Ben Turner, EcoVapor

Report
EcoVapor Recovery Systems
July 2014
1
Colorado Emissions Regulations
• Implemented earlier this year
• Focused on Methane emissions
– Methane is a greenhouse gas 21 times more
potent than Carbon Dioxide
– When you burn Methane, Carbon Dioxide is a
byproduct
• Also largely focused on leak detection and
prevention
2
Colorado Emissions Regulations Cont.
• Regulation 7 requires oil and gas operators to
control methane emissions from oil storage
tanks
• The regulation covers all wells making more
than 10 BOPD (6 tpy emissions)
• Operators can choose to burn or recovery the
gas that comes off the tanks
3
How gas come out of oil?
4
Post-Tank Vapor Emission Control
• Proven innovative emission control system
converts tank emissions from
waste/incineration to useable NG/NGLs
$$
$$
• A typical 8 well site in the DJ currently
incinerates up to $500,000 per year
• 25 ERS units deployed in DJ since 2011
• Cumulative capacity 321,200,000 SCF per
year
• Remove the VOC equivalents of 28,000
cars/year
• Heat over 9,000 homes per year
• DJ Opportunity: Billions of SCF per year
5
ERS Provides Economic, Safe, Environmentally
Friendly, and Reliable Vapor Recovery
• ERS Units are Economic
• By turning flared waste gas into a saleable product, ERS adds to the
revenue of a production location
• With no Capital Expense, Operating Expense, or service costs, net profit
is increased
• ERS increases the gas sales price by increasing BTU content with our
special patent pending oxygen reduction technology that allows recovery
of flash gas at acceptable pipeline levels (<2PPM)
• ERS Units are Safe
• Automated and remote monitored system with 30 safety shutdown
triggers ensure the unit is safe
• Lower oil tank vapor pressure leads to a reduction in LEL hits and lower
VOC incinerator pressures allowing incinerators to operate in dormant
mode and increasing site safetys
6
ERS Provides Economic, Safe, Environmentally
Friendly, and Reliable Vapor Recovery
• ERS Units are Environmentally Friendly
• 99+% emission control
• Reduces or eliminates regulatory risk of fines from flaming or smoky
incinerators
• Small footprint does not complicate wellsite
• ERS Units are Reliable
• Robust design allows for operation at higher line pressures and higher
NGL levels with better liquids management than other VRUs
• No impact to well site operations during ERS unit downtime
7
ERS systems recover the richest gas on location
• ERS installs systems on location capable of recovering 30, 60,
and 120 MCFD depending on the productivity of the site
• Last year’s installations yielded 3000 BTU gas on average
• ~$16.00 per MCF net (net of POP, royalty, severance tax,
estimated recovery rates, monthly prices, averaged over 12
month well decline rate)
• Because we remove H2S and Oxygen, we are treated as a
gathering or marketing deduct so there is no impact on LOE.
Note: We use actual Producer prices, production costs, gas
composition samples and MCF gas captured to calculate values
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ERS30
9
ERS60
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ERS120
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ERS Units
HOW DOES THE SYSTEM WORK?
12
How Does ERS increase BTU content and reduce
Oxygen levels?
Wells
Separators
Oil Tanks
Flash Gas
Flare (s)
Excess / out
of spec gas
Oil
ERS Units
Natural Gas
Natural Gas
NGLs
Custody Meter
Gas Pipeline to Processing Plant
13
ERS Vapor Management: Oxygen Removal
• Monitors O2 concentration at system inlet and outlet.
• Pipelines allow 10 parts-per-million. Inlet concentrations above 5%
(50,000 ppm) O2 are not uncommon.
• ERS technology actively removes oxygen molecules from tank vapor gas
stream.
• Potential for >10 ppm when the unit is starting up, or restarting if the
wells were off for a time period.
 System recirculates gas until O2 concentrations are acceptable.
• Average oxygen at custody meter less than 2 ppm
Strictly Confidential - Do Not Distribute
Without ERS Consent
14
ERS Unit
ERS Unit:
3 Vapor Incinerators
small footprint
on well site
Sand Trap Separators
12 500 bbl Tanks
15

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