1. Replacing High-Bleed Pneumatic Devices Lessons Learned from Natural Gas STAR Partners NiSource and EPA’s Natural Gas STAR Program June 3, 2003

2. Page 2 Reducing Emissions, Increasing Efficiency, Maximizing Profits Pneumatic Devices p Pneumatic devices are found in every gas production, processing, transmission and distribution facility p Most pneumatic devices leak gas by design p Losses from pneumatic devices are the largest source of methane emissions p Replacing, retrofitting, or maintaining high-bleed devices saves gas and money p These methods can be highly cost-effective

3. Page 3 Reducing Emissions, Increasing Efficiency, Maximizing Profits Location of Pneumatic Devices at Compression Stations PC SOV LC SOV Liquid Knockout Dehydrator Unit Compressors ToPipeline SOV=Shut-off Valve (Unit Isolation) LC =Level Control (Knockout, Contactor, TEG Regenerator) TC =Temperature Control (Regenerator Fuel Gas) FC =Flow Control (TEG Circulation, Compressor Bypass) PC =Pressure Control (FTS Pressure, Compressor Suction/Discharge) FC LCTCFCPC FromPipeline

4. Page 4 Reducing Emissions, Increasing Efficiency, Maximizing Profits Pneumatic Device Schematic Pneumatic Controller Process Measurement Liquid Level PressureTemperatureFlow Weak Signal Bleed (Continuous) Strong Signal Vent (Intermittent) Process Flow Control Valve Valve Actuator Strong Pneumatic Signal Weak Pneumatic Signal (3 - 15 psi) Regulator 100+ psi Gas Regulated Gas Supply 20 psi

5. Page 5 Reducing Emissions, Increasing Efficiency, Maximizing Profits Sources of Methane Losses p As part of normal operations, pneumatic devices release natural gas into the atmosphere p High-bleed devices bleed in excess of 6 scf per hour u Equates to >50 Mcf per year u Typical high-bleed pneumatic devices bleed an average of 140 Mcf per year p The actual bleed rate is largely dependent on the device’s design

6. Page 6 Reducing Emissions, Increasing Efficiency, Maximizing Profits Magnitude of Methane Losses p Major source of methane losses from the natural gas industry p Pneumatic devices are used throughout the natural gas industry u Between 90,000 to 130,000 in the transmission sector u Over 250,000 in the production sector u In the distribution sector most pneumatic devices are non-bleeding pressure regulators

7. Page 7 Reducing Emissions, Increasing Efficiency, Maximizing Profits Losses from Pneumatic Devices Gas Industry Oil Industry Gas Industry Oil Industry Production31 Bcf 22 Bcf Processing 16 --- Transmission14 --- Total61 Bcf22 Bcf Total Gas/Oil 83 Bcf/yr

8. Page 8 Reducing Emissions, Increasing Efficiency, Maximizing Profits Three Options for Reducing Losses p Option 1: Replace high-bleed devices with low-bleed devices p Option 2: Retrofit controller with bleed reduction kits p Option 3: Maintenance aimed at reducing losses

9. Page 9 Reducing Emissions, Increasing Efficiency, Maximizing Profits Option 1: Replace High-Bleed Devices p Most applicable to: u Controllers: liquid-level and pressure u Positioners and Transducers p Suggested Action: Evaluate replacements u Replace at end of device’s useful life u Early replacement

10. Page 10 Reducing Emissions, Increasing Efficiency, Maximizing Profits Option 1: Replace High-Bleed (cont’d) p Costs vary with size u Typical costs range from $700 to $3,000 per device u Incremental costs of low-bleed devices are modest ($150 to $250) u Gas savings often pay for replacement costs in short periods of time

11. Page 11 Reducing Emissions, Increasing Efficiency, Maximizing Profits Option 2: Retrofit with Bleed Reduction Kits p Most applicable to: u High-bleed controllers p Suggested Action: Evaluate retrofits u As alternative to early replacement u Retrofit kit costs approximately $250-$500

12. Page 12 Reducing Emissions, Increasing Efficiency, Maximizing Profits Option 3: Maintenance to Reduce Losses p Applies to all pneumatic devices p Suggested Action: Modify routine maintenance procedures u Field survey of installed controllers u Where process allows, tune controllers to minimize bleed

13. Page 13 Reducing Emissions, Increasing Efficiency, Maximizing Profits Option 3: Maintenance (cont’d) p Suggested Action (cont’d) u Re-evaluate the need for pneumatic positioners u Repair/replace airset regulators u Reduce regulated gas supply pressure to minimum u Routine maintenance should include repairing/replacing leaking components p Cost is low

14. Page 14 Reducing Emissions, Increasing Efficiency, Maximizing Profits Summary of Decision Process Locate and inventory the high-bleed devices the high-bleed devices Establish technical feasibility of alternatives Evaluate economics of alternatives Develop an implementation plan Measure & record bleed rates, use vendor specifications, or use EPA defaults

15. Page 15 Reducing Emissions, Increasing Efficiency, Maximizing Profits Economics of Replacement a All data based on Partners’ experiences. See Lessons Learned for more information. b Range of incremental costs c Gas price is assumed to be $3/Mcf.

16. Page 16 Reducing Emissions, Increasing Efficiency, Maximizing Profits Economics of Retrofit a On high-bleed controllers b All data based on Partners’ experiences. See Lessons Learned for more information c Gas price is assumed to be $3/Mcf Retrofit a Implementation cost b $250-500 Bleed rate reduction (Mcf/device/year) 219 Value of gas saved ($/year) c 657 Payback (months) 9 IRR129%

17. Page 17 Reducing Emissions, Increasing Efficiency, Maximizing Profits Economics of Maintenance a All data based on Partners’ experiences. See Lessons Learned for more information b Gas price is assumed to be $3/Mcf

18. Page 18 Reducing Emissions, Increasing Efficiency, Maximizing Profits Recommendations p Evaluate all pneumatics to identify candidates for replacement and retrofit p Choose lower bleed models at change-out where feasible p Identify candidates for early replacement and retrofits by doing economic analysis p Improve maintenance p Develop an implementation plan

19. Page 19 Reducing Emissions, Increasing Efficiency, Maximizing Profits Discussion Questions p To what extent are you implementing this technology? p How can this technology be improved upon or altered for use in your operation(s)? p What are the barriers (technological, economic, lack of information, regulatory, etc.) that are preventing you from implementing this technology?