DFW SIP Development Update and Oil & Gas Inventory Follow-Up Air Quality Division Heather Evans, Michael Ege, Chris Kite Air Quality Technical Information Meeting Arlington, Texas April 17, 2014 Air Quality Division
SIP Development Update and Timeline
Attainment Demonstration & RFP SIP Timeline Preliminary RFP analysis completed 15% VOC reduction for Wise County between 2011-2017 15% VOC/NO X reduction for 9 previously designated counties between 2011-2017 Additional 3% VOC or NO X reduction for 2018 No additional measures necessary to address RFP requirements Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 3
Reasonably Available Control Technology RACT rule development underway FCAA requirement for nonattainment areas does not apply outside nonattainment areas Must be met even if modeling shows that the control measure will not actually have a measurable effect on ozone Continues to apply after an area reaches attainment but the obligation to update RACT stops when an area reaches attainment RACT must be implemented by January 1, 2017 Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 4
RACT and Wise County Existing rules for the DFW nonattainment area not currently applicable in Wise County Major source threshold is potential-to-emit (PTE) 100 tons per year (tpy) of VOC or NO X Extension of applicable stationary source rules necessary to satisfy RACT Rules already applicable in the other nine DFW counties that were part of the DFW 1997 eight-hour ozone serious nonattainment area Major source threshold for other nine counties is 50 tpy of VOC or NO X Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 5
VOC & NOx RACT Rulemaking Proposed VOC rulemaking would revise Chapter 115 to: Include Wise County as part of the DFW nonattainment area Implement RACT for Wise County Implement RACT for certain VOC emission source categories in the DFW area Proposed NO x rulemaking would revise Chapter 117 to: Include Wise County as part of the DFW nonattainment area Implement RACT for Wise County Implement RACT for any other identified NO X major sources in nine counties Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 6
Reasonably Available Control Measures RACT is considered the minimum requirement for nonattainment areas RACM is considered beyond RACT Considered RACM if the measure will help advance attainment by: reaching attainment by deadline, or reaching attainment earlier than deadline Must be: technologically & economically feasible enforceable practical Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 7
Attainment Demonstration & RFP SIP Timeline Deadline for submitting control measure ideas for RACM April 30, 2014 Technical work finalized May-Aug 2014 Proposal agenda December 2014 Public comment period begins December 2014 Public hearings January 2015 Adoption agenda June 2015 Submit to EPA no later than July 20, 2015 Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 8
Oil & Gas Inventory Follow-Up
Overview of Emissions Inventory (EI) Topics Which oil and gas operations contribute the most emissions? What are the total 2011 ten-county DFW compressor engine emissions? Additional details about the condensate tank project, and how emissions are affected by tanks with low production. Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 10
Which Oil and Gas Operations contribute the most emissions? For the ten-county DFW area, the 2011 area source EI (including drilling rigs) contains 55.53 tons per day (tpd) of NO X emissions. Area source oil and gas sources account for 30.58 tpd NO X emissions. Area source oil and gas sources with the largest NO X emissions Compressor engines, 14.83 tpd Drilling rigs, 14.44 tpd Hydraulic pump engines, 0.85 tpd Artificial lift engines, 0.31 tpd Heaters, 0.12 tpd Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 11
Which Oil and Gas Operations contribute the most emissions? For the ten-county DFW area, the 2011 area source EI (including drilling rigs) contains 294.02 tpd of VOC emissions Area source oil and gas sources account for 71.95 tpd VOC emissions Area source oil and gas sources with the largest VOC emissions Condensate storage tanks, 18.67 tpd Pneumatic devices, 13.68 tpd Pneumatic pumps, 10.58 tpd Piping component fugitives, 7.87 tpd Mud degassing, 7.33 tpd Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 12
What are the total 2011 ten-county DFW compressor engine emissions? Point source compressor engine emissions 13.61 tpd NO X 4.15 tpd VOC Area source compressor engine emissions 14.83 tpd NO X 1.34 tpd VOC Total compressor engine emissions 28.44 tpd NO X 5.49 tpd VOC Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 13
Additional Details about the Condensate Tank Project Do condensate storage tanks with very low production have significantly higher emission factors than tanks with larger production? How are area source emissions affected by condensate tanks with very low production (less than 0.2 barrels of liquid per day)? Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 14
Emission Factors for All Production Levels Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 15
Emission Factors for Condensate Production < 10 bbl/day Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 16
Emission Factors for Condensate Production < 1 bbl/day Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 17
Things to Consider on Tanks with Low Production It is difficult to accurately measure very low production. Measuring the change in the height of the liquid For a ten foot diameter tank, 1 inch of liquid equals 1.17 barrels To measure 0.2 barrels on a ten foot diameter tank, that is only 0.17 inches of liquid While the emission factors are higher, the total emissions (pounds of VOC) are not significantly higher for low production tanks. Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 18
VOC Emissions versus Condensate Production Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 19
2013 Condensate Production Data in the DFW area In the ten-county DFW area, there were 15,530 active gas wells in 2013. 11,269 have no condensate production 1,972 with condensate production < 0.2 bbl/day 2,289 with condensate production > 0.2 bbl/day < 0.2 barrels/day condensate production Total of 47,047 barrels of condensate for the year 2.8% of total condensate production for DFW > 0.2 barrels/day condensate production Total of 1,647,000 barrels of condensate for the year 97.2% of total condensate production for DFW Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 20
Emissions Inventory Web pages TCEQ point source Web page http://www.tceq.texas.gov/airquality/point-source-ei TCEQ area source Web page http://www.tceq.texas.gov/airquality/areasource Texas Air Emissions Repository (TexAER) Web page http://texaer.tceq.texas.gov/texaer/index.cfm Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 21
Additional Details about 2018 Point Source Emissions What sources are included in the Point-Other category? Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 22
2018 DFW Area Non-Cement Kiln Non-Electric Generating Unit (NEGU) Emissions by Industry Type Standard Industrial Classification (SIC) Description 2018 Emissions (tons per day) NO X VOC CO PM Crude Petroleum and Natural Gas 10.60 17.21 8.21 0.66 Natural Gas Liquids 4.49 5.27 3.25 0.20 Lime 1.40 0.01 0.39 0.08 Natural Gas Transmission 1.06 2.30 0.79 0.19 Blast Furnaces and Steel Mills 0.86 0.90 4.97 0.47 Mineral Wool 0.56 0.57 1.66 1.71 Refuse Systems 0.53 0.33 2.30 0.42 Asphalt Felts and Coatings 0.45 0.50 0.56 0.29 Airports, Flying Fields, and Services 0.33 0.16 0.07 0.04 Motor Vehicles and Car Bodies 0.22 3.58 0.15 0.01 Ceramic Wall and Floor Tile 0.20 0.16 0.86 0.00 Turbines and Turbine Generator Sets 0.19 0.05 0.06 0.01 Paperboard Mills 0.16 0.06 0.22 0.07 Secondary Nonferrous Metals 0.15 0.16 2.07 0.06 Sewerage Systems 0.14 0.04 0.14 0.01 Construction Machinery 0.11 0.20 0.05 0.09 Remaining 75 SICs Below 0.1 NO X tpd (14 SICs with Zero NO X ) 1.54 14.52 4.06 1.04 Non-Cement Kiln NEGU Total (91 SICs from 393 Facilities) 22.98 46.02 29.81 5.35 Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 23
2018 DFW Area Non-Cement Kiln Non-Electric Generating Unit (NEGU) Emissions by Equipment Type Source Classification Equipment Description 2018 Emissions (tons per day) NO X VOC CO PM Natural Gas Combustion 4-Cycle Lean-Burn Engines 8.26 9.91 5.00 0.49 Natural Gas Combustion 4-Cycle Rich-Burn Engines 3.39 2.39 4.24 0.32 Natural Gas Combustion 4-Cycle Clean Burn Engines 1.74 1.33 1.58 0.10 Lime Manufacturing Calcining: Rotary Kiln 1.36 0.01 0.35 0.05 Natural Gas Combustion Turbines 0.98 0.03 0.53 0.04 Natural Gas Combustion 2-Cycle Lean-Burn Engines 0.93 0.07 0.24 0.02 Steel Foundries Electric Arc Furnace 0.67 0.88 5.01 0.25 Natural Gas Combustion 10-100 Million BTU/Hour Boilers 0.49 0.08 0.68 0.13 Landfill Gas Reciprocating Engines 0.32 0.10 1.76 0.09 Aircraft Engine Testing Jet A Fuel 0.30 0.01 0.02 0.00 Oil and Gas Production Natural Gas Process Heaters 0.28 0.02 0.25 0.02 Natural Gas Incinerators 0.26 0.01 0.22 0.03 Natural Gas Production Glycol Dehydrator Reboiler 0.22 0.07 0.22 0.02 Steel Manufacturing Reheat Furnaces 0.21 0.02 0.02 0.03 Turbine Engine Testing Diesel / Kerosene 0.18 0.03 0.05 0.01 Remaining 605 SCCs Below 0.15 NO X tpd (445 SCCs with Zero NO X ) 3.39 31.06 9.62 3.76 Non-Cement Kiln NEGU Total (620 SCCs from 393 Facilities) 22.98 46.02 29.81 5.35 Air Quality Division SIP Development Update and Oil & Gas Follow Up HE/ME/CK April 17, 2014 Page 24
Contact Information Heather Evans Heather.Evans@tceq.texas.gov 512-239-4675 Michael Ege Michael.Ege@tceq.texas.gov 512-239-5706 Chris Kite Chris.Kite@tceq.texas.gov 512-239-1959