best practices implemented in the barnett shale practices implemented in the barnett shale darren...
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Best Practices Implemented in the Barnett ShaleDarren Smith – Devon Energy
Brian Boerner – Chesapeake Energy
April 18, 2011
Objectives
● What is the impact of natural gas operations on ozone
non-attainment and SIP development?
● Discuss Best Management Practices in the Barnett Shale
– Road and pad construction
– Drilling and completion
– Hydraulic fracturing
– Production
– Pipelines
– Process/sale water disposal
– Compression
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North America’s New Source of Abundance
Mowry
Hillard-Baxter
Excello/Mulky
Cody
GammonAntrim
Marcellus
Utica
Huran
Chattanooga
Floyd
Eagleford
New Albany
Woodford
BarnettBarnett &
Woodford
Fayetteville
Caney
Haynesville
Bend
Palo Duro
Pearsall
Mancos
Lewis
Hermosa
Cane Creek Pierre
Horn River
Montney
Big Horn
CBM
MonterreyMcClure
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Two Issues
● Ozone non-attainment
– NOx dependent
– Additional controls are not needed to demonstrate attainment
by 2012
● Demonstration of reasonable further progress
– NOx requirements met for 2011 and 2012
– VOC requirements anticipate a shortfall
– Using assumed emissions data
– Emission Inventory submitted January 2011 will not be
incorporated until July 2011
What are VOCs?
For the purpose of SIP planning, ozone non-attainment,
and the evaluation of the region’s demonstration of
“Reasonable Further Progress,” a VOC is:
● Any compound of carbon (with some exceptions) which
participates in atmospheric photochemical reactions
– Does not include methane and ethane, which have been
determined to have negligible photochemical reactivity
– 40 CFR 51.100(s)
Barnett Shale By The Numbers
● Active wells ~15,675 (December 31, 2010)
● Active rigs (April 8, 2011)
– ~82 in the Barnett Shale
– ~45 in the non-attainment area
● 12 operators
● 24 counties within the Barnett Shale
– 5 counties within the
non-attainment area
TCCD North, Hurst
Dry and Wet Zones of the Barnett Shale
“Dry” Gas = Lean Gas
● Free of condensate
● 95%+ methane
● Minimal potential for presence
of VOC
“Wet” Gas = Rich Gas
● Condensate present
● 75%+ methane
● Increased potential for presence
of VOC
DFW Non-
Attainment Area
One size does not fit all
Best practices are unique to the area
of the play that you operate
Review of Best Practices
● Evaluate each stage of gas drilling and production
● Outline potential sources of NOx and VOC
● Outline best practices currently being used
● EPA’s Natural Gas STAR program
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General Air Quality Considerations
● NOx sources are heavily regulated
– Compressor Engines
● Texas Commission on Environmental Quality
– Title 30 Part 1 Chapter 117 Subchapter D Division 2
– Combustion control at minor sources in ozone non-attainment areas
● Environmental Protection Agency
– 40 CFR 60 Subpart JJJJ
● New Source Performance Standards – Spark Ignition Reciprocating Internal
Combustion Engines
– 40 CFR 63 Subpart ZZZZ
● National Emissions Standards for Hazardous Air Pollutants for Stationary
Reciprocating Internal Combustion Engines
– Vehicle Engines
● EPA Tier 3 and 4 diesel emission standards
General Air Quality Considerations
● VOC sources have permitted thresholds
– Permit by Rule
– Standard Permit
– Title V
– 40C FR 63 Subpart HH – Dehydration control requirement
● In revision to include many more sources
Road and Pad Construction
Emission source
● On-road and non-road vehicles
– Seismic trucks
– Concrete trucks
– Construction equipment
Suggested emissions control strategy
● Use of idling limitations
● Replacement/repower/retrofit of
vehicles/equipment
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Road and Pad Construction BMP
Devon
● Idling minimized
– Contract equipment is kept working
– Standby time is minimized
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Road and Pad Construction BMP
Chesapeake
● Contracted service
– Equipment is kept working
– Standby/idling time is minimized
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Drilling and Completion
Emission source
● Generators and portable diesel engines
● Tanks
● Flare and vent lines
Suggested emission control strategy
● Replacement with electric motors
(where available)
● Replacement/repower/retrofit of engines
● Use of lower emission fuels
● Use of vapor recovery units (VRUs) or recover to reuse/resell
● Use of enclosed flares in condensate tanks
● Use of “Green Completions” process (collect and filter gas/liquids back to
the surface to reuse in production pipelines)
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Drilling and Completion BMP
Chesapeake
● Electric drilling rigs
– Insufficient grid and supply to ensure quality power supply without causing
brownouts and blackouts in neighboring communities
– Displacing emissions from pad sites to facilities
● Potential for greater emissions at generating facility
● Green Completion
– Industry Best Practice
● Flare one well per pad or area to measure well flow volume and pressure
– DFW: 1 well flared/115 completed
● Put subsequent wells in to sales line
● VRU
– Operate one VRU unit on well with liquids present
– Not effective in “dry” gas areas
– Can create hazardous condition if an insufficient gas supply present
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Drilling and Completion BMP
Devon
● Green completion on
approximately 85% of wells
– Own and operate the gathering system
– Wells of sufficient bottom hole pressure
to overcome gathering pressure
● VRU
– Prefer VRU over flare when emissions
exceed regulatory threshold
– For wells below this threshold, vapor
volume is insufficient to operate VRU
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Hydraulic Fracturing
Emission source
● Trucks
● Pumps
● Internal combustion engines
Suggested emission control strategy
● Replacement/repower/retrofit of vehicles
● Use of idling limitations
● Conversion of pneumatic devices to electric/compressed
air/mechanical
● Replacement with electric motors (where available)
● Replacement/repower/retrofit of engines
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Hydraulic Fracturing BMP
Devon
● Frac jobs are of short duration
– Designed to optimize horsepower and fuel use
● Fuel use is tracked, as it is a significant expense
● Switching this portable, contract fleet to electricity is
impractical
– Electric service would only be used for a few days and may not
be available for the next job
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Production
Emission sources
● Lift compressors
● Condensate tank vapors
● Fugitive leaks from valves,
connectors, flanges, pipe
connectors, compressors
and pumps, pipelines
● Dehydrators
● Pneumatic devices
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Production
Suggested emission control strategy
● Use of electric motors and/or electric starters, or other lower
emission fuel (i.e. compressed air, solar power, electric, refined
natural gas)
● Use of VRUs or recover to reuse/resell
● Use of annual inspection program to detect damages and leaks
● Use of enhanced leak detection and repair program
● Conversion of dehydrator pumps to lower emission fuel (i.e.
compressed air, solar power, electric, refined natural gas)
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Production
Suggested emission control strategy (continued)
● Use of VRUs or recover to reuse/resell
● Replacement of pneumatic devices with low-bleed/no-
bleed devices
● Retrofit of high-bleed devices
● Maintenance of pneumatic devices
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Production BMP
Chesapeake
● VRU – not effective in “dry” gas areas
● Plunger Lifts
● Low-bleed pneumatic valves
– Current industry practice
● Actively installed in new facilities
● Used to replace standard valves as
part of site maintenance
● Housekeeping
– Pumpers
● On site daily
● Site maintenance
● FLIR 2X per year
– SCADA
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Production BMP
Devon
● VRU is used when feasible
● Low-bleed pneumatic valves
● Housekeeping
– Inspected by lease operators
– SCADA
● IR camera inspection
● Note:
– Use of compressed air in
hydrocarbon service is
dangerous
– Use of solar equipment is not
practical for 24-hour operations
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Pipelines
Emission sources
● Leaks from damaged pipelines
● Pressure relief vents
● Construction machinery for laying pipe
Suggested emission control strategy
● Use of plastic pipes or plastic
liners/protective coating around
metal pipes
● Use of composite wrap to repair non-leaking
damages
● Optimization of pressure levels
● Use of idling restrictions
● Replacement/repower/retrofit of equipment
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Pipelines BMP
Devon
● “One Call” used to avoid pipe damage
● Coated pipe is repaired if damaged
● Poly (plastic) pipe
– Has a low pressure rating
– Not as durable as plastic pipe
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Pipelines BMP
Chesapeake
● Participate in Dig-Tess
/Texas811/One Call to avoid
pipeline damage
● Install DOT Class 4 pipe
● Routing maintenance and repair
● Installation
– Bore
– Open Cut
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Process / Salt Water Disposal
Emission source
● Trucks
● Retention ponds and tanks
Suggested emission control strategy
● Replacement/repower/retrofit of vehicles
● Optimization of route efficiency/reduction
of deadhead miles
● Use of idling limitations
● Capture of evaporative emissions
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Process / Salt Water Disposal BMP
Devon
● Very little VOC from produced water
● Contract trucking companies maximize profit by making
operations efficient
– Fuel is a high cost item
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Process/Salt Water Disposal BMP
Chesapeake
● Contracted service
– Routed for efficiency
● Use City-approved/
mandated routes
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Compression
Emission source
● Compressor engines
Suggested emission control strategy
● Replacement/repower/retrofit of engines
● Use of electric motors
● Use of lower-emission fuels
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Compression
Chesapeake● Pneumatic start on select engines
● Fuel stream bleed system
● Electric compressor engines
– Insufficient grid and supply to ensure quality
power supply without causing brownouts and
blackouts in neighboring communities
– Displacing emissions from padsites to facilities
● Potential for greater emissions at
generating facility
● Glycol recycling units
– Partially fueled by VOC emissions
● Low-bleed valves
– Installing and replacing in maintenance
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EPA’s Natural Gas Star Program
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● Focus on best practices
● Information sharing and technology transfer
● Technical guidance
● Peer networking
● Voluntary record of reductions
● Public recognition
A voluntary partnership that
promotes practices that reduce
emissions of methane
Chesapeake Recognized by EPA
Source: www.epa.gov/gasstar/, October 15, 2009
Chesapeake has employed numerous EPA-recommended best
practices to reduce emissions, including:
● Identified and implemented opportunities for immediate methane emissions
reductions, including installing vapor recovery units in areas where needed
● Piloted and installed Mizer retrofit valves in most districts, reducing the
amount of gas emitted from process controllers
● Purchased infrared FLIR cameras and Apogee technology to detect VOC
emissions while implementing a formal company-wide emissions inspection
program
Chesapeake was selected by the EPA as the Natural Gas
STAR Production Partner of the Year for 2009
Chesapeake employee Andrew McCalmont received the EPA’s
Implementation Manager of the Year award for 2009
Directed Inspection and Maintenance
Retrofit Technology
Lean Burn Technology Solar Technology
Technology Driven
Keys to Success – Gas STARBest Practices – High Environmental Standards – Efficiency Improvements
● Research and understanding of the Gas STAR Program
● Articulate goals and scope
● Develop an implementation plan to achieve goals
● Commit resources – key individuals, capital and executive
leadership
● Engage, challenge and empower operations teams -
accountability
● Technology driven – new and proven
● Economics driven
● Quality driven
● Feedback and continual improvement
CHK strives to provide industry leadership in all we do
2008 Chesapeake Reductions by BMP
59%11%
9%
6%5%
3%2%
5%
RECs Pipeline Leak Repair
Low Bleed Pneumatic Level Controllers Recover Dehy Flash Gas
Plunger Lifts No-Bleed Chem Pump
Optimize Glycol Circ Rate Other
Methane Reduction Activity % Reductions
Reduced Emission Completions 59%
Pipeline Leak Repair 11%
Low Bleed Pneumatic Level Controllers 9.0%
Recover Dehy Flash Gas 6.4%
Plunger Lifts 5.2%
No-Bleed Chem Pump 2.6%
Optimize Glycol Circ Rate 1.7%
Replace Prod Unit w/Mech Dump Sep 1.3%
Workover - Green Re-Completion 0.9%
VRU 0.7%
De-Water/Unload with Foaming Agents 0.6%
Pressure/Hydraulic SWAB 0.5%
Install Elec Glycol Pump 0.3%
Vert Seps - Install Mech Dumps 0.1%
De-Water/Unload with Cap String 0.1%
Snubbing Operations 0.1%
Replace Gas Driver w/ Elec Motor - Compressors 0.1%
Flir Camera Leak Repair 0.1%
Remove/Bypass Prod Unit or Sep 0.1%
Low Bleed Pressure Controllers 0.1%
Recover Dehy FG to Suction 0.1%
Replace Gas Driver w/ Elec Motor - Pumping Units 0.07%
Blow Down to Sales 0.04%
No-Vent Gathering System Tie-In 0.03%
Engine Starter Change 0.02%
Pipeline Hot Tap 0.01%
De-Water/Unload with CVR String 0.004%
De-Water/Unload with Pumping Unit 0.004%
De-Water/Unload with Compression 0.001%
De-Water/Unload with Gas Lift 0.001%
Total 100%
Other Task Force Considerations
● Closer salt water disposal wells
– Limited number needed in Tarrant County
– Strategically located
– Highly regulated
● Promote piping of produced water to centralized
containment and disposal site
– Eliminate trucking emissions
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