As explained by
Cimarron Products:
“On December 2, 2023, the U.S. Environmental Protection
Agency (EPA) announced the final rulemaking regarding methane (CH4) and
volatile organic compounds (VOC) emissions from oil and natural gas industries.
The new final rules cover:
“40 CFR 60 Subpart OOOOb—Standards of Performance for
Crude Oil and Natural Gas Facilities for which Construction, Modification or
Reconstruction Commenced After November 15, 2021 (NSPS OOOOb).”
“40 CFR 60 Subpart OOOOc—Emissions Guidelines for
Greenhouse Gas Emissions from Existing Crude Oil and Natural Gas Facilities (EG
OOOOc).”
“The NSPS OOOOb rules will become effective after 60 days
of publication in the Federal Register.”
An EPA summary of
the final rule from March 8, 2024, is below:
“The Environmental Protection Agency (EPA) is finalizing
multiple actions to reduce air pollution emissions from the Crude Oil and
Natural Gas source category. First, the EPA is finalizing revisions to the new
source performance standards (NSPS) regulating greenhouse gases (GHGs) and
volatile organic compounds (VOCs) emissions for the Crude Oil and Natural Gas
source category pursuant to the Clean Air Act (CAA). Second, the EPA is
finalizing emission guidelines (EG) under the CAA for states to follow in developing,
submitting, and implementing state plans to establish performance standards to
limit GHG emissions from existing sources (designated facilities) in the Crude
Oil and Natural Gas source category. Third, the EPA is finalizing several
related actions stemming from the joint resolution of Congress, adopted on June
30, 2021, under the Congressional Review Act (CRA), disapproving the EPA's
final rule titled, “Oil and Natural Gas Sector: Emission Standards for New,
Reconstructed, and Modified Sources Review,” September 14, 2020 (“2020 Policy
Rule”). Fourth, the EPA is finalizing a protocol under the general provisions
for optical gas imaging (OGI).
Companies must
submit plans within two years and have up to three years after EPA approval of
those plans. Thus, they have up to five years to fully comply. The rule is 1690
pages long and I have seen at least one summary of it. I like to simplify
things so a rule that is detailed and long seems like overkill, though I realize
there are many different sources of leaks, methods of detecting and measuring
them, and means of fixing and preventing them. In any case, it appears that companies
specializing in leak detection, repair, and site monitoring are taking the lead
in getting to compliance. Many larger companies are already in full compliance,
except maybe in the Permian and Bakken and other oil plays where there are more
sources of leaks. Continuous air emissions monitoring is becoming common at
many well pads and oil & gas facilities. The rule allows for periodic leak
detection at regular intervals in specific details. While the Trump administration
will no doubt apply some pushback, already targeting the removal of the methane
emissions fee or tax, I agree that the fee should be removed or at least be
small, especially for small operators. Below are some summaries of compliance strategies:
The following emission sources are included in OOOOb.
·
Associated gas from oil wells
·
Completions of hydraulically fractured wells
·
Centrifugal compressors
·
Wet seals
·
Dry seals – new OOOOb source
·
Reciprocating compressors
·
Fugitive emissions from equipment leaks
·
Liquids unloading – new OOOOb source
·
Pneumatic controllers using natural gas
·
Pneumatic pumps using natural gas
·
Storage vessels aggregation at tank battery
·
Super-emitters of methane – new OOOOb source
·
Sweetening units
·
Well closure requirements – new OOOOb
requirement
According to Canusa EPC, a company that
does engineering, procurement, and construction (EPC), compliance with the new
EPA rules for natural gas compression facilities is as follows:
What is OOOO(b) Compliance?
The EPA’s OOOO(b) Rule is a major regulatory update aimed at curbing
methane emissions from oil and gas operations. The EPA’s Rule mandates “strict
performance standards for new, modified, and reconstructed sources”.
For gas compression facilities, compliance requires a shift in
operational practices. There are three distinct applications that apply:
- Process
Controllers & Pneumatic Pumps
Natural gas-driven controllers and pneumatic pumps, which historically vented methane into the atmosphere, must be replaced with zero-emission alternatives (IE. instrument air-driven controllers).
- Dry
Seals for Compressors
Dry-seal centrifugal compressors must maintain a volumetric flow rate at or below 10 standard cubic feet per minute (scfm) per compressor seal to minimize emissions.
- Storage
Vessels/Tank Batteries
Storage tanks at compression stations must now achieve a 95% reduction in methane and VOC emissions, significantly changing how operators manage emissions control systems.
According to
Encino Environmental:
“…the table below summarizes the screening frequency with
minimum detection threshold of the technology used for the screening at well
site, centralized production facilities, and compressor stations subject to AVO
inspections with quarterly OGI or EPA Method 21 monitoring (this table is just
one of several in the final rule).”
Cimarron Products
seems to offer the full range of services for complying with the rules as shown
in the tables below.
Canusa EPC notes that applying compliance to multiple sites
saves money and that converting pneumatic controllers to be powered by
compressed air rather than natural gas can also save time and money. I wrote
about company-wide conversions from natural gas to compressed air (and
occasionally compressed nitrogen) pneumatic
controllers in 2023. It is an easy, though expensive way for companies to achieve
a lot of emissions reduction.
Instrument Air Conversions: Save Time & Money
“Converting from instrument gas to instrument air across
multiple sites is a capital-intensive process. In a recent methane reduction
project, CANUSA EPC achieved substantial cost savings and accelerated schedule
for their operator using these strategies.”
New Focus on Tank Battery Emissions
Emissions Reduction.
Emissions Reduction. The final rule
includes an important addition to what was
originally proposed by requiring storage
vessels (i.e., tank batteries) to demonstrate
a substantial 95% reduction in methane and
VOC (volatile organic compound) emissions.
This requirement raises several issues, such as:
- What is the baseline from which the 95% reduction will be measured?
- What technologies are approved for evidencing the reduction?
- How does this requirement dovetail with the Waste Emission Charge (WEC) mandated by the Inflation Reduction Act?
We will be delving into more detail on answering
these questions in future articles.
We do know that significant sources of tank
battery emissions include worn thief hatches and seals. The Enviromech™ Composite Thief
Hatch ensures a complete seal of the tank over
the long-term and in varying weather
conditions, reducing emissions and improving well site safety.
Additionally, the Enviromech Composite Thief
Hatch is made of extremely durable composite
material that is highly resistant to changes in
environmental conditions, reducing maintenance, repair and replacement costs.
References:
OOOOb
Explained: Navigating the Maze of the EPA’s Methane Rule with Solutions.
Cimarron. January 10, 2024. OOOOb Explained: Navigating the Maze
of the EPA's Methane Rule with Solutions - Cimarron
EPA's
Final Rule to Reduce Methane and Other Harmful Pollution from Oil and Natural
Gas Operations and Related Actions. U.S. EPA. March 8, 2024. EPA's Final Rule to Reduce Methane
and Other Harmful Pollution from Oil and Natural Gas Operations and Related
Actions | US EPA
IndustryVoice:
Navigating OOOO(b): Methane Emission Reduction Cost-Management Strategies for
Compression Sites. Canusa EPC. February 19, 2025. IndustryVoice: Navigating OOOO(b):
Methane Emission Reduction Cost-Management Strategies for Compression Sites |
Hart Energy
Standards
of Performance for New, Reconstructed, and Modified Sources and Emissions
Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review. A
Rule by the Environmental Protection Agency on 03/08/2024. Federal Register. Federal
Register :: Standards of Performance for New, Reconstructed, and Modified
Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas
Sector Climate Review
Navigating
the EPA Final Rule for Methane Reduction: Solutions for Oil and Gas Operators
Subjected to NSPS OOOOb and More. Encino Environmental. July 5, 2024. NSPS
OOOOb | The Final Rule for Methane Reduction in Oil & Gas
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