Summary of EPA s Energy Extraction National Enforcement Initiative Preparing for the Possibility Rob Liles Southwest Region Director (505)

Transcription

1 Summary of EPA s Energy Extraction National Enforcement Initiative Preparing for the Possibility Rob Liles Southwest Region Director (505) August 2013 NEI Process EPA sets national enforcement initiatives every 3 years to address the most seriously perceived pollution problems affecting communities. v Goal is to focus enforcement resources on environmental problems where noncompliance is a significant contributor, or where federal enforcement attention can have a significant impact 1

2 NEI Process (cont.) Energy Extraction was an NEI focus area from 2011 to 2103, and will now continue for v Focus Area: Assuring Energy Extraction Sector Compliance with Environmental Laws 2

3 EPA Energy Extraction Focus EPA reports on their enforcement website that through FY2012, they have v Conducted 1,231 energy extraction inspections and compliance evaluations v Concluded 96 enforcement actions 1 The enforcement actions have included companies operating gas plants, compressor stations, and oil and gas production facilities in several of the most active U.S. onshore oil and gas plays

4 EPA Energy Extraction Focus 1 1 h(p:// EPA Region 6 May 5-7, 2012 NEI Workshop 1 1 h(p:// may/presenta:ons/ brian_boyer_oil_and_gas_process.pdf 4

5 EPA 2012 Training Workshop Some topics covered: v O&G operations and emissions, SSM emissions, storage tanks v Easy to spot violations, site inspection basics, reading lab reports, documenting evidence v Monitoring requirements v LDAR basics When (if) the Inspector Shows Up Expect them to focus on: v Air Toxics v Flare and Thermal Oxidizer Operation v Open or Leaking Tank Hatches v Leaking components (LDAR) v Odors v Spills and Discharges to Water v Possibly Risk Management Program applicability Expect them to have a FLIR camera 5

6 Example Enforcement Findings Flare efficiency Spills into navigable waters or tributaries Failure to develop or implement an adequate Spill Prevention Control and Countermeasure (SPCC) Plan Failure to apply for air quality permits for new construction or modifications Failure to properly control air emissions Failure to perform required inspections or monitoring and keep proper records Unpermitted or improperly permitted operations on Indian Lands Risk Management Program (RMP) Plans issues v Proper applicability determinations v Correct impact analyses LDAR findings Flare Focus Flares have been a priority for the EPA under past and current NEIs (i.e., cutting toxic pollution ) v According to the internal training event EPA conducted as part of the NEI in May 5-7, 2012, individual regions within EPA are expected to produce a Targeting Workplan for the NEI 6

7 Recent EPA Enforcement Alert Potential Flare Issue 1 1 h(p:// may/ presenta:ons/brian_dickens_air_insp.pdf 7

8 Potential Flare Efficiency Issues The following issues can arise from determining that a facility is not achieving 98% destruction efficiency: v Emissions inventories and excess emissions: Did the facility under report, or entirely fail to report, certain events as excess emissions due to assumptions of a 98% VOC/ v HAP destruction rate? Permitting: Did the facility trigger additional permitting thresholds based on a flare efficiency that may have been too high? Did the facility violate a specific permit condition requiring 98% destruction efficiency of the flare? v Enforcement: Did the facility violate a specified combustion efficiency as part of an EPA-approved State Implementation Plan (SIP) in which case both the state and the EPA can seek penalties? Due diligence to minimize air emissions Are assumed capture efficiencies accurate? What does EPA expect from flare sources? Meet current standards (smoke, exit velocity, heating value) Instruct operators on proper flare operation Adhere to O&M Manual Monitoring v Vent gas flow meter v Effective air control v Effective steam measurement and control Steam/gas ratio less then 2 or 3 8

9 Inspection Basics Have you trained your field personnel on how to work with an inspector? Are your records straight and your site clean? Are upsets and flaring events documented? Show the inspector everything he/she asks to see (if it is safe to do so). Take a picture of everything the inspector photographs. Answer questions honestly, but do not guess at answers. If you do not know, tell the inspector you do not know. Inspection Basics (cont.) Do not interpret the regulations, do not give opinions, and do not speculate. Do not volunteer information that is not specifically asked about by the inspector. Allow the inspector to review anything relevant to a regulation or permit requirement. Ask the inspector to follow you to the office to make copies of any of his notes, forms, etc. and to have a close out meeting involving EHS management by phone. If the inspector wants copies of anything, please call EHS management before providing. Request that the inspector provide a list of items that we can provide later. 9

10 After the Inspection Call your company s legal counsel Anticipate the request for information and begin research in preparation of potential enforcement as an attorneyclient work product Types of Requests for Additional Information Clean Water Act Section 308 Information Requests Clean Air Act Section 114 Information Requests 10

11 Clean Air Act Section 114 Section 114 of the CAA allows EPA to require facility owners and operators to: v establish and maintain records; make reports; install, use and maintain monitoring equipment and audit procedures; sample emissions; establish and maintain records of control equipment parameters, production data or other variables when direct emission monitoring is impractical; submit compliance certifications; and provide such other information that the Administrator may reasonably require. (Emphasis added.) Example Post-Inspection Information Request For Flares: v Flare manufacture information and operation details v Excel spreadsheet with five years worth of flaring data: Flaring times/duration Average heating value and mass flow rate for each event Supplemental steam/air rate and ratio One-hour average concentration of each constituent All records and documents pertaining to proper steam/ air assist amounts 11

12 Example Post-Inspection Information Request (cont.) All source test results, even if the test was unofficial For tanks: v Installation date, dimensions, design capacity v For all VOLs stored: period of storage, maximum TVP, dates of service, control method details (including control efficiency documentation) Natural gas usage for all equipment at the site Preparing for the NEI 12

13 Consider Proactive Compliance Measures Perform internal compliance reviews v Think in terms of an EPA inspector v Are compliance systems and mechanisms in place? v Are compliance roles clearly defined? v Where are information and data stored (is it organized and strategically accessible?) v Identify compliance exposure points Vendors, MOC, operators, communication, culture, training Consider periodic compliance audits Prioritize internal findings by evaluating risks Consider Proactive Compliance Measures (cont.) Develop internal policies and guidance documents to help employees make the right decisions v Balance training and guidance document development Perform training v..for personnel with responsibilities that could impact compliance, v...and those that that may be engaged with an inspector v Develop training modules that fit into your safety training system? 13

14 Consider Proactive Compliance Measures (cont.) Utilize ACTS to the greatest extent possible v Firmly decide on how you want to use ACTS and then stick with it v Ensure proper entry of data, information, and tasks v Are key personnel using ACTS and entering data? v Perform mock audits relying on ACTS as the compliance task and data repository system v Engrain ACTS into your culture. How? Once you identify risk areas, develop a routine internal inspection schedule? Consider a voluntary assessment and voluntary disclosure of any discovered issues Take Care of the Easy to Spot Items Identified During Site Reviews Develop periodic checklists for common problems or high- risk issues 14

15 In Conclusion Energy extraction is on EPA s radar as a part of the NEI program through the 2016 fiscal year. EPA inspections and enforcement activities associated with the energy extraction sector and flares are expected to increase over the next few years. Fines and penalties are quite large. In Conclusion (cont.) BE PROACTIVE v Use the system you have invested in! v Assess potential enforcement exposure risk for your company and whether or not an internal audit and possible voluntary disclosure should be considered. 15