AIR QUALITY REGULATION OF OIL AND GAS DEVELOPMENT: OVERVIEW AND UPDATES

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1 COURSE AIR QUALITY REGULATION OF OIL AND GAS DEVELOPMENT: OVERVIEW AND UPDATES November 10-11, 2016 Hyatt Place Dallas/North Galleria Dallas, TX EUCI is authorized by IACET to offer 1.5 CEUs for the course.

2 OVERVIEW On May 12, 2016, the EPA Administrator signed nearly 1000 pages of new federal rules affecting the industry, and the EPA is amending federal New Source Performance Standards (NSPS) to include standards for reducing methane as well as VOCs (volatile organic compounds) emissions across the oil and natural gas source category. Moreover, EPA has also announced plans to regulate not only the thousands of newly affected facilities, but additional regulations are also under development for the millions of existing facilities. These new rules and regulations are leaving many utility professionals asking; What are these new requirements? Who must comply with which rules? How can you make the necessary technical and regulatory determinations? When do the various deadlines come due? This 2-day course will describe these new and emerging rules, will help you to understand and prepare for these complex regulations and discuss the various software packages for estimating emissions from storage tanks, glycol dehydrators, and other such emissions sources. Attendees will also be provided with an opportunity to learn about some of the compliance issues they are likely to encounter during implementation. LEARNING OUTCOMES Define Subpart OOOO, including the 2011 proposal and 2012 final rule Discuss how this applies to all hydraulically fractured gas wells, both new wells and existing wells that are fractured or refractured Review the facilities affected by Subpart OOOO Define key terms as they relate to 2012 NESHAP [Part 63] Discuss 2013, 2014 and 2015 amendments Review the alternative emission limits List the facilities affected by HH & HHH NESHAPs Describe key implementation issues with NESHAPs and subsequent amendments Discuss key implementation issues with NSPS and subsequent amendments Describe the definitions and applicability of Subpart W pertaining to oil and gas sites Define and discuss Subpart UU Examine the pros and cons of Screen 3 vs. other models for air dispersion modeling Discuss the effects and impacts of EPA Air Quality Regulations on oil and gas production enhancement techniques WHO SHOULD ATTEND Oil & natural gas industry professionals, engineers & consultants Energy industry attorneys, legal staff, compliance officers & project managers Oil & natural gas field services managers and site directors Oil & gas production enhancement services professionals & personnel Oil & gas automation professionals & engineers Procurement professionals, coordinators & personnel Drilling engineers & drilling site managers Environmental engineers, mechanical engineers, petroleum engineers Environmental, Health, & Safety (EHS) advisors & EHS field coordinators Natural gas processing plant professionals & personnel Pipeline engineers and distribution system professionals & personnel Petroleum & natural gas exploration & production professionals & personnel Petroleum & natural gas midstream operations professionals & personnel Leak Detection & Repair (LDAR) Personnel Facility owners, engineers and management personnel who need a basic understanding of applicable air quality regulations pertaining to oil & gas ops CEOs, CFOs, finance professionals, who desire more information on air regulatory issues that can affect oil & gas capital and operating costs PAGE 2

3 AGENDA THURSDAY, NOVEMBER 10, :00 8:30 am Registration and Continental Breakfast 8:30 am 5:00 pm Course Timing 12:00 1:00 pm Group Luncheon Introduction and Overview Industry Overview Typical Emissions Sources from Oil & Natural Gas Facilities History of Oil & Gas Rulemaking New Source Performance Standards (NSPS) o Regulate criteria pollutants and precursors from new, modified and reconstructed sources o NSPS must reflect best system of emission reductions o Section 111(b) of Clean Air Act (CAA) National Emission Standards for Hazardous Air Pollutants (NESHAPs) o Technology-based standards o HAP pollutants of primary concern to oil and natural gas sector o Section 112 of the CAA; Requires risk and technology review (RTR) Subpart OOOO o 2011 Proposal o 2012 Final Rule - Section 111(b) of Clean Air Act (CAA) o Applicability to well sites, gathering/boosting facilities, compressors, storage vessels, natural gas processing plants, pneumatic controllers, storage, etc. o Rule timeline, primary impacts of the rule; storage vessels: EPA significantly underestimated the number of affected storage tanks. Group 1 vs. Group NESHAPs [Part 63] Oil and Natural Gas Production (Subpart HH) o Glycol dehydrators LDAR, Storage Vessels, and discuss available and acceptable software for calculating emissions Natural Gas Transmission & Storage (Subpart HHH) o Glycol dehydrators, new standards for small dehydrators Revisions Rollout (NSPS & NESHAP separately) o (NSPS-1 Storage vessel implementation revisions, NSPS-1.5 time-critical clarification of well completion requirements, NSPS-2 remaining issues, NESHAP) 2013 NESHAP Amendments Alternative Emission Limits 2014 Amendments o New effective date o Production phase o Storage vessels o Vapor recovery o Thief hatch o Rod packing o Equipment leaks o Responsible official o Affirmative defense PAGE 3

4 AGENDA FRIDAY, NOVEMBER 11, :00 8:30 am Registration and Continental Breakfast 8:30 am 5:00 pm Course Timing 12:00 1:00 pm Group Luncheon 2015 Amendments Subpart OOOOa (Methane Rules) 2013 Climate Action Plan o Completions and ongoing production o Leaks, liquids unloading, pneumatic devices Aug 18, 2015 Rule Proposal o Proposed rule o Comments & changes o Draft Control Techniques Guideline (CTG) o Proposed Aggregation Rule (proximity vs. interrelatedness) May 12, 2016 (Signed) Final Rule o Final Rule (Pub. FedReg June 3, 2016) o ICR for existing sources o Finalize Aggregation Rule o Final FIP for Indian Country minor sources o Final CTG - expected 2016 Comparison to 2012 VOC Rule Emissions Points: o Well completions and recompletions o Fugitive emissions o Pneumatic pumps o Pneumatic controllers o Reciprocating compressors o Centrifugal compressors Inclusion of Oil Wells Completed Using Hydraulic Fracturing o Definition & field keys for distinguishing gas well vs. oil well o 2012 Rule requires RECs for predominantly gas wells o Exclusions based on GOR gas to oil ratio & technical infeasibility o REC + Combustion device o Exploratory & low pressure wells, etc. Expanded LDAR o Role of OGI technology o Conventional Method 21 Techniques Summary of Other Changes o Additional restrictions on compressors, controllers and pumps o Expanded coverage to limit emissions from equipment used at natural gas compressor stations and gas storage facilities (i.e., compressors & pneumatic controllers not covered in 2012 VOC rule.) o Some sources subject to 2012 NSPS rule and also covered by 2016 rule o Provisions for re-completion wells to avoid NSPS modification o RECs + combustion o Post 2015 notification, recordkeeping, and reporting, etc. PAGE 4

5 AGENDA FRIDAY, NOVEMBER 11, 2016 (CONTINUED) INSTRUCTOR Subpart W Greenhouse Gas o Utilizing EPA s calculation tool for onshore petroleum and natural gas production Definitions & applicability to oil and gas sites and to the GHG reporting tool Acid gas removal units (40 CFR (d)) Conversions to CO2e, associated gas venting and flaring (40 CFR (m)), sold, vented, flared gas Natural gas characteristics compared to associated gas Wellhead gas-liquid separators Well venting for liquids unloading (40 CFR (f)) EPA Guidance - GHG emissions from liquids unloading Calculating annual natural gas emissions from well venting for liquids unloading with and without plunger lifts Flaring and venting; calculating volume of gas flared and venting for emergency purposes, etc. Subpart UU Injection of CO2 underground for enhanced oil and gas recovery Underground Injection Control (UIC) Class II wells, facilities that inject CO2 underground for enhanced oil and gas recovery (ER), acid gas injection, carbon storage research and development (R&D), or for any other purpose other than geologic sequestration Utilizing screen 3 vs. other models for air dispersion modeling Review & Questions Martin E. Rock P.E., J.D., LEED-AP President and Senior Principal/OMNI Professional Environmental Mr. Rock is a registered professional engineer with three engineering degrees, including an M.S. in environmental engineering. He is also a licensed attorney. Earlier in his career, his prior positions include serving as Vice President & General Counsel with Palmetto Engineering Corporation in Columbia, South Carolina, and serving as Staff Counsel at South Carolina Department of Health & Environmental Control (SC-DEHC). Martin is admitted to the bar in the state of Georgia, and he is registered as a professional engineer in five states. He is a recipient of the American Jurisprudence Award for Law and The Environment and was selected as an Outstanding Essayist by the Association of Trial Lawyers of America (ATLA). He is active in the AIChE (American Institute of Chemical Engineers) and he served as President and Board Chairman of the ISPE (which is the leading, global not-for-profit society serving the pharmaceutical/biotech sector) Carolina-South Atlantic Chapter [covering a 6-state service region] during and earned the highest recognition, Platinum Grand Award for Innovation & Leadership, during his year as Chairman. He also serves on the Energy, Environmental, Health & Safety (EEHS) Steering Committee of the North Carolina Manufacturing Alliance (NCMA, formerly MCIC). He is also active in Toastmasters International and has earned the Advanced Communicator Gold (ACG) certification. Martin is an experienced instructor having conducted professional seminars, webinars, classroom training, mock trials and panel discussions for major universities and corporate clients; in-house training for Fortune 50 corporations, State & Federal regulatory agencies (including US DOE, and US EPA), and other professional organizations. Mr. Rock is a graduate of the University of Michigan, College of Engineering, and of the Lumpkin School of Law at the University of Georgia-Athens (UGA). While at UGA, he served on the editorial board of the Georgia Journal of International & Comparative Law. He also developed a comprehensive environmental compliance manual for the Savannah River Site (SRS) as a consultant for the U.S. Department of Energy and he wrote Model Legislation for the State of South Carolina Legislature & the South Carolina Governor s Task Force. PAGE 5

6 INSTRUCTIONAL METHODS This program will PowerPoint Presentations, group discussions, as well as active participation. REQUIREMENTS FOR SUCCESSFUL COMPLETION Participants must sign in/out each day and be in attendance for the entirety of the course to be eligible for continuing education credit. IACET CREDITS EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET). In obtaining this accreditation, EUCI has demonstrated that it complies with the AN-SI/ IACET Standard which is recognized internationally as a standard of good practice. As a result of their Au-thorized Provider status, EUCI is authorized to offer IACET CEUs for its progr ams that qualify under the AN-SI/IACET Standard. EUCI is authorized by IACET to offer 1.5 CEUs for the course. PROCEEDINGS The proceedings of the course will be published, and one copy will be distributed to each registrant at the course. EVENT LOCATION A room block has been reserved at the Hyatt Place Dallas/North Galleria, 5229 Spring Valley Road, Dallas, TX 75154, for the nights of November 9-10, Room rates are $135, plus applicable tax. Call for reservations and mention the EUCI event to get the group rate. The cutoff date to receive the group rate is October 12, 2016 but as there are a limited number of rooms available at this rate, the room block may close sooner. Please make your reservations early. REGISTER 3, SEND THE 4TH FREE Any organization wishing to send multiple attendees to these courses may send 1 FREE for every 3 delegates registered. Please note that all registrations must be made at the s ame time to qualify. PAGE 6

7 PLEASE SELECT Please make checks payable to: PMA" EVENT LOCATION A room block has been reserved at the Hyatt Place Dallas/ North Galleria, 5229 Spring Valley Road, Dallas, TX 75154, for the nights of November 9-10, Room rates are $135, plus applicable tax. Call for reservations and mention the EUCI event to get the group rate. The cutoff date to receive the group rate is October 12, 2016 but as there are a limited number of rooms available at this rate, the room block may close sooner. Please make your reservations early. AIR QUALITY REGULATION OF OIL AND GAS DEVELOPMENT: OVERVIEW AND UPDATES November 10-11, 2016 : US $1495 Early bird on or before October 21, 2016: US $1295 How did you hear about this event? (direct , colleague, speaker(s), etc.) Print N ame Job Title Company What n ame do you prefer on your n ame badge? Address City State/Province Zip/Postal Code Country Phone List any dietary or accessibility needs here CREDIT CARD INFORMATION N ame on Card Account Number Billing Address Billing City Billing State Billing Zip Code/Postal Code Exp. Date OR Enclosed is a check for $ to cover registrations. Security Code (last 3 digits on the back of Visa and MC or 4 digits on front of amex) Substitutions & Cancellations Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before October 21, 2016 in order to be refunded and will be subject to a US $ processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of course cancellation, EUCI s liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our our offices offices at at (201) PAGE 7