Below are questions and comments that arose from the meeting at the County Health Department. Questions were answered by Kristie Shimko and Sersena White from the DEQ or followed from documents provided by Kristie Shimko. Some answers are edited or extended by me.
- Q: Are flares permitted to burn 100,000 cft per well and per day?
A: According to CAUSE 18-2007, a order of the DEQ Supervisor of Wells, the allowable amounts and duration of flaring within the Trenton and Black River formations are specified. These procedures were agreed upon in a discussion between the DEQ and the following oil and gas companies: Continental Resources, Inc.; West Bay Group; Savoy Energy LP; Trendwell Energy Corp.; Matrix Exploration & Development, LLC and Titan Energy, LLC.
“Gas that is not reasonably marketable may be flared. The volume of gas flared is restricted to 100 MCFGPD (100,000 cft gas per day) for a 40-acre drilling unit or 50 MCFGPD for a 20-acre drilling unit, which shall be the net volume of gas flared not including gas used for reasonable and necessary lease fuel purposes. The permittee of a well that is flaring gas shall, within 30 days of a letter of request from the Supervisor, submit to the Supervisor data necessary to determine whether the well can economically market gas. If data is not timely submitted to the Supervisor, the Supervisor may require the permittee to cease the flaring of gas. Based upon the data supplied by the permittee and other information available to the Supervisor, and after meeting with the permittee as necessary, the Supervisor or his authorized representative shall determine whether gas from the well can be economically marketed and shall inform the permittee in writing of that determination. Within 90 days of a determination in the affirmative, or at such later date as the Supervisor may specify, the permittee shall cease the flaring of gas from the well. If the permittee disputes the Supervisor's determination, the permittee may file a petition and request a hearing; but the filing of such petition shall not stay the effectiveness of the determination. If the Supervisor determines that gas from the well cannot be economically marketed*, the permittee shall be allowed to continue flaring gas at the rate specified above. Permission to flare does not grant an exception to any other required permits or approvals.
*Marketing of gas be deemed not economic when an operator provides reasonable evidence to the Supervisor that the cost to connect a well to a pipeline or facility for the transportation and processing of gas will take in excess of two years to pay out based upon the average monthly natural gas production sales.
Get the full PDF-document here. - Q: There is no permit needed to flare off natural gas for as long as it takes, even if the flare gas contains benzene and other toxic and cancerous compounds.
A: No answer by DEQ – I guess this answers that there is no additional permit needed as follows from 1.) above. My search for the name the industry uses for flares enclosed in open oil tanks, I found several commercial combustion tools that ensure better and cleaner burns (e.g. mrw-tech.com, abutec.com). It seems that the Michigan DEQ does not require such cleaner technologies. - Q: There should not be any odors (and no elevated levels of volatile/gaseous pollutants) from any well-burning flare, oil well, or oil pump. A well-burning flare should also produce no soot. Flares should be maintained so the burn at least 96% of the combustible compounds.
A: No odors should occur and should be reported. If odors occur it indicates a less than proper burning rate of at least 96% and thus more unburned pollutants that might not have an odor at toxic levels (such as benzene). The Witt Farm flare smells almost every day and is thus most of the time burning way below 96% efficiency. - Q: The current air quality application is only concerned with Savoy's plans to send off the currently flared gases to the tank farm on Tipton for commercial use?
A: Savoy applied for a permit to finally capture and market the gases coming in to the Witt Farm (Adrian 1-25) from currently 7 wells. The current air quality application is concerned with the proposed installation of any piece of equipment that will emit an air contaminant. And those pieces of equipment are a glycol dehydration unit and an internal combustion engine. The company is also proposing a refrigeration unit but it is totally enclosed and thus has no emissions to the ambient air. - Q: The current application might be held back because the presence of benzene, too much water and to high BTU. The levels of toxins that I received from you in a table are levels that only matter for the permit process of marketing gas - not for flaring?
A: The current application will be evaluated with respect to the presence of benzene in the gas intended to be marketed, its relative high water content and a higher than permissible BTU to determine if their proposal will comply with applicable rules. This might delay the marketing of the gas and keep the flare going. - Q: Flaring will still go on even after marketing the gas if there is more gas then can be send to commercial use or if there is a technical problem preventing to send off the gas?
A: The flare will remain at the site for any of the following reasons:
* flaring off gas in the event of an emergency
* flaring off gas for equipment maintenance
* it may possibility be needed as a control device to ensure compliance with a rule (this will be determined in the upcoming technical review). - Q: The DEQ does not and will not monitor the Adrian 1-25 (Witt Farm) flare and discouraged the county, city or an independent monitoring due to the difficulty to relate potentially high levels of benzene 500 meters away from the flare to actual health issues.
A: DEQ-AQD did not intend to discourage the county, city or any independent monitoring entity from pursuing air emission risk assessment monitoring. AQD only intended to inform those present of the types of details and the length of the project for conducting a risk assessment monitoring project. The allowed air emissions of benzene as identified in the air toxics attachment is 0.1 µg (micro grams = 1 millionth of a gram) per cubic meter of air at or beyond the property boundary on annual averaging time. An approved permit to install for regulated emission units at this site would require this limit is met.
Reference: Michigan Department Environmental Quality - Air Quality Division List of Screening Levels (ITSL, IRSL and SRSL) in Alphabetical Order. - Q: What are the costs for a well permit, a tank farm permit, a brine disposal permit? Are there any independent and unannounced water and air monitoring procedures done or initiated by the DEQ that Savoy has to pay for? If yes when? Baseline, every month???
A: The cost for an oil well/brine disposal well permit is $300. There is no cost for a tank battery [like Witt Farm or Adrian 1-25]. A permittee of a well shall submit secondary containment plans, for approval before construction of a facility. After construction completion and before the facility can be put in operation, the permittee must submit: a statement certifying that the facility was constructed in accordance with the approved plan; the results of initial pressure testing of the piping; approved spill or loss response and remedial action plan; a water sample to establish ground water quality. Testing of the flow lines and underground piping is required annually. Secondary containment (ground water) monitoring is required every six months. Savoy contracts the flow line pressure testing and ground water sampling to qualified, independent third parties. DEQ can and will collect soil, groundwater and/or gas samples if deemed necessary. - Q: How much money does Savoy have to put into an emergency escrow account to pay for the cleanup and containment of well, pipeline, or trucking spills?
A: Savoy has a $250,000 bond on file with the Office of Oil, Gas and Minerals. [This money will not reach very far in case of a major spill – and who will pay for the rest? I am sure that will be the tax payer…Another example of corporate irresponsibility and the principle of externalization that takes advantage of everything true and trustworthy and undermines what we all learned as kids: if you make a mess you clean it up!] - Q: Are there any drills and exercises between all involved agencies and departments to make sure that the emergency responders are well prepared to contain and cleanup spills and other accidents?
A: OOGM encourages the oil company to equip/relay knowledge of the wells and facilities with the local fire department/responders. [I guess this is a good thing but it does not seem to be reinforced and might not happen in most cases making emergency situation even more dangerous…] - Q: What are the rules about drilling wells close to rivers and lakes? I already know that pipelines up to 5 inches diameter do not need a permit to go under a river or through wetlands.
A: As long as the well pad does not encroach upon a river/lake, it can be constructed. As long as sediment does not enter the water/stream/lake, they can construct the drill pad. [This seems to also just waiting for an accident to happen that will leave many people without potable water – actually something we saw happening in West Virginia this year, and something that happens for many people in Texas, Colorado, Wyoming and other states where hydraulic fracturing (fracking) adds to the problems we are facing here in Adrian and SE Michigan.