121 : A tube fitting leaked at a rate of 4,121 Mcf/yrMcf/yr A very quick repair requiring only five minutes reduced the leak A very quick repair requiring only five minutes reduced the leak

rate to 10 Mcf/yrrate to 10 Mcf/yr At $3.00/Mcf, the annualized value of the gas saved was At $3.00/Mcf, the annualized value of the gas saved was

approximately $12,300approximately $12,300


Discussion QuestionsDiscussion Questions

To what extent are you implementing these To what extent are you implementing these opportunities?opportunities?

Can you suggest other opportunities?Can you suggest other opportunities? How could these opportunities be improved How could these opportunities be improved

upon or altered for use in your operation?upon or altered for use in your operation? What are the barriers (technological, What are the barriers (technological,

economic, lack of information, regulatory, economic, lack of information, regulatory, etc.) that are preventing you from etc.) that are preventing you from implementing these practices?implementing these practices?

Documents

Best Operating Practices for Reducing Emissions From Natural Gas STAR Partners Murphy Exploration & Production, Gulf Coast Environmental Affairs Group,