A Flare Management Strategy for A Flare Management Strategy for British ColumbiaBritish Columbia

Presented to Science and Community, Presented to Science and Community, Environmental Knowledge Fund Forum and Environmental Knowledge Fund Forum and

WorkshopWorkshop

by Dave Krezanoski, P.Eng.by Dave Krezanoski, P.Eng.

May 29, 2003May 29, 2003

OutlineOutline

1.1. General Flaring PracticesGeneral Flaring Practices2.2. Historical Flaring Perspective in Historical Flaring Perspective in

B.C.B.C.3.3. Reduction DriversReduction Drivers4.4. Reduction ChallengesReduction Challenges5.5. B.C. Reduction TargetsB.C. Reduction Targets6.6. Flare Reduction StrategiesFlare Reduction Strategies7.7. SummarySummary

General Flaring PracticesGeneral Flaring Practices• Well Test Flaring Well Test Flaring

short term (typically a few days)short term (typically a few days) potentially large volumespotentially large volumes

• Solution Gas Flaring (Routine)Solution Gas Flaring (Routine) continuouscontinuous low volumeslow volumes

• Emergency/Upset FlaringEmergency/Upset Flaring short duration (typically a few hours)short duration (typically a few hours) low volumeslow volumes

• Non-Routine FlaringNon-Routine Flaring short term (typically a few days to weeks)short term (typically a few days to weeks) potentially large volumespotentially large volumes High GOR wells shut-inHigh GOR wells shut-in

Flaring Breakdown for 2001Flaring Breakdown for 2001

Other6%

Well Testing 40%

Gas Plant 20%

Routine Flaring34%

Historical Flaring Historical Flaring Perspective in B.C.Perspective in B.C.

• Significant flare reductions despite Significant flare reductions despite having a formal reduction policy (1997 having a formal reduction policy (1997 to 2001 to 2001 48%) 48%)

• Informal policy consisted of:Informal policy consisted of: review and approve all well test flare volumesreview and approve all well test flare volumes review flaring at non-conserving batteries review flaring at non-conserving batteries

periodicallyperiodically review and approve all planned facility flaring with review and approve all planned facility flaring with

high GOR wells shut-inhigh GOR wells shut-in

• Early reductions a result of Early reductions a result of infrastructure development in Buick infrastructure development in Buick and W. Stoddartand W. Stoddart

BC Historical Flaring Data by Type BC Historical Flaring Data by Type (1996-2001)(1996-2001)

(Cross-hatched areas represent estimated (Cross-hatched areas represent estimated unmeasured/unreported emissionsunmeasured/unreported emissions))

Flare Reduction DriversFlare Reduction Drivers

• Public health and safetyPublic health and safety• Resource conservationResource conservation• GHG ReductionsGHG Reductions• AEUB Guide 60AEUB Guide 60

Excellent example of a multi-Excellent example of a multi-stakeholder approach to problem stakeholder approach to problem solvingsolving

Alberta success drove B.C. Alberta success drove B.C. initiativeinitiative

Flare Reduction ChallengesFlare Reduction Challenges

• TechnologyTechnology

• Regulatory flexibilityRegulatory flexibility Electricity generationElectricity generation Royalty exemptionsRoyalty exemptions

• Promote corporate Promote corporate cooperationcooperation

Flare Reduction ProjectFlare Reduction Project

• Operations engineering has Operations engineering has worked on this project for over worked on this project for over two yearstwo years

• Evaluated flaring data (where, why Evaluated flaring data (where, why and how much)and how much)

• Reviewed Guide 60 and monitored Reviewed Guide 60 and monitored success in Albertasuccess in Alberta

• Liased with operators and other Liased with operators and other ministriesministries

BC Proposed Flare BC Proposed Flare Reduction TargetsReduction Targets

• 1997 chosen as baseline1997 chosen as baseline• Proposed TargetsProposed Targets

50% below 1997 baseline volume by the 50% below 1997 baseline volume by the end of 2004end of 2004

55% below 1997 baseline volume by the 55% below 1997 baseline volume by the end of 2005end of 2005

• Seek industry and stakeholder Seek industry and stakeholder inputinput

• Must address data reporting Must address data reporting deficienciesdeficiencies

BC Historical Flaring Data by Type (1996-2001) BC Historical Flaring Data by Type (1996-2001) with Proposed Reduction Targets with Proposed Reduction Targets

(Cross-hatched areas represent estimated (Cross-hatched areas represent estimated unmeasured/unreported emissionsunmeasured/unreported emissions))

Flare Reduction StrategiesFlare Reduction Strategies

• Utilization of AEUB flare Utilization of AEUB flare management hierarchymanagement hierarchy EliminateEliminate ReduceReduce Improve efficiencyImprove efficiency

• Economic assessment of Economic assessment of conservation of all solution gas conservation of all solution gas flaresflares

Strategies ContinuedStrategies Continued

• Limiting non-routine flaring Limiting non-routine flaring during facility outagesduring facility outages Reduce inlet gas volumes (up to Reduce inlet gas volumes (up to

75%) based on duration and type 75%) based on duration and type of shutdownof shutdown

• Seek stakeholder input Seek stakeholder input CASA, OGPAG, or othersCASA, OGPAG, or others Take advantage of momentum in Take advantage of momentum in

AlbertaAlberta

SummarySummary

• OGC is committed to flare OGC is committed to flare reductionsreductions

• Implement four strategies Implement four strategies initiallyinitially

• A unified approach across A unified approach across provincial boundaries is provincial boundaries is preferredpreferred

Summary ContinuedSummary Continued

• Province of BC is committed Province of BC is committed to a ‘Results Based’ to a ‘Results Based’ regulatory systemregulatory system Minimize red-tapeMinimize red-tape Reduce regulatory burdenReduce regulatory burden

• Flaring reductions since 1997 Flaring reductions since 1997 an excellent example of an excellent example of industry/gov’t cooperationindustry/gov’t cooperation