1. Replacing High-Bleed Pneumatic Devices Lessons Learned from Natural Gas STAR Small and Medium Sized Producer Technology Transfer Workshop Bill Barrett Corporation, Evergreen Resources Inc, Southern Gas Association and EPA’s Natural Gas STAR Program June 29, 2004

2. Page 2 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Pneumatic Devices: Agenda p Methane Losses p Methane Recovery p Is Recovery Profitable? p Industry Experience p Discussion Questions

3. Page 3 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits What is the Problem? p Pneumatic devices are major source of methane emissions from the natural gas industry p Pneumatic devices used throughout the natural gas industry u Over 250,000 in production sector u ~ 13,000 in processing sector u 90,000 to 130,000 in transmission sector

4. Page 4 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Location of Pneumatic Devices at Production Sites PC SOV LC SOVSeparator Dehydrator Unit Compressor ToPipeline Wellheads SOV =Shut-off Valve (Unit Isolation) LC =Level Control (Separator, Contactor, TEG Regenerator) TC =Temperature Control (Regenerator Fuel Gas) FC =Flow Control (TEG Circulation, Compressor Bypass) PC =Pressure Control (FTS Pressure, Compressor Suction/Discharge) FC LCTCFCPC

5. Page 5 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Methane Emissions p As part of normal operations, pneumatic devices release natural gas to atmosphere p High-bleed devices bleed in excess of 6 cf/hr u Equates to >50 Mcf/yr u Typical high-bleed pneumatic devices bleed an average of 140 Mcf/yr p Actual bleed rate is largely dependent on device’s design

6. Page 6 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Pneumatic Device Schematic Pneumatic Controller Process Measurement Liquid Level Pressure Temperature Flow Weak Signal Bleed (Continuous) Strong Signal Vent (Intermittent) Process Flow Control Valve Valve Actuator Strong Pneumatic Signal Weak Pneumatic Signal (3 - 15 psi) Regulator Gas 100+ psi Regulated Gas Supply 20 psi

7. Page 7 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Emissions from Pneumatic Devices Gas Industry Oil Industry Gas Industry Oil Industry Production34.9 Bcf 21.7 Bcf Processing 0.6 Bcf --- Transmission14.1 Bcf --- Total49.6 Bcf 21.7 Bcf Total Gas/Oil 71.3 Bcf/yr

8. Page 8 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits How Can Methane Emissions be Reduced? p Option 1: Replace high-bleed devices with low-bleed devices p Option 2:Retrofit controller with bleed reduction kits p Option 3:Maintenance aimed at reducing losses u Field experience shows that up to 80% of all high-bleed devices can be replaced or retrofitted with low-bleed equipment

9. Page 9 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Option 1: Replace High-Bleed Devices p Most applicable to: u Controllers: liquid-level and pressure u Positioners and transducers p Suggested action: evaluate replacements u Replace at end of device’s economic life u Early replacement Source: www.emersonprocess.com Fisher Electro-Pneumatic Transducer Source: www.norriseal.com Norriseal Pneumatic Liquid Level Controller

10. Page 10 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Option 1: Replace High-Bleed Devices (cont’d) p Costs vary with size u Typical costs range from $700 to $3,000 per device u Incremental costs of low-bleed devices are modest ($150 to $250) u Gas savings often pay for replacement costs in short periods of time (5 to 12 months)

11. Page 11 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Option 2: Retrofit with Bleed Reduction Kits p Applicable to most high-bleed controllers p Suggested action: evaluate cost effectiveness as alternative to early replacement p Retrofit kit costs ~ $500 p Payback time ~ 9 months

12. Page 12 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Option 3: Maintenance to Reduce Losses p Applies to all pneumatic devices p Suggested action: add to routine maintenance procedures u Field survey of controllers u Where process allows, tune controllers to minimize bleed

13. Page 13 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Option 3: Maintenance to Reduce Losses (cont’d) p Suggested action (cont’d) u Re-evaluate the need for pneumatic positioners u Repair/replace airset regulators u Reduce regulated gas supply pressure to minimum u Routine maintenance should include repairing/replacing leaking components p Cost is low Source: www.bpe950.com BeckerSingle-Acting Valve Positioner

14. Page 14 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Five Steps for Reducing Methane Emissions from Pneumatic Devices Locate and INVENTORY high-bleed devices ESTIMATE the savings EVALUATE economics of alternatives DEVELOP an implementation plan ESTABLISH the technical feasibility and costs of alternatives

15. Page 15 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Suggested Analysis for Replacement p Replacing high-bleed controllers at end of economic life u Determine incremental cost of low-bleed device over high-bleed equivalent u Determine gas saved with low-bleed device using manufacturer specifications u Compare savings and cost p Early replacement of high-bleed controllers u Compare gas savings of low-bleed device with full cost of replacement

16. Page 16 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Economics of Replacement a All data based on Partners’ experiences. See Lessons Learned for more information. b Range of incremental costs of low-bleed over high bleed equipment c Gas price is assumed to be $3/Mcf.

17. Page 17 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Suggested Analysis for Retrofit p Retrofit of low-bleed kit u Compare savings of low-bleed device with cost of conversion kit u Retrofitting reduces emissions by average of 90%

18. Page 18 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Economics of Retrofit a On high-bleed controllers b All data based on Partners’ experiences. See Lessons Learned for more information. c Gas price is assumed to be $3/Mcf.

19. Page 19 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Suggested Analysis for Maintenance Suggested Analysis for Maintenance p For maintenance aimed at reducing gas losses u Measure gas loss before and after procedure u Compare savings with labor (and parts) required for activity

20. Page 20 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Economics of Maintenance a All data based on Partners’ experiences. See Lessons Learned for more information. b Gas price is assumed to be $3/Mcf.

21. Page 21 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Pneumatic Devices p Factors affecting economics of replacement u Operating cost differential and capital costs u Estimated leak rate reduction per new device u Price of gas ($/Mcf) Source: www.eia.doe.gov

22. Page 22 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Lessons Learned p Most high-bleed pneumatics can be replaced with lower bleed models p Replacement options save the most gas and are often economic p Retrofit kits are available and can be highly cost-effective p Maintenance is low-cost and reduces gas loss

23. Page 23 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Case Study – Marathon p Surveyed 158 pneumatic devices at 50 production sites p Half of the controllers were low-bleed p High-bleed devices included u 35 of 67 level controllers u 5 of 76 pressure controllers u 1 of 15 temperature controllers

24. Page 24 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Marathon Study: Hear It? Feel It? Replace It! p Measured gas losses total 5.1 MMcf/yr p Level controllers account for 86% of losses u Losses averaged 7.6 cf/hr u Losses ranged up to 48 cf/hr p Concluded that excessive losses can be heard or felt

25. Page 25 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Recommendations p Evaluate all pneumatics to identify candidates for replacement and retrofit p Choose lower bleed models at change-out where feasible p Identify candidates for early replacement and retrofits by doing economic analysis p Improve maintenance p Develop an implementation plan

26. Page 26 Reducing Emissions, Increasing Efficiency, Profits Reducing Emissions, Increasing Efficiency, Maximizing Profits Discussion Questions p To what extent are you implementing this BMP? p How can this BMP be improved upon or altered for use in your operation(s)? p What are the barriers (technological, economic, lack of information, regulatory, etc.) that are preventing you from implementing this technology?