1. Area Source Emissions Inventory Improvement Update Michael Ege, Emissions Inventory Specialist Air Quality Division Texas Commission on Environmental Quality (TCEQ) 2013 Environmental Trade Fair & Conference April 30 – May 1, 2013

2. Air Quality Division Area Source Emissions Inventory Improvement Update MEE April 30 - May 1, 2013 Page 2 Overview Role and importance of the emissions inventory (EI) Emissions inventory improvement Updated condensate tank volatile organic compounds (VOC) emission factor project Summary

3. Air Quality Division Area Source Emissions Inventory Improvement Update MEE April 30 - May 1, 2013 Page 3 Emissions Inventory Goals Accurate determinations of mass emissions released to the atmosphere Accurate identification of emission species released to the atmosphere –Ozone formation rates differ –Air toxics Continuous improvement

4. Air Quality Division Area Source Emissions Inventory Improvement Update MEE April 30 - May 1, 2013 Page 4 Emissions Inventory – Use in Planning

5. Air Quality Division Area Source Emissions Inventory Improvement Update MEE April 30 - May 1, 2013 Page 5 Emissions Inventory Improvement Air quality research projects have improved the quantitative understanding of emissions sources that were previously unknown or underestimated. – Operation of assisted flares – Tank emissions from floating roof landings – Flash emissions from upstream oil and gas tanks – Heated storage tanks – Working and breathing losses from barges – Pneumatic devices

6. Air Quality Division Area Source Emissions Inventory Improvement Update MEE April 30 - May 1, 2013 Page 6 Previous Condensate Tank VOC Emission Factor Factor used for 2008 area source inventory –33.3 pounds VOC/barrel condensate, from 2006 Houston Advanced Research Center H051C study –25% control factor Factor based on measured test data –13 gas sites in Fort Worth basin –9 gas sites in Western Gulf basin Accounts for standing, breathing, and flashing loss emissions

7. Air Quality Division Area Source Emissions Inventory Improvement Update MEE April 30 - May 1, 2013 Page 7 Updated Condensate Tank VOC Emission Factor Project TCEQ contracted Eastern Research Group, Inc. (ERG) to develop new factors for eight geographic areas of Texas. Data were obtained through: –a literature review;  “Upstream Oil and Gas Storage Tank Project Flash Emissions Models Evaluation” (TCEQ, 2009)  “Upstream Oil and Gas Tank Emission Measurements” (TCEQ, 2010) –an evaluation of data collected in the Barnett Shale Phase II Special Inventory; and –a phone survey of Texas condensate producers during the summer of 2012.

8. Air Quality Division Area Source Emissions Inventory Improvement Update MEE April 30 - May 1, 2013 Page 8 Updated Condensate Tank VOC Emission Factor Project (Cont.) A significant number of data points contributed to the emissions factor development: Emissions Estimation Method Literature Review Barnett Shale Phase II Inventory 2012 Survey Total data points Testing (Direct Measurement) 4411358 Process Simulator 30323698 E&P TANK3210891151236 Gas-Oil-Ratio1944315477

9. Air Quality Division Area Source Emissions Inventory Improvement Update MEE April 30 - May 1, 2013 Page 9 Updated Condensate Tank VOC Emission Factor Project (Cont.) The study considered only data where flash emissions were estimated using a TCEQ- approved method. Results were weighted by order of preference. VOC factors were based on a production- weighted average. Emissions Estimation MethodWeight Testing (Direct Measurement)4 Process Simulator (HYSIM, HYSIS, VMG, PROMAX)2 E&P TANK1.5 Gas-Oil-Ratio1

10. Air Quality Division Area Source Emissions Inventory Improvement Update MEE April 30 - May 1, 2013 Page 10 Updated Condensate Tank VOC Emission Factor Project (Cont.) Region Data Points Previous Factor Updated Factor Reduction Anadarko26 33.3 lb/bbl (average uncontrolled factor applied to entire state) 3.1591% Eagle Ford Shale4110.568% East Texas / Haynesville Shale 1044.2287% Fort Worth / Barnett Shale 16049.7671% Permian217.0779% Western Gulf3711.067% Palo Duro-7.6177% Marathon Thrust Belt -7.6177%

11. Air Quality Division Area Source Emissions Inventory Improvement Update MEE April 30 - May 1, 2013 Page 11 Updated Condensate Tank VOC Emission Factor Project (Cont.) Control factors were also developed. RegionData Source Surveyed Production % Surveyed Control % Control Factor AnadarkoERG6.299.417.1 Eagle FordERG43.392.246.0 East TexasERG11.182.119.4 PermianERG12.179.519.5 Western GulfERG1.046.512.2 Barnett ShaleTCEQ92.513.211.8 Beaumont – Port Arthur TCEQ21.972.123.5 Haynesville ShaleTCEQ37.19.0410.5 Houston- Galveston-Brazoria TCEQ68.025.019.9

12. Air Quality Division Area Source Emissions Inventory Improvement Update MEE April 30 - May 1, 2013 Page 12 Updated Condensate Tank VOC Emission Factor Project (Cont.) 2011 area source condensate tank VOC emissions: –803,221 tons VOC using the previous statewide factor and 25% control factor –202,281 tons VOC using the updated basin-specific factors and control factors –Resulted in a reduction of 600,940 tons VOC (75% reduction)

13. Air Quality Division Area Source Emissions Inventory Improvement Update MEE April 30 - May 1, 2013 Page 13 Updated Condensate Tank VOC Emission Factor Project (Cont.) Reasons why the factor changed: –Previous factor developed in 2006 using a more limited data set –2012 ERG report is based on more current data and a larger data set –Effects of new rules and permitting requirements –Industry outreach –Improved guidance for determining condensate storage tank emissions –Production weighting of data to develop emissions factors

14. Air Quality Division Area Source Emissions Inventory Improvement Update MEE April 30 - May 1, 2013 Page 14 Area Source EI Information Condensate tank project report www.tceq.texas.gov/assets/public/implementation/air/am/ contracts/reports/ei/5821199776FY1211-20121031-ergi- condensate_tank.pdf Air quality research and contract reports Web page www.tceq.texas.gov/airquality/airmod/project/pj_report_ei.html Area source Web page www.tceq.texas.gov/airquality/areasource

15. Air Quality Division Area Source Emissions Inventory Improvement Update MEE April 30 - May 1, 2013 Page 15 Contact Information Michael Ege –(512) 239-5706 –Michael.Ege@tceq.texas.govMichael.Ege@tceq.texas.gov Area source Web page http://www.tceq.texas.gov/airquality/areasource