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DFW SIP Development Update and Oil & Gas Inventory Follow-Up Air Quality Division Air Quality Division Heather Evans, Michael Ege, Chris Kite Air Quality Technical Information Meeting Arlington, Texas April 17, 2014

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DFW SIP Development Updateand Oil & Gas Inventory Follow-Up

Air Quality Division

Air Quality Division

Heather Evans, Michael Ege, Chris KiteAir Quality Technical Information Meeting

Arlington, TexasApril 17, 2014

SIP Development Update and Timeline

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 3

Attainment Demonstration &RFP SIP Timeline

• Preliminary RFP analysis completed

– 15% VOC reduction for Wise County between 2011-2017

– 15% VOC/NOX reduction for 9 previously designated counties between 2011-2017

– Additional 3% VOC or NOX reduction for 2018

– No additional measures necessary to address RFP requirements

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 4

Reasonably Available Control Technology

• RACT rule development underway

• FCAA requirement for nonattainment areas

– does not apply outside nonattainment areas

• Must be met even if modeling shows that the control measure will not actually have a measurable effect on ozone

• Continues to apply after an area reaches attainment but the obligation to update RACT stops when an area reaches attainment

• RACT must be implemented by January 1, 2017

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 5

RACT and Wise County

• Existing rules for the DFW nonattainment area not currently applicable in Wise County

• Major source threshold is potential-to-emit (PTE) 100 tons per year (tpy) of VOC or NOX

• Extension of applicable stationary source rules necessary to satisfy RACT

– Rules already applicable in the other nine DFW counties that were part of the DFW 1997 eight-hour ozone serious nonattainment area

– Major source threshold for other nine counties is 50 tpy of VOC or NOX

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 6

VOC & NOx RACT Rulemaking

• Proposed VOC rulemaking would revise Chapter 115 to:

– Include Wise County as part of the DFW nonattainment area

– Implement RACT for Wise County

– Implement RACT for certain VOC emission source categories in the DFW area

• Proposed NOx rulemaking would revise Chapter 117 to:

– Include Wise County as part of the DFW nonattainment area

– Implement RACT for Wise County

– Implement RACT for any other identified NOX major sources in nine counties

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 7

Reasonably Available Control Measures

• RACT is considered the minimum requirement for nonattainment areas

• RACM is considered “beyond” RACT

• Considered RACM if the measure will help advance attainment by:

─ reaching attainment by deadline, or

─ reaching attainment earlier than deadline

• Must be:

─ technologically & economically feasible

─ enforceable

─ practical

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 8

Attainment Demonstration &RFP SIP Timeline

• Deadline for submitting control measure ideas for RACM – April 30, 2014

• Technical work finalized – May-Aug 2014

• Proposal agenda – December 2014

• Public comment period begins – December 2014

• Public hearings – January 2015

• Adoption agenda – June 2015

• Submit to EPA – no later than July 20, 2015

Oil & Gas Inventory Follow-Up

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 10

Overview ofEmissions Inventory (EI) Topics

• Which oil and gas operations contribute the most emissions?

• What are the total 2011 ten-county DFWcompressor engine emissions?

• Additional details about the condensate tank project, and how emissions are affected by tanks with low production.

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 11

Which Oil and Gas Operations contribute the most emissions?

• For the ten-county DFW area, the 2011 area source EI (including drilling rigs) contains 55.53 tons per day (tpd) of NOX emissions.

• Area source oil and gas sources account for 30.58 tpd NOX emissions.

• Area source oil and gas sources with the largest NOX emissions

– Compressor engines, 14.83 tpd

– Drilling rigs, 14.44 tpd

– Hydraulic pump engines, 0.85 tpd

– Artificial lift engines, 0.31 tpd

– Heaters, 0.12 tpd

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 12

Which Oil and Gas Operations contribute the most emissions?

• For the ten-county DFW area, the 2011 area source EI (including drilling rigs) contains 294.02 tpd of VOC emissions

• Area source oil and gas sources account for 71.95 tpd VOC emissions

• Area source oil and gas sources with the largest VOC emissions

– Condensate storage tanks, 18.67 tpd

– Pneumatic devices, 13.68 tpd

– Pneumatic pumps, 10.58 tpd

– Piping component fugitives, 7.87 tpd

– Mud degassing, 7.33 tpd

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 13

What are the total 2011 ten-county DFW compressor engine emissions?

• Point source compressor engine emissions

– 13.61 tpd NOX

– 4.15 tpd VOC

• Area source compressor engine emissions

– 14.83 tpd NOX

– 1.34 tpd VOC

• Total compressor engine emissions

– 28.44 tpd NOX

– 5.49 tpd VOC

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 14

Additional Details about the Condensate Tank Project

• Do condensate storage tanks with very low production have significantly higher emission factors than tanks with larger production?

• How are area source emissions affected by condensate tanks with very low production (less than 0.2 barrels of liquid per day)?

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 15

Emission Factors forAll Production Levels

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 16

Emission Factors for Condensate Production < 10 bbl/day

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 17

Emission Factors for Condensate Production < 1 bbl/day

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 18

Things to Consider on Tanks with Low Production

• It is difficult to accurately measure very low production.

– Measuring the change in the height of the liquid

– For a ten foot diameter tank, 1 inch of liquid equals 1.17 barrels

– To measure 0.2 barrels on a ten foot diameter tank, that is only 0.17 inches of liquid

• While the emission factors are higher, the total emissions (pounds of VOC) are not significantly higher for low production tanks.

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 19

VOC Emissions versus Condensate Production

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 20

2013 Condensate Production Data in the DFW area

• In the ten-county DFW area, there were 15,530 active gas wells in 2013.

– 11,269 have no condensate production

– 1,972 with condensate production < 0.2 bbl/day

– 2,289 with condensate production > 0.2 bbl/day

• < 0.2 barrels/day condensate production

– Total of 47,047 barrels of condensate for the year

– 2.8% of total condensate production for DFW

• > 0.2 barrels/day condensate production

– Total of 1,647,000 barrels of condensate for the year

– 97.2% of total condensate production for DFW

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 21

Emissions Inventory Web pages

• TCEQ point source Web page

http://www.tceq.texas.gov/airquality/point-source-ei

• TCEQ area source Web page

http://www.tceq.texas.gov/airquality/areasource

• Texas Air Emissions Repository (TexAER) Web page

http://texaer.tceq.texas.gov/texaer/index.cfm

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 22

Additional Details about 2018 Point Source Emissions

What sources are included in the “Point-Other” category?

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 23

2018 DFW Area Non-Cement Kiln Non-Electric Generating Unit (NEGU) Emissions by Industry Type

Standard Industrial Classification (SIC)Description

2018 Emissions (tons per day)

NOX VOC CO PM

Crude Petroleum and Natural Gas 10.60 17.21 8.21 0.66

Natural Gas Liquids 4.49 5.27 3.25 0.20

Lime 1.40 0.01 0.39 0.08

Natural Gas Transmission 1.06 2.30 0.79 0.19

Blast Furnaces and Steel Mills 0.86 0.90 4.97 0.47

Mineral Wool 0.56 0.57 1.66 1.71

Refuse Systems 0.53 0.33 2.30 0.42

Asphalt Felts and Coatings 0.45 0.50 0.56 0.29

Airports, Flying Fields, and Services 0.33 0.16 0.07 0.04

Motor Vehicles and Car Bodies 0.22 3.58 0.15 0.01

Ceramic Wall and Floor Tile 0.20 0.16 0.86 0.00

Turbines and Turbine Generator Sets 0.19 0.05 0.06 0.01

Paperboard Mills 0.16 0.06 0.22 0.07

Secondary Nonferrous Metals 0.15 0.16 2.07 0.06

Sewerage Systems 0.14 0.04 0.14 0.01

Construction Machinery 0.11 0.20 0.05 0.09

Remaining 75 SICs Below 0.1 NOX tpd (14 SICs with Zero NOX) 1.54 14.52 4.06 1.04

Non-Cement Kiln NEGU Total (91 SICs from 393 Facilities) 22.98 46.02 29.81 5.35

Air Quality Division • SIP Development Update and Oil & Gas Follow Up • HE/ME/CK • April 17, 2014 • Page 24

2018 DFW Area Non-Cement Kiln Non-Electric Generating Unit (NEGU) Emissions by Equipment Type

Source Classification EquipmentDescription

2018 Emissions (tons per day)

NOX VOC CO PM

Natural Gas Combustion – 4-Cycle Lean-Burn Engines 8.26 9.91 5.00 0.49

Natural Gas Combustion – 4-Cycle Rich-Burn Engines 3.39 2.39 4.24 0.32

Natural Gas Combustion – 4-Cycle Clean Burn Engines 1.74 1.33 1.58 0.10

Lime Manufacturing – Calcining: Rotary Kiln 1.36 0.01 0.35 0.05

Natural Gas Combustion – Turbines 0.98 0.03 0.53 0.04

Natural Gas Combustion – 2-Cycle Lean-Burn Engines 0.93 0.07 0.24 0.02

Steel Foundries – Electric Arc Furnace 0.67 0.88 5.01 0.25

Natural Gas Combustion – 10-100 Million BTU/Hour Boilers 0.49 0.08 0.68 0.13

Landfill Gas – Reciprocating Engines 0.32 0.10 1.76 0.09

Aircraft Engine Testing – Jet A Fuel 0.30 0.01 0.02 0.00

Oil and Gas Production – Natural Gas Process Heaters 0.28 0.02 0.25 0.02

Natural Gas Incinerators 0.26 0.01 0.22 0.03

Natural Gas Production – Glycol Dehydrator Reboiler 0.22 0.07 0.22 0.02

Steel Manufacturing – Reheat Furnaces 0.21 0.02 0.02 0.03

Turbine Engine Testing – Diesel / Kerosene 0.18 0.03 0.05 0.01

Remaining 605 SCCs Below 0.15 NOX tpd (445 SCCs with Zero NOX) 3.39 31.06 9.62 3.76

Non-Cement Kiln NEGU Total (620 SCCs from 393 Facilities) 22.98 46.02 29.81 5.35

Contact Information

Heather Evans

[email protected]

512-239-4675

Michael Ege

[email protected]

512-239-5706

Chris Kite

[email protected]

512-239-1959