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Four Corners Air Quality Task Force Draft Report of Mitigation Options

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Four Corners Air Quality Task Force Draft Report of Mitigation Options

    Four Corners Air Quality Task Force

    Draft Report of Mitigation Options

    Version 5

    January 10, 2007

    Four Corners Air Quality Task Force

    The draft report is a compilation of mitigation options drafted by members of the Four Corners Air Quality Task Force. The agencies involved have not

    reviewed or adopted these options at this time. These options will be considered following the completion of the Task Force in December 2007. Draft Report of Mitigation Options 1

    Version 5 1/10/07

Members List [To be added]

    Interested Parties List [To be added] Draft Report of Mitigation Options 2 Version 5 1/10/07

Executive Summary

[To be written]

    Draft Report of Mitigation Options 3 Version 5 1/10/07

    Table of Contents

     Oil and Gas .......................................................................................................................................................... 7Oil and Gas .......................................................................................................................................................... 7ENGINES .......................................................................................................................................................... 8 STATIONARY RICE ..................................................................................................................................... 8 Industry Collaboration................................................................................................................................. 8 Install Electric Compression ...................................................................................................................... 10 Optimization/Centralization ...................................................................................................................... 12 Follow EPA New Source Performance Standards (NSPS) .......................................................................... 14 Adherence to Manufacturers‘ Operation and Maintenance Requirements ................................................... 16 Use of SCR for NOx control on lean burn engines ..................................................................................... 18 Use of NSCR / 3-way Catalysts and Air/Fuel Ratio Controllers on Stoichiometric Engines ........................ 19 Use of Oxidation Catalysts and Air/Fuel Ratio Controllers on Lean Burn Engines ...................................... 22 Install Lean Burn Engines ......................................................................................................................... 24 Interim Emissions Recommendations for Stationary RICE ......................................................................... 26 Provide Training For Field Personnel on Engine Maintenance With Regard to AQ Considerations

    (forthcoming) ............................................................................................................................................ 28 Next Generation Stationary RICE Control Technologies Cooperative Technology Partnerships ............... 29 MOBILE/NON-ROAD ................................................................................................................................. 38 Fugitive dust control plans for dirt/gavel road and land clearing ................................................................. 38 Use produced water for dust reduction ....................................................................................................... 40 Pave roads to mitigate dust ........................................................................................................................ 44 Automation of wells to reduce truck traffic ................................................................................................ 45 Reduced Vehicular Dust Production by Enforcing Speed Limits ................................................................ 46 Reduced Truck Traffic by Centralizing Produced Water Storage Facilities ................................................. 48 Reduced Vehicular Dust Production by Covering Lease Roads with Rock or Gravel .................................. 50 Reduced Truck Traffic by Efficiently Routing Produced Water Disposal Trucks ........................................ 51 Use Alternative Fuels and Maximize Fuel Efficiency to Control Combustion Engine Emissions ................. 52 Utilize Exhaust Emission Control Devices for Combustion Engine Emission Controls ............................... 54 Exhaust Engine Testing for Combustion Engine Emission Controls ........................................................... 55 Reduce Trucking Traffic in the Four Corners Region ................................................................................. 56 RIG ENGINES ............................................................................................................................................. 57 Diesel Fuel Emulsions ............................................................................................................................... 57 Natural Gas Fired Rig Engines .................................................................................................................. 59 Selective Catalytic Reduction (SCR) ......................................................................................................... 61 Selective Non-Catalytic Reduction (SNCR) ............................................................................................... 63 Implementation of EPA‘s Non Road Diesel Engine Rule – Tier 2 through Tier 4 standards ........................ 65 Interim Emissions Recommendations for Drill Rigs ................................................................................... 72 Various Diesel Controls ............................................................................................................................ 73 TURBINES .................................................................................................................................................. 76 Upgrade Existing Turbines to Improved Combustion Controls (Emulating Dry LoNOx Technology) ......... 76 EXPLORATION & PRODUCTION ............................................................................................................. 77 TANKS ........................................................................................................................................................ 77 Best Management Practices (BMPs) for Operating Tank Batteries ............................................................. 77 Installing Vapor Recovery Units (VRU) .................................................................................................... 78 Installing Gas Blankets Capability ............................................................................................................. 79 DEHYDRATORS/SEPARATORS/HEATERS ............................................................................................. 80 Replace Glycol Dehydrators with Desiccant Dehydrators........................................................................... 80 Installation of Insulation on Separators ...................................................................................................... 82 Portable Desiccant Dehydrators ................................................................................................................. 83 Zero Emissions (a.k.a. Quantum Leap) Dehydrator .................................................................................... 85 Venting versus Flaring of Natural Gas During Well Completions ............................................................... 88 WELLS ........................................................................................................................................................ 95 Installation and/or Optimization of a Plunger Lift System .......................................................................... 95 Implementation of Reduced Emission Completions ................................................................................... 98 Convert High-Bleed to Low or no Bleed Gas Pneumatic Controls ............................................................ 100

    Draft Report of Mitigation Options 4

    Version 5 1/10/07

     Utilizing Electric Chemical Pumps .......................................................................................................... 102

    PNEUMATICS / CONTROLLERS / FUGITIVES ...................................................................................... 103 Optical Imaging to Detect Gas Leaks ....................................................................................................... 103 Convert Gas Pneumatic Controls to Instrument Air .................................................................................. 105 OVERARCHING ......................................................................................................................................... 107 Lease and permit incentives for improving air quality on public lands ...................................................... 107 Economic-Incentives Based Emission Trading System (EBETS) ............................................................. 110 Tax or Economic Development Incentives for Environmental Mitigation ................................................. 113 Voluntary Partnerships and Pay-back Incentives: Four Corners Innovation Technology and Best Energy-

    Environment Management Practices (IBEMP) ......................................................................................... 116 Voluntary Programs ................................................................................................................................ 119

     Power Plants ................................................................................................................................................... 121Power Plants ................................................................................................................................................... 121EXISTING POWER PLANTS ..................................................................................................................... 122 ADVANCED SOFTWARE APPLICATIONS ............................................................................................ 122 Lowering Air Emissions by Advanced Software Applications: Neural Net ............................................... 122 BEST AVAILABLE RETROFIT TECHNOLOGY (BART) ....................................................................... 125 Control Technology Options for Four Corners Power Plant ...................................................................... 125 Control Technology Options for San Juan Generating Station .................................................................. 132 OPTIMIZATION........................................................................................................................................ 135 Energy Efficiency Improvements ............................................................................................................ 135 Enhanced SO Scrubbing ........................................................................................................................ 136 2

    ADVANCED NO CONTROL TECHNOLOGIES ..................................................................................... 138 x

    Selective Catalytic Reduction (SCR) NO Control Retrofit ...................................................................... 138 xTMBOC LoTOx System for the Control of NOx Emissions ....................................................................... 141 OTHER RETROFIT TECHNOLOGIES ..................................................................................................... 143 Baghouse Particulate Control Retrofit...................................................................................................... 143 Mercury Control Retrofit ......................................................................................................................... 145 STANDARDS ............................................................................................................................................ 146 Harmonization of Standards .................................................................................................................... 146 MISCELLANEOUS ................................................................................................................................... 148 Emission Fund ........................................................................................................................................ 148 PROPOSED POWER PLANTS ................................................................................................................... 150 DESERT ROCK ENERGY FACILITY ...................................................................................................... 150 Desert Rock Energy Facility Stakeholder Funding to and Participation in Regional Air Quality Improvement

    Initiatives such as Four Corners Air Quality Task Force........................................................................... 150 Negotiated Agreements in Prevention of Significant Deterioration (PSD) Permits .................................... 153 Emissions Monitoring for Proposed Desert Rock Energy Facility to be used over Time to Assess and

    Mitigate Deterioration to Air Quality in Four Corners Area...................................................................... 155 Coal Based Integrated Gasification Combined Cycle (IGCC) ................................................................... 157 Invest in Carbon Dioxide Control Technology ......................................................................................... 161 Federal Land Manager Mitigation Agreement with Desert Rock Energy Facility ...................................... 163 OVERARCHING ......................................................................................................................................... 168 POLICY ..................................................................................................................................................... 168 Reorganization of EPA Regions .............................................................................................................. 168 MERCURY ................................................................................................................................................ 169 Clean Air Mercury Rule Implementations in Four Corners Area .............................................................. 169 Mercury Studies for Four Corners Area (Forthcoming) ............................................................................ 171 AIR DEPOSITION STUDIES .................................................................................................................... 172 Participate in and Support Mercury Studies ............................................................................................. 172 GREENHOUSE GAS MITIGATION ......................................................................................................... 175 CO Capture and Storage Plan Development by Four Corners Area Power Plants..................................... 175 2

    Climate Change Advisory Group (CCAG) Energy Supply Technical Work Group Policy Option

    Implementation in Four Corners Area ...................................................................................................... 177 CAP AND TRADE ..................................................................................................................................... 179 Declining Cap and Trade Program for NO Emissions for Existing and Proposed Power Plants ................ 179 x

    Four Corners States to join the Clean Air Interstate Rule (CAIR) Program ............................................... 182

    Draft Report of Mitigation Options 5

    Version 5 1/10/07

     ASTHMA STUDIES .................................................................................................................................. 185

    Chronic Respiratory Disease Study for the Four Corners area to determine relationship between Air

    Pollutants from Power Plants and Respiratory Health Effects ................................................................... 185 CROSSOVER ............................................................................................................................................ 188 Install Electric Compression (customize) ................................................................................................. 188 Crossover Options ................................................................................................................................... 190

     Other Sources .................................................................................................................................................. 191Other Sources .................................................................................................................................................. 191Phased Construction Projects................................................................................................................... 192 Public Buy-in through Local Organizations to push for transportation alternatives and ordinances ............ 194 Regional Planning Organizations (Forthcoming) ...................................................................................... 195 Uniformity of Regulations Between Jurisdictions and as Applied to Construction vs. Sand and Gravel

    Operations (Forthcoming) ....................................................................................................................... 195 Fugitive Dust Mitigation Plan (Forthcoming)........................................................................................... 195

     Energy Efficiency, Renewable Energy and Conservation ......................................................................... 196Energy Efficiency, Renewable Energy and Conservation ......................................................................... 196Expand the Renewable Portfolio Standards (RPS) to be Mandatory for Coops and Municipalities ............ 197 Green Building Incentives ....................................................................................................................... 199 Changes to Residential Energy Bills ........................................................................................................ 200 Subsidization of Land Required to Develop Renewable Energy ............................................................... 203 Four Corners State Adopt California Standards for Purchase of Clean Imported Energy ........................... 205 New Programs to Promote Renewable Energy Including Tax Incentives .................................................. 207 Use of Distributed Energy ....................................................................................................................... 211 Direct Load Control and Time-based Pricing ........................................................................................... 213 Volunteers do Home Audits for Energy Efficiency .................................................................................. 215 County Planning of High Density Living as Opposed to Dispersed Homes throughout the County............ 216 Promote Solar Electrical Energy Production ............................................................................................ 217 Renewable Energy Credits (Forthcoming) ............................................................................................... 218 Net Metering for Four Corners Area ........................................................................................................ 219 Improved Efficiency of Home and Industrial Lighting ............................................................................. 222 Energy Conservation by Energy Utility Customers .................................................................................. 225 Outreach Campaign for Conservation and Wise Use of Energy Use of Energy ......................................... 228

     Cumulative Effects ......................................................................................................................................... 230Cumulative Effects ......................................................................................................................................... 230

     Monitoring ....................................................................................................................................................... 231Monitoring ....................................................................................................................................................... 231Interim Emissions Recommendations for Ammonia Monitoring .............................................................. 232 Four Corners Area Monitoring Gap Analysis Matrix: Introduction ........................................................... 234 Four Corners Monitoring Gap Analysis Matrix ........................................................................................ 237

     Table of Mitigation Options Not Written ..................................................................................................... 241Table of Mitigation Options Not Written ..................................................................................................... 241

    Draft Report of Mitigation Options 6

    Version 5 1/10/07

Oil and Gas Oil and Gas

Oil & Gas

Version 5 1/10/07

ENGINES: STATIONARY RICE

Mitigation Option: Industry Collaboration

I. Description of the mitigation option

    Overview

    ; This option explores the possibility of industry collaboration toward affecting mandating

    emission control technologies [8/4/06] Expansion: (e.g., three-way catalytic converters with air-

    to-fuel-ratio controllers) that would be implemented by engine manufacturer‘s for building future

    engines, especially those used in association with natural gas fired compressor engines and are

    smaller horsepower of generally less than 200 hp [8/4/06] Clarification: site-rated.

Air Quality and Environmental Benefits

    ; This option would result in air quality improvement since all new engines built would meet

    lowest achievable emission controls at that time for criteria pollutants.

Economic

    ; This would require a large capital investment from both companies and engine manufacturer‘s to

    achieve this result. This would result in replacement of older compressor engines, particularly

    those less than 200 hp, with new ones at a significant cost to the oil and gas industry. The

    salvage value of older compressors is a fraction of the cost of a new compressor engine.

    ; It would require companies to commit to ordering new engines over a prescribed time likely

    ahead of when older units would have been replaced.

    ; The manufacturers would need confirmed orders to justify re-tooling their plants to meet the

    demand.

Trade-offs

    ; The use of given emission control technology could result in other emissions. For example, the

    use of lean-burn technology on a large scale would result in incremental emissions of

    formaldehyde. If NSCR is used on a large scale, it is believed ammonia emissions would result.

    [8/4/06] Expansion: However, it is not known if these emissions would be significant.

    ; Some engine manufacturers that cannot meet the demand and/or re-tool their factories could lose

    their market share in the San Juan Basin. Need to ensure this does not create any restraint of

    trade concerns.

II. Description of how to implement

    A. Mandatory or voluntary; It could be both. The companies could begin a process of placing

    new orders voluntarily or the agencies, through regulatory/rules, could require emission levels

    that necessitate ordering new compressor engines.

    B. Indicate the most appropriate agency(ies) to implement: State Environmental Agencies

III. Feasibility of the option

    A. Technical: None identified although some field trials and bench scale tests are probably

    necessary to assess actual emissions on the new engines.

    [8/4/06] Expansion: EPA has established the technological feasibility of controlling these types of

    engines. (See NSPS Mitigation Option Paper below.)

    B. Environmental: Yes, from the Cumulative Effects group depending upon what type of

    emission control technology is preferred.

    C. Economic: Economic burden associated with engine replacement and manufacturer re-tooling

    is likely to be substantial.

    Oil & Gas: Engines Stationary RICE 8

    Version 5 1/10/07

IV. Background data and assumptions used

    Emission inventories compiled for the Farmington, NM BLM Resource Management Plan (2003); Southern Ute Indian Reservation Oil and Gas Environmental Impact Statement (2002)

    ; Preliminary discussions with companies and engine manufacturer representatives

    ; Will need to integrate any more recent emissions inventory data from the Cumulative Effects

    Group

V. Any uncertainty associated with the option (Low, Medium, High) High. Especially pertaining to

    feasibility. Medium due to economics of replacing a large fleet of existing compressor engines and the timing that would be required to begin manufacturing a number of small horsepower engines.

VI. Level of agreement within the work group for this mitigation option TBD

VII. Cross-over issues to the other source groups (please describe the issue and which groups)

    May need to verify with other work groups if manufacturing a large number of new compressor engines, particularly in the smaller horsepower range, could conflict with other new engine initiatives such as building Tier II and Tier III diesel engines.

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Mitigation Option: Install Electric Compression

I. Description of the mitigation option

    Overview

    ; Electric Compression would involve the replacement or retrofit of existing internal combustion

    engines or proposed new engines with electric motors. The electric motors would be designed to

    deliver equal horsepower to that of internal combustion engines. However, the limitation of

    doing so is predicated by the electrical grid that would exist in a given area to provide the

    necessary capacity to support electrical compression.

Air Quality/Environmental

    ; Elimination of criteria pollutants that occur with the combustion of hydrocarbon fuels (natural gas,

    diesel, gasoline). Displacement of emissions to power generating sources (utilities).

    .

Economics

    ; The costs to replace natural gas fired compressors with electric motors would be costly.

    ; The costs of getting electrical power to the sites would be costly. It could require a grid pattern

    upgrade which could costs millions of dollars for a given area.

    ; A routine connection to a grid with adequate capacity for a small electric motor can be $18K to

    $25K/site on the Colorado side of the San Juan Basin.

    ; A scaled down substation for electrification of a central compression site can range between

    $250K and $400K.

    ; Suppliers/Manufacturers would have to be poised to meet the demand of providing a large

    number of electrical motors, large and small.

Tradeoffs

    ; While the sites where the electrical motors would be placed would not be sources of emissions,

    indirect emissions from the facilities generating the electricity would still occur such as coal fired

    power plants.

    ; Additional co-generation facilities would likely have to be built in the region to supply the

    amount of electrical power needed for this option. This would result in additional emissions of

    criteria pollutants from the combustion of natural gas for turbines typically used for co-generation

    facilities.

    ; There would need to be possible upgrades in the electrical distribution system. However, the

    limitation of doing so is predicated by the electrical grid that would exist in a given area to

    provide the necessary capacity to support electrical compression

Burdens

    ; The cost to replace natural gas fired engines with electrical motors would be borne by the oil and

    gas industry.

II. Description of how to implement

    A. Mandatory or voluntary: Voluntary, depending upon the results of monitoring data over time.

    B. Indicate the most appropriate agency(ies) to implement: State Air Quality agencies.

III. Feasibility of the option

    A. Technical: Feasible depending upon the electrical grid in a given geographic area

    B. Environmental: Factors such as federal land use restrictions or landowner cooperation could

    restrict the ability to obtain easements to the site. The degree to which converting to electrical Oil & Gas: Engines Stationary RICE 10

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