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October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau Regional Air Quality Analysis: Four Corners

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Regional Air Quality Analysis: Four Corners. October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau. Four Corners Overview. Arizona, Colorado, New Mexico, Utah, Navajo Nation, Ute Mountain Ute, Southern Ute Indian Tribe - PowerPoint PPT Presentation

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Page 1: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

October 21, 2008Mark Jones

Environmental AnalystNMED/Air Quality Bureau

Regional Air Quality Analysis: Four Corners

Page 2: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

Four Corners Overview

• Arizona, Colorado, New Mexico, Utah, Navajo Nation, Ute Mountain Ute, Southern Ute Indian Tribe

• San Juan Oil & Gas Basin produces 4 bft3 natural gas daily (1.5 trillion ft3 annually).[2004 survey]

• 6-8% of US Natural Gas production. California’s largest source of natural gas.

• 17.6 million TPY coal mined.

• Expansive untapped coal, oil and gas reserves.

• 7 class I areas within 250 km

Page 3: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

Class I Areas in the Four Corners

New Mexico

Colorado

Utah

Arizona

Page 4: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

ENERGY GENERATION

• 3840 megawatts of existing coal fired power

• Proposed 1500 MW Desert Rock Energy Facility (DREF) coal fired power plant

• Economic Pressure to develop resource

• Active environmental community

Page 5: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

NOx, SO2, HAPS, CO2San Juan Generating Station

Four Corners Power Plant

Page 6: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

Proposed DREF Power Plant

Page 7: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

Recent Power Plant News & Events

• San Juan Generating Station is in the process of a 4-yr $320 million environmental upgrade– 2 units complete, remaining 2 units complete by Spring 2009 – Substantial reductions in NOx, SO2, and Mercury (Hg) – Approx. NOx 35%, Hg 85%+– Environmental Upgrade resulting from consent decree

amongst PNM, NMED, Sierra Club, and Grand Canyon Trust– Preliminary Projections:

• 11,000 tons per year SO2 reduction• 9,000 tons per year NOX reduction• Decrease in opacity excursions• 800 lbs Hg per year reduction

• DREF air permit issued– However, state and environmental groups suing on multiple

grounds including CO2– Construction is delayed pending law suits

Page 8: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

Four Corners Agency Actions on Power Generation

• Consent decree oversight• EPA Regions 6, 8 & 9 and AZ, CO, NM and UT are

evaluating a range of options for NOx controls (including SCR) for BART under the Regional Haze Rule.

• NM Tax credits available for IGCC and CCS• GHG inventory moving forward and other rules

being developed• NM has spent considerable time commenting &

making environmental mitigating suggestions conc. the DESERT ROCK ENERGY PROJECT and at this time is opposing the project legally on certain grounds.

Page 9: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

Oil & Gas Wells in Four Corners (as of 2003)

Page 10: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

OIL and GAS PRODUCTION• The Farmington BLM RMP & EIS states that “the NM portion of

the San Juan Basin supports approximately 18,000 active oil and gas wells and there are more than 2,400 existing oil and gas leases in the planning area

• 10,000 new wells were estimated to be drilled in NM on Federal land portion of San Juan Basin as part of the 20 yr BLM reasonable foreseeable development RMP (2001) and evaluated in the Farmington Resource Management Plan & EIS Record of Decision (2003)

• The scope of the BLM RMP is approximately 1,415,300 acres of public land and 3,020,693 acres of federal minerals in San Juan, McKinley, Rio Arriba and Sandoval Counties. The overall planning area encompasses 8,274,100 acres.

• There are addition existing gas wells and projected growth in the Northern San Juan Basin in Colorado, and outside the BLM jurisdiction in NM portion of San Juan Basin.

• Many small unregulated sources• Multiple Operators• Changing Field Conditions

Page 11: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau
Page 12: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau
Page 13: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau
Page 14: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

VOC, SO2, CO, PM, NOx

Page 15: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau
Page 16: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau
Page 17: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

Four Corners Air Quality Task Force

• Began meeting November 2005• Approximately 250 members and

interested parties• Task Force Report final version

released November 2007– Report includes mitigation options

developed by task force members– Over 500 pages

• http://www.4cornersair.org

Page 18: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

Four Corners Agency Action on Oil & Gas Production

• Federal Land Managers (BLM, FS, NPS), EPA and Tribes working cooperatively to minimize impacts– BMPs for Tanks– Optimization, Centralization, Co-location– Control of existing/new engines in

permits to drill

• EPA working on rule/protocol for using Optical imaging for leak detection

Page 19: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

NM Action on Oil & Gas Production• Existing Engines: NM is evaluating the need for new regulations.

Has worked with BLM to incorporate a limit in the Permit to Drill COA

• New Engines: EPA New Source Performance Standard (NSPS) Subpart JJJJ Summary– Effective March 18, 2008– Applies to new, modified and reconstructed stationary spark ignition

(SI) internal combustion engines (ICE), regardless of size and combusting any fuel

– Emissions controlled to levels achievable by Best Demonstrated Technology (BDT)

– regulated pollutants: NOx, CO and VOC, plus sulfur limit on gasoline– Phased in from manufacture dates from 2007 to 2011 and beyond)– NMED has prepared a white paper summary on the new rule and is

currently in process of conducting industry outreach on the new rule in San Juan County

• NM also has San Juan VISTAS program with 3 partners who have pledged to voluntarily reduce some emissions leading to ozone, haze, & climate change

• Continued inventory and modeling work with goal of maintaining and/or improving air quality

Page 20: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

San Juan VISTAS 2006 Participation & Emissions Reductions

ConocoPhillips San Juan Unit 2006 Emissions Reductions

NOx 1,096 Tons/yr

CO 279 Tons/yr

VOC 308 Tons/yr

CO2 28,288 Tons/yr

KEY STRATEGIES:• Compressor Engine Optimization, Purchase and

Installation of Screw Compressors and New Cummins IC Engines, Insulation of Separators and Production Tanks, Plunger Lift Optimization

VISTAS Partners

Page 21: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

2007 Participation & Emissions Reductions

ConocoPhillips San Juan Unit & Red River Compression 2007 Emissions Reductions

NOx 4,064 tons/year

CO 980 tons/year

VOC 308 tons/year

CO2 75,286 tons/year

KEY STRATEGIES:• Compressor Engine Optimization,

Purchase and Installation of Screw Compressors and New Cummins IC Engines, Insulation of Separators and Production Tanks, Plunger Lift Optimization, Capstone Turbines and SWD Well Decommissioning, Reduced Trucking of Produced Fluids

• Small Lean Burn Engines

VISTAS Partners

Page 22: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

2008 Participation & Emissions Reductions

ConocoPhillips San Juan Unit & Red River Compression 2008 Emissions Reductions (preliminary)

NOx 4,064 tons/year + 428 tons/yr

CO 980 tons/year + 352 tons/yr

VOC 308 tons/year +18 tons/yr

CO2 75,286 tons/year + 34% on 5440 HP ng compressor engines

KEY STRATEGIES:• ConocoPhillips,TBD, similar to 2007• Red River Compression: 77 small lean burn

compressor engines w/5440 total hp

VISTAS Partners

New Partner:• Auburn Environmental joined Feb 2008

Page 23: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau
Page 24: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

Other Sources

Page 25: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

Four Corners Agency Action on Other Sources

• adopt tougher emissions standards for new vehicles in New Mexico. The standards will apply to new vehicles sold in New Mexico _ not used cars or new cars before the 2011 model year. (Being challenged in court)

• NM is in the development process of a fugitive dust regulation

• Statewide Open burning rule in effect (enforcement of trash burning)

• NM will soon commence a school bus retrofit project in San Juan County with federal funding

Page 26: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

Four Corners Agency Action on Renewable Energy, Energy Efficiency, & Conservation

• CO & NM have implemented a range of Energy Efficiency measures and incentives for renewable energy and conservation.

• Measures have been included in Supplemental Environmental Projects• There is an RFP out from utilities El Paso Electric, Xcel Energy, PNM, and Tri-

State Generation and Transmission Association seeking detailed proposals from solar developers for the construction of a solar parabolic trough generation facility to provide solar electricity to each of the utilities by 2012. Scale in the range of 100 MW

• The Federal gov’t just now in Oct 2008 extended federal solar tax credit for 8 more years which now includes commercial entities & utilities– An 8-year extension of the residential and business Investment Tax Credit (ITC) for

solar, small-wind and geothermal systems – An elimination of the US $2,000 cap on the residential ITC – Elimination of the prohibition on utilities from obtaining the ITC – Authorization of US $800 million for clean energy bonds for renewable energy

generating facilities – A 1-year extension of the PTC for wind projects – A 2-year extension of the PTC for geothermal facilities – Creates a 2 year ITC for marine energy technologies (tidal, wave, current, ocean

thermal)

Page 27: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau
Page 28: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

4K 2005 and 2018 Power Plant Emissions

Facility NameNOx SO2 NOx SO2

Four Corners Power Plant 41,7431a 12,6531a 50,9812a 17,9352a

San Juan 26,8091a 16,5691a 16,5462b** 9,3522b**

Prewitt Escalante Generating Station  3,7971a 1,2931a 3,7292c** 1,7962c**

Reeves Generating Station 1511a 01a* 1512d 02d

Milagro 1101a 31a 1102d 32d

Animas 541b 01b 542d 02d

Person Generating Project 41a 01a* 42d 02d

Desert Rock n/a n/a 3,3252e 3,3192e

Future Coal Units n/a n/a 2,6802f 2,9042f

Total Emissions (tons) 72,668 30,518 77,580 35,310

2.  2018  base case emissions data are estimated using: (a) per EPA9/Steve Frey, NOx from Acid Rain Permit, SO2 conservative estimate from FIP with 88% control; (b) Presumptive BART limits; (c) WRAP PRP18a; (d) assuming constant emissions rate from 2005 to 2018, gas plants,(e) Desert Rock Energy Facility PSD Permit Application; (f) WRAP PRP based on EIA projections.

**Prorated heat input 2005-2018 is accounted for in the calculations for San Juan Generating Station

2005 2018

1.  2005 base case emissions data are from: (a) EPA Facility & Unit Emissions reports 2005 (CEMS) data, (b) NMED 2005 emissions inventory, & (c) EPA 9 emissions 2005 inventory info estimate for PM emissions.* for Reeves & Person SO2 is <0.5 Tons (gas turbine plants)

Page 29: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

4K 2005 and 2018 Oil & Gas Emissions – NOx

NOx - 2005

State (1) Compressor Engines

(2) Compressor Engines & Heaters

(3) Compressor Stations

(4) Compressor Station & Gas Processing Plant (5) Drill Rigs (6) Heaters

(7) Smaller NOx sources Total

Arizona 6 - - - - 6 - 13 Colorado 234 4,694 - 2,548 326 157 203 8,163 New Mexico 27,608 - - 19,834 2,042 7,445 753 57,682 Utah 14 - - 352 28 9 - 403 Navajo Nation - - - 2,570 - - - 2,570 Total 27,863 4,694 - 25,304 2,396 7,618 956 68,831

NOx - 2018

State (1) Compressor Engines

(2) Compressor Engines & Heaters

(3) Compressor Stations

(4) Compressor Station & Gas Processing Plant (5) Drill Rigs (6) Heaters

(7) Smaller NOx sources Total

Arizona 6 - - - - 6 - 13 Colorado 337 4,694 291 2,456 354 244 203 8,579 New Mexico 30,170 - 3,126 20,796 2,148 8,405 898 65,543 Utah 14 - - 233 28 9 - 284 Navajo Nation - - - 3,622 - - - 3,622 Total 30,528 4,694 3,417 27,107 2,529 8,664 1,101 78,040

(1) WRAP Area O&G + (NSJCBM + FRMP) Growth (2) 2005 SUIT Engines (3) (NSJCBM + FRMP) Growth (4) WRAP PRP18 Point O&G(5) WRAP Area O&G + 2005 SUIT + NSJCBM Growth(6) WRAP Area O&G + (NSJCBM + FRMP) Growth (7) WRAP Area O&G

Page 30: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

4K 2005 and 2018 Oil & Gas Emissions – VOC

VOC - 2005

State (1) Completion - Flaring & Venting (2) Flashing (3) Fugitives

(4) Gas Plants, All Compressors, Heaters

(5) All Other Engines (6) Venting Total

Arizona - 24 - 9 4 - 37 Colorado 484 224 0 3,301 64 1 4,074 New Mexico 17,718 6,528 36,988 10,947 584 44,571 117,335 Utah - 426 - 96 10 - 532 Navajo Nation - - - 293 - - 293 Total 18,202 7,201 36,988 14,646 661 44,572 122,270

VOC - 2018

State (1) Completion - Flaring & Venting (2) Flashing (3) Fugitives

(4) Gas Plants, All Compressors, Heaters

(5) All Other Engines (6) Venting Total

Arizona - 14 - 19 4 - 37 Colorado 484 224 0 3,773 66 1 4,548 New Mexico 21,438 7,935 44,773 14,274 701 53,932 143,052 Utah - 424 - 123 10 - 556 Navajo Nation - - - 1,036 - - 1,036 Total 21,922 8,597 44,773 19,224 780 53,933 149,229

Notes: (1) WRAP Area O&G (2) WRAP Area O&G (3) WRAP Area O&G + 2005 SUIT(4) WRAP Area O&G + (NSJCBM + FRMP) Growth + WRAP Point O&G + 2005 SUIT(5) WRAP Area O&G + NSJCBM Growth + 2005 SUIT(6) WRAP Area O&G + 2005 SUIT

Page 31: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

4K 2005 and 2018 Emissions – All Sources NOx

2005 NOxSTATE Area Biogenics Off-road On-road Area Oil & Gas Point Oil & Gas EGU NonEGU Grand TotalArizona 97 1,102 2,407 4,661 13 0 0 0 8,279Colorado 302 2,731 1,910 3,757 921 2,548 0 535 12,703Navajo Nation 0 0 0 0 0 2,570 41,743 1,010 45,323New Mexico 16,036 4,032 11,219 30,182 37,848 19,834 30,925 3,615 153,692Puebla of Laguna 0 0 0 0 0 0 0 1,551 1,551Puebla of Santa Anna 0 0 0 0 0 0 0 209 209Southern Ute 0 0 0 0 0 4,694 0 0 4,694Utah 42 582 181 741 51 352 0 78 2,027Ute Mountain Reserv 0 0 0 0 0 0 0 0 0Grand Total 16,477 8,447 15,717 39,340 38,832 29,998 72,668 6,997 228,477

2018 NOxState Area Biogenics Off-road On-road Area Oil & Gas Point Oil & Gas EGU NonEGU Grand TotalArizona 117 1,102 1,217 1,934 13 1,340 0 5,724Colorado 366 2,731 1,269 1,456 946 2,456 701 9,923Farmington RMP Area 6,117 6,117Navajo Nation 3,622 54,306 955 58,883New Mexico 20,700 4,032 6,142 9,658 38,630 20,796 21,934 3,777 125,670Northern San Juan CBM Project Area 483 483Puebla of Laguna 2,038 2,038Puebla of Santa Anna 209 209Southern Ute 4,694 4,694Utah 47 582 115 337 50 233 89 1,454Ute Mountain Reserv 0 0Grand Total 21,231 8,447 8,743 13,385 39,639 38,401 77,580 7,770 215,196

%NOx differenceState Area Biogenics Off-road On-road Area Oil & Gas Point Oil & Gas EGU NonEGU Grand TotalArizona 21.49% 0.00% -49.42% -58.50% -0.02% -30.86%Colorado 21.17% 0.00% -33.59% -61.25% 2.69% -3.62% 31.14% -21.88%Farmington RMP AreaNavajo Nation 40.95% 30.09% -5.43% 29.92%New Mexico 29.08% 0.00% -45.25% -68.00% 2.07% 4.85% -29.07% 4.49% -18.23%Northern San Juan CBM Project AreaPuebla of Laguna 31.42% 31.42%Puebla of Santa Anna 0.00% 0.00%Southern Ute 0.00% 0.00%Utah 11.86% 0.00% -36.52% -54.52% -0.04% -33.79% 14.31% -28.26%Ute Mountain ReservGrand Total 28.85% 0.00% -44.37% -65.98% 2.08% 28.01% 6.76% 11.04% -5.81%

Page 32: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

4K 2005 and 2018 Emissions – All Sources VOC

2005 VOCSTATE Area Biogenics Off-road On-road Area Oil & Gas Point Oil & Gas EGU* NonEGU Grand TotalArizona 2,204 24,028 728 3,314 37 0 0 0 30,310Colorado 3,632 83,394 4,884 2,616 891 1,257 0 348 97,022Navajo Nation 0 0 0 0 0 293 17 121 431New Mexico 26,675 90,934 5,690 17,079 109,480 7,857 264 1,849 259,828Puebla of Laguna 0 0 0 0 0 0 0 11 11Puebla of Santa Anna 0 0 0 0 0 0 0 49 49Southern Ute 0 0 0 0 0 1,926 0 0 1,926Utah 479 14,694 388 490 455 77 0 52 16,634Ute Mountain Reserv 0 0 0 0 0 0 0 0 0Grand Total 32,989 213,050 11,690 23,499 110,862 11,410 281 2,429 406,210

2018 VOCState Area Biogenics Off-road On-road Area Oil & Gas Point Oil & Gas EGU NonEGU Grand TotalArizona 2,602 24,028 469 1,848 37 41 0 29,026Colorado 4,341 83,394 3,299 1,217 892 1,246 413 94,802Farmington RMP Area 3,220 3,220Navajo Nation 1,036 184 38 1,258New Mexico 34,313 90,934 4,179 7,753 131,900 7,930 356 2,153 279,518Northern San Juan CBM Project Area 484 484Puebla of Laguna 13 13Puebla of Santa Anna 49 49Southern Ute 1,926 1,926Utah 651 14,694 246 277 453 103 72 16,495Ute Mountain Reserv 0 0Grand Total 41,906 213,050 8,193 11,094 133,282 15,945 581 2,738 426,789

%VOC differenceState Area Biogenics Off-road On-road Area Oil & Gas Point Oil & Gas EGU NonEGU Grand TotalArizona 18.09% 0.00% -35.57% -44.23% 0.00% -4.24%Colorado 19.50% 0.00% -32.44% -53.49% 0.16% -0.85% 18.66% -2.29%Farmington RMP AreaNavajo Nation 253.75% 954.60% -68.23% 191.67%New Mexico 28.63% 0.00% -26.57% -54.61% 20.48% 0.93% 34.89% 16.49% 7.58%Northern San Juan CBM Project AreaPuebla of Laguna 20.26% 20.26%Puebla of Santa Anna 0.00% 0.00%Southern Ute 0.00% 0.00%Utah 35.90% 0.00% -36.74% -43.43% -0.33% 34.30% 37.03% -0.84%Ute Mountain ReservGrand Total 27.03% 0.00% -29.92% -52.79% 20.22% 39.75% 106.45% 12.71% 5.07%

Page 33: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

4K 2005 and 2018 Emissions – All Sources SO2

2005 SO2STATE Area Off-road On-road Area Oil & Gas Point Oil & Gas EGU NonEGU Grand TotalArizona 20 119 52 0 0 0 0 191Colorado 135 53 62 19 14 0 105 388Navajo Nation 0 0 0 0 35 12,653 179 12,867New Mexico 5,580 625 543 116 552 17,866 3,020 28,302Puebla of Laguna 0 0 0 0 0 0 0 0Puebla of Santa Anna 0 0 0 0 0 0 53 53Southern Ute 0 0 0 0 0 0 0 0Utah 54 13 12 1 0 0 1,581 1,660Ute Mountain Reserv 0 0 0 0 0 0 0 0Grand Total 5,789 809 669 136 602 30,518 4,938 43,462

2018 SO2State Area Off-road On-road Area Oil & Gas Point Oil & Gas EGU NonEGU Grand TotalArizona 24 1 20 0 1,452 0 1,496Colorado 146 5 16 19 12 141 339Farmington RMP Area 0 0Navajo Nation 155 21,253 266 21,674New Mexico 13,204 60 140 122 548 12,607 3,180 29,861Northern San Juan CBM Project Area 0 0Puebla of Laguna 0 0Puebla of Santa Anna 53 53Southern Ute 0Utah 54 0 4 1 0 2,122 2,182Ute Mountain Reserv 0 0Grand Total 13,428 66 180 142 715 35,312 5,763 55,606

%SO2 differenceState Area Off-road On-road Area Oil & Gas Point Oil & Gas EGU NonEGU Grand TotalArizona 17.72% -99.52% -61.72% 683.87%Colorado 8.63% -91.07% -74.04% 1.07% -13.85% 33.97% -12.54%Farmington RMP AreaNavajo Nation 337.34% 67.97% 48.94% 68.45%New Mexico 136.61% -90.40% -74.22% 4.92% -0.74% -29.44% 5.31% 5.51%Northern San Juan CBM Project AreaPuebla of LagunaPuebla of Santa Anna 0.00% 0.00%Southern UteUtah 0.94% -97.14% -67.24% -0.03% 78.88% 34.23% 31.42%Ute Mountain ReservGrand Total 131.97% -91.89% -73.11% 4.34% 18.94% 15.71% 16.70% 27.94%

Page 34: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

Four Corners Modeling Project Objectives

• Model air quality, visibility, deposition impacts of air emissions in the Four Corners region for 2005 & 2018

• Evaluate impacts of alternative mitigation strategies

• Primary focus on impacts in Mesa Verde and Weminuche Class I areas and surrounding Class II areas.

Page 35: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

Four Corners Modeling Schedule

Task: Completion Date:

Completion of 2005 base case runs with model performance evaluations.

End of August 2008

Continued work to improve 2005 model performance

End of October 2008

2018 ozone source apportionment (OSAT) model run. (3-4 weeks)

End of November 2008

2018 PM source apportionment (PSAT) run.

It is not know at this time how long the PSAT run will take

Use 2018 OSAT and PSAT results to reevaluate the mitigation scenarios. Finalize the mitigation scenarios using more specific source (using Standard Industrial Classification (SIC) code) percent reductions associated with mitigation

October 15 – December 15, 2008

Mitigation Scenario Modeling January 2009 – February 2009

Complete Model & Final Report No later than June 2009

Page 36: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

Modeling Information Distribution

• All modeling work is now anticipated to be complete by Spring 2009

• Modeling results will be presented at a Four Corners Air Quality Group (4CAQG) update meeting tentatively scheduled for Spring 2009 in Durango, CO at Ft. Lewis College

• Modeling results will also be made available online,http://www.nmenv.state.nm.us/aqb/4C/Modeling.html

Page 37: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

NAVAJO LAKE MONITORING SITE

NOx

Ozone

PM 2.5

NH3

Met

Page 38: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

Waterflow

SO2

NOx

Ozone

Met

PM10

PM2.5

SO2

NOx

Ozone

Met

NOx

Ozone

PM 2.5

NH3

Met

Northwestern New Mexico Air Quality Monitoring

NMED Air Monitoring website real time data: http://air.nmenv.state.nm.us/ *Also in process of installing mercury total deposition air monitor at Navajo Lake site 2008

*Four Corners Ammonia study recently published in Journal of Environmental Monitoring

NH3(airport)

Page 39: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau
Page 40: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

How 3 Monitors in San Juan County Compare to the EPA 8-hour Ozone Standard

NAAQS 8-hour ozone std decreased to 0.075 ppm in March 2008

*We have observed relatively high levels of ozone at Navajo Lake site this October 2008. & based on a few high days middle of October our 4th highest 8-hour average there this year increased to 75 ppb (preliminary). Which led to 3-yr average of 77 ppb exceeding new standard of 75 ppb

0.06

0.065

0.07

0.075

0.08

0.085

0.09

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Substation Monitor3-year average of4th highest 8-houraverages, ppm

Bloomfield Monitor 3-year average of 4thhighest 8-houraverages, ppm

Navajo Lake Monitor3-year average of4th highest 8-houraverages, ppm

NAAQS 8-hourOzone Std

Page 41: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

Four Corners Monitoring Information

• Monitoring data for our 3 ozone monitors in San Juan County is available online (real time & archived) as well as in summary format showing the annual design values that are compared to the federal standard for attainment status.

• The 3-year average design values for the 3 San Juan County ozone monitors in 2008 are currently 0.065, 0.071, and 0.077 ppm.

• Recent preliminary monitoring data shows that due to the strengthened ozone standard and some high ozone days at Navajo Lake monitor in October, we have reached the threshold for attainment status and exceeded it at Navajo Lake site. A three yr avg of annual 4th highest 8-hour avg ozone at Navajo site is now 0.077 ppm compared to the new standard of 0.075 ppm. A timeline showing dates for recommending non-attainment and designation follows this slide.

• Both other monitors in San Juan County (Bloomfield and Substation) have never exceeded the ozone standard.

• We have exceptional monitoring staff in San Juan County

• There are other monitors just North of NM border that we use to assess regional air quality and we have done passive ozone studies and other research throughout the area

Page 42: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

New NAAQS 8-hour Ozone Standard (0.075 PPM March 2008)

Page 43: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

If area goes non-attainment

• Nonattainment Areas Areas formally declared in violation of the NAAQS and areas contributing to a violation are designated “nonattainment areas.” Nonattainment areas must meet certain Clean Air Act requirements, such as:

– Transportation Conformity - Requires a demonstration that regional long-range transportation plans will not negatively impact air quality, or federal transportation funds can be withheld

– New Source Review - Requires a review of new or modified industrial operations to minimize air pollution.

– Rate of Progress Requirements - A certain percentage of pollutants must be reduced each year.

– Specific attainment date - Consequences of failure to reach attainment by the specified date include stricter control measures and the potential for stiff penalties.

– 10-year maintenance plan - Includes additional or continuing mandatory programs for 10 years following redesignation to attainment.

• Another requirement obligates the state to develop and implement a prescriptive, enforceable clean air plan that mandates how the area will come into compliance with the NAAQS that is exceeded. The enforceable clean air plan and revisions to it are known as the State Implementation Plan (SIP).

Page 44: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

Other Industry Actions

• Some other companies have environmental stewardship programs @ our last Task Force meeting we had 5 companies present including– 2 Vistas Partners: Conoco & Red River– BP – VOC reductions w/well completion process– Red Willow – lean burn compressors / adding catalysts to meet

2011 NSPS requirements– & San Juan Generating Station

• San Juan Generating Station is currently in process of environmental upgrade w/significant emissions reductions– Now projecting approximately

• 11,000 tons per year SO2 reduction• 9,000 tons per year NOX reduction• Decrease in opacity excursions• 800 lbs Hg per year reduction

• Some other Four Corners O&G companies participate in GAS STAR program which can have indirect reductions of ozone precursors

Page 45: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

“It really is up to all of us to work together to protect our air quality in New Mexico. The key is that everyone needs to participate and no one should hesitate to take action, no matter how small or inconsequential that action may seem.”

—Mary Uhl New Mexico Environment

Department, Air Quality Bureau Chief

Page 46: October 21, 2008 Mark Jones Environmental Analyst NMED/Air Quality Bureau

QUESTIONS ?

•New Mexico Environment Department’s Air Quality Bureau

Farmington Office (new Address) Santa Fe3400 Messina Drive 1301 Siler Rd., Bldg B, Farmington, NM 87402 Santa Fe, NM 87507(505) 566-9746 (800) 224-7009

Project Websites:Four Corners Air Quality Group: http://www.nmenv.state.nm.us/aqb/4C/index.html

Four Corners Modeling Project: http://www.nmenv.state.nm.us/aqb/4C/Modeling.html

San Juan VISTAS: http://www.nmenv.state.nm.us/aqb/projects/SJV/index.html

Homepage: http://www.nmenv.state.nm.us/aqb/