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

2

Overview

• Introduction
• Lambda Spill

Prevention Model

• Cost of Spills
• Source of Spills
• Cause of Spills
• Proactive Prevention
• Conclusions

3

Introduction

• History
• Lambda
• Hilcorp
• Spill Philosophy

Boardman River

4

Downtown Traverse City Near the pipeline crossing

5

Boardman River

Boardman River enters Grand Traverse Bay

6

Lambda Spill Prevention Model

• Change Company culture
• Be Proactive
• Find and clean up quickly
• Close out inherited spills

7

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

8

Cost of Spills

9

Sources of Spills

• Well heads and stuffing

boxes

• Flowlines
• Production facilities

1 2 3 4 5 6 7 8 9

Cause

Spill Source 2019

Fitting Flowline Burn Tube Vessel Polish Rod Deadleg Dehy Line Heater Coil Well Tubing Valve

• Service trucks
• Pipelines
• Gas plants
• Dead legs

10

Cause of Spills

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

11

Proactive Prevention

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

12

Proactive Prevention

13

Conclusions

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