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2/29/2016 Page 1 EPA’s NSPS OOOOa (Quad Oa) Rule - “Getting Ready for Compliance” EPA’s NSPS OOOOa (Quad Oa) Rule Jay Christopher Business Unit Manager, Air & Process Services Trihydro Corporation “Getting Ready for Compliance”
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EPA’s NSPS OOOOa(Quad Oa) Rule

Feb 10, 2017

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Page 1: EPA’s NSPS OOOOa(Quad Oa) Rule

2/29/2016 Page 1EPA’s NSPS OOOOa (Quad Oa) Rule -“Getting Ready for Compliance”

EPA’s NSPS OOOOa(Quad Oa) Rule

Jay ChristopherBusiness Unit Manager, Air & Process ServicesTrihydro Corporation

“Getting Ready for Compliance”

Page 2: EPA’s NSPS OOOOa(Quad Oa) Rule

2/29/2016 Page 2EPA’s NSPS OOOOa (Quad Oa) Rule -“Getting Ready for Compliance”

NSPS OOOOa – What is it?• New Source Performance Standards (NSPS) Subpart OOOOa –

“Standards of Performance for Crude Oil and Natural Gas Facilities for which Construction, Modification, or Reconstruction Commenced After September 18, 2015”

• Proposed rule published September 18, 2015; therefore this date becomes the effective date for NSPS OOOOa

• Based on communication with EPA in January, EPA expects to finalize this rule “in the spring of this year”

• Addition of methane gets all the publicity, but there is much more to this proposed regulation

Page 3: EPA’s NSPS OOOOa(Quad Oa) Rule

2/29/2016 Page 3EPA’s NSPS OOOOa (Quad Oa) Rule -“Getting Ready for Compliance”

Summary of the NSPS OOOOa Proposed Changes• Initial compliance date generally one year after publication of final rule

• Changes to the definition of “new” and “modified,” and changes to the capital expenditure calculation methodology

• Adds methane, which will bring gas plant residue gas into monitoring programs for sources that trigger NSPS

• Fugitive emission monitoring of production sites as well as compressors

• Storage tank “fugitive emissions” (aka thief hatch venting)

• Expands the source category (oil well completions, pneumatic pumps, and fugitive emission components at well sites and compressor stations)

• Next Generation compliance tracking, verification, and electronic reporting requirements

Page 4: EPA’s NSPS OOOOa(Quad Oa) Rule

2/29/2016 Page 4EPA’s NSPS OOOOa (Quad Oa) Rule -“Getting Ready for Compliance”

Some Important Aspects• Modification

• Well Sites – Addition of a new well or fracturing or re-fracturing of an existing well

• Compressors – Addition of a new compressor, or when a physical change is made to an existing compressor that increases compression capacity

• Gas Plants – important changes to modification calculations

• Initial OGI survey within 30 days of startup or modification, and semiannually thereafter, with step-up/down based on performance• Skip Period Monitoring – well sites and compressors

• Skip to annual (< 1% leakers during two consecutive monitoring events)

• Return to semiannual (leakers > 1% and < 3% during any monitoring event)

• Drop to quarterly (leakers > 3% during any two consecutive semiannual events)

• In order to document the % leaking, the rule indirectly infers component hard counts

Page 5: EPA’s NSPS OOOOa(Quad Oa) Rule

2/29/2016 Page 5EPA’s NSPS OOOOa (Quad Oa) Rule -“Getting Ready for Compliance”

Fugitive Emissions – General• Repairs and follow-up monitoring

complete within 15 days of detection• Delay of repair until next scheduled

shutdown or 6 months, whichever earlier

• Verify by optical gas imaging (OGI) (no visible emissions) or Method 21 no detectable emissions (< 500 ppm)

• Develop and implement corporate-wide and site-specific Site Monitoring Plans

Page 6: EPA’s NSPS OOOOa(Quad Oa) Rule

2/29/2016 Page 6EPA’s NSPS OOOOa (Quad Oa) Rule -“Getting Ready for Compliance”

Fugitive Emissions – Well Sites• Affected facility for well sites includes the collection of components

emitting fugitive emissions located on any oil, gas, or injection well pad• All equipment “necessary for production”

• Exemption for sites with wellheads only, low production (< 15 barrels per day on initial production)

• Best System of Emission Reduction (BSER)• Optical gas imaging (OGI) followed by repair

Page 7: EPA’s NSPS OOOOa(Quad Oa) Rule

2/29/2016 Page 7EPA’s NSPS OOOOa (Quad Oa) Rule -“Getting Ready for Compliance”

Fugitive Emissions - Compressors• Compressor station definition broadened

• Natural gas transmission, storage, gathering, and booster stations

• Compressors and associated piping and connections

• Best System of Emission Reduction (BSER)• OGI survey to include distance piece, crankcase and blowdown vents, followed by

repair

• Compressor seal controls• Centrifugal wet seal systems - 95% control efficiency, or routing back to process (dry

seal controls not required)

• Reciprocating rod packing – allows an alternative to rod packing change outs or route through a closed vent system operated under negative pressure to process

Page 8: EPA’s NSPS OOOOa(Quad Oa) Rule

2/29/2016 Page 8EPA’s NSPS OOOOa (Quad Oa) Rule -“Getting Ready for Compliance”

Well Completion Control Requirements• Hydraulically fractured oil well

completions required to implement Reduced Emission Completions (RECs) when feasible, with a completion combustion device

• Wildcat, delineation, and low pressure wells – during completion, must use a completion combustion device

• Well with gas-to-oil ratio of less than 300 scf gas/barrel oil - controls not required

Page 9: EPA’s NSPS OOOOa(Quad Oa) Rule

2/29/2016 Page 9EPA’s NSPS OOOOa (Quad Oa) Rule -“Getting Ready for Compliance”

Storage Vessels• Storage vessels that emit greater

than 6 tons/year VOCs must install 95% efficient control device (VRU, enclosed combustor)

• Flowback tanks used for greater than 60 days are storage vessels

• Skid-mounted or mobile vessels are storage vessels if onsite for greater than 180 days (records required)

Page 10: EPA’s NSPS OOOOa(Quad Oa) Rule

2/29/2016 Page 10EPA’s NSPS OOOOa (Quad Oa) Rule -“Getting Ready for Compliance”

Pneumatics• Pneumatic controllers (expanded coverage)

• Well sites, production gathering/boosting stations, and natural gas compressor stations (transmission/storage) – continuous bleed pneumatic controllers using natural gas must be low bleed (some exceptions)

• Pneumatic pumps – natural gas, chemical/methanol or diaphragm (newly covered)• Natural gas processing plants - separate affected

facilities and must have a natural gas bleed rate of 0 scfh (some exceptions)

• Other locations – reduce emissions by 95%, exempt if the location does not otherwise need/have an emission control device (enclosed combustor, VRU)

Page 11: EPA’s NSPS OOOOa(Quad Oa) Rule

2/29/2016 Page 11EPA’s NSPS OOOOa (Quad Oa) Rule -“Getting Ready for Compliance”

Performance Testing and Monitoring• Initial Compliance Tests

• For control devices – performance test within 180 days following startup

• Enclosed combustors• Initial and ongoing performance testing if not on list of EPA-approved combustors

http://www3.epa.gov/airquality/oilandgas/implement.html

• Enclosed combustion units – opacity monitoring

• Alarms – equipment outage alarms to nearest field office (60.5416)

Page 12: EPA’s NSPS OOOOa(Quad Oa) Rule

2/29/2016 Page 12EPA’s NSPS OOOOa (Quad Oa) Rule -“Getting Ready for Compliance”

RecordkeepingRecordkeeping

• All required records must be maintained either onsite or at the nearest local field office for five years

• Significant detail required for well completion/flowback records

• Significant additional recordkeeping burden

Page 13: EPA’s NSPS OOOOa(Quad Oa) Rule

2/29/2016 Page 13EPA’s NSPS OOOOa (Quad Oa) Rule -“Getting Ready for Compliance”

ReportingNotifications• Notice two days prior to each well

completion operation (exempt if subject to similar state notification requirements)

• Fugitive emission sources largely exempt

Annual Reporting• Initial compliance report due one year + 90

days after final rule publication

• Performance testing – submit using EPA’s Electronic Reporting Tool

• Semiannual fugitive emissions reporting also submitted electronically

Page 14: EPA’s NSPS OOOOa(Quad Oa) Rule

2/29/2016 Page 14EPA’s NSPS OOOOa (Quad Oa) Rule -“Getting Ready for Compliance”

Next Generation Compliance• Compliance tracking

• Continuous monitoring requirements

• Compliance verification• EPA requested comments on

requiring 3rd party auditing, or self-auditing, of the fugitive emissions programs

• Electronic reportinghttp://www.epa.gov/compliance/next-generation-compliance

Page 15: EPA’s NSPS OOOOa(Quad Oa) Rule

2/29/2016 Page 15EPA’s NSPS OOOOa (Quad Oa) Rule -“Getting Ready for Compliance”

Next Generation Compliance• Third-party evaluation of

manufacturer tested combustors

• PE certification • EPA requested comments

on independent verification of system design and control device design/installation

• Public access to compliance data

Page 16: EPA’s NSPS OOOOa(Quad Oa) Rule

2/29/2016 Page 16EPA’s NSPS OOOOa (Quad Oa) Rule -“Getting Ready for Compliance”

Jay ChristopherBusiness Unit Manager, Air

& Process [email protected]