1. Steffes Engineered Flare System
Good Afternoon. My name is Todd Mayer. I am with Steffes corporation located in Dickinson, ND. I am here to discuss a flare system we have been working with some of our customers on to help them meet regulations for dealing with gas on their oil sites. The goal is always to put the gas to productive use, but when this is not possible, there are regulations in place for how the gas needs to be handled. In this presentation, I will share with you details of how the Steffes Engineered Flare System operates.
Presented by Todd Mayer, Steffes Corporation

2. Steffes Engineered Flare System Agenda
Why discuss this?
Regulations put in place last year that required operators to look at gas being vented or burned on their production sites
Clarification of the specific gases are we talking about
Types of devices for burning the gases
Types of devices required for given production levels
How has Steffes addressed these regulations?
Development of the Steffes Engineered Flare system that will be 3rd party tested in June This is only one option available to operators.
Combustor, air assist flares, gas assist flares, and multi-orfice flares (not discussing today)
The agenda for today is as follows. Why discuss this topic of flares at all?

3. Regulations on bridge load capacity???
So let’s talk a little bit about the regulations that are out there affecting the Bakken. Hopefully your day is going better than this!

4. What regulations were put in place requiring operators to look at gas being vented or burned on their production sites?
Bakken Pool Oil and Gas Production Facilities Air Pollutions Control Permitting & Compliance Guidance Document
Issued by ND Department of Health, Division of Air Quality
Effective Date May 2, 2011
What regulations were put in place requiring operators to look at gas being vented or burned on their production sites?
Fly-In. The state introduced a document last year (fly-in) that had 2 main requirments (emphasize VOCs): Fly-In.

5. What regulations were put in place requiring operators to look at gas being vented or burned on their production sites?
2 Main Requirements need to be met:
The overall well Potential to Emit (PTE) of VOC, CO, and Nox needs to be less than 100 Tons per Year (TPY)
Greater than 100 TPY requires a permit to construct and Title V application.
Oil Tank Potential to Emit (PTE) of VOCs:
Tank PTE < 20 TPY—Ground Flare Acceptable
Tank PTE >20 TPY—Utility Flare Required
What regulations were put in place requiring operators to look at gas being vented or burned on their production sites?
Fly-In. The state introduced a document last year (fly-in) that had 2 main requirments (emphasize VOCs): Fly-In. The overall potential to emit of an entire site (including tanks) needs to be less than 100 TPY of VOCs. Greater than 100 TPY requires a Title V application. Fly-In. There is an additional requirement for tank emissions. If the potential to emit of tanks is > 20 TPY of VOCs a utility flare is required. A ground flare (pit flare or shop built flare) can only be used up to 20 TPY. Recent documents from the EPA show that this limit is being reduced from 20 TPY to 6 TPY.

6. What are VOCs? Volatile Organic Compounds
Organic Compounds—Compounds containing carbon
One way to destroy VOCs is to burn them using flares. One way flares are rated is their Destruction and Removal Efficiency (DRE). A flare with a 98% DRE is burning 98% of the VOCs contained in the incoming gas.
What are VOCs? Emphasize the definition of DRE.

7. Sources of VOCS on an Oil Site
Oil/Condensate Tanks
Produced Water Tanks
Treater Flares
Heater/Burners
Truck Loading
Reciprocating Internal Combustion Engine (RICE)
Pneumatic Pumps
Pneumatic Controllers
Today we will focus on VOCs from tanks and treater flares

8. Burning VOCs
North Dakota specifies 3 classifications of devices for burning VOCs:
Ground Pit Flare (includes, but not limited to pit flares or shop built flares). 90% DRE allowed.
Enclosed Smokeless Combustor. 98% Destruction and Removal Efficiency (DRE) allowed.
Utility Flare or Other 98% DRE device
At a minimum, all treater gas and tank gas must be burned with a ground pit flare.
We will be focusing on the utility flare (the Steffes Engineered Flare is a utility flare) today.
So, if we need to burn gas on the site, what options are available? Fly-In. North Dakota specifies 3 classifications …

9. Definition of a Utility Flare (reference 40 CFR 60.18)
Operates with no visible emissions (smoke) except for periods not to exceed a total of 5 minutes during any 2 consecutive hours.
Operates with a flame present at all times.
Gas exits the flare at a velocity within a specified range.

10. What control device is needed on a particular site?
The overall well Potential to Emit (PTE) of VOC, CO, and Nox:
Needs to be less than 100 Tons per Year (TPY). Greater than 100 TPY requires a permit to construct and Title V application.
Oil Tank Potential to Emit (PTE) of VOCs:
Tank PTE < 20 TPY—Ground Flare Acceptable
Tank PTE >20 TPY—Utility Flare Required
What does all this mean in terms of production numbers?
So, going back to the requirements of the state, “What control device is needed on a particular site?”

11. Included in analysis (default values from state):
Example: A well produces an average of 500 bopd during its first month of production. A ground flare is not acceptable because flow is greater than 118 bopd. Allowable treater gas to be burned is 663 mscfd if burned with a utility flare (98% DRE) or 154 mscfd if burned with a ground flare (90% DRE).
118 bopd limit for using a ground pit flare (90% DRE) on tank gas. Above this limit, VOC emissions would be greater that 20 TPY.
Included in analysis (default values from state):
Treater Flare Gas, Tank Vent Gas, Treater Burner
And Truck Loading
This chart shows “Acceptable Combinations of Oil and Gas Flow Rates to stay below 100 TPY Limit of VOC Emissions” . The x-axis shows “Average Oil Flow Rate”. The y-axis shows “Flared Treater Gas Flow Rate”. (Fly-in) Include in analysis is “Treater Flare gas, Tank Vent Gas, Treater Burner, and Truck Loading”. Not included are “Pneumatic Pumps, Pneumatic Controllers, Glycol Dehydrators, or internal combustion engines”. Now we will bring in 5 more curves on this chart and at the end go through an example of how this works. (Fly-In) This first vertical line is the max flow rate allowed on a well site before you must switch from a 90% DRE ground flare to a 98% minimum DRE device (like a utility flare or a combustor) which occurs at 118 bopd. (Fly-In) The red line is the maximum operating curve if you have a 98% DRE on treater and a 98% DRE on tank gas. Note that the maximum allowable amount of gas that can be burned with a 98% destruction device is about 900 mscfd. Above this point, emissions would exceed the 100 TPY limit. (Fly-In) The orange line represents a max operating condition if you have a 90% DRE on Tank Gas (pit flare) and a 98% DRE on Treater Gas (utility flare). This line only goes up to 118 bopd since you cannot operate above this level with only a 90% DRE device on Tanks. (Fly-In) The blue line shows an operating condition where there is 98% DRE on tank gas (utility flare, combustor) but only 90% on treater gas (pit flare). You see this set-up on many sites in the Bakken. (Fly-In) Lastly, the green line shows the allowable operation level if the site only has a pit flare on both tank and treater gas—90% DRE for both. (Fly-In) Let’s go through a quick example of how to use this chart. (Fly-In) A well produces … (Fly-In) Allowable Treater Gas to burned… (Fly-In) Ground Flare. I hope this chart illustrates that a utility flare is not required in all cases, but there are cases where it will be required, and in those cases, a Steffes Engineered Flare System may be a good option for you.
98% DRE Tank Gas, 90% DRE Treater Gas
98% DRE Tank Gas, 98% DRE Treater Gas
90% DRE Tank Gas, 90% DRE Treater Gas
90% DRE Tank Gas, 98% DRE Treater Gas

12. What is a Steffes engineered flare?
One system to burn both tank and treater gas. Both burners qualify as utility flares (98% DRE).
Also possible to use each burner as a stand alone system
Includes ignition system and monitored standing pilot
Handles a wide range of gas flow rates
Open Flare
Meets all requirements of EPA 40 CFR 60.18
Smokeless
Flame present at all times
Exit Velocity Requirements
Simple, Reliable, Easy to Maintain, and Safe
A flare that does not run destroys 0% of VOCs
Easy to set-up. Everything is included to make the system work.
Options to log or communicate with existing SCADA systems.
Emphasize that this is a turn-key SYSTEM. It is important to look at this as a system. A flare that is not running is not destroying any VOCs.

13. Overview of the Flare System
This is an animation showing the entire flare system. The animation starts at the actual flare tips typically installed in a berm. We are now flying away from the flare tip over stands to the ignition and logging modules. These modules are typically about 70’ away from the flare tips to protect them from damage by heat. This distance can be adjusted depending on site conditions. I will be coming back to each component to explain operation in detail. The system is turn-key in that everything shown in this animation is included in one crate and 2 pallets to get up and running. This animation ends at the ignition and logging module systems. Lets discuss those in more detail.

14. Ignition, Data Logging, and Monitoring
Optional pressure gages for system monitoring
High Temperature Insulated Stainless Steel Conductor
Electric Fencer or Burner Management System to provide high voltage pulse to igniter
Thermocouple Data Logger or SCADA interface
Electric Fencer or BMS. Operator can choose to make the burner management system as sophisticated as their site demands. The standard system is operated with an electric fencer (fly in next leader) and a thermocouple data logger that can be plugged into the USB port of a computer to download data.
Powder Coated Steel Stands

15. Overview of Flare System
Now we will fly back from the ignition and logging modules back to the flare tips. The engineers that designed this system also helped to install the first systems, so many improvements were made to make it easy to install in adverse conditions. For example the stands we are flying over here are pre-assembled in the factory. The whole system can be installed in less than 4 hours. Now we are back in the berm with the flare tips. In the standard set-up shown here, the flare is able to burn both tank and treater gas. Everything on the flare tips is designed to operate at high temperatures and is made out of stainless steel. Let’s take a closer look at the flare tips.

16. Flare and Pilot Tips
Low Pressure Tank Gas Tip. 4 osi
High Pressure Treater Gas Tip psi.
All tips are modular meaning that it is possible to configure to only burn treater gas or to only burn tank gas.
Here we see the 3 elements that make up an engineered flare.
Fly in all 3 tips and describe. Final fly-in . All tips are modular…
Next we will discuss how these 3 elements work in detail.
Standing Pilot 8-10 psi

17. High Pressure Flare Tip
The high pressure flare tip is a pressure assisted flare. When gas exits under pressure at a higher velocity than a typical pit flare, it burns with a pale orange smokeless flame.
3. Gas exits through the annular gap and is guided upward by the plunger radius. As the gas is guided around the radius, significant combustion air is drawn in prior to ignition.
2. Plunger lifts a distance proportional to the gas flow.
3. As the gas is guided around the radius, it draws in significant combustion air prior to ignition
1. Gas fills main barrel of flare and builds to a pressure of 3 psi. This pressure is based on the weight of the plunger and preload of spring pack.

18. Low Pressure Flare Tip
Similar operation to the high pressure flare tip, but needs to operate at a much lower pressure to handle tank vent gas.
3. Gas exits through the annular gap and is guided upward by the plunger radius. As the gas is guided around the radius, significant combustion air is drawn in prior to ignition.
2. Plunger lifts a distance proportional to the gas flow.
1. Gas fills main barrel of flare and builds to a pressure of 4 osi. This pressure is based on the weight of the plunger only.

19. Standing Pilot Overview
This animation flies up the pilot system. A SINGLE standing pilot is located between the high pressure and low pressure flare tips. This means that only one flame needs to be monitored and logged. Let’s take a closer look inside the pilot nozzle.

20. Pilot System High Temperature Ignition Rod
High Temperature Thermocouple
Looking in end of pilot nozzle
Thermocouple
High temperature Kanthal ignition rod with easily adjusted spark gap.
Inconel Sheathed high temperature thermocouple. This system was designed to keep on running even during a fire in the berm.
Ignition Conductor
Pilot Gas

21. Steffes Engineered Flare
Low Pressure Tank Gas
High Pressure Treater Gas
Pilot
I have been showing you a lot of animations and computer images of how the system works. Let’s look at some actual installs and videos of operation. This picture shows a site typical of the couple dozen installs we have in place that are running. You can clearly see the pilot (fly-in), low pressure tank gas (fly-in), and high pressure treater gas tips (fly-in) in this picture.

22. Engineered Flare System
Flare Tips in Berm
This install shows an overview of the whole system including the flare tips, electric fencer, data logging, and stands carrying out ignition conductor, pressure gage tube lines, and thermocouple.
Electric Fencer

23. High Pressure Flare Tip Burning Approximately 800 mscfd
This video shows the flare tip burning about 800 mscfd of treater gas. We have run the system at more than double this flow rate. The flame actually burns cleaner at higher flow rates and higher pressures. The limiting factor is the maximum exit velocity of 400 fps and max emissions of 100 TPY specified by the state and the EPA. We will be evaluating this exit velocity with a 3rd party in June.

24. Very Low Gas Flow
This second video demonstrates the large turn-down ratio of this device. The variable annular orifice allows smokeless operation at flows over a million scfd down to a few thousand scfd. This has been useful to customers that are hooked up to gas sales line. Sometimes almost all gas is being sold and some times no gas is being sold. The flare has to be able to react to this wide range of flow requirements.

25. Low Pressure Flare Tip Burning Approximately 30 mscfd
Low Pressure Tank Vent Gas Flare Tip
Pilot
This picture shows low pressure tank gas flare tip only which demonstrates the modularity of this system.

26. Summary
Today we have discussed regulations that are in place guiding operators on what needs to be done with gas emitted from production oil sites.
The Steffes Engineered Flare is one tool that is available to help operators meet these regulations. The system will be 3rd party tested in June 2012.
Steffes is working with customers to develop other flaring technologies such as air assist flares, gas assist flares, and multi-orifice flares. More technologies will be introduced as regulations continue to evolve.

27. QUESTIONS?