Directed Inspection and Maintenance Directed Inspection and Maintenance (DI&M)(DI&M)

Lessons Learned fromLessons Learned fromNatural Gas STAR PartnersNatural Gas STAR Partners

Producers Technology Transfer WorkshopProducers Technology Transfer Workshop

Devon Energy and Devon Energy and EPA’s Natural Gas STAR ProgramEPA’s Natural Gas STAR Program

Casper, WyomingCasper, WyomingAugust 30, 2005August 30, 2005

Slide 2Reducing Emissions, Increasing Efficiency, Maximizing Profits

DI&M: AgendaDI&M: Agenda

Methane LossesMethane Losses

Methane Recovery Methane Recovery

Is Recovery Profitable?Is Recovery Profitable?

Industry ExperienceIndustry Experience

Discussion QuestionsDiscussion Questions

Slide 3Reducing Emissions, Increasing Efficiency, Maximizing Profits

Natural Gas Industry EmissionsNatural Gas Industry Emissions

Production sector responsible for largest Production sector responsible for largest portion of emissionsportion of emissions

EmissionsEmissions

ReductionsReductions

Transmission Transmission

& Storage & Storage 101 Bcf 101 Bcf

Production Production 148 Bcf148 Bcf

Processing Processing 36 Bcf 36 Bcf

Distribution Distribution 68 Bcf68 Bcf

24 Bcf24 Bcf

7 Bcf7 Bcf

18 Bcf18 Bcf

1 Bcf1 BcfOil Downstream Oil Downstream 2 Bcf 2 Bcf

Inventory of US Greenhouse Gas Inventory of US Greenhouse Gas Emissions and Sinks 1990 - 2003Emissions and Sinks 1990 - 2003

Slide 4Reducing Emissions, Increasing Efficiency, Maximizing Profits

Oil and Gas Production Sector Oil and Gas Production Sector Methane EmissionsMethane Emissions

The production sector has several large The production sector has several large methane emission sources that can be targeted methane emission sources that can be targeted for reductionsfor reductions

Pneumatic Pneumatic DevicesDevices61 Bcf61 Bcf

Dehydrators Dehydrators and Pumpsand Pumps17 Bcf17 Bcf

Meters andMeters andPipeline LeaksPipeline Leaks10 Bcf10 Bcf

Gas Engine Gas Engine ExhaustExhaust12 Bcf12 Bcf

Well Venting Well Venting and Flaringand Flaring18 Bcf18 Bcf

Storage Tank Storage Tank VentingVenting9 Bcf9 Bcf

Other Other Sources Sources 21 Bcf21 Bcf

Inventory of US Greenhouse Inventory of US Greenhouse Gas Emissions and Sinks Gas Emissions and Sinks 1990 - 20031990 - 2003

Slide 5Reducing Emissions, Increasing Efficiency, Maximizing Profits

Control Valves4.0%

Open-Ended Lines11.1%

Other Flow Meters0.2%

Orifice Meters0.1%

Pressure Relief Valves3.5%

Valves26.0%

Blowdowns

0.8%

Connectors24.4%

Compressor Seals23.4%

Crankcase Vents4.2%

Pump Seals1.9%

Pressure Regulators0.4%

Source: Clearstone Engineering, 2002

Methane Losses Methane Losses by Equipment Typeby Equipment Type

Slide 6Reducing Emissions, Increasing Efficiency, Maximizing Profits

What is the Problem?What is the Problem?

Gas leaks are Gas leaks are invisibleinvisible, , unregulated unregulated andand gogo unnoticedunnoticed

Gas STAR Partners find that valves, Gas STAR Partners find that valves, connectors, compressor seals and open-connectors, compressor seals and open-ended lines (OELs) are major sourcesended lines (OELs) are major sources 27 Bcf of methane emitted per year by 27 Bcf of methane emitted per year by

reciprocating compressors seals and OELs, reciprocating compressors seals and OELs, each contributing equally to the emissionseach contributing equally to the emissions

Slide 7Reducing Emissions, Increasing Efficiency, Maximizing Profits

What are the Sources of Emissions?What are the Sources of Emissions?

PCPC PCPC

CompressorCompressor

FCFC

DCDC LCLC TCTC

VCVC

FTSFTS

FCFC LCLC

LCLCCon

tact

or

Con

tact

or

Energy Energy Exchange Exchange

PumpPump

DehydratorDehydrator

ReboilerReboiler

PressureReliefValve

DrainValve

Compressor Seal

Pneumatic Controller

Slide 8Reducing Emissions, Increasing Efficiency, Maximizing Profits

How Much Methane is Emitted?How Much Methane is Emitted?

Component Type% of Total Methane

Emissions% Leaks

Estimated Average Methane Emissions per

Leaking Component (Mcf/year)

Valves (Block & Control) 26.0% 7.4% 66Connectors 24.4% 1.2% 80Open-Ended Lines 11.1% 8.1% 186Pressure Relief Valves 3.5% 2.9% 844

Methane Emissions from Leaking Components

Source: Clearstone Engineering, 2002, Identification and Evaluation of Opportunities to Reduce Methane Losses at Four Gas Processing Plants. Report of results from field study of 4 gas processing plants in WY and TX to evaluate opportunities to economically reduce methane emissions.

Slide 9Reducing Emissions, Increasing Efficiency, Maximizing Profits

How Much Methane is Emitted?How Much Methane is Emitted?

Summary of Natural Gas Losses from the Top Ten Leakers1.

Plant No.

Gas Losses From Top 10

Leakers (Mcfd)

Gas Losses From All Equipment

Leakers (Mcfd)

Contribution By Top 10 Leakers

(%)

Contribution By Total Leakers

(%) 1 43.8 122.5 35.7 1.78

2 133.4 206.5 64.6 2.32 3 224.1 352.5 63.6 1.66

4 76.5 211.3 36.2 1.75 Combined 477.8 892.84 53.5 1.85

1Excluding leakage into flare system

Slide 10Reducing Emissions, Increasing Efficiency, Maximizing Profits

Methane RecoveryMethane Recovery

Fugitive losses can be dramatically reduced Fugitive losses can be dramatically reduced by implementing a DI&M programby implementing a DI&M program

Voluntary program to identify and fix leaks Voluntary program to identify and fix leaks that are cost effective to repair that are cost effective to repair

Survey cost will pay out in the first yearSurvey cost will pay out in the first year

Provides valuable data on leakers with Provides valuable data on leakers with information of where to lookinformation of where to look

Slide 11Reducing Emissions, Increasing Efficiency, Maximizing Profits

What is DI&M ?What is DI&M ?

Direct Inspection and MaintenanceDirect Inspection and Maintenance Cost-effective practice by definitionCost-effective practice by definition Find and fix significant leaksFind and fix significant leaks Choice of leak detection technologiesChoice of leak detection technologies Strictly tailored to company’s needs Strictly tailored to company’s needs

DI&M is NOT the regulated volatile organic DI&M is NOT the regulated volatile organic compound (VOC) leak detection and repair compound (VOC) leak detection and repair program (LDAR) program (LDAR)

Slide 12Reducing Emissions, Increasing Efficiency, Maximizing Profits

How Do You Implement DI&M?How Do You Implement DI&M?

SCREEN and MEASURE leaks

ESTIMATE repair cost, fix to a payback criteria

DEVELOP a plan for future DI&M

RECORD savings/REPORT to Gas STAR

CONDUCT baseline survey

FIX on the spot leaks

Slide 13Reducing Emissions, Increasing Efficiency, Maximizing Profits

How Do You Implement DI&M?How Do You Implement DI&M?

Screening - finding leaksScreening - finding leaks Soap bubble screeningSoap bubble screening Electronic screening Electronic screening

(sniffer)(sniffer) Toxic Vapor Analyzer Toxic Vapor Analyzer

(TVA)(TVA) Organic Vapor Analyzer Organic Vapor Analyzer

(OVA)(OVA) Ultrasound Leak Ultrasound Leak

Detection Detection Acoustic Leak DetectionAcoustic Leak Detection Optical Leak ImagingOptical Leak Imaging

Acoustic Leak DetectionAcoustic Leak Detection

Toxic Vapor AnalyzerToxic Vapor Analyzer

Slide 14Reducing Emissions, Increasing Efficiency, Maximizing Profits

How Do You Implement DI&M?How Do You Implement DI&M?

Evaluate the leaks detected - measure Evaluate the leaks detected - measure resultsresults

Leak Measurement Using a High Volume SamplerLeak Measurement Using a High Volume Sampler High Volume SamplerHigh Volume Sampler

Toxic Vapor Analyzer Toxic Vapor Analyzer (correlation factors)(correlation factors)

RotametersRotameters

Slide 15Reducing Emissions, Increasing Efficiency, Maximizing Profits

DI&M by Leak ImagingDI&M by Leak Imaging

Real-time visual image of gas leaksReal-time visual image of gas leaks Quicker identification & repair of leaksQuicker identification & repair of leaks Screen hundreds of components an hourScreen hundreds of components an hour Screen inaccessible areas simply by viewing themScreen inaccessible areas simply by viewing them

Slide 16Reducing Emissions, Increasing Efficiency, Maximizing Profits

Is Recovery Profitable?Is Recovery Profitable?

Slide 17Reducing Emissions, Increasing Efficiency, Maximizing Profits

DI&M - Lessons LearnedDI&M - Lessons Learned

A successful, cost-effective DI&M program A successful, cost-effective DI&M program requires measurement of the leaksrequires measurement of the leaks

A high volume sampler is an effective tool for A high volume sampler is an effective tool for quantifying leaks and identifying cost-quantifying leaks and identifying cost-effective repairseffective repairs

Open-ended lines, compressor seals, Open-ended lines, compressor seals, blowdown, engine-starter and pressure relief blowdown, engine-starter and pressure relief valves represent <3% of components but valves represent <3% of components but >60% of methane emissions>60% of methane emissions

The business of leak detection is about to The business of leak detection is about to change dramatically with new technologychange dramatically with new technology

Slide 18Reducing Emissions, Increasing Efficiency, Maximizing Profits

DI&M - Partner ExperienceDI&M - Partner Experience

Partner A: Leaking cylinder head was tightened, Partner A: Leaking cylinder head was tightened, which reduced the methane emissions from almost which reduced the methane emissions from almost 64,000 Mcf/yr to 3,300 Mcf/yr64,000 Mcf/yr to 3,300 Mcf/yr Repair required 9 man-hours of laborRepair required 9 man-hours of labor Gas savings were approximately 60,700 Mcf/yrGas savings were approximately 60,700 Mcf/yr Value of gas saved was $182,100/year at $3/McfValue of gas saved was $182,100/year at $3/Mcf

Partner B: One-inch pressure relief valve emitted Partner B: One-inch pressure relief valve emitted almost 36,774 Mcf/yralmost 36,774 Mcf/yr Required five man-hours of labor and $125 of materialsRequired five man-hours of labor and $125 of materials Value of the gas saved was $110,300 at $3/McfValue of the gas saved was $110,300 at $3/Mcf