Colorado Regulation 7 Oil and Gas SectorGrules... · O&G stakeholder meeting 1/30/2017 7 Regulation 7 COGCC CTG NSPS OOOO NSPS OOOOa BLM Well completions X (oil and gas) X (gas) X

Early engagement

Stakeholder meeting

Colorado Regulation 7

Oil and Gas Sector

1

January 30, 2017

• Reasons for 2017 oil and gas rulemaking

• Overview of oil and gas requirements

• Regulation Number 7

• EPA’s Oil and Gas CTG

• EPA’s oil and gas NSPS (OOOO, OOOOa)

• BLM’s venting and flaring rule

• Discussion of potential oil and gas control measures and rule revisions

• 2017 stakeholder and rulemaking timing & next steps

O&G stakeholder meeting

1/30/2017 2

• Reasons for 2017 oil and gas rulemaking

• Moderate ozone nonattainment area requirement to address CTG

• 2008 ozone NAAQS

• Corresponding alignment, clarifications, other revisions

• 2015 ozone NAAQS


1/30/2017 3

• Expedited – 2018 deadline and requirement for Legislative Review

• Develop scope/solicit input

• Develop strawman

• Develop proposal

• Rulemaking process

• 7/20/17 Request

• 10/19/17 Hearing

• Legislative Review


1/30/2017 4


1/30/2017 5

2018

Jan Mar May Jul Sep Nov Jan Mar May

Reg 7 O&G Rulemaking Kickoff

1/30/2017

Reg 7 Request for Hearing 7/20/2017

Reg 7 Hearing 10/19/2017

Submit to EPA

6/29/2018

Solicit Input

Develop Strawman

Develop Proposal

Rulemaking Process

Legislative Review

2017

Due to EPA

2019

• Regulation Number 7

• EPA’s Control Techniques Guidelines for the Oil and Natural Gas Industry (“Oil and Gas CTG”)

• EPA’s New Source Performance Standard (“NSPS OOOO”, “NSPS OOOOa”)

• BLM’s Waste Prevention, Production Subject to Royalties, and Resource Conservation (“venting and flaring rule”)


1/30/2017 6


1/30/2017 7

Regulation 7 COGCC CTG NSPS OOOO NSPS OOOOa BLM

Well completions X (oil and gas) X (gas) X (oil and gas) X (oil and gas)

Well pits X

Compressors – centrifugal

and reciprocating X (XVII) X X X X (LDAR)

Pneumatic controllers

(continuous bleed) X (XVIII) X X X X X

Pneumatic pumps X X X

Fugitive emissions – well

sites and compressor

stations

X (XVII) X X X

Condensate tanks X (XII, XVII) X X X X X

Crude oil tanks X (XVII) X X X X X

Produced water tanks X (XVII) X X X X X

Equipment leaks at natural

gas plants X (XII) X X X

Liquids unloading X (XVII) X


1/30/2017 8


1/30/2017 9

Definition Pollutant Standard Monitoring

NSPS OOOOa

Single well – conducts well completion operation following hydraulic fracturing or refracturing

GHG/VOC

Initial flowback stage to vessels, separation flowback stage to separator/vessels & wildcat/delineation or non-wildcat/delineation low pressure well – combustion device, separator

Well completion log, notification prior to well completion operation

CTG NA

COGCC Oil and gas wells Hydrocarbon gas

Green completion practices NA

BLM Well – hydraulically fractured or refractured

Gas Capture/sold, flare, use in operation, inject, OOOO/OOOOa

NA


1/30/2017 10

Definition Threshold Pollutant and control

Standard Monitoring Refract. modifies

Combustion device

NSPS OOOOa

Single storage vessel

6 tpy potential VOC emissions (controlled)

95% reduction of VOC

No detectable emissions

AVO monthly No Continuous pilot

CTG Single storage vessel


95% reduction of VOC

No detectable emissions

AVO monthly No Continuous pilot

R7.XVII

Single or series of storage vessels

6 tpy actual VOC emissions (uncontrolled)

95% reduction hydrocarbon

No venting (STEM)

AVO/visual inspections at liquids loadout; IR/M21 annually, quarterly, or monthly

Yes Auto-igniter

BLM Single storage vessel


Route tank vapor gas to sales line or combustion device if infeasible

NA NA NA NA


1/30/2017 11

Definition Location Pollutant Standard Monitoring

NSPS OOOOa

Single centrifugal compressor using wet seals (not at well site)

Between wellhead and distribution

VOC/GHG

95% control Records, cover and closed vent system requirements (if used), annual report

CTG

Between wellhead and transmission/storage

VOC

R7.XVII Wet seal centrifugal compressor

Hydrocarbon 95% control, unless subject to NSPS OOOO

NA

BLM “Leak component” includes openings on a compressor.


1/30/2017 12


NSPS OOOOa Single

reciprocating compressor (not at well site)

Between wellhead and distribution

VOC/GHG Replace rod packing 26,000 hours or 36 months, or route to process

Records, closed vent system requirements (if used), annual report

CTG


VOC

R7.XVII Reciprocating compressor

Natural gas compressor station

NA

Replace rod packing 26,000 hours or 36 months, unless subject to NSPS OOOO

NA

BLM “Leak component” includes openings on a compressor.


1/30/2017 13


NSPS OOOOa

Single continuous bleed natural gas driven pneumatic controller (not at gas plant) > 6 scfh & single continuous bleed natural gas driven pneumatic controller (at gas plant)

Between well to distribution

VOC/GHG

Gas plant – zero bleed; not at gas plant - < 6 scfh bleed; unless functional need

Records, annual report

CTG


VOC

R7.XVIII Pneumatic controllers actuated by natural gas

At/upstream of gas plants

VOC

Bleed rate < 6 scfh; no-bleed where grid power (if placed in service on/after 5/1/2014); unless safety/process need

Tag/inspect/maintain/records of high-bleed pneumatic controllers

BLM Pneumatic controller – continuous bleed rate > 6 scfh

Uses gas produced from a Federal lease

Replace with controller < 6 scfh (unless functional need or routed to flare/process)

NA


1/30/2017 14


NSPS OOOOa

Single natural gas driven diaphragm pump (not at gas plant) > 90 days & single natural gas driven diaphragm pump (at gas plant)

Well site & gas plant

GHG/VOC

Gas plant – zero bleed; not at gas plant – route to 95% existing control device (document if not 95%)

Records, closed vent system requirements (if used), annual report CTG VOC

R7.XVII NA

BLM

Pneumatic diaphragm pump (operating > 90 days/yr)

Uses gas produced from Federal lease

Replace with zero emissions pump or route to process (unless functional need then route to flare/combustor)

NA


1/30/2017 15

Component Location Monitoring Frequency Leak threshold Repair & resurvey

NSPS OOOOa

Component with potential to emit fugitive emissions of methane or VOC

Well site (except only wellhead(s)) & compressor station between well and distribution

Emissions monitoring plan – OGI, EPA M21

Well site – semiannually; compressor station – quarterly

OGI – visible emission; M21 - > 500 ppm (above background)

Repair 30 days (unless infeasible/shutdown/etc) & verify 30 days

CTG Component with potential to emit fugitive emissions of VOC

Well site > 15 BOE/day (except only wellhead(s)) & gathering and boosting station between well transmission/storage

R7.XVII Pump seal, flange, pressure relief device, connector, valve

Well production facility & natural gas compressor station between well and inlet to gas plant

IR camera, EPA M21, alternative AIMM

Tiered (based on VOC emissions)

IR/AVO – detectable emissions; M21 > 2000/500 ppm hydrocarbon

Repair 5 days & verify 15 days

BLM Any component that has the potential to leak gas and can be monitored

Site /equipment to produce/treat/compress/etc gas from a Federal lease (except only wellhead or depressurized well)

OGI, portable analyzer (EPA M21), BLM approved alternative

Wellhead/other equipment – semiannual & compressor station – quarterly OR BLM alternative

OGI – visible hydrocarbon emission; portable analyzer - > 500 ppm hydrocarbon; soap solution – bubbles

Repair 30 days (unless good cause) & verify 30 days


1/30/2017 16

Component Monitoring Frequency Leak threshold Repair & resurvey

NSPS OOOOa

Group of all equipment within a process unit

LDAR program equivalent to NSPS VVa

CTG Equipment components in VOC service

LDAR program equivalent to NSPS VVa

R7.XVII Leaking equipment Comply with NSPS KKK (NSPS VV) unless subject to NSPS OOOO/OOOOa (NSPS VVa)

BLM (see previous slide)

• Well heads

• Intermittent pneumatic controllers

• Liquids unloading

• Alternative controls and monitoring


1/30/2017 17

Key differences

• Storage vessel : definition/threshold, pollutant, standard, monitoring

• Compressors, pneumatic devices, compressor stations: location, pollutant

• LDAR: pollutant, components, inspection technology/frequency, repairs, M21 threshold


1/30/2017 18

Equipment/process BLM NSPS

OOOOa CTG R7

Pollutant VOC/

HC VOC and methane

VOC HC

Well completions

Centrifugal compressors

Reciprocating compressors

Pneumatic controllers

Pneumatic pumps

LDAR – natural gas processing plants

LDAR – well sites & compressor stations


1/30/2017 19

• Provide comments

[email protected]

(“O&G CTG”)

• Continued stakeholder meetings

• 2017 rulemaking hearing request


1/30/2017 20

mailto:[email protected]

Leah Martland,

Regulatory Development – Planning and Policy Program

[email protected]


1/30/2017 21

• Regulation Number 7: https://www.colorado.gov/pacific/cdphe/aqcc-regs

• EPA’s Oil and Gas CTG: https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry/2016-control-techniques-guidelines-oil-and

• EPA’s oil and gas NSPS (OOOO, OOOOa): https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry/new-source-performance-standards-and#Proposed

• BLM’s venting and flaring rule: https://www.blm.gov/documents/national-office/public-room/data-0


1/30/2017 22

Colorado Regulation 7 Oil and Gas SectorGrules... · O&G stakeholder meeting 1/30/2017 7 Regulation 7 COGCC CTG NSPS OOOO NSPS OOOOa BLM Well completions X (oil and gas) X (gas) X

Documents