From Federal to State: New Air Rules for the Oil and Gas Sector Air - - PowerPoint PPT Presentation

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From Federal to State: New Air Rules for the Oil and Gas Sector Air - - PowerPoint PPT Presentation

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1 From Federal to State: New Air Rules for the Oil and Gas Sector Air Focused Oil & Natural Gas Regulation Update 21st Annual AWMA/NYWEA Joint Seminar Ona Papageorgiou, P.E. February 14, 2018 Division of Air Resources 2 Presentation

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From Federal to State:

New Air Rules for the Oil and Gas Sector

Air Focused Oil & Natural Gas Regulation Update

21st Annual AWMA/NYWEA Joint Seminar February 14, 2018 Ona Papageorgiou, P.E. Division of Air Resources

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Presentation Overview

  • 1. Federal and state regulatory requirements
  • 2. Oil & Natural Gas Sector Review
  • 3. Oil & Natural Gas Air Emissions and Inventory
  • 4. New Oil & Natural Gas Regulatory Proposals
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The Clean Air Act

I. Attainment of NAAQS II. Mobile Sources

  • III. Air Toxics
  • IV. Acid Deposition Control
  • V. Operating Permits
  • VI. Stratospheric Ozone
  • VII. Enforcement
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Title I

Regulating Title I

  • Defines Attainment and Non-attainment Areas
  • New Source Performance Standards (NSPS)
  • New Source Review (NSR) for Large

Increases

  • Control Technique Guidelines (CTGs)

Developed for Category Sources

  • Reasonably Available Control Technology

(RACT)

Sets standards for “criteria Pollutants”

Particulate Matter (PM10) Sulfur Dioxide (SO2) Nitrogen Oxides (NOx) Volatile Organic Compounds (VOC) Carbon Monoxide (CO) Lead (Pb)

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Title III

Regulating Title III

  • CAA requires EPA to develop standards for

HAPs (NESHAPs)

  • Regulated by “source categories” that

produce one or more HAPs

  • Control requirements are called Maximum

Achievable Control Technology (MACT)

Sets standards for Hazardous Air Pollutants (HAPS)

EPA Established List Of 187 Hazardous Air Pollutants (HAPs) Examples: Perchloroethylene (dry cleaning) Methylene chloride (solvent/paint stripper) Benzene (petroleum product)

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Generally:

Source Category (Industry Type) Pollutant Emissions (amount) Applicable Rule Example: Natural Gas Industry VOCs Area Source (minor) NSPS Subpart OOOOa

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Clean Air Act Sets National Ambient Air Quality Standards National Ambient Air Quality Standards Requires States to Attain Specific Levels of Criteria Air Pollutants If NAAQS are Not Met then that State is in non‐attainment A State Implementation Plan (SIP) Must be Developed

CAA to State Regulation

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Types of Regulations

New Source Performance Standards (NSPS)

  • Applies to new sources only

Control Technique Guidelines (CTG)

  • Applies to existing sources
  • Applies only to States with non-attainment areas or that

are in the Ozone Transport Region

  • Establishes minimum controls/requirements
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Non-attainment area

Areas in the United States that do not meet the national ambient air quality standard (NAAQS) for a criteria pollutant. Detected and recorded through a monitoring network.

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Ozone Transport Region

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Air Pollutants

Oil & Natural Gas sector regulations covered today:

  • 2 pollutants: volatile organic

compounds & methane

  • VOCs mix with NOx to form ozone
  • Methane is a potent greenhouse

gas

Healthy lung tissue Ozone impacted unhealthy lung tissue

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Checkpoint

We’ve reviewed how federal laws flow into state regulations. Now for a little oil and natural gas review…

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1626: Gas seeps, Lake Erie 1627: Oil Seeps, Cuba, NY 1821: First commercial natural gas well drilled near Fredonia 1863: First oil well drilled in Allegany County

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New York State Wells

  • 12,943 Wells reported in 2016
  • Est. 75,000 Wells since 1820’s
  • Oil & gas produced in 2014

valued at ~ $101.5 million

  • ~ $3.04 million generated for

local gov’t taxes

  • ~ $12.69 million royalties for

landowners

Source: http://www.dec.ny.gov/about/36033.html

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Source: Wyoming State Geological Survey

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Semantics

“Fracking” Hydraulic fracturing High volume hydraulic fracturing Conventional Unconventional

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Source: Wyoming State Geological Survey

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Production Trends in New York State

200 400 600 800 1000 1200 10000 20000 30000 40000 50000 60000 1979 1984 1989 1994 1999 2004 2009 2014

Oil (1,000 bbl) Gas (mmcf) Year

New York State Oil & Gas Production 1980‐2016

Gas (mmcf) Oil (1,000 bbl)

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Checkpoint

We’ve reviewed the oil and natural gas sector a bit. Now let’s focus on air emissions inventory and how that impacts regulation…

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U.S. Methane Emissions by Source

Source: EPA NSTAR, 2013

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U.S. Oil & Gas Sector Emissions

Source: EPA NGSTAR, 2014

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Types of emissions

Point Source emissions are collected under Title V of the Clean Air Act Nonpoint source emissions require engineering judgment and emission factors

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Air Pollution Calculation Basics

Activity rate may be:

  • Number of units
  • Fuel production
  • Well count

Emission factor is developed through data collection

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Example: Let’s zoom in on pneumatic valves…

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Zoom In…

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Zoom In…

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Pneumatic Valves

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Back to the inventory basics

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Pneumatic Inventory

,, , Where: Epneumatic,TOTAL,j = Total pneumatic device emissions of pollutant j in the county [ton/yr] Epneumatic,j = pneumatic device emissions of pollutant j for a type of well (oil/gas) [ton/yr] Nwell = total number of active gas (or oil) wells in county

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Pneumatic Inventory Development

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Why Inventory?

Inventory Rules

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The Path from Inventory to Regulation

STATE COUNTY FIPS ATTAINMENT STATUS BASIN SCC SCC_DESC POLLUTANT NONPOINT EMISSIONS TPY 36017 ATTAINMENT Appalachian Basin 2310021300 PNEUMATIC DEVICES 100414 0.000623068 36017 ATTAINMENT Appalachian Basin 2310021300 PNEUMATIC DEVICES 108883 0.009813922 36017 ATTAINMENT Appalachian Basin 2310021300 PNEUMATIC DEVICES 1330207 0.002785622 36017 ATTAINMENT Appalachian Basin 2310021300 PNEUMATIC DEVICES 71432 0.011006722 36017 ATTAINMENT Appalachian Basin 2310021300 PNEUMATIC DEVICES 7783064 0.000147540 36017 ATTAINMENT Appalachian Basin 2310021300 PNEUMATIC DEVICES CH4 8.703950882 36017 ATTAINMENT Appalachian Basin 2310021300 PNEUMATIC DEVICES CO2 0.423936725

Inventory Progress/ Growth Modeling Inform Policy

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Inventory Progress/ Growth Modeling Inform Policy

The Path from Inventory to Regulation

2008 Standard 0.075ppm Ambient air conditions (buffalo area) # of exceedances

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Inventory Progress/ Growth Modeling Inform Policy

The Path from Inventory to Regulation

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Inventory Progress/ Growth Modeling Inform Policy

The Inventory to Regulation Path

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Checkpoint

We’ve reviewed the impact air emission inventories have on regulations. Now let’s see what is going on with oil and natural gas regulation…

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EPA’s suite of regulations for Oil & Natural Gas

  • June 3, 2016: New Source Performance Standard,

NSPS OOOOa

  • June 3, 2016: Source Determination Rule
  • October 19, 2016: Control Technique Guideline (CTG)
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NSPS OOOO & NSPS OOOOa

NSPS OOOO

  • 2012
  • VOC only

NSPS OOOOa

  • 2016
  • Methane and VOC
  • Expands regulation to other segments & processes
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2016 NSPS OOOOa Revisions

  • Now includes oil well sites
  • Regulates methane
  • Extends requirements to “downstream” NG equipment
  • Find and repair leaks
  • Green completions for oil wells
  • Limit emissions from new and modified pneumatic pumps
  • Limit emissions from compressors
  • Limit emissions from pneumatic controllers
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2016 NSPS Revisions Comments

  • Some changes were made due to comments:
  • Fixed schedule for monitoring leaks
  • Allows alternative approaches to finding leaks
  • Offers opportunity to use emerging and innovative

technology to monitor leaks

  • Phases in some requirements
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Drain vent from single compressor

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thief hatch relieving pressure spark arrestor

  • n dehydrator

knockout tank relieving pressure pressure relief valve

  • pened on

glycol dehydrator regenerator stream pressure relief valve venting on top of condensate storage tank

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What is the driver?

EPA published “Control Techniques Guidelines for the Oil and Natural Gas Industry” on October 20, 2016.

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Oil & Natural Gas CTG

EPA published “Control Techniques Guidelines for the Oil and Natural Gas Industry” on October 20, 2016. Sets RACT for VOC emissions from select oil and natural gas industry emission sources. CAA section 182(b)(2) gives states two years after the issuance of a CTG to put in place State Implementation Plan (SIP) revisions to address RACT for sources covered by that new CTG. Deadline: October 20, 2018

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NYS Methane Reduction Plan

  • Released in May of 2017
  • Suite of 25 actions to

reduce methane emissions across New York State.

Source: https://www.governor.ny.gov/news/governor‐cuomo‐releases‐plan‐cut‐methane‐emissions

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Consideration other than RACT

Information request Investigate other activities such as metering stations Other?

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NSPS OOOOa: Where does it apply?

Onshore only

  • Oil Production
  • NG Production
  • NG Processing
  • NG Transmission and Storage
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Summary

  • 1. Federal and State Regulatory Process
  • 2. Oil & Natural Gas Sector Review
  • 3. Oil & Natural Gas Air Emissions and Inventory
  • 4. New Oil & Natural Gas Regulatory Proposals
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Questions? Discussion

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Contact Information

Ona Papageorgiou, P.E. Bureau of Air Quality Planning Division of Air Resources 625 Broadway, Albany, NY 12233-3251 P: (518) 402-8396 | F: (518) 402-9035 Connect with us: Facebook: www.facebook.com/NYSDEC Twitter: twitter.com/NYSDEC Flickr: www.flickr.com/photos/nysdec

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If there is time… extra slides…

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Gas Well Sites

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Oil Well Sites

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Production Gathering & Boosting Stations

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Natural Gas Processing Plants

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Transmission & Storage

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2016 NSPS OOOOa Revisions

  • Now includes oil well sites
  • Regulates methane
  • Extends requirements to “downstream” NG equipment
  • Find and repair leaks
  • Green completions for oil wells
  • Limit emissions from new and modified pneumatic pumps
  • Limit emissions from compressors
  • Limit emissions from pneumatic controllers
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NSPS CTG

Equipment Segment Requirement Segment RACT Recommendation Centrifugal Compressors All except well site 95% reduction from wet seal either capture or dry seal. Between the wellhead and transmission & storage 95% reduction from wet seal either capture or dry seal. Reciprocating Compressors All except well site change rod packing every 26,000 hrs or 36 months or capture Between the wellhead and transmission & storage change rod packing every 26,000 hrs or 36 months or capture pneumatic controllers production required use of low‐bleed controllers (not to exceed 6 scfh) production required use of low‐bleed controllers (not to exceed 6 scfh) pneumatic controllers Processing zero natural gas bleed rate Processing zero natural gas bleed rate pneumatic pumps All except processing 95% reduction if control device already available Except processing from the wellhead to transmission & storage 95% reduction if control device already available pneumatic pumps processing zero natural gas emissions processing zero natural gas emissions Note: These are the revisions, there are other requirements associated with the 2012 NSPS OOOO.

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Air Emission Sources

Compressor Stations Gas Storage Facilities

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Typical Applicable Regulations

Rule Description Pollutant(s) 6NYCRR Part 212 NYS Air Toxics Rule for Process Sources such as Dehydrators Benzene, Formaldehyde, etc. 6NYCRR Part 227 NYS NOx RACT for Engines NOx 40CFR60 Subpart JJJJ NSPS for Internal Combustion Engines NOx 40CFR63 Subpart ZZZZ NESHAP for Internal Combustion Engines HAPs 40CFR63 Subpart HH NESHAP for Combustion Turbines HAPs 40CFR60 Subpart OOOOa NSPS for Oil & Gas Operations VOC Fugitives (leaks)