On December 6, 2022, the US Environmental Protection Agency (EPA) threw another rock into the regulatory pond sending ripples of uncertainty and concern throughout the Oil & Gas industry when it published a supplemental proposed rule (Proposed 2022 Rule). This Proposed 2022 Rule expands on the first boulder the agency threw into the water, the November 2021 proposed revisions to the New Source Performance Standards (“NSPS”) program, which were established under Section 111 of the Clean Air Act (“CAA”).
The Proposed 2022 Rule was squarely aimed at reducing emissions of methane and volatile organic compounds (VOCs) generated by oil & gas operations. During the comment period that ended on February 13, 2023, the Oil & Gas industry provided significant input and evidence to help the agency craft a pragmatic approach to reducing emissions. When adopted, the Proposed 2022 Rule will have significant impacts on operators, requiring monitoring on effectively all production sites with an expanded focus on identifying and mitigating large emissions events, what EPA calls “super-emitters.”
In this article we cover the background of the EPA’s rationale for focusing on super-emitter events, the implications for Oil & Gas operators and some of the key issues involved.
The Outsized Impact of Super-Emitter Events
EPA noted that the top five percent of emissions sources contribute over 50 percent of total emissions from the Oil & Gas industry, based on the results of a 2016 study by Brandt. The agency noted it found wide agreement among peer-reviewed research finding that only a few sources comprised the very largest emission events, which it termed “super-emitters” and these events are caused primarily by equipment malfunctions or inclement operating conditions.
One example of a potential super-emitter source is an unlit flare releasing natural gas into the atmosphere. This is not an abstraction, as one study in Science found that on average, up to 4.1% of flares were unlit. The study surveyed more than 600 wells across three basins, including the Bakken, Permian Basin and Eagle Ford regions. The study concludes that “if measures were taken to ensure that US flares operated at 98% efficiency and remained lit, as current accounting assumes, this would be equivalent to removing 2.9 million cars from the road each year these mitigation measures were in place.(1)”
Since the largest methane emissions events are responsible for the majority of total emissions, EPA found it advisable to focus on super-emitters. If super-emitter events could be identified early on, then it stands to reason that they can be addressed sooner rather than later, resulting in a significant reduction in methane emissions.
But how large of a release constitutes a super-emitter event? EPA said it considered the capabilities of currently available technology for monitoring and detecting emissions and proposed to define a super-emitter event as one generating emissions of 100 kilograms of methane per hour (kg/hr) or greater.
Factors Driving the Super-Emitter Response Program
There are three key factors impacting the design of the super-emitter response program, including the emissions threshold itself, the available technologies, and the qualifications of third-party entities, as described below.
Issue 1: The super-emitter threshold. The 100 kg/hr definition of a super-emitter event was set high enough such that it would be cost-effective to address super-emitter events, which EPA claims “…release more methane in a single week than the total methane cost-effectively prevented over the course of a year at sources covered by the fugitive emissions program (i.e., LDAR program). The threshold was set high enough that it permitted the use of remote sensing technologies that are already in use today.”
Issue 2: Approved technologies. EPA considered the available technologies for monitoring and detecting super-emitter events, including satellites, remote-sensing aircraft, and mobile monitoring platforms for identifying super-emitter events. At the time of proposal, the EPA did not mandate which specific technologies would be approved and solicited comment from industry. As noted previously, the comment period ended in February 2023.
Issue 3: Qualifications and requirements for valid notification of super-emitter events. EPA proposed to leverage private organizations outside the industry to report super-emitter events to operators. The agency qualified this feature by further proposing that any third party interested in providing operators with notice of a super-emitter event must be pre-approved by EPA for the notification to be valid. The criteria and qualifications of third parties are yet to be determined.
The Super-Emitter Response Program
Today, technology has made it possible to monitor and detect super-emitter events, even in remote areas, using space-based satellites, aircraft and drones equipped with advanced sensors. Although these methods are considered scheduled monitoring methods, as compared to continuous monitoring methods, they could offer more frequent monitoring than monthly or quarterly mandated LDAR (Leak Detection and Repair) inspections.
Using advanced technology for monitoring, detecting and quantifying emissions is also cost-effective, especially for operations and infrastructure in remote areas. A good example might be a pipeline stretching for miles across the Permian Basin not easily accessible by roads. EPA proposes leveraging advanced technologies already in place for monitoring and detection by establishing a super-emitter response program as a “backstop” to other emissions mitigation mandates, both existing and proposed.
Perhaps one of the most controversial, or novel, features of the proposed super-emitter response program, depending on the reader’s perspective, is that it would be civilian enforced. This means that EPA proposes to approve a private organization or regulatory authority with the ability to report a super-emitter event to operators. If a private party, say for example an environmental activist organization with access to satellite data, is pre-approved by EPA and capable of providing credible, well-documented evidence of a super-emitter event using EPA-approved technologies and methodologies, then it would be authorized to notify the owner or operator. This is significant, because the proposed rule mandates that once an owner or operator is notified of a super-emitter event, it triggers a course of action, which is proposed as follows:
- Once notified of the event, the operator would be required to perform a root-cause analysis within five days and take corrective actions within 10 days to address the emissions source, ostensibly the result of a malfunction or abnormal operation.
- Once the root-cause analysis is complete, the owner or operator may determine that the appropriate actions have been taken to mitigate the super-emitter event and no additional action is required.
- If the corrective actions require more than 10 days, then an action plan must be submitted to EPA or relevant state agency and a record will be kept of the report.
In large part, EPA noted that the super-emitter response program as proposed is a “civilian operated” initiative that would allow industry outsiders to monitor and report super-emitter events. Additionally, the agency proposed that not only would the operator be notified, but also the agency, which in turn would publish the names of offenders on a public dashboard.
It was noted by industry during the comment period that this issue could create legal challenges, because it was unclear if EPA has the statutory authority to effectively “deputize” civilian organizations as government agents.
Super-Emitter Program – What Happens Next?
The comment period for the Proposed 2022 Rule ended on February 13, 2023, and since then, EPA has been working towards promulgating the final rule in the Federal Register. The final rule is expected to take effect 60 days after the publication of the final rule, and OOOOb applicability will be after November 15, 2021, for new, modified, or reconstructed sources. The open question is when will the final rule be issued?
We anticipate EPA will use the backdrop of the upcoming United Nations Climate Change Conference (COP 28) to make a splash. COP 28, scheduled for November 30, 2023, through December 12, 2023, appears to be the ideal venue for unveiling the final rule to a global audience.
Keep your eyes peeled on COP28!
The Encino Environmental Advantage
Encino offers the most comprehensive lineup of environmental performance solutions, services, and expertise for mitigating emissions from Energy operations with a focus on Oil & Gas and Biogas markets. We are a pioneer in emissions monitoring in the Energy sector, providing clients with a complete range of environmental services for helping comply with the anticipated super-emitter program and other relevant regulatory updates, including the proposed rule describing OOOOb, OOOOc, and Appendix K.
Our offerings include:
- CEMS (Continuous Emissions Monitoring Systems)
- Methane monitoring via Satlantis micro satellites (EmSat™)
- Emissions performance testing, stack testing
- LDAR (Leak Detection and Repair)
- Advanced environmental data software
- Enviromech™ composite thief hatches for a durable, long-term seal of surface storage tanks
- Advisory services
Our solutions help ensure regulatory compliance and ESG strategies and objectives. Encino operates across the U.S. covering all major oil and gas basins and select international markets.
We view ourselves as an oilfield services company, dedicated to helping operators improve their environmental and economic sustainability for providing the world with reliable and affordable energy.
Contact us today at (281) 201-3544 or support@encinoenviron.com for a free consultation and evaluation of how Encino can help you achieve environmental performance that generates economic results.
About Encino Environmental Services
Formed in 2010 and headquartered in Houston, Texas, Encino Environmental Services, LLC is an emissions performance testing and monitoring firm that specializes in environmental consulting, combustion analysis, LDAR (leak detection and repair), CEMS (continuous emissions monitoring systems), Remote Sensing technologies utilizing satellite methane emissions monitoring and advanced environmental data platforms for the measurement and minimization of emissions to support regulatory compliance and ESG strategies and objectives. The Company operates across the U.S. covering all major oil and gas basins and select international markets.
