Garry KaufmanColorado Air Pollution Control Division

May 14, 2014

Colorado emissions data by sector◦ Greenhouse gas emissions (GHG)

◦ Nitrogen oxides (NOx)

◦ Volatile organic compounds (VOC)

Past efforts to reduce air emissions from the oil and gas sector

Newly adopted emission reduction strategies

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

1990 1995 2000 2005 2010 2020 2030

MMTCO2e

Agriculture

Waste Management

Industrial Processes

Gas Production

Coal Mining & Abandoned Mines

Residential, Commercial & Industrial Fuel Use

Transportation

Electric Power

Colorado has been a national leader in regulating air emissions from oil and gas production sector

2004 AQCC Rulemaking to reduce VOC emissions from Oil and Gas Sector in the Denver Metro/North Front Range as part of Early Action Compact

◦ Condensate tanks◦ Dehydrators◦ Engine VOC controls◦ Leaks at natural gas processing plants

2006 AQCC update to 2004 rules and adoption of new rules with statewide applicability

◦ Condensate tanks (DMA/NFR and statewide)◦ Dehydrators (statewide)◦ Nox and VOC engine controls (statewide)

2008 Ozone Action Plan to address non-attainment with ozone National Ambient Air Quality Standard◦ Condensate tanks

◦ Low-bleed pneumatic devices

2008 and 2013 COGCC Rulemakings◦ Petroleum storage tangs

◦ Dehydrators

◦ Pneumatic devices

◦ Green completions

In February 2014 AQCC adopted new requirements to reduce VOC and methane emissions from the oil and gas sector

New rules apply statewide

New rules target VOC and methane emissions from the largest O&G source categories◦ Tanks◦ Fugitives/Venting◦ Pneumatic devices

Expand control requirements for storage tanks◦ Lower control threshold from 20 tons per year to 6 tons per

year◦ Include crude oil and produced water storage tanks◦ Require controls during the first 90 days of production

statewide

Improve capture of emissions at controlled tanks◦ Controlled tanks must be operated without venting to the

atmosphere◦ Establish requirements for Storage Tank Emission

Management systems (STEM) Capture performance evaluation Certified design to minimize emissions Extensive instrument based monitoring Continual improvement

Establish LDAR requirements for compressor stations and well production facilities◦ Frequent monitoring using Method 21 or infra-red

(IR) cameras

Tiered monitoring schedule to focus on the highest emitting facilities and reduce the burdens on smaller facilities

Establishes the most comprehensive leak detection program for oil and gas facilities in the nation

◦ Repair schedule for identified leaks

◦ Recordkeeping and reporting requirements

Leak on loose hammer union on pipe leading to Flare Combustor

Leak Detection and Repair

Expand low-bleed pneumatic controller requirements statewide

Require capture or control of the gas stream at well production facilities

Establish requirements to minimize emissions during well maintenance

Require auto-igniters on all combustion devices

Expand control requirements for glycol dehydrators◦ Lower control threshold from 15 tons per year to 6 tons per

year◦ More stringent threshold for facilities near populated areas

Estimated annual cost of new rules for industry is approximately $42 million

State will administer rule using existing resources

Significant reduction of volatile organic compounds and methane◦ Approximately 94,000 tpy of VOC◦ Approximately 64,000 tpy of methane

EDF estimates approximately 113,000 tpy methane reduction

Expands Colorado’s existing program and establishes innovative new strategies that address each of the most significant sources of hydrocarbon emissions from the oil and gas production sector

Maintains Colorado’s leadership role in regulating air emissions from oil and gas production

Establishes a rigorous set of requirements to ensure responsible development of Colorado’s oil and gas resources

garrison.kaufman@state.co.us

http://www.colorado.gov/cs/Satellite/CDPHE-AQCC/CBON/1251647985820

mailto:garrison.kaufman@state.co.ushttp://www.colorado.gov/cs/Satellite/CDPHE-AQCC/CBON/1251647985820