Transcript
Page 1: Hot Topics for Oil & Gas Production Authorizations

Hot Topics forOil & Gas Production

Authorizations

Anne M. Inman, P.E.Manager, Rules Registration Section

Erin Selvera, J.D.Special Assistant to Director

Air Permits DivisionTexas Commission on Environmental

QualityAdvanced Air Permitting Seminar 2014

Page 2: Hot Topics for Oil & Gas Production Authorizations

Topics for Discussion

Workload

Page 3: Hot Topics for Oil & Gas Production Authorizations

Authorization Processing

o Submittals – Complete applications:- Include site-specific or justification

o Pre-application meetingso e-Permitso Enhanced Application Review o AIROGo Electronic replies

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ePermitting

o Currently available through e-Permitting (STEERS) for Barnett-Shale:

- Historical notification (deadline Jan 5, 2015)

- New/existing notifications for PBR or SP

- New/existing Level 1 and 2 registrations

- New/existing Non-rule SP registrations

Page 5: Hot Topics for Oil & Gas Production Authorizations

e-Permitting(continued)

o Newly available in e-Permitting:- New/revision §106.352(l)

- New/existing SP §116.620

- PBR §106.359

- APD Certifications

- NSPS OOOO well completion/flowback notifications

- Change of Ownership

- All other PBRs and many SPs

Page 8: Hot Topics for Oil & Gas Production Authorizations

Authorization Types

o Notifications

o Certifications

o Voluntary registrations

o Registrations

o Registration & certifications (PBR and SP)

o Case-by-case permits (state & federal NSR)

Page 9: Hot Topics for Oil & Gas Production Authorizations

Authorization Tools

o Authorization Processing:

- Spreadsheet updates

- Quality/Quick/Quantity processing

Page 10: Hot Topics for Oil & Gas Production Authorizations

Small Crude Oil Sites

o Default emission estimates available

o Production of primarily crude oil

o Equipment = atmospheric separation, tanks, loading

only

o Must meet all of the following:

1. 10 bbl/day crude oil

2. 150 bbl/day water

3. Max 10,000 ppm H2S (1/4 mile limit)

4. Loading: submerged and dedicated normal

5. Minimum vent heights (> 20 feet)

Page 11: Hot Topics for Oil & Gas Production Authorizations

Oil Field Waste Water Recycling and Recovery

o Need detailed process description:

- Wide variety of equipment configurations

o Identify air contaminant:

- Mixtures, concentrations

- Varies by source and type

o Possible authorizations under PBR include §§106.261,

106.262, 106.183, 106.472, 106.478, 106.352, 106.351

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Flares & Combustion Devices

o Document type of control & efficiency

o Flares DRE 98% & 40 CFR §60.18

o “Sonic” flares

o “Combustors” - NSPS requires certification of

combustors by manufacturer or site-specific

sampling demonstration, DRE range 90%-99.9%

Page 13: Hot Topics for Oil & Gas Production Authorizations

MSS Implementation

o Claim, register, or certify

o Default calculations for maintenance

o Guidance is now available:

- Inclusive of all emissions related to

root-cause

Page 14: Hot Topics for Oil & Gas Production Authorizations

Pending Updates to NSPS OOOO

o Proposal published in Federal Register on July 17, 2014

o EPA refers to this as NSPS 1.5

o Final rule scheduled prior to January 1, 2015 REC compliance date

Page 15: Hot Topics for Oil & Gas Production Authorizations

Pending Updates to NSPS OOOO

o Identify 3 distinct stages of well completions

o Clarify requirements for storage tanks

o Define low-pressure wells

o Clarify certain requirements for leak detection at natural gas

processing plants

o Update requirements for reciprocating compressors

o Update definition of “responsible official”

o Remove affirmative defense (from civil penalties) provisions

from startup, shutdown and malfunction

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Pending Updates to NSPS OOOO

o 3 Distinct Stages of Well Completions:

1. Initial Flowback Stage

2. Separation Flowback Stage

3. Production Stage

Page 17: Hot Topics for Oil & Gas Production Authorizations

Initial Flowback Stage

o Can use open top tank, frac tank, lined pit,

or other vessel

o No control requirement

o Gas can be vented

Page 18: Hot Topics for Oil & Gas Production Authorizations

Separation Flowback Stage

o Route gas to flow line or collection system

o Re-inject gas, use as fuel, or for other useful

purpose

o No direct venting – flowback emissions must be

combusted using completion combustion device

o Liquids directed to completion vessel, storage

vessel, re-injected into the well or another well

(not required to route to “storage vessel”)

o May revert to initial flowback stage if flowback

becomes insufficient to maintain operation of

separator

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Production Stage

o Separated crude oil, condensate, and

produced water must be routed to storage

vessels

o Begin 30-day process of estimating storage

vessel VOC PTE

o Must control no later than 60 days

o NO venting or flaring of gas

Page 20: Hot Topics for Oil & Gas Production Authorizations

NSPS OOOO Strategy per EPA

o EPA is currently addressing the NSPS and NESHAP issues separately:

- NSPS-1, Storage vessel implementation revisions

- NSPS-1.5, Time-critical clarification of well

completion requirements

- NSPS-2, Remaining issues

- NESHAP

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Greenhouse Gas Regulation

o Supreme Court decision effect on permitting

o EPA White Papers

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Greenhouse Gas Permitting

o June 23, 2014 opinion:

- EPA may only require BACT for “anyway” sources if the

source emits more than a de minimis amount of GHGs

- 75,000 tpy may in fact be a reasonable de minimis level,

but EPA has to justify it on proper grounds

o July 24, 2014 EPA memo:

- “Anyway” sources – business as usual

- “Non-anyway” sources – permitting requirement no

longer enforced

Page 23: Hot Topics for Oil & Gas Production Authorizations

EPA White Papers

o April 15, 2014: Released for external peer review

o June 16, 2014: Deadline submission of technical information from the public and for peer review to be completed

o Fall 2014: EPA will determine how best to pursue further methane reductions

o End of 2016: If EPA decides to develop additional regulations, complete those regulations

Page 24: Hot Topics for Oil & Gas Production Authorizations

EPA White Papers

o Targets 4 key sources: Landfills Coal Mines Agriculture Oil and Gas:

• Compressors • Completions and on-going production of hydraulically

fractured oil wells • Leaks • Liquids unloading • Pneumatic devices

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Expedited Permitting

o Implementation tools and guidance expected soon

o Oil and Gas PBRs and Non-rule Standard Permit do not require sites to wait for confirmation of authorization to operate

Page 26: Hot Topics for Oil & Gas Production Authorizations

Where to Find More Information

Air Permits Main Line: (512) 239-1250

[email protected]

www.texasoilandgashelp.org

Page 27: Hot Topics for Oil & Gas Production Authorizations

The Finish Line


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