Offset Project Plan. Methane Reduction Offset Project Aggregation

Transcription

1 Offset Project Plan for the Methane Reduction Offset Project Aggregation Project Developer: Blue Source Canada ULC Crediting Period: January 1, 2016 December 31, 2022 Blue Source Canada ULC December 22, 2017 Version 2.0 i Page

2 Contents Contents... ii List of Tables... iii List of Abbreviations... v SUMMARY OF CHANGES AND REVISIONS Project Scope and Site Description Contact Information Other Project Information Description of how the project will achieve greenhouse gas emission reductions Conditions prior to project initiation Project Eligibility Project technologies, products, services and the expected level of activity High to Low or No-Bleed Pneumatic Controller Conversions Instrument Gas to instrument Air System Conversions Pneumatic Device Electrification Pneumatic Vent Gas Capture Projects Identification of Risks Identification of the Baseline and Project Conditions Baseline Condition Project Condition Inventory of sources and sinks Baseline Sources and Sinks Project Sources and Sinks Sources and Sinks Included in Quantification Quantification Plan Emission Factors and Vent Rates High to Low Bleed Projects SS B7 Baseline Vented Gas Emissions SS B10 Fuel Extraction Emissions SS P7 Project Vented Gas Emissions SS P9 Project Fuel Extraction and Processing Emissions Sample Calculation ii Page

3 6.3 Instrument Gas to Instrument Air Projects SS B7 Baseline Vented Gas Emissions SS B10 Fuel Extraction Emissions SS P6 Air Compression and Management SS P9 Project Fuel Extraction and Processing Emissions Sample Calculation Electrification Projects SS B7 Baseline Vented Gas Emissions SS B10 Fuel Extraction Emissions SS P8 Project Process Control Electricity Emissions Sample Calculation Vent Gas Capture Projects SS B8 Uncaptured Fuel Gas SS P17 Vent Gas Capture Sample Calculation Measurement and Monitoring Plan Data Management System and Records Document Control Document Control at Bluesource Bluesource Quality Assurance and Control Procedures Project Developer Signature Appendix A Bluesource Document Control Policies...1 Appendix B Alberta Environment and Parks Approval Letter...2 List of Tables Table 1: Risk Identification and Mitigation measures Table 2: Baseline sources and sinks Table 3: Project Sources and sinks Table 4: Identification of included sources and sinks Table 5. Emission factors used for the Offset Project Table 6: Blue Source Best Practice Vent Rate Preferential Selection iii Page

4 Table 7. Vent rates used to quantify common high-bleed and low-bleed pressure controllers converted within the Project Table 8. Vent rates for common high-bleed and low-bleed electro-pneumatic transducers Table 9. Vent rates used to quantify high and low-bleed liquid level controllers Table 10. Discount rate determination for instrument air projects, as per Appendix A of the Protocol Table 11: Measurement and Monitoring Plan iv Page

5 List of Abbreviations ACCO Alberta Climate Change Office AEOR Alberta Emission Offset Registry AER Alberta Energy Regulator Bluesource Blue Source Canada ULC BMDS Bluesource Methane Database System CH 4 Methane CIP Chemical Injection Pump CO 2 Carbon dioxide CO 2e Carbon dioxide-equivalent DE Destruction efficiency DR Discount rate E&I Electrical and Instrumentation ECCCC Environment and Climate Change Canada GHG Greenhouse gas GWP Global Warming Potential HFC Hydrofluorocarbon(s) N 2O Nitrous oxide PFC Perfluorocarbon(s) RECs Renewable Energy Certificates SF 6 Sulphur hexafluoride STP Standard temperature and pressure, bar & 15 C v Page

6 SUMMARY OF CHANGES AND REVISIONS This Offset Project Plan replaces the previous version, dated 23 December The following revisions and updates have been made to this OPP: The OPP has been updated throughout to meet the requirements of the Quantification Protocol for Greenhouse Gas Reductions from Pneumatic Devices, Version 2.0, January 25, The previous OPP was based on the now terminated Quantification Protocol for Instrument Gas to Instrument Air Conversion in Process Control Systems, October Rather than a full 8-year offset crediting period, it is anticipated that the Project will cease to generate credits January 1, 2023 following the implementation of potential provincial Methane Regulations and adherence to the Carbon Levy for upstream oil and gas producers. The OPP has been updated to reflect a credit start date of January 1, 2016 instead of January 1, Page

7 1 Project Scope and Site Description Project Title: Methane Reduction Offset Project Aggregation ( the Project ) Project Purpose and Objective(s): Project Start Date: The opportunity to reduce greenhouse gas (GHG) emissions from this project arises through the direct reduction of natural gas (methane) venting from pneumatic instruments. The vented gas is a result of instrument gas driven pneumatic devices, and can be reduced by converting those devices to either a lower-vent equivalent, instrument air, electrification or pneumatic vent gas capture and destruction. All pneumatic project types are small in scale and therefore require the aggregation of multiple sites to make the creation of offset credits viable. A number of project sites will be included in this aggregation with the potential of additional sites being added in the future, using the same methodology and approach as laid out in this Offset Project Plan (OPP). This Project identifies oil and gas sites that have already converted pneumatic devices to a low or no vent device and/or system. All subprojects are a result of actions taken on or before January 1, The actual project start date per device will vary according to the conversion date of each unit. Credit Start Date: The earliest eligible crediting start date of the Project is January 1, 2016 (Alberta Environment Approval Letter is attached as Appendix C). Each subproject s start date will be subject to the activity start data (i.e. when the controller was installed) as well as when the subproject is added to the Pneumatic Device Project Planning sheet submitted to the CSA Registry. Credit Duration Period Expected Lifetime of the Project: January 1, 2016 December 31, 2022, or as amended in the protocol. This credit duration period is shorter than the standard eight-year crediting period as per the Protocol Applicability criteria Section 1.2 (5). Each subproject lifetime will vary based on the well site or facility operation expected lifetime and the expected lifetime of the technology chosen. The expected lifetime of the individual technology installations, the subprojects within this Project will exceed that of the crediting period duration. Estimated Emission Reductions/Removals: Vintage Year Estimated Annual Reductions , , , , , ,000 Applicable Quantification Protocol: Protocol Justification: TOTAL 140,000 tonnes CO 2e Quantification Protocol for Greenhouse Gas Emission Reductions from Pneumatic Devices, version 2.0 January 25, 2017, "the Protocol". The Protocol scope covers four different projects types, and this Project Plan will include provisions for all four: High to Low Bleed controllers, No Bleed Pneumatic Controllers (electrification), Instrument Air, and pneumatic vent gas capture, as outlined in the Protocol Section 1.1. ( ). 2 Page

8 The Project furthermore meets the five Applicability criteria in Protocol Section 1.2: (1) low and non-vent devices are effective replacements based on manufacturer specifications; (2) the Project activities reduce vented methane; (3) conversions for high-to-low bleed devices occur at brownfield sites with existing equipment being replaced; whereas instrument air conversions and renewable powered electrified may occur at greenfield sites within the Project; (4) the subprojects are annually inspected and maintained, otherwise a Discount Factor is applied as required by Section 6 ; and (5) a device Inventory has been developed as per the Protocol Appendix B. Other Environmental Attributes: Legal Land Description of the Project and/or Other Unique Site Descriptions: This Project is not eligible for, nor generating, Renewable Energy Certificates (RECs) or other environmental attributes, credits or benefits. Double counting may occur if subprojects are installed at a location that becomes subject to the Carbon Competitiveness Incentive Regulation, as a Large Final Emitter. This scenario is unlikely to occur due to the small and distributed nature of these sites however, this risk will be mitigated by the Pneumatic Device Project Planning and Reporting Sheets and will also be checked annually with the producers. The Project is developed using the aggregated offset project structure. All subprojects are located throughout Alberta s provincial boundary. Blue Source Canada ULC, Bluesource, will request approval from Alberta Climate Change Office, ACCO, to add subsequent subprojects using the Project Planning Sheet until the end of the project lifetime. Legal Land Location: Latitude: Longitude: Ownership Reporting and Verification Details: Individual subproject installations latitude and longitude and legal land location are provided for in the Spatial Locator Project Reporting Sheet submitted with each Project Report. Project participants, (Producers), sign an agency agreement with Bluesource which directly assigns offset ownership created from the subprojects to Bluesource who acts as project Proponent and developer on behalf of the project participants. The verifier will be an independent third-party that meets the requirements outlined in the Carbon Competitiveness Incentive Regulation (CCIR). An acceptable verification standard (e.g. ISO ) will be used and the verifier will be vetted to ensure technical competence with this project type. Project Activity: As per the Alberta Regulation 139/2007 with amendments up to 104/2015, the Project meets the following Requirements under Section 7(1): Subsection Requirement Project Confirmation 7(1) a The specified gas emissions reduction Only sites located within Alberta will be included within the must occur in Project. The Project Planning Sheet submitted with subproject Alberta; addition, and the Project 3 Page

9 Project Registration: Other 7 (1) b The specified gas emissions reduction must be from an action taken that is not otherwise required by law at the time the action is initiated; 7 (1)(c )(i) The specified gas emission reduction must result from actions taken on or after January 1, 2002, and 7 (1)(c )(ii) The specified gas emission reduction must occur on or after January 1, 2002; 7 (1)(c )(iii) The specified gas emission reduction must be real and demonstrable 7 (1)(c )(iv) The specified gas emissions reduction must be quantifiable and measurable directly or by accurate estimation using replicable techniques. Reporting Sheet submitted for each project delivery demonstrates that no conversions are being included that may have occurred outside of Alberta. The specific subproject actions are not required by municipal, provincial or federal law. Only subprojects that can prove conversion or installation dates after January 1, 2002 will be included in the Project. Emission reductions will be quantified going forward from the subproject's conversion or installation date, as applicable. Emission reductions are based upon measured production hours of the site on which the device is located, and upon the manufacturers stated emission factors produced from their design measurements and testing. Emission reduction quantification and measurement techniques will follow those in the approved Protocol. The Project has not registered, or attempted to register, in any other system or greenhouse gas program. Detailed information is contained within this document. 4 Page

10 2 Contact Information Project Developer Contact Information [Authorized Project Contact This is a contact that has been given the authority to act on behalf of the project developer.) Blue Source Canada ULC Yvan Champagne, President Suite 1605, th Ave SW Calgary, Alberta T2E 1T5 Canada Telephone: (403) x 226 Fax: (403) Yvanc@bluesourcecan.com See above Blue Source Canada ULC Kelly Parker, Engineer Kellyp@bluesourcecan.com Kelsey Locke, Carbon Solutions Analyst Kelseyl@bluesourcecan.com See above 3 Other Project Information 3.1 Description of how the project will achieve greenhouse gas emission reductions The Project will result in greenhouse gas emission reductions by reducing the volume of natural gas (methane) vented to atmosphere from pneumatically driven devices including chemical injection pumps and pneumatics controllers. In the baseline condition, existing devices would continue to vent higher volumes of natural gas consisting of primarily methane to atmosphere, due to their older technology. In the project condition, more advanced devices are installed that have significantly lower vent rates. The project and baseline are functionally equivalent in that the rate of change of the oil and gas process control measures is unaffected and independent of the Project activity. The Project boundary includes the pneumatic device itself, as well as the fuel gas supplied to the device, and/or any electricity consumption. The pneumatic device may be located on a single wellsite, battery, satellite, within a compressor building or dehydration building etc. The legal land location of each device is tracked within the Project inventory. 3.2 Conditions prior to project initiation Before the Project was implemented, natural gas (fuel gas) was released to atmosphere through high vent rate pneumatic devices at various oil and gas sites throughout Alberta. Pneumatic devices make use of the natural gas pressure available onsite for various operational control functions including pressure, level, transduction (energy conversion of a supplied signal from one form of energy to another), chemical injection, and/or temperature control. For controllers, the devices require very little maintenance and in absence of the Project, would typically outlast the well lifetime and, therefore, would not have been replaced or upgraded. Installing solar chemical pumps, electric controllers, and capturing and destroying 5 Page

11 the vented gas are not considered business as usual, therefore, both green and brownfield applications are eligible project conditions. Retrofits or new installs began on or before January 1, 2016 (but not before January 1, 2002), and may continue until December 31, Project Eligibility The Project meets the requirements of the Protocol as follows: 1) The pneumatic devices in the project condition perform the same effective process control or operational function as in the baseline condition. This considers changing throughput or production declines, meaning the specific frequency of control interventions may change in time, but safe and reliable operation is maintained. The low or non-vent devices used in the project condition are effective replacements based on manufacturer specifications; 2) The Project is a methane vent reduction project, as a result of the reduction in, or capture and subsequent destruction of, vented gas, and does not consider reduction of propane venting and/or conversion from propane to methane; 3) All the conversions of high to low bleed controllers occur at brownfield sites with existing equipment being replaced. Greenfield installs are considered for instrument air, solar chemical pumps, vent gas capture, and electric (no bleed) controllers. This will be demonstrated by process flow diagrams and/or accounting records, work orders, invoices, or other vendor/third party documentation/evidence; 4) The proponent will inspect and maintain the pneumatic devices as part of regular operations. This will be performed annually by performing operator site visits to ensure that pneumatic devices do not excessively vent. Operators will keep records demonstrating the maintenance and inspection activities of facilities. If pneumatic device inspection is not performed according to suggested monitoring frequencies, volumes will be reduced using a Discount Factor 1. While no measurements are required to confirm excessive venting, the annual inspection and maintenance will enable the devices are performing their function as designed. To facilitate verification and allow for changes, the proponent will develop an inventory of devices. Any changes to the inventory (i.e., devices removed, or added) will impact net offsets claimed. This inventory is supplied as part of the Pneumatic Device Project Planning Sheet to ACCO and the Registry and will be amended as required. 5) The project meets the requirements for offset eligibility as specified in the applicable regulation and guidance documents for the Alberta Emission Offset System. The OPP applies the following flexibility mechanisms outlined in section 1.3 of the Protocol: 1 According to the Protocol, the discount factor is applied to those project types that consider instrument gas to air system conversions. 6 Page

12 1) The Project will quantify and aggregate multiple pneumatic device conversions and retrofits, the subprojects under one project plan. The entire quantification method will apply to each conversion to ensure accuracy. 2) For conversions where pneumatic devices are not measured, statistically relevant comparisons or emission factors may be used to quantify emission reductions where provided in the Protocol; 4) The Performance Standard approach to baseline quantification will be used, as presented in Section 2.0 of the Protocol. 3.4 Project technologies, products, services and the expected level of activity This aggregated project involves the conversion of existing, high-bleed pneumatic devices used in oil and gas process operations, to an equivalent low or no-bleed venting device as defined in subsection 1.1 of the Protocol. The high-bleed devices being converted are comprised of: pressure controllers, liquid level controllers, transducers, and chemical injection pumps of various makes and models that vent natural gas. High-to-low or no bleed devices, Instrument gas to instrument air, electrified devices and vent gas capture subproject types are all included within the Project. The actions implemented in this Project to convert high venting pneumatic devices to lower venting, instrument air, or electrified equivalents is not currently required by Alberta provincial regulation or federal regulation. It is anticipated that provincial methane regulations will come into force January 1, 2023, at which time the Project would cease to generate offset credits as it becomes subject to provincial regulation High to Low or No-Bleed Pneumatic Controller Conversions A description of each pneumatic device and corresponding common device makes and models are discussed below. i) Pressure Controllers Use a bellows or bourdon tube sensing element to sense an input pressure signal from the process gas, and outputs a corresponding pneumatic pressure signal from the supplied instrument gas that is then used to operate the final control element. The design of these pneumatic devices is such that the supplied instrument gas continuously vents to the interior casing and then to the atmosphere, Figure 1. 7 Page

13 Figure 1: Operational Schematic of Direct-Acting Bourdon Tube Controller on Pipeline Pressure Service (Fisher/Emerson Process Management, October 2007) The vent rate of a high-bleed pressure controller is dependent upon several factors including output signal pressure (the pressure signal to the final control element) and proportional band setting. Vent rate in the Protocol is categorized for two supply pressures and by association, the corresponding output pressures as below: - a supply pressure of 20 psig with corresponding output pressure range from 3 15 psig can have an air vent rate of 35 scfh; - a supply pressure of 35 psig, with corresponding output pressure ranges from 6 30 psig can have an air vent rate of 42 scfh. Typically, venting ranges are not presented with the corresponding proportional band setting, however this may be used with increasing accuracy for determination of the vent rate if the information is available in the manufacturer s specifications. Common high-bleed pressure controllers included within the Project are: Fisher 4150 and 4160 series (and the CVS 4150/4160 series, which are functionally equivalent to the Fisher models), and the Dynaflo These devices can all be converted to the low-bleed Fisher C1 pressure controller. The C1 nozzle and beam and flapper assembly is designed to reduce the continuous air flow through the nozzle, thus reducing the vented flow rate. 8 Page

14 Figure 2: Schematic of a reverse-acting proportional-only and proportional-plus-reset controllers ii) Pressure Transducers Electro-pneumatic transducers receive either a voltage (VDC) or current (ma DC) input signal and transmits a proportional pneumatic output pressure to a final control element. They typically operate in an electric control loop where the final control element such as a valve is pneumatically operated. A common high-bleed transducer is the Fisher 546, see Figure 3. The 546 can have four different output signals ranging from: a) 3 15 psig; b) 6 30 psig; c) 0 18 psig; and d) 0 33 psig. 9 Page

15 Figure 3: Fisher 546 Electro-Pneumatic Transducer mounted on a 657 pneumatic diaphragm actuation Supply pressures are recommended to be 5 psig higher than the higher range of the output signal, and supply air flow is provided for two supply pressures: 21 scfh at 20 psig and 30 scfh at 35 psig. The Fisher 546 is replaced by the lower-bleed equivalent Fisher i2p-100 LB. In addition, the first-generation Fisher i2p-100 may be retrofitted with a kit that converts it to the secondgeneration Fisher i2p-100 LB model, see Figure 4. Figure 4: I2P-100 retrofit kit 10 Page

16 iii) Liquid Level Controllers Use a sensor to detect liquid level or the interface of liquid/liquid or liquid/gas of different specific gravities, and then use a relay to provide the applicable control and action. The controller delivers a pneumatic output signal to a control/dump valve. Common high-bleed liquid level controllers include Fisher 2900/2901 series. Equivalent low-bleed devices are the Fisher L2, and L2sj models which use the same displacer-type sensor to detect changes in liquid level and/or the interface of two liquids with different specific gravities. These models have varying performance relays including: snap-acting, on/off, throttling or electric (the Fisher L2e model). However, electric conversions are not currently included in the scope of the project. The Fisher 2900/2901 vent rate is 23 scfh for both 20 psig and 35 psig supply pressures. Fisher L2 vent rates vary as follows: a) Fisher L2 on/off 2 : 1 20 psig input, and psig input b) Fisher L2 throttling: 1 20 psig input, and psig input c) Fisher L2sj: psig input, and psig input Instrument Gas to instrument Air System Conversions The conversion of instrument gas to air represents a system conversion, meaning that several pneumatic devices will be affected by the conversion. Instrument air is often supplied via an electrically powered compressed air system. These system conversions are only eligible as new installations on well pads or well sites, with conversion or expansions allowed for larger facilities. There are typically three types of air compressors used in industry: i) Centrifugal compressors ii) Reciprocating compressors iii) Rotary screw compressors Pneumatic Device Electrification Chemical Injection Pumps (CIP) CIPs are used to introduce a variety of chemical components to the wellsite for the purposes of: corrosion inhibition, de-emulsification, lubrication, water treatment, de-salting, adding flocculants, and methanol for hydrate prevention. The pump may operate through a diaphragm or piston configuration, and may have multiple injection heads on the single device. The pressure of chemicals injected vary per site, and may be equal to or higher than site operating conditions. Volume of chemical injection is controlled based on plunger size, the stroke length, and speed of the pump. 2 The Fisher L2 on/off performance utilizes the same relay as the throttling performance, such that the vent rates listed under the throttling performance in the manufacturer bulletin are used for the on/off configuration as well. 11 Page

17 Emissions from the pump are quantified using a stroke rate metric to determine volume of gas consumed by the device to pump the desired chemical. Common high-bleed CIPs include the Texsteam 5100 series (5101, 5103, 5104, and 5105) and Bruin High bleed CIPs can be converted to low voltage electric systems through grid, on-site generated, or renewable (solar) electricity. Solar CIPs such as the TRIDO solar chemical pump, the LCO Crossfire, Bruin BR1100 and others allow for zero project emissions. Figure 5. LCO Crossfire solar chemical injection pump, with 4 fluid heads Pneumatic Vent Gas Capture Projects Pneumatic vent gas capture projects redirect vented gas via the installation of piping to a point of destruction. The destruction device can commonly include: - Flares; - Incinerators; - Combustors; - Solid oxide fuel cells; or - Catalytic combustion device An instance of one pneumatic vent gas capture project represents the system conversion of several point source pneumatic venting devices to a piping capture system for destruction at one destruction point. As per the Protocol applicability, these projects can occur at greenfield installations or brownfield sites. 12 Page

18 3.4.5 Identification of Risks While the Project was designed to reduce inherent risk and ensure overall integrity, specific risks to the Project are described below: Table 1: Risk Identification and Mitigation measures Risk Risk Category Description identification Data management system Data management system Project Performance Project Performance Regulatory Missing or incomplete device data Database Integrity Site shut-in Change in vent rate determination Update to local, Provincial or Federal Regulations The Project is dependent upon accurate data gathered in the field, to capture data parameters required for the device inventory and project eligibility. Introduced risks from human factors including, but not limited to formatting, transcription, completeness and communication errors during the data collection process. A cloud based system has the potential to be accessible by multiple users anywhere, increasing risk of post-upload content alteration. Temporary or permanent wellsite shut-in would result in the subsequent loss of the unit s emission reductions from the project. As leak detection and industry knowledge increase, information could become available that would improve the accuracy of the emission reductions. An update to the venting regulations either locally, Provincially or Federally could move forward the compliance Mitigation Measures To ensure consistent, transparent data collection, Project participants will receive standardized templates for data collection, including all the data sources required for the inventory and quantification. The data will then be uploaded to the cloud-based online database for storage, separated by Producer. The database is called the Bluesource Methane Database System (BMDS). The dashboard enables the project managers to view project status and identify potential errors in near realtime, immediately following data upload. The security structure of the database has been designed to allow specified levels of access for the various parties involved in the Project. Field crews have a more restricted level of access to the database that varies from the project developer and managerial levels. Furthermore, all changes made to the documentation are tracked via an events log, and are reversible. Locations included in the Project are screened by Bluesource and participating producers to ensure economic viability of the site to Should a site be permanently shut-in during the project period, those sites will be identified during the quantification and in the spatial locator submitted. This Offset Project Plan was created using the most up-to date manufacturer bulletins with the latest published versions of the Carbon Emission Factors Handbook and the Protocol. As new information is made available, Bluesource will update the OPP as per the requirements of the AEOS or as otherwise directed by ACCO. The Project Planning and Reporting Sheet submitted at the addition of new subprojects and at serialization, respectively, will track those subprojects 13 Page

19 Risk Category Regulatory Risk identification Inclusion of specific sites to existing Regulation Description date of pneumatic venting devices from January 1, Should this occur, those affected devices would no longer be eligible to generate offset credits if grandfathering is not recognized. Some pneumatic controllers may be located on larger sites that due to expansion or increased production may become regulated in the future. Mitigation Measures with local regulatory status changes that result in an ineligibility to be flagged for the Alberta Emission Offset Registry (AEOR) and ACCO s attention. These sites will be identified and removed from the aggregate quantification on an individual basis. Similar to the above, the Project Planning Sheet and the efficient use of the unique subproject ID will ensure these subprojects are identified and removed from the quantification. 4 Identification of the Baseline and Project Conditions 4.1 Baseline Condition The baseline condition for the Project is the release of natural gas to atmosphere for process control and operational functions at oil and gas sites through pneumatic device activity. Methane is the primary constituent of the fuel gas or natural gas that supplies pneumatic power, therefore methane is the primary source of greenhouse gas emissions for the baseline. A process flow diagram for a typical baseline using natural gas to provide pressure to pneumatic devices is shown in Figure Page

20 Figure 6. Baseline process flow diagram, (Government of Alberta, January 25, 2017) Vented gases in the baseline are not typically metered given the relatively small volume of gas vented per device. Therefore, the GHG emissions under the baseline condition will be determined using the Performance Standard approach for controller devices, Option 3 In Table 2: Description of Baseline Types on page 12 of the Protocol. The Manufacturer Specified Vent Rates Q will be used to determine the vent rate and therefore the volume of methane that would have been vented in the baseline condition. Manufacturer vent rates have been demonstrated to be conservative estimates for actual emission rates. For instrument gas to air and pumps, a Projection Based approach will be taken (as outlined in Table 2). For vent gas capture projects, a projection or performance standard approach will be taken, depending on the application. 4.2 Project Condition The project condition is defined as the continuation of oil and gas production at the sub-project sites with low or no vent control devices and/or pumps providing the same process control and operational functions that were provided by their higher venting predecessors. To maintain consistency with the baseline condition, manufacturer vent rate specifications are used to quantify the volume of primarily methane gas that is released from the newly installed low-bleed devices. A pump emission factor will be used to quantify emissions from pumps, which is based on manufacturer specified emission rates per stroke count at a given supply pressure. For vent gas capture projects, a destruction efficiency of 60% will 15 Page

21 be used if the device is a catadyne heater, with sufficient justification provided if it is a different device as per protocol requirements. A process flow diagram for a typical project Condition has been included as Figure 7 on the following page. 16 Page

22 Figure 7. Process flow diagram for the project condition, (Government of Alberta, January 25, 2017) 17 Page

23 5 Inventory of sources and sinks 5.1 Baseline Sources and Sinks Table 2 below includes an inventory of all controlled, related or affected sources and sinks in the baseline condition. Table 2: Baseline sources and sinks Sources and Sinks Upstream Sources and Sinks during Baseline Operation Description Controlled, Related or Affected B9 Electricity usage B10 Fuel extraction / processing B11 Fuel delivery Electricity may be required for operating the site. This power may be sourced either from internal generation, connected facilities or the local electricity grid. Metering of electricity may be netted in terms of the power going to and from the grid. Quantity and source of the power are the important characteristics to be tracked as they directly relate to the quantity of greenhouse gas emissions. Each of the fuels used throughout the project will need to be sourced and processed. This will allow for the calculation of greenhouse gas emissions from the various processes involved in the production, refinement, and storage of the fuels. The total volumes of fuel for each of the sources / sinks in this project are considered in this source/sink. Types and quantities of fuels used would need to be tracked. Some of the fuels used throughout the project will need to be transported to the site. This may include shipments by tanker or by pipeline, resulting in the emissions of greenhouse gas. It is reasonable to exclude fuel sourced by taking equipment to an existing commercial fuelling station as the fuel used to take the equipment to the site is captured under other sources / sinks and there is no other delivery. Controlled Related Related On-site Sources and Sinks During the Baseline Operation B1 Raw gas production B2 Raw gas transportation B3 Raw gas processing B5 Fuel gas for process The raw gas is collected from a group of adjacent wells where moisture content is reduced by removing water and condensate. Condensate is transported to oil refineries for further processing and wastewater is disposed. The quantity of greenhouse gas in the raw gas would need to be tracked. The types and quantities of fuels used in extraction equipment would also need to be tracked. Leaks may also be present in the production process and should be tracked too. The raw gas is piped to a natural gas processing plant. The types and quantities of fuels used in transportation would need to be tracked. Leaks may also be present in the pipeline and should be tracked also. Processing of raw gas is required to remove hydrogen sulphide, carbon dioxide, water vapour and heavier hydrocarbons. Clean gas is ready to be distributed and sold. Heavier hydrocarbons are also removed and transported to oil refineries. The quantity of greenhouse gas in the processed gas would need to be tracked. Leaks may also be present in the production process and should be tracked too. Possibility of venting gas must also be considered and tracked. Many processes require clean gas to function. This clean gas, also referred to as fuel gas, is drawn from the processed gas. Equipment in the processes which also use this fuel include Related Related Related Related 18 Page

24 Sources and Sinks B7 Baseline vented gas B8 Uncaptured fuel gas Description compressors, boilers, heaters, engines, glycol dehydrators, refrigerators and chemical injection pumps (CIP). The types and quantities of fuels used in processing would need to be tracked. Leaks may also be present in the production process and should be tracked. Pneumatic devices function by venting fuel gas or raw gas. The quantity of gas vented in the baseline condition has a direct impact on the emissions reduction quantification for controller conversions, instrument air to instrument gas conversion projects and solar electrification projects. Pneumatic devices function by venting fuel gas or raw gas. The quantity of gas vented in the baseline has a direct impact on the emissions reduction quantification for vent gas capture projects. Controlled, Related or Affected Controlled Controlled Downstream Sources and Sinks during Baseline Operation B4- Processed gas distribution and sale Natural gas and other commercially viable natural gas liquids (NGL) products may be sent to a pipeline system or transported by rail or truck to customers at another point. The mostly likely use would be controlled combustion to produce carbon dioxide. On-site Sources and Sinks Before the Baseline Operation Related B12 Construction on site B13 Development of site B16 Commissioning The process of construction at the site may require a variety of heavy equipment, smaller power tools, cranes, and generators. The operation of this equipment will have associated greenhouse gas emissions from the use of fossil fuels and electricity. The site may need to be developed. This could include civil infrastructure such as access to electricity, gas and water supply, as well as sewer. This may also include clearing, grading, building access roads, etc. There will also need to be some building of structures at the site such as storage areas, storm water drainage, offices, vent stacks, firefighting water storage lagoons, etc., as well as structures to enclose, support and house the equipment. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels and electricity used to power equipment required to develop the site such as graders, backhoes, trenching machines, etc. Equipment may need to be tested or commissioned to ensure that it is operational. This may result in running the equipment using fossil fuels in order to ensure proper operation. These activities will result in greenhouse gas emissions associated with the combustion of fossil fuels and the use of electricity. Related Related Related Upstream Sources and Sinks Before the Baseline Operation B14 Building of equipment B15 Transportation of equipment Equipment may need to be built either on or off site. This includes all of the components of the storage, handling, processing, combustion, air quality control, system control, and safety systems. These may be sourced as pre-made standard equipment or custom built to specification. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels and electricity used to power equipment for the extraction of the raw materials, processing, fabrication and assembly. Equipment built off site and the materials to build equipment on site will all need to be delivered to the site. Transportation may be completed by train, truck, barge, or by some combination, or even by courier. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels to power the equipment delivering the equipment to the site. Related Related On-Site Source and Sinks After the Baseline Operation 19 Page

25 Sources and Sinks B6 Site decommissioning Description Once the site is no longer operational, it may need to be decommissioned. This may involve the disassembly of the equipment, demolition of on-site structures, disposal of some materials, environmental restoration, re-grading, planting or seeding, and transportation of materials off site. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels and electricity used to power equipment required to decommission the site. Controlled, Related or Affected Related 5.2 Project Sources and Sinks Table 3 below includes an inventory of all controlled, related or affected sources and sinks in the project condition. Table 3: Project Sources and sinks Sources and Sinks Upstream Sources and Sinks during Project Operation Description Controlled, Related or Affected P5 Fuel gas for process P8 Process control electricity P9 Fuel extraction / processing P 10 Fuel delivery Many processes at a site require clean gas to function. This clean gas, also referred to as fuel gas, is drawn from the processed gas that will be sold. Equipment in the processes includes compressors, boilers, heaters, engines, glycol dehydrators, refrigerators, and chemical injection pumps (CIP). The types and quantities of fuels used in processing would need to be tracked. Leaks may also be present in the production and should be tracked too. Electric pumps, valves or controllers can use grid electricity as part of regular operations. Electric controls will generate fewer emissions compared to venting pneumatic devices. This source will be zero when projects are converted to air or solar power. Each of the fuels used throughout the project will need to be sourced and processed. This will allow for the calculation of greenhouse gas emissions from the various processes involved in the production, refinement, and storage of the fuels. The total volumes of fuel for each of the sources / sinks in this project are considered in this source / sink. Types and quantities of fuels used would need to be tracked. Some of the fuels used throughout the project will need to be transported to the site. This may include shipments by tanker or by pipeline, resulting in the emissions of greenhouse gases. It is reasonable to exclude fuel sourced by taking equipment to an existing commercial fuelling station as the fuel used to take the equipment to the site is captured under other sources / sinks and there is no other delivery. Related Controlled Related Related On-site Sources and Sinks during Project Operation P1 Raw gas production The raw gas is collected from a group of adjacent wells where moisture content is reduced by removing water and condensate. Condensate is transported to oil refineries for further processing and wastewater is disposed. The quantity of greenhouse gas in the raw gas Related 20 Page

26 Sources and Sinks P2 Raw gas transportation P6 Air compression P7 Project vented gas P17 Vent gas capture Description would need to be tracked. The types and quantities of fuels used in extraction equipment would also need to be tracked. Leaks may also be present in the production process and should be tracked too. The raw gas is piped to a natural gas processing plant. The types and quantities of fuels used in transportation would need to be tracked. Leaks may also be present in the pipeline and should be tracked also. Air will be used to supply pressure to the pneumatic control instruments. The energy required to run the air compressors could come from grid electricity or on-site combustion of fossil fuels. Quantity and source of the electricity are the important characteristics to be tracked as they directly relate to the quantity of greenhouse gas emissions. Pneumatic devices will vent greenhouse gases to the atmosphere as part of regular operations. The low or non-venting pneumatic devices in the project will reduce emissions as part of normal operations compared to high-venting pneumatic devices. This source will be zero when pneumatic devices are converted to instrument air or solar-electric devices. The quantity of gas vented in the project may have an impact on the emissions reduction quantification for controller conversions projects. The quantity of vent gas captured in the project will need to be tracked and has a direct impact on the emissions reduction quantification for vent gas capture projects. Controlled, Related or Affected Related Controlled Controlled Controlled Downstream Sources and Sinks during Project Operation P4- Processed gas distribution and sale Natural gas and other commercially viable NGL products may be sent to a pipeline system for Distribution and Sale or transported by rail or truck to customers at another point. Avoided greenhouse gas emissions from the fuel gas supply to the control instrumentation should be included here. It is assumed that the mostly likely use of avoided greenhouse gas emissions would be controlled combustion to produce carbon dioxide. Upstream Sources and Sinks Before the Project Operations Related P 11 Construction on site P12 Development of site P13 Building of equipment P14 Transportation of equipment The process of construction at the site may require a variety of heavy equipment, smaller power tools, cranes, and generators. The operation of this equipment will have associated greenhouse gas emissions from the use of fossil fuels and electricity. The site may need to be developed. This could include civil infrastructure such as access to electricity, gas and water supply, as well as sewer. This may also include clearing, grading, building access roads, etc. There will also need to be some building of structures at the site such as storage areas, storm water drainage, offices, vent stacks, firefighting water storage lagoons, etc., as well as structures to enclose, support and house the equipment. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels and electricity used to power equipment required to develop the site such as graders, backhoes, trenching machines, etc. Equipment may need to be tested or commissioned to ensure that it is operational. This may result in running the equipment using fossil fuels in order to ensure proper operation. These activities will result in greenhouse gas emissions associated with the combustion of fossil fuels and the use of electricity. Equipment built off site and the materials to build equipment on site will all need to be delivered to the site. Transportation may be completed by train, truck, barge, or by some combination, or by courier. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels to power the equipment delivering the equipment to the site. Related Related Related Related 21 Page

27 Sources and Sinks P15 Testing of equipment Description Equipment may need to be tested to ensure that it is operational. This may result in running the equipment using test anaerobic digestion fuels or fossil fuels in order to ensure that the equipment runs properly. These activities will result in greenhouse gas emissions associated with the combustion of fossil fuels and the use of electricity On-Site Source and Sinks After the Project Operation Controlled, Related or Affected Related P16 Site decommissioning Once the site is no longer operational, it may need to be decommissioned. This may involve the disassembly of the equipment, demolition of on-site structures, disposal of some materials, environmental restoration, re-grading, planting or seeding, and transportation of materials off site. Greenhouse gas emissions would be primarily attributed to the use of fossil fuels and electricity used to power equipment required to decommission the site. Related 5.3 Sources and Sinks Included in Quantification Table 4 below lists all sources and sinks from Table 2 and Table 3 above that are included in the quantification methodology. If the Protocol lists a source or sink as included and we have excluded it, justification as to why it has been excluded is provided. The same holds true for the reverse scenario where a source or sink is excluded in the Protocol but we have included it. Table 4: Identification of included sources and sinks Identified Included or Included/Excluded Source and Excluded from in Protocol Sinks Quantification Justification for Inclusion/Exclusion Upstream Sources and Sinks P6 Included Included Air compression systems may have Compressed Air electricity emissions to account for. The air compressor and air management system will require electricity that is incremental to baseline electricity consumption. Emissions from electric device conversions are P8 Process Control Electricity P9 Fuel Extraction /Processing B10 Fuel Extraction /Processing included. Included Included Included as electrified control devices or electric chemical pumps may have additional electricity emission compared to the baseline condition. Included Included Included as the extraction and processing of project fuels results in tangible emissions Excluded Included Included the extraction emissions only of baseline fuels as this results in tangible emissions that occur in the same location as the project and the same fuel source as in the project condition. Processing emissions have been excluded for conservativeness as these cannot be identified from the stage of 22 Page

28 P7 Project Vented Gas B7 Baseline Vented Gas B8 Uncaptured Fuel Gas P17 Vent Gas Capture processing or transportation of gas. This increases the accuracy of the assertion but remains conservative. Included Included Included as the venting of gas results in tangible emissions Included Included Included Included Emissions reductions from installing or upgrading a vent gas capture and destruction system. Venting of gas results in tangible emissions in the baseline condition, destruction of vent gas has tangible emissions in the project condition. Included Included Emissions reductions from installing or upgrading a vent gas capture and destruction system. Venting of gas results in tangible emissions in the baseline condition, destruction of vent gas has tangible emissions in the project condition. For the emission sources above, the Project will utilize manufacturer specified vent rates in the quantification methodology as opposed to directly measured rates or statistically relevant samples. 6 Quantification Plan This project quantifies GHG emission reductions according the Quantification Protocol for Greenhouse Gas Emission Reductions from Pneumatic Devices, Version 2.0, January Descriptions of the protocol specific details are provided in Protocol Section 4.1 Quantification Approach. Detailed calculations for the Project will be provided to the verifier. The Project aggregates multiple subprojects at multiple facilities, and includes multiple project activity types. Emission Reduction = Sum Emissions Baseline Sum Emissions Project For projects including high to low and electrification activity: Emissions Baseline Emissions Project = Emissions Baseline Vented Gas under SS B7 Emissions Fuel Extraction under SS B10 = Emissions Project Vented Gas under SS P7 Emissions Fuel Extraction/Processing under SS P9 Emissions Process Control Electricity under SS P8 For projects including instrument gas to instrument air activity: Emissions Baseline Emission Project = Emissions Baseline Vented Gas under SS B7 Emissions Fuel Extraction under SS B10 = Emissions Air Compression under SS P6 Emissions Fuel Extraction/Processing under SS P9 23 Page

29 For projects including vent gas capture activity: Emissions Baseline Emission Project = Emissions Uncaptured Fuel Gas under SS B8 Emissions Fuel Extraction under SS B10 = Emissions Vent Gas Capture under SS P17 Emissions Fuel Extraction/Processing under SS P9 6.1 Emission Factors and Vent Rates Emission Factors Emission factors used in the Baseline and Project conditions are limited to extraction and processing factors displayed below in Table 5, derived from the Handbook (2015). Table 5. Emission factors used for the Offset Project. CO 2 CH 4 Parameter Relevant Emission Emission SS Factor Factor Natural Gas Extraction B10/P kg/m kg/m 3 N 2O Emission Factor kg/m 3 CO 2e Emission Factor - Emission Factor Source Carbon Offset Emission Factors Handbook, Version 1.0 March 2015 Natural Gas Processing P kg/m kg/m kg/m 3 - Carbon Offset Emission Factors Handbook, Version 1.0 March 2015 Grid Electricity Consumption P tco 2e/MWh Carbon Offset Emission Factors Handbook, Version 1.0 March 2015 Natural Gas Combustion P kg/m kg/m kg/m 3 - Carbon Offset Emission Factors Handbook, Version 1.0 March 2015 Vent Rates The vent rates used for high and low-bleed devices have been obtained from manufacturer specifications, as per the performance standard baseline approach outlined in the Protocol. Table C2 Specified Manufacturer Vent Rates for Common Pneumatic Devices on page 59 of the Protocol contains the vent rates of various devices, and instructs developers to use manufacturer documents for devices not included in the table. In determining vent rate application, several assumptions and interpretations were made, as follows: 24 Page

30 Table 6: Blue Source Best Practice Vent Rate Preferential Selection Preference Assumption Justification Most Preferred Where site specific output pressure range is available and allows a higher resolution vent rate to be selected from a range of values presented clearly and directly in the tabular forms in the manufacturer bulletins, the specific vent rate presented in the manufacturer bulletin is preferred and used over the Protocol Table C2. This approach is accurate and transparent, and is currently identified for use with the Fisher i2p-100 first generation and Fisher i2p-100 LB second generation devices. Default Where site specific proportional band setting is available, AND manufacturer specifications have proportional band setting and corresponding vent rate, the baseline vent rate will either reflect the 0 or 10 proportional band setting vent rate, or the protocol default for all other proportional band settings. If manufacturer vent rates are unavailable for a device, the vent rate for an equivalent model may be used if the devices have interchangeable parts. This is the approach used for the CVS 4150 vent rate. Where a high level of resolution and transparency is lacking from manufacturer specifications, or there are no manufacturer documents available, the default vent rate for a device listed in Table C2 of the protocol is used. If the supply pressure is unknown, the lower manufacturer vent rate will be selected as per the Protocol direction. If the supply pressure is known (and the output range of the device identifiable,) the appropriate and corresponding vent rate will be selected from Table C2. This approach is accurate and conservative, as a PB setting of 0, 10 is lower than the default value. This approach is currently identified for use with the Fisher 4150, 4160 models, see Error! Reference source not found. 8, and Dynaflo Table C1 in the Protocol lists the CVS 4150 as equivalent to Fisher This assumption maintains consistency with the equivalent Fisher 4150 venting. This is transparent and conservative as the Protocol Table C2 was developed using manufacturer specifications and with input from subject matter experts. The Protocol notes that manufacturer vent rates typically underestimate venting emissions. This claim is substantiated by the fact that manufacturer vent rates include only static venting, and do not account for dynamic vent events which would increase the vent rate and emission reductions in the Project. 25 Page

31 Figure 8. Steady state air consumption of Fisher 4150 and 4160 pressure controllers, dependent upon proportional band setting. As shown in Figure 8, the vent rate for 6-30 psig devices at a proportional band setting of 0 or 10 maintains a constant vent rate of approximately 7 scfh. To maintain project accuracy and conservativeness, this vent rate will be used for all 4150 and 4160 devices observed at either the 0 or 10 proportional band operating condition, owing to the material change between vent rates at these band settings. The following tables display vent rates used in the baseline and project conditions, as determined by the assumptions discussed above and rate-specific justifications listed in the table for high to low pneumatic conversions. All vent rates are listed for supply air flow rate; as such, all rates must be multiplied by to determine the equivalent natural gas flow rate. Table 7. Vent rates used to quantify common high-bleed and low-bleed pressure controllers converted within the Project. Device Make & Model Fisher 4150/4160 Proportional Band Setting (0-10) 3-15 psig output Vent Rate (air) 6-30 psig output Scfh m 3 /hr Scfh m 3 /hr 1 to or * Source and Justification Source: Table C2 of the Protocol, as referenced in Appendix B of CAPP "Efficient Use of Fuel Gas Pneumatic Instruments" Module 3 (2008). *Source: Emerson Fisher 4150K/4160K Controllers and Transmitters Product Bulletin (October 2007). The Project adjusts the vent rate for devices with a proportional band setting of 0 or 10 under the 6-30 psig output range. This is made according to the 2007 Product Bulletin which shows the static vent rate for a 0 or 10 setting to remain constant at approximately 7 scfh across the operating spectrum. This approach maintains conservativeness and accuracy for Fisher 4150 devices. 26 Page

32 Device Make & Model Proportional Band Setting (0-10) 3-15 psig output Vent Rate (air) 6-30 psig output Scfh m 3 /hr Scfh m 3 /hr Source and Justification CVS 4150/ to 9 0 or * Source: Protocol Pg. 57/58 lists the CVS 4150 as equivalent to the Fisher 4150 in Table C1, therefore the vent rates for Fisher 4150/4160 models are used as described above. Dynaflo or Fisher C1 Undefined Source: Dynaflo Model 4000 Pressure Controller Technical Sales Bulletin. Vent rates from the higher range of the spectrum are used to be consistent with Protocol Table C2 selection, and because the device can operate at full output capacity (e.g range under proportional band setting 5). Because the Bulletin provides different vent rates according to proportional band setting, and the Project collects this data parameter at time of conversion, vent rate will account for a proportional band setting of 0 or 10. All other reported PB settings are assumed to be equivalent to the vent rate at a PB setting of 5. Source: Emerson Fisher C1 Controllers and Transmitters Product Bulletin (August 2017). No vent rate range was provided, only singular values as shown. The vent rate listed in Table C2 for the Fisher C1 at both 20 psig and 35 psig supply is for the natural gas flow rate, instead of the air flow rate, therefore the manufacturer values are used. Table 8. Vent rates for common high-bleed and low-bleed electro-pneumatic transducers. Device Make & Model Supply Pressure psig Output Pressure Range psig Vent Rate (air) scfh m 3 /hr Source and Justification Fisher i2p- 100 LB (Gen II) Source: Fisher i2p-100 Product Bulletin (September 2017). Shows greater level of transparency than protocol which only lists middle range vent rate for supply inputs 20 and 35 psig. If output pressures cannot be used, the Protocol defaults will apply as presented in Table Page

33 Fisher i2p- 100 (Gen I) Source: Emerson Fisher i2p-100 Transducer Product Bulletin (May 2005). Manufacturer rates provide six vent rates according to operating conditions compared to two options in Table C2. If output pressures cannot be used, the Protocol defaults will apply as presented in Table 6. Fisher to 15 0 to 18 6 to Source: Fisher 546 Transducer Instruction Manual (March 2015), and Table C2 of the Protocol. 0 to Page

34 Table 9. Vent rates used to quantify high and low-bleed liquid level controllers Vent Rate (scfh air) Device Make & Model 20 psig supply 35 psig supply scfh m 3 /hr scfh m 3 /hr Fisher 2900/ Invalco CT series (CTU- 415 model) Fisher L2 Source and Justification Source: Protocol Table C2 as referenced in Appendix B of CAPP "Efficient Use of Fuel Gas Pneumatic Instruments" Module 3 (2008) Source: Protocol Table C2 as referenced in Appendix B of CAPP "Efficient Use of Fuel Gas Pneumatic Instruments" Module 3 (2008). In line with average rate reported (1.13 m 3 /hr) in WCI "Final Essential Requirements of Mandatory Reporting Amended for Canadian Harmonization - Second Update" (2011). Source: Fisher L2 Controller Product Bulletin (August 2017), and Protocol Table C2. Source: Fisher L2 Controller Product Bulletin (August 2017), which matches Protocol Table C Fisher L2sj Controller Product Bulletin (May 2017), which matches the Protocol Table C2. Source: Fisher L2 Controller Product Bulletin (August 2017), which matches Protocol Table C2. The relay used for the on-off performance and throttle performance are the same. Therefore, the published throttling vent rate can be used for the on-off relay as well. Snap Throttling L2sj On/off High to Low Bleed Projects Emissions Reduction = Sum of Baseline Emissions Sum of Project Emissions = (SSB7 baseline vented emissions SSB10 fuel extraction emissions) (SSP8 Process control electricity SSP7 Project vented gas SSP9 Fuel Extraction and Processing) Electrification of pneumatic devices will be best captured using the quantification equations presented in Section 6.4. Therefore, SSP8 Process control electricity will be considered zero for high to low bleed pneumatic device conversions. And the above equation becomes: Emissions Reduction = (SSB7 baseline vented emissions SSB10 fuel extraction emissions) (SSP7 Project vented gas SSP9 Fuel Extraction and Processing) SS B7 Baseline Vented Gas Emissions Baseline vented gas is determined through the following equations and set of variables for the high-bleed pneumatic devices: Emissions Baseline Vented Gas = Σ j (Vented Gas Baseline,j %CH 4 ρch ) GWP CH4 29 Page

35 Where: Σ j (Vented Gas Baseline,j %CO 2 ρco ) Vented Gas Baseline = Op. hrs j Q HB Manufacturer Spec,j Q HB-Manufacturer Spec,j = vent rate of the high-bleed baseline device sourced from manufacturer specifications (m 3 /hr) j = methane vent reduction index assigned to each conversion in the project Op. hrs j = operating hours of device(hrs) %CH 4 = portion of methane gas within the fuel gas composition at the site the device is in operation ρch 4 = density of methane (kg/m 3 ) ρco 2 = density of carbon dioxide (kg/m 3 ) %CO 2 = portion of carbon dioxide within the fuel gas composition at the site the device is in operation GWP CH4 = global warming potential of methane as indicated in Table 1 of the Handbook (IPCC, 2007) SS B10 Fuel Extraction Emissions Baseline fuel extraction (excluding processing) emissions are determined through the following equation: Where: Vol. Fuel H Emissions FuelEXP = Σ j (Vol. Fuel H EF X,CO2 1000) Σ j (Vol. Fuel H EF X,CH4 1000) GWP CH4 Σ j (Vol. Fuel H EF X,N2O 1000) GWP N2O = volume of fuel in the baseline is equivalent to the volume of Vented Gas Baseline from the high-bleed device determined in SS B7 (m 3 ) EF X, CO 2/CH 4/N 2O = emission factors for fuel extraction, as defined by Table 4 of the Handbook. GWP CH 4/N 2O = global warming potentials of methane and nitrous oxide as indicated in Table 1 of the Handbook (IPCC, 2007) SS P7 Project Vented Gas Emissions The equations listed above for SS B7 are replicated for project vented gas from the low-bleed replacement device as follows: Emissions Project Vented Gas = Σ j (Vented Gas Project,j %CH 4 ρch ) GWP CH4 Σ j (Vented Gas Project,j %CO 2 ρco ) Where: 30 Page

36 Vented Gas Project (m 3 ) = Op. hrs j Q LB Manufacturer Spec,j Q LB-Manufacturer Spec,j = vent rate of the low-bleed project device sourced from manufacturer specifications (m 3 /hr) j = methane vent reduction index assigned to each conversion in the project Op. hrs j = operating hours of device(hrs) %CH 4 = portion of methane gas within the fuel gas composition at the site the device is in operation ρch 4 = density of methane (kg/m 3 ) ρco 2 = density of carbon dioxide(kg/m 3 ) %CO 2 = portion of carbon dioxide within the fuel gas composition at the site the device is in operation GWP CH4 = global warming potential of methane as indicated in Table 1 of the Handbook (IPCC, 2007) SS P9 Project Fuel Extraction and Processing Emissions Fuel extraction and processing emissions in the project condition are determined by the following equation: Where: Vol. Fuel L Emissions FuelEXP = Σ j (Vol. Fuel L EF XP,CO2 1000) Σ j (Vol. Fuel L EF XP,CH4 1000) GWP CH4 Σ j (Vol. Fuel L EF XP,N2O 1000) GWP N2O = volume of fuel in the project is equivalent to the volume of Vented Gas project from the low-bleed device determined in SS P7 (m 3 ) EF XP, CO 2/CH 4/N 2O = emission factors for fuel extraction and processing, as defined by Table 4 of the Handbook and presented in Table 5 GWP CH 4/N 2O = global warming potentials of methane and nitrous oxide as indicated in Table 1 of the Handbook (IPCC, 2007) Sample Calculation The following sample calculation is for the conversion of a 6-30 psig output Fisher 4150 high-bleed pressure controller to the lower venting Fisher C1 pressure controller (also 6-30 psig output) with a proportional band setting of 5 for both. The calculation assumes a methane content of 78% and carbon dioxide concentration of 0.6%, with a corresponding density of kg/m 3 at standard temperature and pressure of the fuel gas used to supply the pneumatic devices, and corresponding methane density of kg/m 3. The operating hours used in this example assume the devices are running 93% of the time, over a 1-year period (8147 hours). 31 Page

37 Emissions Reduction = (SSB7 Emissions Baseline Vented Gas SSB10 Emissions Fuel Extraction) (SSP7 Emissions Project Vented Gas SSP9 Emissions Fuel Extraction/Processing SS B7 Baseline Vented Gas (Fisher 4150) Vented Gas Baseline = Op. hrs j Q HB Manufacturer Spec,j From Table 7 the Fisher 4150 with a supply pressure of 35psig has a vent rate of 42 scfh. Therefore: Q HB- Manufacturer Spec,j = 42 ft3 m hr ft 3 = m 3 /hr Vented Gas Baseline = 8148 hrs m 3 /hr = 12,575.3 m 3 Emissions Baseline Vented Gas = Σ j (12,575.3 m 3 78% CH kg m kg tonne Σ j (12,575.3 m 3 0.6%CO kg m ) 25 GWP kg tonne ) SS B10 Extraction Emissions = tonnes of B7 vented emissions Recall that Vol.Fuel H is the volume of fuel consumed and vented by the high-bleed controller, equivalent to Vented Gas Baseline determined above. Only fuel extraction emissions are being determined for the baseline condition. Emissions Fuel X = Σ j (12, m kg m Σ j (12, m kg m Σ j (12, m kg m kg tonne ) kg tonne ) 25 GWP CH4 kg tonne ) 298 GWP N2O = 1.27 tonnes of baseline fuel extraction emissions Therefore: Emissions Baseline = tonnes 1.27 tonnes is the gas equivalency ratio (GER) as determined in Protocol Appendix A 32 Page

38 = tonnes baseline emissions from a Fisher 4150 SS P7 Project Vented Gas (Fisher C1) Vented Gas Project = Op. hrs j Q LB Manufacturer Spec,j From Table 7 a Fisher C1 with a supply pressure of 35 psig has a vent rate of 4.5 scfh. Therefore: Q LB- Manufacturer Spec,j = 4.5 ft3 m hr ft 3 = m 3 /hr Vented Gas Baseline = 8148 hrs m3 hr = 1, m 3 Emissions Project Vented Gas = Σ j (1, m 3 78% CH kg m kg tonne Σ j (1, m 3 0.6% CO kg m ) 25 GWP kg tonne ) SS P9 Extraction and Processing Emissions = tonnes of P7 vented emissions Emissions FuelEXP = Σ j (1, m 3 ( kg kg m3) 1000 Σ j (1, m 3 ( kg kg m3) 1000 Σ j (1, m 3 ( kg kg m3) 1000 tonne ) tonne ) 25 GWP CH4 tonne ) 298 GWP N2O = tonnes of project fuel extraction and processing emissions Therefore: Emissions Project = tonnes tonnes = tonnes project emissions from a Fisher C is the gas equivalency ratio (GER) as determined in Protocol Appendix A 33 Page

39 As a result, emission reductions from the conversion of a high-bleed Fisher 4150 to a low-bleed Fisher C1 are summarized below: Emission Reduction = Sum Emissions Baseline Sum Emissions Project Emission Reduction = t CO 2e t CO 2e = tonnes CO 2e reduction 6.3 Instrument Gas to Instrument Air Projects Emissions Reduction = Sum of Baseline Emissions Sum of Project Emissions = (SSB7 vented gas emissions SSB10 fuel extraction emissions) (SSP6 air compression and Management emissions P9 fuel extraction and processing emissions) SS B7 Baseline Vented Gas Emissions Emissions Baseline Vented Gas = Σ j (Vented Gas Baseline,j %CH 4 ρch ) GWP CH4 Where: Σ j (Vented Gas Baseline,j %CO 2 ρco ) Vented Gas Baseline = Q Air Device (1 DR) GER Q Air Device = Direct measurement of air supply to air driven devices used to determine volume of equivalent gas (m 3 ) GER = Gas equivalency ratio, the capacity of a device to flow air or gas expressed in terms of flow coefficient (C v); to determine gas flow rate (m 3 /h) from air rate j = methane vent reduction index assigned to each conversion in the project DR = Discount rate, determined by Table 10 according to years since inspection %CH 4 = portion of methane gas within the fuel gas composition at the site the device is in operation ρch 4 = density of methane (kg/m 3 ) ρco 2 = density of carbon dioxide (kg/m 3 ) %CO 2 = portion of carbon dioxide within the fuel gas composition at the site the device is in operation GWP CH4 = global warming potential of methane as indicated in Table 1 of the Handbook (IPCC, 2007). Where GER: Q CH4 Q AIR = G AIR G CH4 Y CH4 Y AIR 34 Page

40 1 Y CH4 = 1 3 F CH4 1 Y AIR = 1 3 F AIR Y G AIR G CH4 F CH4 F AIR Therefore: = expansion factor = gas specific gravity of air (density of gas divided by density of air at same conditions), 1.293/1.293 kg/m 3 for Air at STP = gas specific gravity of methane (density of gas divided by density of air at same conditions), /1.293 kg/m 3 for methane = kg/m 3 at STP = ratio of specific heats (specific heat ratio of the gas divided by the specific heat ratio of air), 1.32 methane/1.40 Air = = ratio of specific heats (specific heat ratio of the gas divided by the specific heat ratio of air), 1.40/1.40 = 1 for air 1 Y CH4 = = Y AIR = = And: Y CH4 = Y AIR = And: Q CH4 Q AIR = G AIR G CH4 Y CH4 Y AIR Q CH4 1 AIR = Q AIR CH4 Q CH4 Q AIR = Table 10. Discount rate determination for instrument air projects, as per Appendix A of the Protocol. Years Since Inspection Discount Rate (DR) to * Years since inspection > Page

41 6.3.2 SS B10 Fuel Extraction Emissions Baseline fuel extraction (excluding processing, see Section 5.3 for justification) emissions are determined through the following equation, for projects combusting fossil fuels on-site to power the air compressor rather than grid or renewable electricity: Where: Vol. Fuel H Emissions FuelEXP = Σ j (Vol. Fuel H EF X,CO2 1000) Σ j (Vol. Fuel H EF X,CH4 1000) GWP CH4 Σ j (Vol. Fuel H EF X,N2O 1000) GWP N2O = volume of fuel is equivalent to the Vented Gas Baseline determined in SS B7 from the previous instrument gas system (m 3 ) EF X, CO 2/CH 4/N 2O = emission factors for fuel extraction, as defined by Table 4 of the Handbook. GWP CH 4/N 2O = global warming potentials of methane and nitrous oxide as indicated in Table 1 of the Handbook (IPCC, 2007) SS P6 Air Compression and Management This project emission source determines emissions associated with powering the air compressor that supplies the air driver to the device. Sites that utilize solar powered air compressors will have no project emissions in SS P6. Where: Emissions Air Compression = Electricty Air Compression EF Elec Supply 1000 Electricity Air Compression = estimate of total electricity consumed by air compressor system over reporting period, based on full duty and load of equipment specifications (kwh). EF Elec Supply = emission factor associated with electricity source, calculated either one of three methods below: = zero for projects using renewable energy on-site; OR = EF GRID for projects consuming grid supplied electricity, based on Emissions Factor Handbook (2015); OR = (Vol. Fuel i Σ CO2,CH4,N2O (EF Fuel GWP CO2,CH4,N2O ) Net Elec for projects using on-site fossil fuel combustion SS P9 Project Fuel Extraction and Processing Emissions If grid or renewable energy is used for electricity, SS P9 is not applicable. Fuel extraction and processing emissions in the project condition are determined by the following equation: Emissions FuelEXP = Σ j (Vol. Fuel Com EF XP,CO2 1000) 36 Page

42 Where: Vol. Fuel Com EF XP, CO 2/CH 4/N 2O Σ j (Vol. Fuel Com EF XP,CH4 1000) GWP CH4 Σ j (Vol. Fuel Com EF XP,N2O 1000) GWP N2O = volume of fuel in the project is equivalent to the fossil fuels combusted on site to power the air compressor, if used for Elec Supply in SS P6. (m 3 ) = emission factors for fuel extraction and processing, as defined by Table 4 of the Handbook and presented in Table 5 GWP CH 4/N 2O = global warming potentials of methane and nitrous oxide as indicated in Table 1 of the Handbook (IPCC, 2007) Sample Calculation The following calculation is for an instrument gas site converted to instrument air for 250 days, assuming the site has been inspected within the past year for a discount rate of zero. The GER is (as calculated in Section 6.3.1) and Q AIR (air consumption) for the centrifugal compressor is 150 scfm (or 180,000 scf/day). As assumed in the previous sample calculation, the density of methane is kg/m 3 and represents 78% of the fuel gas; whereas carbon dioxide represents 0.6% of the gas with a density of kg/m 3. The air compressor is supplied by grid electricity, and consumed 30,000 kwh over 250 days. Emissions Reduction = (SSB7 Emissions Baseline Vented Gas SSB10 Emissions Fuel Extraction) (SSP6 Emissions Air Compressor SSP9 Emissions Fuel Extraction/Processing SS B7 Baseline Vented Gas Emissions Baseline Vented Gas = Σ j (Vented Gas Baseline,j %CH 4 ρch ) GWP CH4 Σ j (Vented Gas Baseline,j %CO 2 ρco ) Where: Vented Gas Baseline = Q Air Device (1 DR) GER Q Air Device = (72,000 ft3 day m days) (1 0) ft3 = 681,701.3 m 3 Emissions Baseline Vented Gas = (681,701.3 m 3 78% CH kg m kg tonne ) 25 GWP CH4 37 Page

43 (681,701.3 m 3 0.6% CO kg m kg tonne ) = 9, tonnes CO 2 e SS B10 Extraction Emissions Recall that Vol.Fuel H is the volume of fuel consumed and vented by the previous instrument gas system, equivalent to the volume of air flow converted to an equivalent gas volume, as in Vented Gas Baseline calculated above. Only fuel extraction emissions are being determined for the baseline condition. Emissions Fuel X = Σ j (681,701.3 m kg m Σ j (681,701.3 m kg m Σ j (681,701.3 m kg m kg tonne ) kg tonne ) 25 GWP CH4 kg tonne ) 298 GWP N2O = tonnes of baseline fuel extraction and processing emissions Therefore: Emissions Baseline = 9, tonnes tonnes CO 2e = 9, tonnes CO 2e SS P6 - Air Compression & Management Emissions Emissions Air Compression = Electricty Air Compression EF Elec Supply 1000 = 30,000 kwh 0.64 t CO 2e kwh 1000 MWh MWh = 19.2 t CO 2 e SS P9 Fuel Extraction & Processing Emissions SS P9 emissions are not required in this calculation as no fossil fuel is consumed to power the compressed air system; instead is supplied by grid electricity. As a result, emission reductions from the conversion of an instrument gas to instrument air system over a 250-day period are: Emission Reduction = Sum Emissions Baseline Sum Emissions Project Emission Reduction = 9, t CO 2e 19.2 t CO 2e = 9, tonnes CO 2e reduction 38 Page

44 6.4 Electrification Projects Emissions Reduction = Sum of Baseline Emissions Sum of Project Emissions = (SSB7 baseline vented emissions SSB10 fuel extraction emissions) (SSP8 Process control electricity SSP7 Project vented gas SSP9 Fuel Extraction and Processing) As electrified devices do not use natural gas for operation, SS P7 Vented Gas and SS P9 Fuel Extraction and Processing Emissions are not applicable. Therefore, the above equation becomes: Emissions Reduction = (SSB7 baseline vented emissions SSB10 fuel extraction emissions) (SSP8 Process control electricity) SS B7 Baseline Vented Gas Emissions Baseline vented gas is determined through the following equations: Where: Emissions Baseline Vented Gas = Σ j (Vented Gas Baseline,j %CH 4 ρch ) GWP CH4 Σ j (Vented Gas Baseline,j %CO 2 ρco ) Vented Gas Baseline = Strokes j EF Pump Type,j for pumps OR Vented Gas Baseline = Op. Hrs j Q Baseline,j for converting high venting pneumatic devices, see Section Strokes,j = Continuous measurement of pump strokes. Most pumps have strokes per minute metrics included in the manufacturer specifications, or a stroke counter within the device EF Pump Type,j = Pump emission factor as per manufacturer specifications (scfh/stroke) j = methane vent reduction index assigned to each conversion in the project %CH 4 = portion of methane gas within the fuel gas composition at the site the device is in operation ρch 4 = density of methane (kg/m 3 ) ρco 2 = density of carbon dioxide (kg/m 3 ) %CO 2 = portion of carbon dioxide within the fuel gas composition at the site the device is in operation GWP CH4 = global warming potential of methane as indicated in Table 1 of the Handbook (IPCC, 2007) SS B10 Fuel Extraction Emissions Baseline fuel extraction (excluding processing) emissions are determined through the following equation: Emissions FuelEXP = Σ j (Vol. Fuel H EF X,CO2 1000) 39 Page

45 Where: Vol. Fuel H (m 3 ) Σ j (Vol. Fuel H EF X,CH4 1000) GWP CH4 Σ j (Vol. Fuel H EF X,N2O 1000) GWP N2O = volume of fuel in the baseline is equivalent to the volume of Vented Gas Baseline from the high-bleed device determined in SS B7 above EF X, CO 2/CH 4/N 2O = emission factors for fuel extraction, as defined by Table 4 of the Handbook. GWP CH 4/N 2O = global warming potentials of methane and nitrous oxide as indicated in Table 1 of the Handbook (IPCC, 2007) SS P8 Project Process Control Electricity Emissions SS P8 Process Control Electricity Emissions are only applicable to equipment using grid electricity, or onsite electricity generation, and are zero when renewable solar is utilized. Where: Emissions Electric Process Control = Electricity Process Control EF Elec Supply 1000 kwh MWh Electricity Process Control (kwh) EF Elec Supply (tonnes/mwh) = Total electricity consumed for control functions, estimated based on equipment specification. Quantity not required for renewable electricity. = emission factor associated with electricity source, calculated either one of three methods below: = zero for projects using renewable energy on-site; OR = EF GRID for projects consuming grid supplied electricity, based on Emissions Factor Handbook (2015); OR = (Vol. Fuel i Σ CO2,CH4,N2O (EF Fuel GWP CO2,CH4,N2O ) Net Elec for projects using on-site fossil fuel combustion Sample Calculation The sample calculation is for the conversion of a Texsteam 5100 series CIP to a LCO Crossfire solar powered pump, that assumes the following: it operates 300 days in the year, has a stroke count of 4320 strokes per day (3 strokes per min), and an emission factor of scf air/stroke. Emissions Reduction = (SS B7 Emissions Baseline Vented Gas SS B10 Emissions Fuel Extraction) (SS P8 Emissions Process SS B7 Baseline Vented Gas (Texsteam 5100) Control Electricity) Emissions Baseline Vented Gas = Σ j (Vented Gas Baseline,j %CH 4 ρch ) GWP CH4 Σ j (Vented Gas Baseline,j %CO 2 ρco ) 40 Page

46 Where: Vented Gas Baseline = Strokes j EF Pump Type,j = (7200 hrs 180 strokes ) ft3 hr stroke = 3, m 3 Emissions Baseline Vented Gas = Σ j (3,319.4 m 3 78% CH kg m m3 ft kg tonne Σ j (3,319.4 m 3 0.6%CO kg m = tonnes of B7 vented emissions ) 25 GWP kg tonne ) SS B10 Extraction Emissions Recall that Vol.Fuel H is the volume of fuel consumed and vented by the high-bleed pump, equivalent to Vented Gas Baseline determined above. Only fuel extraction emissions are being determined for the baseline condition. Emissions Fuel X = Σ j (3,319.4 m kg m Σ j (3,319.4 m kg m Σ j (3,319.4 m kg m kg tonne ) kg tonne ) 25 GWP CH4 kg tonne ) 298 GWP N2O = tonnes of baseline fuel extraction and processing emissions Therefore: Emissions Baseline = tonnes tonnes = tonnes baseline emissions from a Texsteam 5100 SS P8 Project Process Control Electricity Emissions Emissions Electric Process Control = Electricity Process Control EF Elec Supply 1000 kwh MWh 5 Gas equivalency ratio. 41 Page

47 = 1500 kwh 0 tonnes MWh kwh 1000 MWh = 0.0 tonnes CO 2e in project due to solar electricity Emission Reduction = Sum Emissions Baseline Sum Emissions Project Emission Reduction = tonnes CO 2e = tonnes CO 2e reduction 6.5 Vent Gas Capture Projects Emissions Reduction = Sum of Baseline Emissions Sum of Project Emissions SS B8 Uncaptured Fuel Gas = (SS B8 Uncaptured fuel gas SS B10 fuel extraction emissions) (SS P17 Vent Gas Capture SS P9 Fuel Extraction and Processing Emissions) Emissions Uncap Fuel Gas = (Project Captured Gas (1 DR) %CH 4 ρch ) GWP CH4 Project Captured Gas (1 DR) %CO 2 ρco Where: Project Captured gas = SSP17 Captured Gas from section 6.5.2; OR = Op. hrs %Load Fuel Con. Rate Op. hrs (hrs) = operating hours of device based on continuous measurement of combustion device Load (%) = One-time reading of %load of fuel combustion device Fuel Con. Rate (kg/hr) = Fuel consumption rate based on manufacturer specification DR = Discount rate, determined by Table 10 above below according to years since inspection %CH 4 = portion of methane gas within the fuel gas composition at the site the device is in operation ρch 4 (kg/m 3 ) = density of methane ρco 2 (kg/m 3 ) = density of carbon dioxide %CO 2 = portion of carbon dioxide within the fuel gas composition at the site the device is in operation GWP CH4 = global warming potential of methane as indicated in Table 1 of the Handbook (IPCC, 2007). 42 Page

48 6.5.2 SS B10 Fuel Extraction Emissions FuelEXP = Σ j (Vol. Fuel Un cap EF X,CO2 1000) Σ j (Vol. Fuel Un cap EF X,CH4 1000) GWP CH4 Σ j (Vol. Fuel Un cap EF X,N2O 1000) GWP N2O Where: Vol. Fuel Un-cap (m 3 ) = volume of fuel in the baseline is equivalent to the volume of uncaptured fuel gas from the combustion device as used in SS B8 above (equivalent to Vol.Fuel Cap) EF X, CO 2/CH 4/N 2O = emission factors for fuel extraction, as defined by Table 4 of the Handbook. GWP CH 4/N 2O = global warming potentials of methane and nitrous oxide as indicated in Table 1 of the Handbook (IPCC, 2007) SS P9 Fuel Extraction and Processing Emissions FuelEXP = Σ j (Vol. Fuel Cap EF XP,CO2 1000) Where: Vol. Fuel Cap EF XP, CO 2/CH 4/N 2O Σ j (Vol. Fuel Cap EF XP,CH4 1000) GWP CH4 Σ j (Vol. Fuel Cap EF XP,N2O 1000) GWP N2O = volume of fuel in the project is equivalent to the volume of fuel gas captured, as used in SS P17 (m 3 ) = emission factors for fuel extraction and processing, as defined by Table 4 of the Handbook and presented in Table 5 GWP CH 4/N 2O = global warming potentials of methane and nitrous oxide as indicated in Table 1 of the Handbook (IPCC, 2007) SS P17 Vent Gas Capture Emissions Vent Gas Capture = Captured Gas DE EF Fuel CO2 1,000,000 Captured Gas DE EF Fuel CH4 GWP CH4 1,000,000 Captured Gas DE EF Fuel N2O GWP N2O 1,000,000 Captured Gas (1 DE) GWP CH4 %CH 4 ρch 4 1,000,000 Where: Captured Gas (m 3 ) Op. hrs (hrs) = Direct metering, OR = Vent Gas as calculated in sections 6.2.1, or 6.4.1; OR = Op. hrs %Load Fuel Con. Rate = operating hours of device based on continuous measurement of combustion device 43 Page

49 Load (%) = One-time reading of %load of fuel combustion device Fuel Con. Rate (kg/hr) = Fuel consumption rate based on manufacturer specification DE = Destruction efficiency of combustion, as per manufacturer specifications, or 60% for catadyne heaters as per pg. 62 in Appendix C of the Protocol %CH 4 = portion of methane gas within the fuel gas composition at the site the device is in operation ρch 4 (kg/m 3 ) = density of methane ρco 2 (kg/m 3 ) = density of carbon dioxide GWP CH4 = global warming potential of methane as indicated in Table 1 of the Handbook (IPCC, 2007). EF Fuel (g/m 3 ) = Emission factor for vent gas capture combustion, as per Table 7 of the Handbook (2015) Sample Calculation For the vent gas capture calculation below, a metered volume of 15,000 m 3 of gas was captured on site, rather than being vented to atmosphere. The fuel combustion system has a destruction efficiency of 75%, and the fuel gas in question contains 78% methane and 0.6% carbon dioxide. The site was inspected 2 years ago, leading to a discount ration of Emissions Reduction = (SS B8 Emissions Uncaptured Fuel Gas SS B10 Emissions Fuel Extraction) - (SS P17 Emissions Vent Gas Capture SS P9 Emissions Fuel Extraction and Processing) SS B8 Uncaptured Fuel Gas Emissions Emissions Uncap Fuel Gas = (Captured Gas (1 DR) %CH 4 ρch ) GWP CH4 Captured Gas (1 DR) %CO 2 ρco = (15,000 m 3 (1 ( years)) 78% CH kg m ) 25 GWP CH4 (15,000 m 3 (1 ( years)) 0.6% CO kg m = t CO 2 e SS B10 Fuel Extraction Emissions Emissions FuelEXP = Σ j (Vol. Fuel Un cap EF X,CO2 1000) Σ j (Vol. Fuel Un cap EF X,CH4 1000) GWP CH4 Σ j (Vol. Fuel Un cap EF X,N2O 1000) GWP N2O 44 Page

50 = Σ j (15,000 m kg m Σ j (15,000 m kg m Σ j (15,000 m kg m = 1.53 t CO 2 e Therefore, baseline emissions = tonnes CO 2e = tonnes CO 2e kg tonne ) kg tonne ) 25 GWP CH4 kg tonne ) 298 GWP N2O SS P9 Fuel Extraction and Processing Emissions Emissions FuelEXP = Σ j (Vol. Fuel Cap EF XP,CO2 1000) Σ j (Vol. Fuel Cap EF XP,CH4 1000) GWP CH4 Σ j (Vol. Fuel Cap EF XP,N2O 1000) GWP N2O = Σ j (15,000 m 3 ( kg kg m3) 1000 Σ j (15,000 m 3 ( kg kg m3) 1000 Σ j (15,000 m 3 ( kg kg m3) 1000 SS P17 Vent Gas Capture Emissions = 3.00 t CO 2 e tonne tonne ) 25 GWP CH4 tonne ) 298 GWP N2O Emissions Vent Gas Capture = Captured Gas DE EF Fuel CO2 1,000,000 Captured Gas DE EF Fuel CH4 GWP CH4 1,000,000 Captured Gas DE EF Fuel N2O GWP N2O 1,000,000 Captured Gas (1 DE) GWP CH4 %CH 4 ρch 4 1,000, Page

51 = 15,000 m 3 75% 1918 (15,000 m 3 75% g m 3 CH4 g m 3 CO2 1,000, GWP CH4 1,000,000) 15,000 m 3 75% g m 3 N2O 298 GWP N2O 1,000,000 15,000 m 3 (1 0.75) 25 GWP CH4 78% CH kg m 3 1,000,000 = t CO 2 e Therefore, project emissions = tonnes CO 2e = tonnes CO 2e Emission Reduction = Sum Emissions Baseline Sum Emissions Project Emission Reduction = tonnes CO 2e = tonnes CO 2e reduction 46 Page

52 7 Measurement and Monitoring Plan Table 11: Measurement and Monitoring Plan Project Type Affected Source/ sink Description identifier and name 1.High to Low 2. IGIA 3.Electrification 1.High to Low 2. IGIA 3.Electrification 1. Electrification P7 Project Vented Gas B7 Baseline Vented Gas P7 Project Vented Gas B7 Baseline Vented Gas P6- Air Compression and Management Carbon dioxide concentration Carbon dioxide density Electricity consumed by the air compression and management system Paramet er %CO2 ᵨCO2 Electrici ty Air Compression /Managemen t Estimation, modeling, measurement or calculation approaches Direct measurement Reference value, Estimated Data unit % kg/m 3 kwh Sources/Origin 3 rd party laboratory gas analyses Physical property of pure Carbon dioxide at standard temperature and pressure,1.013 bar & 15 C (STP) Equipment specifications based upon full duty and load Monitoring frequency Annual n/a Per Report Description and justification of monitoring method Vented gas composition should remain relatively stable during steady-state operation physical gas property. Value will remain constant In absence of equipment measurement, assumption is conservative Uncertainty Low 3 rd party gas analyses report with an uncertainty of Low all values will be adjusted for STP Medium uncertainty introduced via estimation is offset by the conservative assumption of full duty and load 47 Page

53 Project Type 1. Electrification 1. Electrification 2.IGIA 1.IGIA 2.High to Low 3. VGC 4. Electrification 1.High to Low 2. IGIA 3.Electrification Affected Source/ sink identifier and name P8 Process Control Electricity P6- Air Compression and Management P9- Project Fuel Extraction and Processing B10 Baseline Fuel Extraction and Processing B7 Baseline Vented Gas Description Electricity Consumed for Control functions Emission factor for electricity supply Emission factors for extraction and processing of fuel Manufacturer specified vent rate of high bleed controller Paramet er Electrici ty Process Control EF ElecSuppl y EF CO2 EF CH4 EF N2O QHB, Manufact urer Spec,j Estimation, modeling, measurement or calculation approaches Estimated Reference/Calcu lated Data unit kwh tco2e /MW h Estimated kg/m 3 Estimated scfh Sources/Origin Equipment specifications based upon full duty and load Carbon Offset Emission factors handbook, Table 5 Site specific Calculation Carbon Offset Emission factors handbook, Table 5 Protocol Appendix C or manufacturer specifications, Table 7 to Monitoring frequency Per Report Per Report Per report Once Description and justification of monitoring method In absence of equipment measurement, assumption is conservative Most current publication of the Handbook must be used Most current publication of the Handbook must be used Changes to emission rates are likely equivalent between Uncertainty Medium uncertainty introduced via estimation is offset by the conservative assumption of full duty and load Low Low Medium uncertainty of manufacture r estimations 48 Page

54 Project Type 1.High to Low 2. IGIA 1.High to Low 2. IGIA 3.Electrification 1.High to Low 2. IGIA 3.Electrification Affected Source/ sink identifier and name P7 Project Vented Gas P7 Project Vented Gas B7 Baseline Vented Gas P17 Vent Gas Capture P7 Project Vented Gas B7 Baseline Vented Gas P17 Vent Gas Capture Description Manufacturer specified vent rate of Low Vent Controller Methane concentration in vent gas Methane density Paramet er QLB, Manufact urer Spec,j %CH4 ᵨCH4 Estimation, modeling, measurement or calculation approaches Estimated Direct measurement Reference value, Data unit scfh % kg/m 3 Sources/Origin Table 9 Protocol Appendix C or manufacturer specifications, Table 7 to Table 9 3 rd party laboratory gas analyses Physical property of pure methane at standard temperature and pressure,1.013 bar & 15 C (STP) Monitoring frequency Once Annual n/a Description and justification of monitoring method baseline and project condition Changes to emission rates are likely equivalent between baseline and project condition Vented gas composition should remain relatively stable during steady-state operation Physical gas property. Value will remain constant Uncertainty is combatted by the conservative estimates. Medium uncertainty of manufacture r estimations is combatted by the conservative estimates. Low 3 rd party gas analyses report with an uncertainty of Low all values will be adjusted for STP 49 Page

55 Project Type 1. Electrification 2. IGIA 1.High to Low 2. IGIA 3. VGC 4.Electrification 1.High to Low 2. IGIA 3.Electrification 1.IGIA 2.High to Low 3. VGC 4. Electrification Affected Source/ sink identifier and name P6- Air Compression and Management P7 Project Vented Gas B7 Baseline Vented Gas P17 Vent Gas Capture P7 Project Vented Gas B7 Baseline Vented Gas P9- Fuel Extraction and Processing P6 Air Compression and Management Description Net on-site electricity generation Operating Hours Pneumatic Device Index Value Volume of Fossil Fuel consumed by low bleed device, or air supply system (for on-site fossil fuel generated electricity) Paramet er Estimation, modeling, measurement or calculation approaches Data unit Net Elec Direct metering KWh Op.Hrs Measurement Hours j n/a n/a Vol FuelL Calculation m 3 Sources/Origin Direct measurement Direct measurement of site production hours. Subproject device type Calculation as per section Monitoring frequency Continuous metering Annual Per report Description and justification of monitoring method Frequency of metering is highest level possible The operating hours will be pulled annually from continuous tracking of site production hours. Assigned value to be identified each reporting period Uncertainty low Per report n/a n/a Low - Continuous tracking of site production hours represents highest level possible. Low tracking of installed device type is recorded at installation 50 Page

56 Project Type 1. High to Low 2.Electrification (B7) 3. IGIA (B7) Affected Source/ sink identifier and name P7 Project Vented Gas B7 Baseline Vented Gas Description Volume of vented gas emitted by device type Paramet er VentedG asproject Vented Gas Baselin e Estimation, modeling, measurement or calculation approaches Data unit Calculation m 3 Sources/Origin Calculation as per Section and Section 6.1 Monitoring frequency Description and justification of monitoring method Per Report n/a n/a Uncertainty The subprojects (both conversions and retrofits) will be subject to each producer s annual maintenance and inspection procedures. These inspection procedures and any maintenance performed on the device (if occurred) will be collected by Bluesource and logged annually on the Bluesource Methane Database System, BMDS to meet the requirements of the Protocol. 51 Page

57 8 Data Management System and Records There are three major data collection periods in the Project period. These occur first at the pneumatic device inventory creation, second at the field conversion and retrofit, and thirdly at periodic collection points to facilitate ongoing quantification and verification. Each period displays a primary data source for the data points, the Producer and Bluesource respectively. Pneumatic Device Inventory 1. Producer supplies device inventory 2. Upload Inventory to BMDS Field Conversion/Retrofit 1. Having occured in the past, documentation must be provided that demonstrates date of conversion/installation and replaced pneumatic device/system if retrofit Periodic Data Collection 1. producer provides Bluesource with data parameters 2. Bluesource downloads all data from BMDS and creates the Project documentation Figure 9: Critical data collection periods In the BMDS, each Producer or Participant is assigned a Bin. Placeholder documents within the Bin are created for each subproject from the Replacement and Conversion Plan. Each subproject or high bleed pneumatic controller is given a unique Bluesource Device ID which identifies the controller as eligible for conversion or retrofit and is permanently associated with all documents uploaded for that conversion, including assignation to the low bleed device. These project documents follow the below naming convention, Figure 10: the BMDS document naming convention Bluesource has licensed the BMDS to track the data parameters through each key collection period in the Project s lifespan. 52 Page

58 8.1 Document Control In the BMDS there are five document security settings: 1: PS Project Sponsor 2: PM Project manager 3: PT Project technician 4: DC document controller 5: E everyone All actions performed in the BMDS are tracked in an Events Log that identifies the user, action taken and date the action was completed. Through the archival system, all prior versions of a document can be accessed and restored, mitigating the risk of unintentional record changes post entry and data recovery should a file be accidently deleted. The BMDS utilizes the Microsoft Azure architecture for both data storage application performance - with physical data-centers located across the United States and Canada. Some of the performance and security highlights are detailed below: Near real-time data replication to multiple geographies Multiple Tier 3 cutting edge data-centers with military grade security Extensive use of encryption of both data at rest (256-bit AES or better) and in transit (TLS 1.1 or better with PCI level configurations) throughout. Validation of these encryption levels is continually monitored. Highly available hardware and software architecture Application layer firewalls, intrusion detection, deep-packet inspection, traffic pattern analysis, and real-time alerting. Highly resilient DNS design Bandwidth access to over 10 national ISP s Document Control at Bluesource Electronic data is backed up by Bluesource s IT service provider. Bluesource operates a documentation retention policy, which all staff must abide by as a condition of their employment. A copy of these document control policies is provided in Appendix B. 8.2 Bluesource Quality Assurance and Control Procedures Bluesource holds itself to the highest professional and ethical standards. All staff has experience in working on GHG projects and/or training in the use of ISO Junior staff members are mentored closely until their level of competence is deemed sufficient for them to work more independently. This experience and training helps to ensure that errors and omissions are minimized, and that project documentation is compiled in accordance with the principles of relevance, completeness, consistency, accuracy, transparency and conservativeness. 53 Page

59 Bluesource operates a rigorous internal QA/QC process that is built around the principle of senior review (i.e. calculations and reports are checked by experienced staff members prior to being released). The quantification calculator, for example, will be checked for: Transcription errors/omissions; Correctly functioning links/formulas in spreadsheets; Correct and transparent referencing of data sources; Justification of assumptions; Recalculation of material sources/sinks; Use of, and compliance with, most up-to-date versions of protocols, technical guidance, etc. In addition, the Offset Project Plan and Offset Project Report are also senior-reviewed for errors, omissions, clarity, etc. Issues are recorded in Blue Source s QA/QC checklist for the project (and, as necessary, embedded into the reviewed version of the documents and/or calculator) and these will be corrected before these are sent to the third-party verifier. Staff sign an Attestation of Quality Assurance and Quality Control to document that the QA/QC process was followed. This QA/QC process is kept under constant review. 54 Page

60 9 Project Developer Signature I am a duly authorized corporate officer of the project developer mentioned above and have personally examined and am familiar with the information submitted in this offset project plan including the accompanying greenhouse gas assertion on which it is based. Based upon reasonable investigation, including my inquiry of those individuals responsible for obtaining the information, I hereby warrant that the submitted information is true, accurate and complete to the best of my knowledge and belief, and that all matters affecting the validity of the emission reduction claim or the protocol(s) upon which it is based have been fully disclosed. I understand that any false statement made in the submitted information may result in de-registration of credits and may be punishable as a criminal offence in accordance with provincial or federal statutes. The project developer has executed this offset project plan as of the 22 day of December Project Title: Methane Reduction Offset Project Aggregation Signature: Date: December 22, 2017 Name: Yvan Champagne Title: President 55 Page

61 Appendix A Bluesource Document Control Policies

62 Last Revision: August 2, 2017 Document Retention Policy, version All documents relevant to Offset Projects will be kept, in at least electronic format, and where possible, in hardcopy format, for a. At least 10 years beyond the last year in which credits are created (e.g. a project that creates credits between will have all records kept until at least 2028), or b. As required by the Offset Project Program whichever period is longer. 2. Hard copy documents will be kept in project folders in our Blue Source Canada head office location, which is currently Suite 1605, th Av SW, Calgary, AB, T2P 3G2. All electronic documents will be saved to the appropriate project folder on the Calgary Server ( S:\ drive ). 3. The S:\ drive will be backed up in accordance with Blue Source s IT Backup Procedure, which may change from time to time. 4. Blue Source s preference is to keep all documents in electronic form, wherever possible. 5. All employees will comply with this policy as a condition of their employment. Yvan Champagne President, Blue Source Canada ULC

63 Backup Procedure Prepared For: Blue Source Objective To minimize interruptions to business by insuring that operation can be restored in case of Loss of any amount of information due to accidental or malicious deletion; Failure of one or more computers or components such as a hard disk drive; or A disaster resulting in loss of the entire infrastructure, or loss of access to it. Backup Procedure 1. Backup Rotation Rotation is continues and automatic in accordance with retention specified in item 2. All off-site data is stored in Canada at a SSAE 16, CSAE 3416 and ISA3402 certified data center. 2. Retention 30 days of continuous data change, and nightly system state is off site in data center. Data is stored both on-site and off-site Data can be restored as far as 30 days back from on-site and off-site backups 3. Backup Schedule Data backup Full backup is scheduled to run nightly at 8:00PM Image Backup (Entire server backup) Disaster Recovery Backup Scheduled to run nightly at 3am Off site storage All off-site data is stored in Canada at a SSAE 16, CSAE 3416 and ISA3402 certified data center.

64 Appendix B Alberta Environment and Parks Approval Letter

65 Regulatory and Compliance Branch Street Edmonton AB T5J 1G4 Telephone August 11, 2017 Kelly Parker Bluesource Canada Suite 700, 717-7th Avenue S.W, Calgary, Alberta, T2P 0Z3 Dear Ms. Parker, Subject: Bluesource Methane Reduction Offset Project (# ) Thank you for your letter dated August 4, 2017 requesting claim reductions for the 2016 project period for the above referenced project using the Quantification Protocol for Greenhouse Gas Emission Reductions from Pneumatic Devices (January 2017). The project was initiated using the Instrument Gas to Instrument Air protocol with a project start dates of January 1, The department approves the use of the pneumatics protocol to quantify emission reductions for this project for 2016 vintage offsets, but not 2015 vintage offsets. The reason the department has decided to allow 2016 vintage tonnes is because the draft protocol was posted in 2016 and there were no significant changes from the draft version to the final version. The conditions of this approval include: The project must meet all requirements of the pneumatics protocol (including monitoring and measurement and records requirements), The project must provide an updated offset project plan, and The subprojects must be listed in an offset project planning sheet that accompanies the updated offset project plan. If you have any further questions please do not hesitate to contact our office via at AEP.GHG@gov.ab.ca. Sincerely, Robert Hamaliuk, P.Eng, MBA Director, Emissions Inventory and Trading Climate Change Regulatory and Compliance cc: Alberta Emissions Offset Registry (file)