A Flare Management Strategy for British Columbia

1. A Flare Management Strategy for British Columbia Presented to Science and Community, Environmental Knowledge Fund Forum and Workshop by Dave Krezanoski, P.Eng. May 29, 2003

2. Outline • General Flaring Practices • Historical Flaring Perspective in B.C. • Reduction Drivers • Reduction Challenges • B.C. Reduction Targets • Flare Reduction Strategies • Summary

3. General Flaring Practices • Well Test Flaring • short term (typically a few days) • potentially large volumes • Solution Gas Flaring (Routine) • continuous • low volumes • Emergency/Upset Flaring • short duration (typically a few hours) • low volumes • Non-Routine Flaring • short term (typically a few days to weeks) • potentially large volumes • High GOR wells shut-in

4. Flaring Breakdown for 2001

5. Historical Flaring Perspective in B.C. • Significant flare reductions despite having a formal reduction policy (1997 to 2001  48%) • Informal policy consisted of: • review and approve all well test flare volumes • review flaring at non-conserving batteries periodically • review and approve all planned facility flaring with high GOR wells shut-in • Early reductions a result of infrastructure development in Buick and W. Stoddart

6. BC Historical Flaring Data by Type (1996-2001) (Cross-hatched areas represent estimated unmeasured/unreported emissions)

7. Flare Reduction Drivers • Public health and safety • Resource conservation • GHG Reductions • AEUB Guide 60 • Excellent example of a multi-stakeholder approach to problem solving • Alberta success drove B.C. initiative

8. Flare Reduction Challenges • Technology • Regulatory flexibility • Electricity generation • Royalty exemptions • Promote corporate cooperation

9. Flare Reduction Project • Operations engineering has worked on this project for over two years • Evaluated flaring data (where, why and how much) • Reviewed Guide 60 and monitored success in Alberta • Liased with operators and other ministries

10. BC Proposed Flare Reduction Targets • 1997 chosen as baseline • Proposed Targets • 50% below 1997 baseline volume by the end of 2004 • 55% below 1997 baseline volume by the end of 2005 • Seek industry and stakeholder input • Must address data reporting deficiencies

11. BC Historical Flaring Data by Type (1996-2001) with Proposed Reduction Targets (Cross-hatched areas represent estimated unmeasured/unreported emissions)

12. Flare Reduction Strategies • Utilization of AEUB flare management hierarchy • Eliminate • Reduce • Improve efficiency • Economic assessment of conservation of all solution gas flares

13. Strategies Continued • Limiting non-routine flaring during facility outages • Reduce inlet gas volumes (up to 75%) based on duration and type of shutdown • Seek stakeholder input • CASA, OGPAG, or others • Take advantage of momentum in Alberta

14. Summary • OGC is committed to flare reductions • Implement four strategies initially • A unified approach across provincial boundaries is preferred

15. Summary Continued • Province of BC is committed to a ‘Results Based’ regulatory system • Minimize red-tape • Reduce regulatory burden • Flaring reductions since 1997 an excellent example of industry/gov’t cooperation