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Ed Ireland, Ph. D.
Executive Director
Barnett Shale Energy Education Council
 BSEEC is an association of energy producers, pipeline
companies and related energy vendors committed to
promoting energy education and best practices as it relates to
oil and gas leasing, drilling, production, transportation and
marketing in the Barnett Shale.
 BSEEC is a non-profit, community resource.
 Web site is at bseec.org .
 BSEEC member companies account for over 85% of the
natural gas production in the Barnett Shale.
Source: U.S. DOE, April 2011
Economic Impact of Barnett Shale Activities:
   The Perryman Group Report released
           September 27, 2011
• “The 2011 total effect of Barnett Shale activity includes $11.1
billion in annual output and 100,268 jobs in the region.”
• “For the state as a whole, Barnett Shale activity leads to
estimated 2011 gains in output of almost $13.7 billion and
119,216 jobs.
• “Approximately 38.5% of the incremental growth in the
economy of the region over the past decade has been the
result of Barnett Shale activity.
• “The overall economic contribution of this phenomenon now
constitutes about 8.5% of the local business complex.”
Economic Impact of Barnett Shale
Activities: The Perryman Group Report
• In 2011, counties, cities and school districts in the region will
receive some $730.7 million in additional fiscal revenues due
to Barnett Shale and related activity.
• The State will receive another $911.8 million for a total gain
in local and State taxes of an estimated $1.6 billion.
• Over the entire 2001-2011 period, local taxing entities
received an additional $5.3 billion in tax receipts with another
$5.8 billion to the State.
Economic Impact of Barnett Shale
Activities: The Perryman Group Report
• “Even though activity was virtually nonexistent 10 years ago,
  the Barnett Shale’s effects are now larger than other, long-
  time sources of economic success in the Metroplex: 5%
  higher than that of aircraft manufacturing, 10% larger than
  air transportation (including Dallas Love Field, Dallas/Fort
  Worth International Airport and Fort Worth Alliance Airport)
  and 83% larger than motor vehicle manufacturing.”
• Only a small proportion of total estimated production has
  occurred to date and the Barnett Shale is expected to
  continue to generate economic stimulus for local area and
  state economies for decades to come.”
Air Studies in the Barnett Shale
• BSEEC/TITAN Engineering study
• Continuous long-term TCEQ monitors
• Flower Mound/Kleinfelder air testing
• Mickey Leland National Urban Air Toxics
  Research Center/Desert Research Institute
• City of Fort Worth/ERG study
• TCEQ Barnett Shale Special Emissions
  Inventory and the (ozone) State
  Implementation Plan
BSEEC/Titan Engineering Ambient
     Air Study, June 2010
BSEEC/TITAN Engineering Study

“Based on the results of this study and the health
effects criteria employed, TITAN concludes that
harmful levels of benzene and other pollutants
are not being emitted from natural gas sites in
the study area.”
       – Doug Canter, P.E, Principal, TITAN Engineering
TCEQ Continuous Air Monitors
These monitors have collected 113,740 air samples
Source: Powell Shale Gas Daily
Statement by Keith Sheedy of TCEQ
            What We Are Finding

    “Based on the DFW AutoGC data at our
   ambient air monitoring stations, we are not
   seeing an increase in benzene levels over
          typical background levels.”
Air Studies in Flower Mound
 conducted by Kleinfelder
Flower Mound/Kleinfelder Study

“…concentrations appear to be consistent with
published background ambient air
concentrations…”
“No VOC noted exceeded the AMCV or ESL
criteria”
“Monitoring of Emissions from Barnett
Shale Natural Gas Production Facilities
 for Population Exposure Assessment”
conducted by Desert Research Institute
  for Mickey Leland National Urban Air
         Toxics Research Center
Mickey Leland/DRI Study
             Findings

Initial hypothesis was that a problem existed;
conclusions showed no problem found


“The average concentrations of species …were low,
generally below 1 ppb.”
Mickey Leland/DRI Study
            Findings

“There was a steep, exponential decrease in
emission concentrations from the site closest to
an emission source.”
“The concentrations of emissions from the tank
decreases to near background levels at the
distance of approximately 100 meters.”
Mickey Leland/DRI Study Findings
1.0 is the maximum
relative value for each
compound. None of
the averages exceeded
the ESL.




          Source: Mickey Leland National Urban Air Toxics Research
          Center Air Quality Study, July 2010
City of Fort Worth Natural Gas Air
   Quality Study, July 13, 2011
Headline in Fort Worth Star Telegram
            July 15, 2011



“Air quality study finds no major health
                 threats”
ERG’s Stated Purpose of the Study
“ERG began field testing in August 2010. The study included
sampling at 388 gas well and gas transportation sites
(including more than 1,000 active wells and more than 1,200
storage tanks). ERG was able to capture emissions samples
from all stages of the gas production process.”
“In the end, the study included unannounced up-close point
source testing, ambient air monitoring, air dispersion modeling,
a public health evaluation, a regulatory assessment and full
build-out estimates.”
Major Points of the study’s findings:
• “Ambient air monitoring, which included analysis of more
than 15,000 data points, revealed no site-related pollutants
above health-based screening levels established by the Texas
Commission on Environmental Quality (TCEQ).”

• “For the overwhelming majority of sites considered in this
study, the modeling results indicate that Fort Worth’s 600-foot
setback distance is adequate to protect public health.”
ERG Major Findings continued:
• A total of 2,126 emission points were identified in the four-month field
study with the Infrared (IR) Camera and Toxic Vapor Analyzer (TVA)

• While 96 sites had no detectable emissions with the infrared camera,
when emissions were detected, the primary sources were tank thief
hatches, pneumatic valve controllers, tank vents and natural gas pressure
regulators.

• More than 130 sites that included compressors were visited. Of those,
five particular sites may have overall emission rates that exceed regulatory
thresholds that are supposed to trigger certain TCEQ permitting
requirements. The emissions from these compressor sites were calculated
using the best information available from the EPA.
TCEQ Barnett Shale Special
       Inventory
TCEQ Special Inventory

• Phase One (due June 16, 2010) required all companies
  operating in the Barnett Shale to detail every piece of
  equipment in operation in order “to determine the location,
  number and type of emission sources located at upstream
  and midstream oil and gas operations associated with the
  Barnett Shale formation.”
• Phase Two (due January 16, 2011) required operators to
  report the annual 2009 emissions for nitrogen oxides,
  volatile organic compounds and hazardous air pollutants for
  each piece of equipment reported in Phase One.
Phase Two Results: Actual Emissions
     from Barnett Shale facilities
• In the 9-county EPA non-attainment area, actual emissions
were 23.2 tons per day in 2009. Extrapolating this using the
actual growth rate in producing wells of 0.8% yields emissions
of 23.4 TPD in 2010.
• TCEQ’s estimate which appears in their SIP is 101.8 TPD,
an over-estimate of 4.4 times.
Actual Emissions from Barnett Shale natural
    gas facilities from Phase Two data
• Average VOC emissions per well (there were 10,675 wells
  in the 9-county area) are therefore 0.8 tons per year (ERG
  estimated 0.7 TPY). Each of these wells is permitted to
  release 25 TPY.
• TCEQ is over-estimating VOC because their models do not
   recognize the industry’s best practices of using low-bleed
   pneumatic valves and vapor recovery units where
   operationally appropriate. TCEQ models rely on emissions
  factors from outdated and flawed studies.
• TCEQ told me that the Phase Two data will be incorporated
  into the next SIP cycle.
Step presentation 10 11-11

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Step presentation 10 11-11

  • 1. Ed Ireland, Ph. D. Executive Director
  • 2. Barnett Shale Energy Education Council  BSEEC is an association of energy producers, pipeline companies and related energy vendors committed to promoting energy education and best practices as it relates to oil and gas leasing, drilling, production, transportation and marketing in the Barnett Shale.  BSEEC is a non-profit, community resource.  Web site is at bseec.org .  BSEEC member companies account for over 85% of the natural gas production in the Barnett Shale.
  • 3.
  • 4. Source: U.S. DOE, April 2011
  • 5. Economic Impact of Barnett Shale Activities: The Perryman Group Report released September 27, 2011 • “The 2011 total effect of Barnett Shale activity includes $11.1 billion in annual output and 100,268 jobs in the region.” • “For the state as a whole, Barnett Shale activity leads to estimated 2011 gains in output of almost $13.7 billion and 119,216 jobs. • “Approximately 38.5% of the incremental growth in the economy of the region over the past decade has been the result of Barnett Shale activity. • “The overall economic contribution of this phenomenon now constitutes about 8.5% of the local business complex.”
  • 6. Economic Impact of Barnett Shale Activities: The Perryman Group Report • In 2011, counties, cities and school districts in the region will receive some $730.7 million in additional fiscal revenues due to Barnett Shale and related activity. • The State will receive another $911.8 million for a total gain in local and State taxes of an estimated $1.6 billion. • Over the entire 2001-2011 period, local taxing entities received an additional $5.3 billion in tax receipts with another $5.8 billion to the State.
  • 7. Economic Impact of Barnett Shale Activities: The Perryman Group Report • “Even though activity was virtually nonexistent 10 years ago, the Barnett Shale’s effects are now larger than other, long- time sources of economic success in the Metroplex: 5% higher than that of aircraft manufacturing, 10% larger than air transportation (including Dallas Love Field, Dallas/Fort Worth International Airport and Fort Worth Alliance Airport) and 83% larger than motor vehicle manufacturing.” • Only a small proportion of total estimated production has occurred to date and the Barnett Shale is expected to continue to generate economic stimulus for local area and state economies for decades to come.”
  • 8. Air Studies in the Barnett Shale • BSEEC/TITAN Engineering study • Continuous long-term TCEQ monitors • Flower Mound/Kleinfelder air testing • Mickey Leland National Urban Air Toxics Research Center/Desert Research Institute • City of Fort Worth/ERG study • TCEQ Barnett Shale Special Emissions Inventory and the (ozone) State Implementation Plan
  • 9. BSEEC/Titan Engineering Ambient Air Study, June 2010
  • 10. BSEEC/TITAN Engineering Study “Based on the results of this study and the health effects criteria employed, TITAN concludes that harmful levels of benzene and other pollutants are not being emitted from natural gas sites in the study area.” – Doug Canter, P.E, Principal, TITAN Engineering
  • 12.
  • 13. These monitors have collected 113,740 air samples
  • 14. Source: Powell Shale Gas Daily
  • 15. Statement by Keith Sheedy of TCEQ What We Are Finding “Based on the DFW AutoGC data at our ambient air monitoring stations, we are not seeing an increase in benzene levels over typical background levels.”
  • 16. Air Studies in Flower Mound conducted by Kleinfelder
  • 17. Flower Mound/Kleinfelder Study “…concentrations appear to be consistent with published background ambient air concentrations…” “No VOC noted exceeded the AMCV or ESL criteria”
  • 18. “Monitoring of Emissions from Barnett Shale Natural Gas Production Facilities for Population Exposure Assessment” conducted by Desert Research Institute for Mickey Leland National Urban Air Toxics Research Center
  • 19. Mickey Leland/DRI Study Findings Initial hypothesis was that a problem existed; conclusions showed no problem found “The average concentrations of species …were low, generally below 1 ppb.”
  • 20. Mickey Leland/DRI Study Findings “There was a steep, exponential decrease in emission concentrations from the site closest to an emission source.” “The concentrations of emissions from the tank decreases to near background levels at the distance of approximately 100 meters.”
  • 21. Mickey Leland/DRI Study Findings 1.0 is the maximum relative value for each compound. None of the averages exceeded the ESL. Source: Mickey Leland National Urban Air Toxics Research Center Air Quality Study, July 2010
  • 22. City of Fort Worth Natural Gas Air Quality Study, July 13, 2011
  • 23. Headline in Fort Worth Star Telegram July 15, 2011 “Air quality study finds no major health threats”
  • 24. ERG’s Stated Purpose of the Study “ERG began field testing in August 2010. The study included sampling at 388 gas well and gas transportation sites (including more than 1,000 active wells and more than 1,200 storage tanks). ERG was able to capture emissions samples from all stages of the gas production process.” “In the end, the study included unannounced up-close point source testing, ambient air monitoring, air dispersion modeling, a public health evaluation, a regulatory assessment and full build-out estimates.”
  • 25. Major Points of the study’s findings: • “Ambient air monitoring, which included analysis of more than 15,000 data points, revealed no site-related pollutants above health-based screening levels established by the Texas Commission on Environmental Quality (TCEQ).” • “For the overwhelming majority of sites considered in this study, the modeling results indicate that Fort Worth’s 600-foot setback distance is adequate to protect public health.”
  • 26. ERG Major Findings continued: • A total of 2,126 emission points were identified in the four-month field study with the Infrared (IR) Camera and Toxic Vapor Analyzer (TVA) • While 96 sites had no detectable emissions with the infrared camera, when emissions were detected, the primary sources were tank thief hatches, pneumatic valve controllers, tank vents and natural gas pressure regulators. • More than 130 sites that included compressors were visited. Of those, five particular sites may have overall emission rates that exceed regulatory thresholds that are supposed to trigger certain TCEQ permitting requirements. The emissions from these compressor sites were calculated using the best information available from the EPA.
  • 27. TCEQ Barnett Shale Special Inventory
  • 28. TCEQ Special Inventory • Phase One (due June 16, 2010) required all companies operating in the Barnett Shale to detail every piece of equipment in operation in order “to determine the location, number and type of emission sources located at upstream and midstream oil and gas operations associated with the Barnett Shale formation.” • Phase Two (due January 16, 2011) required operators to report the annual 2009 emissions for nitrogen oxides, volatile organic compounds and hazardous air pollutants for each piece of equipment reported in Phase One.
  • 29.
  • 30. Phase Two Results: Actual Emissions from Barnett Shale facilities • In the 9-county EPA non-attainment area, actual emissions were 23.2 tons per day in 2009. Extrapolating this using the actual growth rate in producing wells of 0.8% yields emissions of 23.4 TPD in 2010. • TCEQ’s estimate which appears in their SIP is 101.8 TPD, an over-estimate of 4.4 times.
  • 31. Actual Emissions from Barnett Shale natural gas facilities from Phase Two data • Average VOC emissions per well (there were 10,675 wells in the 9-county area) are therefore 0.8 tons per year (ERG estimated 0.7 TPY). Each of these wells is permitted to release 25 TPY. • TCEQ is over-estimating VOC because their models do not recognize the industry’s best practices of using low-bleed pneumatic valves and vapor recovery units where operationally appropriate. TCEQ models rely on emissions factors from outdated and flawed studies. • TCEQ told me that the Phase Two data will be incorporated into the next SIP cycle.