Spill Prevention Business Model Examples and Results Lambda Energy - PowerPoint PPT Presentation

Spill Prevention Business Model Examples and Results Lambda Energy Resources Larry Albrecht – Chief Operations Officer 1

Overview • Introduction • Lambda Spill Prevention Model • Cost of Spills • Source of Spills • Cause of Spills • Proactive Prevention • Conclusions 2

Introduction • History • Lambda • Hilcorp • Spill Philosophy 3

Boardman River Near the pipeline crossing Downtown Traverse City 4

Boardman River Boardman River enters Grand Traverse Bay 5

Lambda Spill Prevention Model • Change Company culture • Find and clean up quickly • • Be Proactive Close out inherited spills 6

Cost of Spills • Intrinsic Costs – Financial Backing – Reputation – Public Perception • Actual $ Costs – Liability insurance – Bonds – Inherited spill clean up – New spills found quickly not in surface water or in ground water • Few BBLS: Up to $25,000 • 5-10 BBLS: Up to $100,000 • 10+ BBLS: Up to $500,000 – New spills found in surface water or in ground water • Millions of dollars and years of clean up/remediation 7

Cost of Spills 8

Sources of Spills • • Well heads and stuffing Service trucks • boxes Pipelines • Gas plants • Flowlines • Dead legs • Production facilities 9 Spill Source 2019 8 7 6 5 4 3 2 1 0 Cause Fitting Flowline Burn Tube Vessel Polish Rod Deadleg Dehy Line Heater Coil Well Tubing Valve 9

Cause of Spills • Corrosion • Mechanical failure • Explosion or over pressure • Old age • Lack of maintenance • Outside influence 10

Proactive Prevention • Culture • Diligent Observation • Identify and Rank • Spend the Money • Disarm Dead Legs • Proper Pressure Testing • Load Line Containment • Chemical Treatment • Grandma Rule 11

Proactive Prevention 12

Conclusions • Cheaper to prevent • Develop a plan • Do the work 13