Environmental Compliance and Engineering for Oil & Gas E&P Activities

Environmental Compliance and Engineering for Oil & Gas E&P Activities Mark Shemaria Freemont AP Environmental December 2007 mark.shemaria@tidelandsoil.com

Why do we need Environmental ? • Business today has a Triple Bottom Line: • Economic performance; • Social performance; • Environmental performance.

Sustainable Development • “meeting the needs of the present without compromising the ability of future generations to meet their own needs”

Environmental for E&P Activities • You must have: • Strong Leadership & Management Commitment; • Engage staff from across all disciplines; • Focus on practical & understandable; • Recognize that much is already done; • Share experiences & Learn; • Take it step by step.

Characterization • Environmental Aspects: How do we impact the environment? • How/what do we Generate? • How do we Manage?

Environmental? Doing what we do Right!

Air • Permitting • Tanks & Process Systems • Combustion Devices • Large Sources - 4 or 10 tons per year • Timing – weeks/months • Title V = paper work

Table 1 – COMMON E&P INDUSTRY AIR EMISSIONS EmissionsType of Generating Activity VOC Fugitive emissions, product storage, process venting, combustion H2S Well-casing gas venting, flaring, process venting SOx Sour-gas combustion NOx Combustion (flaring, IC) CO Combustion (flaring, IC) PMCombustion, dust (construction, roads)

Water • Permits • Class II Wells – Title 14 CCR Division 2 • NPDES/Storm Water • Spill Plans • OSPR Title 14 CCR Division 1 SD 4 • SPCC – 40 CFR 112 (Feb 06)

Table 2 – COMMON E&P INDUSTRY WATER DISCHARGES DischargeType of Generating Activity Produced water Production Operations Completion fluids Well completions Well-treatment fluids Well workovers Rig Wash Drilling operations Hydro test water Pipeline, flowline testing Storm water Runoff from drilling, production sites Sewage All operations

Waste • Hazardous 40 CFR & Title 22 CCR • Non-Hazardous • Designated – oily waste (crude) • Debris/trash • Special (electrical stuff)

Table 3a – COMMON E&P INDUSTRY SOLID WASTES Solid WasteType of Generating Activity Oily soil Leaks and spills Tank bottoms/Scale Crude oil storage and maintenance Solvents/chemicals Cleaning, analysis & operations Lube fluids/filters Vehicle, equipment maintenance Acid & caustic Well Treatment, Scrubber operations Cement Drilling and completion operations, construction Drill fluids/cuttings Drilling operations 3-a

Table 3b – COMMON E&P INDUSTRY SOLID WASTES Solid WasteType of Generating Activity NORM Production maintenance, well workovers H2S & VOC scrubber Scrubber operations/Activated carbon Paint waste Drilling and production maintenance Empty containers Drilling and production operations Batteries Vehicle, equipment maintenance Trash/rags All operations Radioactive tracers Drilling operations Concrete, steel Facility & pipeline abandonment

Table 4 –SOURCE REDUCTION THROUGH PURCHASING PRACTICES Solid WasteType of Generating Activity Solvents Purchase low-toxicity/hazard/VOC solvents and purchase only amount needed; return unused portion. Containers Purchase supplies in bulk containers; include requirement in contract that containers must be returned to vendor. Chemicals Purchase only amount needed; return unused portion. Lubricants Avoid ones containing chlorinated solvents and purchase only amount needed; return unused portion. Packaging Require minimal or recyclable packaging. Thread protectors Add requirement in contract that protectors must be returned to vendor.

Table 5 – Source Reduction Through Storage/Distribution Procedures PollutantStorage/Distribution Procedure Contaminated soil Pipeline operating & maintenance procedures. Protect containers, store with secondary containment, and properly secure during transportation. Chemicals Keep container labels from weathering to ensure contents can be identified. Use safe lifting procedures to prevent leaks. Storm Water Cover storage area to prevent contact.

Table 6 – SOURCE REDUCTION THROUGH PRODUCT/MATERIAL SUBSTITUTION PollutantProduct/material Substitution Procedure Solvents Use nonhazardous solvents. Paint Use minimal-hazard paint products and thinners. Pipe dope Use heavy-metal-free dope. Antifreeze Use minimal-hazard antifreeze (propylene glycol). SOx emissions Use low-sulfur fuels. Refrigerants Use non-CFC refrigerants. Oil-based drill fluids Use synthetic drilling fluids. Laboratory waste Use minimal-hazard lab materials. Aerosol cans Purchase materials in nonaerosol form.

Table 7 – SOURCE REDUCTION THROUGH EQUIPMENT/PROCESS MODIFICATION PollutantEquipment/Process Modification Tank bottoms Design completions for lower solids production; keep solids suspended in tanks with mechanical agitation; Solvents Use high-pressure wash system instead of solvents for cleaning. NORM Segregate processing of noncompatible produced waters and minimize pressure drops to minimize precipitation. Produced Water Design completions for lower water production. Nox, CO emissions Use low-Nox burner; use electric instead of i-c engines; use natural gas instead of diesel engines

Table 8 – SOURCE REDUCTION WITH CONTROL SYSTEMS PollutantControl System Tank bottoms Control with chemical treatment in process. Scale Control with chemical treatment. VOC emissions Install vapor-recovery. SOx scrubber waste Automate control system to increase scrubber efficiency. NORM Control with chemical treatment. H2S, scrubber waste Automate control system to increase scrubber efficiency. NOx, CO emissions Install electronic ignition and air/fuel ratio controllers/ install catalytic converters.

Table 9 – SOURCE REDUCTION THROUGH MAINTENANCE, INSPECTION AND REPAIR PollutantMaintenance and Repair Activity VOC emissions Maintain connections/seals/hatches to minimize fugitives. Contaminated groundwater Conduct regular mechanical-integrity tests on well tubulars. Contaminated soil Perform routine maintenance/testing and repair leaks.

Table 10 – SOURCE REDUCTION THROUGH CLEANING/HOUSEKEEPING PollutantCleaning/Housekeeping Procedure Rig wash Sweep up solids before washing; use a high- pressure, low-volume wash unit. Storm Water Keep equipment and process areas clean; cover process and storage areas.

Table 11 – SOURCE REDUCTION THROUGH CONTAINMENT PollutantContainment Measure Contaminated soil Provide containment (e.g., drip pans) around equipment with the potential to leak (e.g., valves and flanges); provide containment around process areas, storage areas, tanks, wellheads, and loading racks. Storm Water Contain spills to prevent contamination of storm water; provide containment for storm water.

Table 12 – SOURCE REDUCTION THROUGH SEGREGATION PollutantSegregation Procedure Oily rags Separate from trash so they can be cleaned and reused. Storm Water Divert from contaminated areas. Filters Segregate filters that can be recycled. Trash, refuse Segregate recyclable materials (aluminum, paper, glass).

Table 13 – SOURCE REDUCTION THROUGH SAMPLING PROCEDURES PollutantSampling Procedure Sample wastes Use in-line analyzers instead of performing shake-our tests. Laboratory wastes Collect only amount needed for analysis.

Table 14 – REUSE THROUGH REGENERATION PollutantRegeneration Practice Solvents Send to solvent reclaimer. Pumps, valves Send to reconditioner. Activated carbon Send to regenerator. Batteries Use rechargeable batteries.

Table 15 – REUSE PollutantContainment Measure Produced Water Inject for enhanced recovery Drilling Fluids Closed-loop mud system, return to vendor. Empty Containers Return to vendor. Lube Oil Put in production.

Table 16 – RECYCLE PollutantRecycling Measure Oily Soil Use as asphalt for roads or berms Tank Bottoms Use as asphalt for roads or berms, process in coker, commercial recycler Empty Containers Recycle for scrap-metal Trash Segregate and recycle

Table 17 – RECYCLE THROUGH EXCHANGE/SUBSTITUTION PollutantExchange Substitution Measure Drilling Fluids Use as spud mud on next well. Acids Use for neutralization. Produced Water Use for agricultural/other beneficial use

Environmental Compliance and Engineering for Oil & Gas E&P Activities