EPA-450/3-82-023a
SO2 Emissions in Natural Gas
     Production Industry —
    Background Information
    for Proposed Standards
       Emission Standards and Engineering Division
       U.S ENVIRONMENTAL PROTECTION AGENCY
          Office of Air, Noise, and Radiation
       Office of Air Quality Planning and Standards
       Research Triangle Park, North Carolina 27711

              November 1983

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This report has been reviewed by the Emission Standards and Engineering Division of the Office of Air Quality Planning
and Standards, EPA, and approved for publication. Mention of trade names or commercial products is not intended to
constitute endorsement or recommendation for use. Copies of this report are available through the Library Services
Office (MD-35), U.S. Environmental Protection Agency, Research Triangle Park, North Carolina 27711; or, for a fee, from
the National Technical Information Services, 5285 Port Royal Road, Springfield, Virginia 22161.
                                    Publication No. EPA-450/3-82-023a

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                      ENVIRONMENTAL PROTECTION AGENCY

                          Background Information
                          and Draft Environmental
                           Impact Statement for
                      Natural Gas Production Industry

                               Prepared by:
     R. Farmer
Director, Emission Standards and Engineering Division
U.S.  Environmental Protection Agency
Research Triangle Park, North Carolina 27711
                                                               (Date)
 1.    The  proposed standards  of performance  will  limit emissions  of
      sulfur  dioxide  from  new,  modified,  and reconstructed  onshore
      natural  gas  processing  plants.   Section 111 of  the  Clean  Air  Act
      (42  U.S.C. 7411),  as amended, directs  the Administrator to
      establish  standards  of  performance  for any  category of new
      stationary source  of air  pollution  that "...  causes or
      contributes  significantly to air pollution  which may  reasonably be
      anticipated  to  endanger public  health  or welfare."  The proposed
      standards  of performance  are expected  to affect mostly the  states
      where smackover, permian  or overthrust belt regional  gas  fields are
      located.

 2.    Copies of  this  document have been sent to the following Federal
      Departments:  Office of Management  and Budget,  Labor, Health  and
      Human Services, Defense,  Transportation, Agriculture, Commerce
      Interior,  and Energy; the  National  Science  Foundation; the  Council
      on Environmental Quality;  members of the State  and  Territorial Air
      Pollution  Program  Administrators; the  Association of  Local  Air
      Pollution  Control  Officials; EPA Regional Administrators; and other
      interested parties.

 3.    For additional  information contact:

     Mr. Gilbert H. Wood
     Standards Development Branch (MD-13)
     U.S.  Environmental  Protection Agency
     Research Triangle  Park,  North Carolina 27711
     Telephone:   (919)  541-5578

4.   Copies of this document may be obtained from:

     U.S.  EPA Library (MD-35)
     Research Triangle Park,  North Carolina 27711

     National  Technical  Information Service
     5285  Port Royal  Road
     Springfield,  Virginia 22161
                                   i i i

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                          TABLE OF CONTENTS
Section
Page
   1      SUMMARY .	   l-l
          1.1  Regulatory Alternatives  	  	   1-1
     :     1.2  Environmental  Impact .  .  .  .	1-2
          1.3  Economic Impact  .....  	   1-4
   2      INTRODUCTION  .	  .....   2-1
          2.1  Background and Authority for Standards 	   2-1
          2.2  Selection of Categories of Stationary Sources  .  .   2-4
          2.3  Procedure for Development of Standards of
               Performance	  .  .   2-6
          2.4  Consideration of Costs  .  ,	2-8
          2.5  Consideration of Environmental  Impacts ......   2-9
          2.6  Impact on Existing Sources	   2-10
          2.7  Revision of Standards of Performance 	   2-11
   3      THE NATURAL GAS PRODUCTION INDUSTRY  ...  	  .  .   3-1
          3.1  General Description  	   3-1
          3-2  Sulfur Recovery Operations and  Sulfur
               Dioxide (S02) Emissions  	   3-7
               3.2.1  Claus Sulfur Recovery Process 	   3-7
               3.2.2V Claus Tail Gas Cleanup Processes  .....   3-8
          3.3  Baseline Control Emissions Levels  	   3-9
               3.3.1  Sweetening Operation Emissions  ......   3-11
               3.3.2  Sulfur Recovery Operation Emissions ....   3-12
               3.3.3  Baseline Control Emission Levels  .  .  ...  .   3-12
          3.4  References for Chapter 3	3-15
   4      EMISSION CONTROL TECHNIQUES  ...  	  	   4-1
          4.1  General Description	   4-1

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                      TABLE OF CONTENTS (continued)
Section
                                                                   Page
          4.2  Sulfur Emission Control Technologies Used
               In the Industry	4-2
               4.2.1  Incineration	4-2
               4.2.2  2-Stage Claus Sulfur Recovery Process .  .  .   4-2
               4.2.3  3-Stage Claus Sulfur Recovery Process .  .  .   4-5
               4.2.4  Recycle Selectox Process   	  4-9
               4.2.5  3-Stage Claus Unit with Tail Gas
                      Cleanup Processes  	  4-15
               4.2.6  Deactivation of Catalyst Activity and
                      Reduction in the Sulfur Recovery Efficiency.  4-28
          4.3  Comparison of Source Emission Data and
               Ralph M. Parsons Design Study	4-30
          4.4  References for Chapter 4	4-32
   5      MODIFICATION AND RECONSTRUCTION  	   5-1
          5.1  Background	5-1
               5.1.1  Modification	5-1
               5.1.2  Reconstruction	   5-2
          5.2  Applicability to the Natural Gas
               Production Industry  	   5-3
               5.2.1  Modifications to the Natural
                      Gas Production  Industry  	  5-3
               5.2.2   Reconstructions to the Natural
                      Gas Production  Industry	5-4
          5.3  References for  Chapter 5	5-4
    6     MODEL  PLANTS  AND  REGULATORY ALTERNATIVES  	  6-1
          6.1  Model  Plants/Parameters	 -  • •  6-1
                6.1.1  Model  Plant Sizes  	  6-3
                6.1.2  H2S/C02  Volume  Percent Ratio  	  6-3
                6.1.3  Baseline Control Levels  	  6-3
           6.2   Regulatory Alternatives  	  6-4
    7      ENVIRONMENTAL IMPACT  	  7-1
           7.1  Air Pollution Impact	7-1
                7.1.1  Dispersion Modeling Results	  7-1
                                     VI

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                      TABLE OF CONTENTS (continued)
Section
               7,1.2  Effects of Regulatory Alternatives on
                      Nationwide S02 Emissions  	  7-2
               7.1.3  Secondary Impacts on Air Quality	7-9
          7.2  Water Pollution Impact 	  7-9
          7.3  Solid Waste Disposal Impact  ..... 	  7-10
          7,4  Energy Impacts	7-10
          7.5  Other Environmental Concerns 	  7-13
               7.5.1  Irreversible and Irretrievable
                      Commitment of Resources 	  7-13
               7.5.2  Environmental Impact of Delayed Standards .  7-13
          7.6  References for Chapter 7 .  .  -. .	7-14
   8      COST ANALYSIS .	8-1
          8.1  Cost Analysis of Regulatory Alternatives 	  8-1
               8.1.1  New Facilities	8-1
               8.1.2  Modified or Reconstructed Facilities  .  .  .  8-15
          8,2  References for Chapter 8	8-20
   9      ECONOMIC ANALYSIS OF THE REGULATORY ALTERNATIVES  ...  9-1
          9.1  Industry Profile	  9-1
               9.1.1  The Natural Gas Production Industry .  .  .  .  9-1
               9.1.2  The Natural Gas Sulfur Recovery
                      Industry—Growth and Projections  .  .  .  .  .  9-26
          9.2  Economic Impact Analysis .  .	9-51
               9.2.1  Economic Impact Assessment Methodology  .  .  9-54
               9.2.2  Economic Impact of S02 NSPS Regulatory
                      Alternatives on Sour Gas Sweetening and
                      Sulfur Recovery Plants  	  9-67
          9.3  Potential Socioeconomic and Inflationary Impacts .  9-95
          9.4  References for Chapter 9	  .  9-98
APPENDICES
          A - Evolution of the Background Information Document  .  A-l
          B - Index to Environmental Impact Considerations  .  .  .  B-l
          C - Emission Source Tests Data	C-l
          D .*• Emission Measurement and Continuous Monitoring  .  .  D-l
                                   vn

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                      TABLE OF CONTENTS (concluded)
Appendices                                                         Page
          E - Sulfur Recovery Study - Onshore Sour Gas
              Production Facilities	  .   E-l
          F - Unit Natural Gas Production Cost Equation 	   F-l
          G - The American Petroleum Institute's Gas
              Plant Survey Data	   G-l
          H - Small Sulfur Recovery Units - Onshore
              Sour Gas Production Facilities	   H-l
                                    vrn

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                             LIST OF FIGURES
Figure
   3-1
                                                                Page
       Production and processing operations and associated
       emissions in the natural gas production industry ... .  .  3-2
3-2    Typical sour natural gas amine sweetening facility . .  .  3-6
3-3    Claus tail gas cleanup processes	3-10
4-1    Flow diagram for a two-stage Claus sulfur recovery
       plant	4-4
4-2    Flow diagram for a three-stage Claus sulfur recovery
       facility utilizing the straight-through process
       configuration	    4-8
4-3    Flow diagram for the split-flow configuration of
       the Claus sulfur recovery process  	  4-10
4-4    Flow diagram for the sulfur recycle configuration of
       the Claus sulfur recovery process  	 ....  .4-11
4-5    Recycle Selectox 2-stage process	  .  4-13
4-6    Recycle Selectox 3-stage process 	  4-14
4-7    Flow diagram for the Shell Claus Off-gas Treatment
       (SCOT) process	4-17
4-8    Flow diagram for the Sulfreen tail gas cleanup
       process	4-20
4-9    Flow diagram for the Beavon Sulfur Removal process
       (BSRP)	4-22
4-10   Flow diagram for the BSR/Selectox I Claus tail gas
       cleanup process  	  4-24
9-1    Sulfur recovery facility additions, 1950-1982  .....  9-16
9-2    Sulfur recovery capacity additions, 1950-1982  .....  9-17
9-3    U.S. domestic sulfur production from various sources
       for the period 1950-1980	  9-23
9-4    Trends in the production of sulfur in the U.S	  9-24
9-5    Natural gas gross withdrawals and marketed
       production	9-28
9-6    Onshore and offshore marketed natural gas production .  .  9-30
                                    IX

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                       LIST OF FIGURES (concluded)
Figure
Paqe
   9-7    Selected natural  gas prices—three categories for
          the period 1955-1979	9-31
   C-l    Simplified flow diagram for Warren Petroleum's
          Monument plant facility  	  C-3
   C-2    Summary of liquid sulfur production,  stack S02
          emissions and sulfur recovery efficiency at
          Warren Petroleum's Monument plant facility 	  C-6
   C-3    Simplified flow diagram for Getty Oil's New
          Hope facility	C-14
   C-4    Summary of liquid sulfur production,  stack S02
          emissions and sulfur recovery efficiency at Getty
          Oil's New Hope facility	C-18
   C-5    Simplified flow diagram for Shell Oil's-Thomasville
          facility 	  ..........  C-25
   C-6    Summary of liquid sulfur production,  stack S02
          emissions and sulfur recovery efficiency at Shell
          Oil's Thomasville facility 	  C-29
   C-7    Simplified flow diagram for Exxon's Blackjack Creek
          facility	 .	  C-38
   E-l    Recycle Selectox 2-stage process 	  E-17
   E-2    Recycle Selectox 3-stage process 	  E-18
   E-3    Claus 2-stage process  	  E-21
   E-4    Claus 3-stage process  	  E-22
   E-5    Claus sulfur-burning 2-stage process  	  E-23
   E-6    Claus sulfur-burning 3-stage process  	  E-24
   E-7    Thermal oxidizers, waste heat boilers, and stacks  .  .  .  E-26
   E-8    BSR/MDEA process	' .  .  .  E-28
   E-9    Beavon Sulfur Removal Process (BSRP)  	  E-30
   E-10   Sulfreen process 	  E-32
   E-ll   BSR/Selectox process 	  E-34
   H-l    Selectox two-stage process	  H-16
   H~2    Selectox three-stage process 	 	  H-17
   H-3    Recycle Selectox two-stage process 	  H-18
   H-4    Recycle Selectox three-stage process  .'....	H-19

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                           LIST OF TABLES
Table                                                            Page

 1-1    Assessment of Environmental, Energy, and Economic
        Impacts for Each Regulatory Alternative Considered
        for the Natural Gas Production Industry  ........ 1-3

 3-1    Major Sweetening Processes ............... 3-4

 3-2    Baseline Controls and Baseline Emission Levels ..... 3-14

 4-1    Comparison of Source Emission Tests Data and the
        Ralph M. Parsons Design Study for Claus Sulfur
        Recovery Facilities  ............... .... 4-31

 6-1    Natural Gas Production Model Plants, Baseline
        Controls and Regulatory Alternatives .......... 6-2

 7-1    Summary of S02 Concentrations from Dispersion Modeling
        Analyses for Each Model Plant Sulfur Feed Rate and
        Regulatory Alternative on the Basis of the Houston
        and Amarillo Data  ...  ..............  .  . 7-3
 7-2    Summary of Sulfur Recovery Efficiencies for the
        Model Plant Regulatory Alternatives  ....... ... 7-5

 7-3    Daily  S02 Emissions from the Projected (1983-1987)
        New Onshore Natural Gas Processing Facilities for
        the Model  Plant Regulatory Alternatives  .  .  ...... 7-6

 7-4    Annual S02 Emissions from the Projected (1983-1987)
        New Onshore Natural Gas Processing Facilities for
        the Model  Plant Regulatory Alternatives  ........ 7-7

 7-5    Effectiveness of the Regulatory Alternatives  in
        Reducing S02 Emissions from the Projected
        New Onshore Natural Gas Processing Facilities  ..... 7-8

 7-6    Fifth- Year (1987) Baseline (Regulatory Alternative I)
        Energy Requirements for Each of the Projected New
        Onshore Natural Gas Processing Facilities  .  .  ..... 7-11
 7-7    Fifth- Year (1987) Energy Requirements Beyond  the
        Baseline (Regulatory Alternative I) for all of the
        Projected  New Onshore Natural Gas Processing
        Facilities for the Regulatory Alternatives   ...... 7-12
 8-1    Fixed-Capital Costs for Each New Model
        Plant/Regulatory Alternative Combination ....  . .  .  . 8-5

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                     LIST OF TABLES (continued)


Table                                                            Page

 8-2    Components of Annualized Costs and Factors
        To Calculate These Components for the Model Plants
        With Greater Than 5 Mg/d Sulfur Feed Rates	8-6

 8-3    Components of Annualized Costs and Factors
        To Calculate These Components for the Model Plants
        With Less Than 5 Mg/d Sulfur Feed Rates	8-9

 8-4    Annualized Costs for Each New Model Plant/
        Regulatory Alternative Combination 	 8-11

 8-5    Capital Charge Costs for Each New Model Plant/
        Regulatory Alternative Combination 	 8-12

 8-6    Operating and Maintenance Costs and Other Expenses for
        Each New Model Plant/Regulatory Alternative
        Combination	8-13
 8-7    Sulfur and Steam Credits for Each New Model
        Plant/Regulatory Alternative Combination 	 8-14

 8-8    Cost Effectiveness and Incremental Cost
        Effectiveness for Each New Model Plant/Regulatory
        Alternative Combination ($/Mg S02) 	 8-16

 8-9    Cost Effectiveness of Recycle Selectox
        2-Stage Process  	 8-17

 8-10   Cost Effectiveness of Recycle Selectox
        3-Stage Process	8-18

 8-11   Cost Effectiveness of Recycle Selectox 2-Stage
        and Recycle Selectox 3-Stage Processes and
        Their  Incremental Cost Effectiveness  	 8-19

 9-1    Number, Average Size, and Total Production of
        Producing Gas Wells, by State (Revised 1979
        Figures)	9-4

 9-2    Estimated Costs of Drilling and Equipping  Onshore
        Wells, by Depth Intervals - 1979	9-6

 9-3    Estimated Costs for  Drilling and  Equipping Onshore
        Natural Gas Wells for Selected Well Depths, 1980  .... 9-7

 9-4    Estimated Onshore Natural Gas Production Costs  for
        Selected Well Depths and Base Year Flow Rates,  1980   .  . 9-8

 9-5    Onshore Natural Gas  Sulfur Recovery Facility
        Operators, 1979	9-10

 9-6    Observed  Frequency  of Sweetening  Facilities by
        H2S Percentage  in Sour Natural Gas and Facility
        Capacity, July  1982	9-13
                                   xn

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                     LIST OF TABLES (continued)
Table
Page
 9-7    Observed Frequency of Sulfur Recovery Facilities by H2S
        Percentage in Sour Natural Gas and Facility Capacity,
        July 1982	.	  .  .  .  9-13

 9-8    Onshore Natural Gas Sulfur Recovery Facilities and
        Sulfur Intake Capacity Utilization, 1950-1982  .....  9-14

 9-9    Sulfur Intake Capacity Distribution of Onshore  .
        Natural Gas Sulfur Recovery Facilities, 1950-1982  .  .  .  9-18

 9-10   Production of Energy by Type, United States  	  9-20

 9-11   Aggregate Retail Price Elasticities of. Demand, U.S.  .  .  9-21

 9-12   Domestic Sulfur Supply - 1978 Statistics .	9-25

 9-13   Natural Gas Gross Withdrawals and Marketed Onshore
        and Offshore Production, 1949-1979 	  9-27

 9-14   Financial Data for the Natural Gas Industry 1976-1981
        and 1983-1985 Estimates	9-32

 9-15   Recovered Elemental Sulfur Produced in the
        United States, 1960-1980 	  9-34

 9-16   Time-Price Relationship for Sulfur, 1955-1981  	  9-35

 9-17   Published Price for Liquid Sulfur at Tampa Terminals .  .  9-36

 9-18   Projected Lower-48 States Conventional Natural Gas
        Production, 1980-2000	  9-38
 9-19   Projections of Natural Gas Supply:  Comparison of
        1990 Forecasts	  9-39

 9-20   Derivation of Newly Discovered Onshore Conventional
        Natural Gas Production for a Specified Year,
        1977-1987  .  . .	9-42

 9-21   Projected New Sulfur Recovery Capacities for the
        Period of 1983-1987	9-43

 9-22   Sulfur Recovered Per Unit Volume of Processed Sour
        Natural Gas, 1954-1980	9-44

 9-23   Projected Added New Sulfur Recovery Facilities and
        Their Sulfur Intake Size Distribution, 1983-1987 . . .  .  9-47

 9-24   Estimated Natural Gas Production, Onshore Volume,
        Sweetened Volumes, Volumes Associated with Sulfur
        Recovery, 1980 and 1987	9-48
 9-25   Natural Gas Prices:  History and Projections for
        1965-1995	9-50

 9-26   Unit Emissions Control Costs and Expected
        Profitability  Impacts	  9-52
                                 xm

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                     LIST OF TABLES (continued)


Table                                                            Page

 9-27   Increases in the Cumulative Number of Onshore Sour
        Natural Gas Sulfur Recovery .Plants Unable to Fully
        Cover Total Exploration and Production Costs Due
        to Regulatory Alternatives, 1987	 9-53
 9-28   Model Plant Estimated Sweet Gas Sales  	 9-62

 9-29   Model Plant Estimated 1987 Value of Sulfur
        Sales by Regulatory Alternatives	 9-63

 9-30   Estimated Onshore Natural Gas Production Costs and
        Probability Estimates for Selected Well Depths and
        Base Year Flow Rates, 1980	9-65

 9-31   Model Plant Before-Tax Annualized Cost,
        by Regulatory Alternative  	 9-68

 9-32   Model Plant After-Tax Annualized Cost,
        by Regulatory Alternative  	 9-69

 9-33   Model Plant Emission Control Cost Per MCF.
        (Model Plant 1)	 9-70

 9-34   Model Plant Emission Control Cost Per MCF.
        (Model Plant 2)	9-71

 9-35   Model Plant Emission Control Cost Per MCF.
        (Model Plant 3)	9-72
 9-36   Model Plant Emission Control Cost Per MCF.
        (Model Plant 4)	9-73
 9-37   Model Plant Emission Control Cost Per MCF.
        (Model Plant 5)	9-74

 9-38   Model Plant Emission Control Cost Per MCF.
        (Model Plant 6)  . .'	9-75

 9-39   Model Plant Emission Control Cost Per MCF.
        (Model Plant 7)	9-76

 9-40   Model Plant Emission Control Cost Per MCF.
        (Model Plant 8)	9-77

 9-41   Model Plant Emission Control Cost Per MCF.
        (Model Plant 9)	9-78

 9-42   Model Plant Emission Control Cost Per MCF.
        (Model Plant 10)	9-79
 9-43   Model Plant Emission Control Cost Per MCF.
        (Model Plant 11)	 9-80
 9-44   Model Plant Emission Control Cost Per MCF.
        (Model Plant 12)	9-81

 9-45   Model Plant Emission Control Cost Per MCF.
        (Model Plant 13)	9-82
                                  xiv

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                     LIST OF TABLES (continued)


Table                                                            Page

 9-46   Model Plant Emission Control Cost Per MCF.
        (Model Plant 14)	. .  9-83

 9-47   Model Plant Emission Control Cost Per MCF.
        (Model Plant 15)	9-84
 9-48   Model Plant Emission Control Cost Per MCF.
        (Model Plant 16)	9-85
 9-49   Model Plant Emission Control Cost Per MCF.
        (Model Plant 17) ..	9-86

 9-50   Model Plant Emission Control Cost Per MCF.
        (Model Plant 18) 	 ........  9-87

 9-51   Model Plant Emission Control Cost Per MCF.
        (Model Plant 19)	9-88

 9-52   Model Plant Emission Control Cost Per MCF.
        (Model Plant 20)	  9-89

' 9-53   Model Plant Emission Control Cost Per MCF.
        (Model Plant 21)	 .  9-90

 9-54.  Model Plant Emission Control Cost Per MCF.
        (Model Plant 22)	  9-91

 9-55   Model Plant Emission Control Cost Per MCF.
        (Model Plant 23)	9-92

 9-56   Total Before Tax Net Annualized Cost of
        Regulatory Alternatves, 1987 	 	  9-96

 B-l    Index to Environmental Impact Considerations 	  B-2

 C-l    Sampling/Analysis Parameters and Methodology at
        Warren Petroleum's Monument Plant Facility 	  C-4
 C-2    Warren Petroleum's Monument Plant Facility Test
        Results Summary	t  . . .  C-5
 C-3    Warren Petroleum's Monument Plant Facility:  Daily
        Average Stack Gas Velocity, Temperature, Composition
        and Actual Flow Rate During the Test Period	C-7

 C-4    Daily S02, H2S (as S02) and TRS (as S02) Emissions
        During the Test Period	C-8
 C-5    Daily NO  Test Results and Stack Emissions	C-9
                "
 C-6    Warren Petroleum's Monument Plant Facility Operating
        Conditions During the Test Period  	  C-10

 C-7    Sampling/Analysis Parameters and Methodology at Getty
        Oil's New Hope Facility	C-16
 C-8    Getty Oil's New Hope Facility Test Results Summary  . . .  C-17
                                  xv

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                     LIST OF TABLES (continued)
Table
Page
 C-9    Getty Oil's New Hope Facility:  Daily Average Stack
        Gas Velocity, Temperature, Composition and Actual
        Flow Rate During the Test Period	 C-19
 C-10   Daily S02, H2S (as S02) and TRS (as S02) Emissions
        During the Test Period	 . C-20
 C-ll   Daily NO  Test Results and Stack Emissions	C-21
                x\
 C-12   Getty Oil's New Hope Facility Operating Conditions
        During the Test Period	 . C-22
 C-13   Sampling/Analysis Parameters and Methodology at
        Shell Oil's Thomasville Facility 	 C-27
 C-14   Shell Oil's Thomasville Facility Test Results
        Summary	C-28
 C-15   Shell Oil's Thomasville Facility:  Daily Average
        Stack Gas Velocity, Temperature, Composition and Actual
        Flow Rate During the Test Period	C-30
 C-16   Daily S02, H2S (as S02) and TRS (as S02) Emissions
        During the Test Period	C-31
 C-17   Daily NO  Test Results and Stack Emissions	C-32
                /\
 C-18   Shell Oil's Thomasville Facility Operating Conditions
        During the Test Period	C-33
 C-19   Comparison of EPA Emissions Measurement Branch (EMB)
        Tests Results and the Company's Operations Support
        Laboratory Test Results at the Thomasville Facility   . . C-35

 C-20   Exxon's Blackjack Creek Facility Annual Stack
        Emission Tests Data	C-39
 C-21   Shell Oil's Bryans Mill Facility Source Emission
        Tests Data	C-40
 C-22   Shell Oil's Person Plant Facility Source Emission
        Tests Data	C-42
 E-l    Feed Gas Compositions	E-8
 E-2    End-of-Run Sulfur Emission as S02 and Stack Height
        (Acid Gas Ratios - 80/20 and 50/50)	E-9

 E-3    End-of-Run Sulfur Emission as S02 and Stack Height
        (Acid Gas Ratio - 20/80)	E-10
 E-4    End-of-Run Sulfur Emission as S02 and Stack Height
        (Acid Gas Ratio - 12.5/87.5)	E-ll
 E-5    Composition of Exit Gases (Ib mols/hr) End-of-Run
        (Acid Gas Ratios - 80/20 and 50/50)	E-13
                                 xvi

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             LIST OF TABLES (continued)
E-7


E-8


E-9


E-10


E-ll


E-12


E-13


E-14


E-15


E-16


E-17


E-18


E-19


E-20


E-21


E-22


E-23

E-24

E-25
                                                         Page
Composition of Exit Gases (Ib mols/hr) End-of-Run
(Acid Gas Ratio - 20/80) .  .	E-14

Composition of Exit Gases (Ib mols/hr) End-of-Run
(Acid Gas Ratio - 12.5/87.5)	  .  E-15
Investment Costs and Sulfur Emissions (End-of-Run)
(Acid Gas Ratios - 80/20 and 50/50)	E-36
Investment Costs and Sulfur Emissions (End-of-Run)
(Acid Gas Ratio - 20/80) .  .	  ........  E-37

Investment Costs and Sulfur Emissions (End-of-Run)
(Acid Gas Ratio - 12.5/87.5)	E-38
Summary of Investment Costs by Units (MM$) (Acid
Gas Ratios - 50/50 and 80/20)	E-39
Summary of Investment Costs by Units (MM$) (Acid
Gas Ratio - 20/80) .  .	E-40

Summary of Investment Costs by Units (MM$) (Acid
Gas Ratio - 12.5/87.5)	E-41

Cost of Initial Charge of Catalysts and Chemicals
(Acid Gas Ratios - 80/20 and 50/50)	E-43

Cost of Initial Charge of Catalysts and Chemicals
(Acid Gas Ratio - 20/80)	  E-44
Cost of Initial Charge of Catalysts and Chemicals
(Acid Gas Ratio - 12.5/87.5)	  E-:45
Utilities and Catalyst Costs - Recycle Selectox
2-Stage Process  	  E-47

Utilities and Catalyst Costs - Claus Process - No Tail
Gas or Waste Heat Recovery Units	E-48
Utilities and Catalyst Costs - CTaus Process - With
Waste Heat Recovery - No Tail Gas Unit	E-49
Utilities and Catalyst Costs - BSR/MDEA Tail Gas
Cases	
                                                         E-50
Utilities and Catalyst Costs - Recycle .Selectox
3-Stage Process	 E-51

Utilities and Catalyst Costs - Beavon Sulfur Removal
Process (BSRP)	'	E-52

Utilities and Catalyst Costs - BSR/Selectox Process  .   . E-53

Utilities and Catalyst Costs - Sulfreen Process  .... E-54

Sulfur Recovered (LT/D), Average During Run (Acid
Gas Ratios - 80/20 and 50/50)	E-56
                        xvn

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                     LIST OF TABLES (concluded)
Table
Page
 E-26   Sulfur Recovered (LT/D), Average During Run (Acid
        Gas Ratio - 20/80)	E-57
 E-27   Sulfur Recovered (LT/D), Average During Run (Acid
        Gas Ratio - 12.5/87.5)	E-58
 E-28   Fixed-Capital Costs for 39 Cases of Sulfur
        Intake/Acid Gas H2S/C02 Ratio/Sulfur Recovery
        Technology Combinations  	 i  	  E-60
 E-29   Annual!zed Costs for 39 Cases of Sulfur
        Intake/Acid Gas H2S/C02 Ratio/Sulfur Recovery
        Technology Combinations  	 ....  E-61
 G-l    Analysis of the API Gas Plant Survey Data -
        Onshore Natural Gas Processing 	  G-4
 G-2    Analysis of The API's Gas Plant Survey Data -
        Sour Natural Gas Streams with Sweetening Only	G-5
 G-3    Analysis of The API's Gas Plant Survey Data - Sour
        Natural Gas Streams with Sulfur Recovery Only   	  G-14
 G-4    Projected New Sulfur Recovery Capacities
        for the Period of 1983-1987	G-17
 G-5    Sulfur in Sour Natural Gas Streams with
        Sweetening Only in the Period 1983-1987	G-18
 G-6    Projected Population of New Sulfur Recovery Facilities
        and Their Sulfur Intake Size Distribution, 1983-1987  . .  G-19
 G-7    Projected Population of New Sweetening Facilities
        and Their Sulfur Intake Size Distribution, 1983-1987  . .  G-20
 G-8    The API Gas  Plant Survey Report	6-21
 H-l    Feed Gas Compositions	H-7
 H-2    Composition  of Exit Gases, End-of-Run  	  H-9
 H-3    Total  Installed Costs   	  H-10
 H-4    Cost of Initial Charge  of Catalysts   	H-ll
 H-5    Utilities and Catalyst  Costs  	 H-21
 H-6    Sulfur Recoveries	H-22
 H-7    Annualized  Costs  for  12 Cases  of  Sulfur  Feed
        Rate/Acid Gas H2S Concentration/Recycle  Selectox
        Process Combinations  	 H-24
                                 xvm

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                               1.  SUMMARY

     Standards of performance for new stationary sources are established
under Section 111 of the Clean Air Act (42 U.S.C. 7411), as amended in
1977.  Section 111 directs the Administrator to establish standards of
performance for any category of new stationary source of air pollution
which ". .  .  causes or contributes significantly to air pollution which
may reasonably be anticipated to endanger public health or welfare."
This background information document (BID) supports the proposed standards,
which would control sulfur dioxide (S02) emissions from onshore natural
gas processing facilities.
     The natural gas production industry is involved in producing pipeline
quality (sweet) natural gas.  Over 75 percent of the onshore production,
and almost all of the offshore production is sweet.  The remaining
fraction, however, contains acid gases and is routinely sweetened to
reduce the hydrogen sulfide (H2S) and carbon dioxide (C02) content to
levels that are acceptable for pipeline distribution.  Elemental sulfur
may be recovered from H2S in the separated acid gas (H2S and C02) stream
for those onshore processing facilities that sweeten the sour natural
gas.  The residual H2S is-oxidized to S02, and released to the atmosphere.
1.1  REGULATORY ALTERNATIVES
     To evaluate the environmental, economic, and energy impacts associated
with implementation of a standard for the natural gas production industry,
the Administrator has examined a number of regulatory alternatives for
controlling S02 emissions.  The six regulatory alternatives selected for
evaluation are summarized as follows:
     •    Regulatory Alternative I - No standards of performance would
          be promulgated for onshore natural gas processing facilities.
          This alternative assumes that current state and local regulations
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          are applied to the industry (baseline control).   Baseline
          control  technologies range from incineration (zero percent S02
          reduction) to the Claus process (2- or 3-stage,  93.01 to
          97.31 percent start-of-run S02 reduction) depending on plant
          size (sulfur feed rate) and acid gas H2S/C02 ratio.
     •    Regulatory Alternatives II through VI - Regulatory
          Alternatives II through VI apply five control  technologies in
          different combinations to differing plant sizes  resulting in
          progressively more stringent levels of S02 emissions reduc-
          tion.  The technologies include the Claus process (2-stage,
          93.01 to 96.31 percent start-of-run S02 reduction; 3-stage,
          94.72 to 97.31 percent start-of-run S02 reduction);  the Recycle
          Selectox process (2-stage, 80.68 to 92.36 percent start-of-run
          S02 reduction; 3-stage, 83.61 to 95.12 percent start-of-run
          S02 reduction); the Sulfreen process (97.94 to 98.82 percent
          start-of-run S02 reduction); The Shell Claus Offgas Treatment
          process (99.89 to 99.99 percent start-of-run SQ2 reduction)
          and the Beavon Sulfur Recovery process (99.89 to 99.99 percent
          start-of-run S02 reduction).  Regulatory Alternatives II
          through VI progressively increase in cost per megagram of S02
          reduced.  The impacts of each regulatory alternative are
          assessed through analyses of their impacts on individual plant
          sizes.  Nationwide impacts are determined based on a projected
          distribution of plant sizes to be constructed.
1.2  ENVIRONMENTAL IMPACT
     The environmental and energy impacts of the regulatory alternatives
are summarized in Table 1-1.  Regulatory Alternative I has the only
adverse air impact while Alternatives III through VI produce significant
emission reductions.  No adverse water or solid waste impacts and only
negligible adverse energy impacts are associated with any of the regulatory
alternatives.  The environmental and energy impacts are discussed in
detail in Chapter 7 of the BID.
                                  1-2

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1.3  ECONOMIC IMPACT
     The estimated economic impacts also are summarized in Table 1-1.
Regulatory Alternatives V and VI have large adverse economic impacts.
The economic impacts of Regulatory Alternatives I through IV range from
no impact to a small adverse impact.  Regulatory Alternative IV has the
greatest beneficial air quality impact without a large adverse economic
impact.  The economic impacts are discussed in detail in Chapter 9 and
cost analyses are discussed in Chapter 8 of the BID.
                                   1-4

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                             2.  INTRODUCTION

2.1  BACKGROUND AND AUTHORITY FOR STANDARDS
     Before standards of performance are proposed as a Federal regulation,
air pollution control methods available to the.affected industry and the
associated costs of installing and maintaining the control equipment are
examined in detail.  Various levels of control based on different technolo-
gies and degrees of efficiency are expressed as regulatory alternatives.
Each of these alternatives is studied by EPA as a prospective basis for a
standard.  The alternatives are investigated in terms of their impacts on
the economics and well-being of the industry, the impacts on the national
economy, and the impacts on the.environment.   This document summarizes the
information obtained through these studies so that interested persons will
be privy to the information considered by EPA in the development of the
proposed standard.
     Standards of performance for new stationary sources are established
under Section 111 of the Clean Air Act (42 U.S.C.  7411) as amended, herein-
after referred to as the Act.  Section 111 directs the Administrator to
establish standards of performance for any category of new stationary
source of air pollution which ".  .  .  causes,  or contributes significantly
to air pollution which may reasonably be anticipated to endanger public
health or welfare."
     The Act requires that standards of performance for stationary sources
reflect, ".  .  .  the degree of emission reduction achievable which (taking
into consideration the cost of achieving such emission reduction, and any
nonair quality health and environmental impact and energy requirements) the
Administrator determines has been adequately demonstrated for that category
of sources."  The standards apply only to stationary sources, the construc-
tion or modification of which commences after regulations are proposed by
publication in the Federal Register.
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     The 1977 amendments to the Act altered or added numerous provisions
that apply to the process of establishing standards of performance.
     1.  EPA is required to review the standards of performance every
4 years and, if appropriate, revise them.
     2.  EPA is authorized to promulgate a standard based on design, equip-
ment, work practice, or operational procedures when a standard based on
emission levels is not feasible.
     3.  The term "standards of performance"  is redefined, and a new term
"technological system of continuous emission  reduction"  is defined. The new
definitions clarify  that the control  system must be continuous and  may
include a  low- or non-polluting process  or operation.
     4.  The time between  the  proposal and promulgation  of a standard under
section 111  of the  Act  may be  extended to  6 months.
     Standards of performance,  by themselves, do  not  guarantee protection
of health  or welfare because  they are not  designed to achieve any  specific
 air quality levels.   Rather,  they are designed to reflect the degree of
 emission  limitation achievable through application of tU best adequately
 demonstrated technological system of continuous emission reduction, taking
 into consideration the cost of achieving such emission reduction,  any
 nonair-quality health and environmental  impacts,  and energy requirements.
      Congress had several reasons for including these requirements. First,
 standards with a degree of uniformity are needed to avoid situations where
 some States may attract industries by relaxing standards relative to other
 States.  Second, stringent standards enhance the potential  for long-term
 growth.  Third, stringent standards  may help achieve long-term cost savings
 by avoiding the need for more expensive retrofitting when pollution ceilings
 may be reduced in  the  future. Fourth, certain  types  of  standards for coal-
 burning sources can adversely affect the  coal  market by driving up the
 price of  low-sulfur coal  or  effectively excluding certain coals from the
 reserve base  because their untreated pollution potentials are  high.  Con-
 gress does not  intend  that new source performance standards contribute to
 these problems.   Fifth,  the  standard-setting process should create incen-
 tives for improved technology.
                                    2-2

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     Promulgation of standards of performance does not prevent State or
local agencies from adopting more stringent emission limitations for the
same sources.   States are free under Section 116 of the Act to establish
even more stringent emission limits than those established under Section 111
or those necessary to attain or maintain the National  Ambient Air Quality
Standards (NAAQS) under Section 110.  Thus, new sources may in some cases
be subject to limitations more stringent than standards of performance
under Section 111, and prospective owners and operators of new sources
should be aware of this possibility in planning for such facilities.
     A similar situation may arise when a major emitting facility is to be
constructed in a geographic area that falls under the prevention of signi-
ficant deterioration of air quality provisions of Part C of the Act.  These
provisions require, among other things, that major emitting facilities to
be constructed in such areas are to be subject to best available control
technology.  The term,Best Available Control Technology (BACT), as defined
in the Act, means
          .... an  emission limitation based on the maximum degree of
           reduction of each pollutant subject to  regulation under
           this Act  emitted from, or which  results from, any major
           emitting  facility, which  tne permitting authority, on a
           case-by-case basis,  taking into  account energy,  environ-
           mental, and economic impacts and other  costs, determines  is
           achievable  for  such  facility through application of produc-
           tion processes  and  available methods, systems,  and techniques,
           including fuel  cleaning  or treatment or innovative fuel
           combustion  techniques  for control  of each such  pollutant.
           In  no  event shall application  of 'best  available control
           technology1 result  in  emissions  of any  pollutants which
           will exceed the emissions allowed by any  applicable  standard
           established pursuant to  Sections 111 or 112 of  this  Act.
           (Section  169(3))
      Although standards  of  performance  are normally structured in  terms of
 numerical  emission  limits where feasible,  alternative approaches  are some-
 times necessary.   In some cases physical  measurement  of emissions  from a
 new source may be impractical  or exorbitantly expensive.   Section  lll(h)
 provides that the Administrator may promulgate  a design or equipment stan-
 dard in those cases where it is not feasible to prescribe or enforce a
 standard of performance.   For example,  emissions of hydrocarbons from
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storage vessels for petroleum liquids are greatest during tank filling.
The nature of the emissions, high concentrations for short periods
during filling and .low concentrations for longer periods during storage,
and the configuration of storage tanks make direct emission measurement
impractical.  Therefore, a more practical approach to standards of
performance for storage vessels has been equipment specification.
     In addition, Section lll(j) authorizes the Administrator to grant
waivers of compliance to permit a source to use innovative continuous
emission control technology.  In order to grant the waiver, the Admini-
strator must find:  (1) a substantial likelihood that the technology
will produce greater emission reductions than the standards require or
an equivalent reduction at lower economic energy or environmental cost;
(2) the proposed system has not been adequately demonstrated; (3) the
technology will not cause or contribute to an unreasonable risk to the
public health, welfare, or safety; (4) the governor of the State where
the source is located consents; and (5) the waiver will not prevent the
attainment or maintenance of any ambient standard.  A waiver may have
conditions attached to assure the source will not prevent attainment of
any NAAQS.  Any such condition will have the force of a performance
standard.  Finally, waivers'have definite end dates and may be terminated
earlier if the conditions are not met or if the system fails to perform
as expected.  In such a case, the source may be given up to 3 years to
meet the standards with a mandatory progress schedule.
2.2  SELECTION OF  CATEGORIES OF STATIONARY SOURCES
     Section  111 of the Act directs the  Administrator to list categories
of stationary sources.  The Administrator "...  shall  include a  category
of sources  in such list if  in his judgement  it  causes,  or  contributes
significantly to,  air pollution which may reasonably be  anticipated to
endanger public  health  or welfare."   Proposal and promulgation of  standards
of performance  are to follow.
     Since  passage of the Clean Air Amendments  of 1970,  considerable
attention has been given to the development  of  a  system for  assigning
priorities  to various source  categories.  The approach  specifies  areas
of  interest by  considering  the  broad  strategy of  the Agency  for  imple-
menting  the Clean  Air Act.  Often,  these "areas"  are actually pollutants
                                   2-4

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emitted by stationary sources.   Source categories that emit these
pollutants are evaluated and ranked by a process involving such factors
as:  (1) the level of emission control (if any) already required by
State regulations, (2) estimated levels of control that might be required
from standards of performance for the source category, (3) projections
of growth and replacement of existing facilities for the source category,
and (4) the estimated incremental amount of air pollution that could be
prevented in a preselected future year by standards of performance for
the source category.  Sources for which new source performance standards
were promulgated or under development during 1977, or earlier, were
selected on these criteria.
     The Act amendments of August 1977 establish specific criteria to be
used in determining priorities for all major source categories not yet
listed by EPA.  These are:  (1) the quantity of air pollutant emissions
that each such category will emit, or will be designed to emit; (2) the
extent to which each such pollutant may reasonably be anticipated to
endanger public health or welfare; and (3) the mobility and competitive
nature of each such category of sources and the consequent need for
nationally applicable new source standards of performance.
     The Administrator is to promulgate standards for these categories
according to the  schedule referred to earlier.
     In some cases  it may not be feasible immediately to develop a
standard for a source category with a high priority.  This might happen
when a program of research  is needed to develop control techniques or
because techniques  for sampling and measuring emissions may require
refinement.  In the developing of standards, differences  in the time
required to complete the  necessary investigation  for different source
categories must also be considered.   For  example, substantially more
time may be necessary if  numerous pollutants must be  investigated  from a
single  source category.   Further, even  late  in  the development process
the  schedule  for  completion of a standard may change.   For example,
inablility to obtain emission data from well-controlled sources  in time
to pursue the development process in  a  systematic fashion may force a
change  in scheduling.  Nevertheless,  priority  ranking  is, and will
                                   2-5

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continue to be, used to establish the order in which projects are initiated
and resources assigned.
     After the source category has been chosen, the types of facilities
within the source category to which the standard will apply must be
determined.  A source category may have several facilities that cause
air pollution, and emissions from some of these facilities may vary from
insignificant to very expensive to control.  Economic studies of the
source category and of applicable control technology may show that air
pollution  control is better served by applying standards to the more
severe pollution sources.  For this reason, and because there is no
adequately demonstrated  system for controlling emissions from certain
facilities,  standards  often do not apply to all facilities at a source.
For the  same reasons,  the standards may not apply  to all air pollutants
emitted.   Thus, although a source category may be  selected to be covered
by a  standard of performance, not all pollutants or facilities within
that  source  category may be covered by the standards.
2.3   PROCEDURE FOR  DEVELOPMENT OF STANDARDS OF PERFORMANCE
      Standards of performance must  (1) realistically reflect best  demon-
strated control practice;  (2) adequately  consider  the  cost,  the  nonair-
quality health and  environmental  impacts,  and the  energy requirements  of
such  control; (3) be  applicable  to  existing  sources that are modified  or
reconstructed as well  as new installations;  and  (4) meet these  conditions
for all variations  of operating  conditions being considered anywhere in
 the country.
      The objective  of a program for developing standards is to  identify
 the best technological system of continuous  emission reduction  that has
 been adequately demonstrated.   The standard-setting process involves
 three principal phases of activity:   (1) information gathering,
 (2) analysis of the information, and (3) development of the standard of
 performance.
      During the information-gathering phase, industries are queried
 through a telephone survey, letters of inquiry, and plant visits by EPA
 representatives.  Information is also gathered from many other sources
 to provide  reliable data that characterize the pollutant emissions from
 well-controlled existing facilities.
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     In the second phase of a.project, the information about the industry
and the pollutants emitted is used in analytical studies.   Hypothetical
"model plants" are defined to provide a common basis for analysis.   The
model plant definitions, national pollutant emission data, and existing .
State regulations governing emissions from the source category are then
used in establishing "regulatory alternatives."  These regulatory alterna-
tives are essentially different levels of emission control.
     EPA conducts studies to determine the impact of each regulatory
alternative on the economics of the industry and on the national economy,
on the environment, and on energy consumption.  From several possibly
applicable alternatives, EPA selects the single most plausible regulatory
alternative as the basis for a standard of performance for the source
category under study.
     In the third phase of a project, the selected regulatory alternative
is translated into a standard of performance, which, in turn, is written
in the form of a Federal regulation.  The Federal regulation, when
applied to newly constructed plants, will limit emissions to the levels
indicated  in the selected regulatory alternative.
     As early as is practical in each standard-setting project, EPA
representatives discuss the possibilities of a  standard and the form it
might take with members of the National Air Pollution Control Techniques
Advisory Committee.  Industry representatives and other interested
parties also participate in these meetings.
     The information acquired in the  project  is summarized  in the
Background Information  Document  (BID).  The BID, the standard,  and a
preamble explaining  the standard are  widely circulated to  the industry
being  considered  for control, environmental groups, other  government
agencies,  and offices within  EPA.   Through this extensive  review process,
the  points of view of expert  reviewers  are taken into consideration as
changes are made  to  the documentation.
      A "proposal  package"  is  assembled  and sent through the offices of
EPA  Assistant Administrators  for concurrence  before the proposed standard
is officially endorsed  by  the EPA Administrator.  After being approved
by the EPA Administrator,  the preamble  and the  proposed regulation are
published  in  the  Federal  Register.
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     As a part of the Federal Register announcement of the proposed
regulation, the public is invited to participate in the standard-setting
process.  EPA invites written comments on the proposal and also holds a
public hearing to discuss the proposed standard with interested parties.
All public comments are summarized and incorporated into a second volume
of the BID.  All information reviewed and generated in studies in support
of the standard of performance is available to the public in a "docket"
on file in Washington, D. C.
     Comments from the public are evaluated, and the standard of
performance may be altered in response to the comments.
     The significant comments and EPA's position on the issues raised
are included in the "preamble" of a "promulgation package," which also
contains the draft of the final regulation.  The regulation is then
subjected to another round of review and refinement until it is approved
by the  EPA Administrator.  After the Administrator signs the regulation,
it is published as a "final  rule" in the Federal Register.
2.4  CONSIDERATION OF COSTS
     Section 317 of the Act  requires an economic impact assessment with
respect to any standard of performance established under Section 111 of
the Act.  The assessment is  required to contain an analysis of:  (1) the
costs of compliance with the regulation, including the extent to which
the cost of compliance varies depending on  the effective date of the
regulation and the development of less expensive or more efficient
methods of compliance; (2)  the potential inflationary or recessionary
effects of the  regulation;  (3) the  effects  the regulation might have on
small business with  respect to competition;  (4) the effects of the
regulation on consumer costs; and (5) the  effects  of  the  regulation  on
energy  use. Section  317  also requires that the economic  impact assessment
be as  extensive  as practicable.
     The economic  impact of a proposed standard upon  an  industry  is
usually addressed  both  in  absolute  terms and in terms of  the  control
costs  that would be  incurred as  a result of compliance with typical,
existing State  control  regulations.   An  incremental approach  is  necessary
because both  new and existing plants  would be required to  comply  with
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State regulations in the absence of a Federal standard of performance.
This approach requires a detailed analysis of the economic impact from
the cost differential that would exist between a proposed standard of
performance and the typical State standard.
     Air pollutant emissions may cause water pollution problems, and
captured potential air pollutants may pose a solid waste disposal problem.
The total environmental impact of an emission source must, therefore, be
analyzed and the costs determined whenever possible.
     A thorough study of the profitability and price-setting mechanisms
of the industry is essential to the analysis so that an accurate, estimate
of potential adverse economic impacts can be made for proposed standards.
It is also.essential to know the capital requirements for pollution
control systems already placed on plants so that the additional  capital
requirements necessitated by these Federal standards can be placed in
proper perspective.  Finally, it is necessary to assess the availability
of capital to provide the additional control equipment needed to meet
the standards of performance.
2.5  CONSIDERATION OF ENVIRONMENTAL IMPACTS
     Section 102(2)(C) of the National Environmental Policy Act  (NEPA)
of 1969 requires Federal agencies to prepare detailed environmental
impact statements on proposals for legislation and  other major Federal
actions significantly affecting the quality  of the  human environment.
The objective of NEPA is to build into the decisionmaking process of
Federal agencies a careful consideration of  all environmental aspects of
proposed actions.
     In a  number of  legal  challenges to standards of performance for
various industries,  the United States Court  of Appeals for the District
of Columbia  Circuit  has held that environmental impact statements need
not be prepared by the Agency for proposed actions  under Section 111 of
the Clean  Air Act.   Essentially, the Court of Appeals has determined
that the best system of emission reduction requires the Administrator to
take into  account  counter-productive environmental  effects of a  proposed
standard,  as well  as economic costs to the industry.  On this basis,
therefore,  the Court established a  narrow  exemption from NEPA for EPA
determination under  Section  111.
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     In addition to these judicial  determinations,  the Energy Supply and
Environmental Coordination Act (ESECA) of 1974 (PL-93-319) specifically
exempted proposed actions under the Clean Air Act from NEPA requirements.
According to Section 7(c)(l), "No action taken under the Clean Air Act
shall be deemed a major Federal action significantly affecting the
quality of the human environment within the meaning of the National
Environmental Policy Act of 1969" (15 U.S.C. 793(c)(D).
     Nevertheless, the Agency has concluded that the preparation of
environmental impact statements could have beneficial effects on certain
regulatory actions.  Consequently, although not legally required to do
so by  Section 102(2)(C)  of NEPA, EPA  has adopted a policy requiring that
environmental impact statements be' prepared for various regulatory
actions,  including standards  of performance developed under  Section 111
of the Act.  This  voluntary  preparation  of  environmental  impact statements,
however,  in  no  way legally subjects the  Agency to  NEPA  requirements.
      To implement  this  policy,  a  separate  section  in this document is
devoted solely  to  an  analysis of  the  potential environmental impacts
associated with the proposed standards.   Both adverse and beneficial
 impacts in such areas as air and water pollution,  increased solid waste
 disposal, and increased energy consumption are discussed.
 2.6  IMPACT ON EXISTING SOURCES
      Section 111 of the Act defines a new source as ".  .  -  any stationary
 source, the construction or modification of which is commenced .  . ."
 after the proposed standards are published.  An existing source is
 redefined as a new source if "modified" or "reconstructed"  as defined in
 amendments  to the general provisions of Subpart A of 40 CFR Part 60,
 which were  promulgated  in the Federal Register on December  16, 1975 (40
 FR  58416).
       Promulgation of a  standard of performance requires  States to establish
 standards of performance for existing sources in  the same  industry under
 Section  111 (d) of the  Act  if the standard for new  sources  limits  emissions
 of  a designated pollutant (i.e., a pollutant for  which air quality
 criteria have  not been  issued under  Section  108 or  which has  not been
                                    2-10

-------
listed as a hazardous pollutant under Section 112).   If a State does not
act, EPA must establish such standards.   General provisions outlining
procedures for control of existing sources under Section lll(d) were
promulgated on November 17, 1975, as Subpart B of 40 CFR Part 60
(40 FR 53340).
2.7  REVISION OF STANDARDS OF PERFORMANCE
     Congress was aware that the level of air pollution control achievable
by any industry may improve with technological advances.  Accordingly,
section 111 of the Act provides that the Administrator ". . . shall, at
least every 4 years, review and, if appropriate, revise . . ." the
standards.  Revisions are made to assure that the standards continue to
reflect the best systems that become available in the future.  Such
revisions will not be retroactive, but will apply to stationary sources
constructed or modified after the proposal of the revised standards.
                                   2-11

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                 3.  THE NATURAL GAS PRODUCTION INDUSTRY

     The crude oil and natural gas production industry involves a large
number of similar yet distinct industrial processes linked together in
widely differing combinations to meet a common purpose.  That purpose,is
to remove hydrocarbons and associated compounds from subterranean deposits
of oil and gas and to produce marketable products for industrial,
comme.rcial, and residential use.   On a detailed level, the methods of
removing the oil and gas from the earth, the process operations employed,
and the products produced all vary as greatly as the types of geologic
formations containing oil and gas, the properties of the well materials
obtained, and the markets for which the products are produced.  However,
on a more general level, the industry can be described by several operations
and installations distinguished from one another primarily by the purpose
or function they serve.
3.1  GENERAL DESCRIPTION
     Three basic operations within the crude oil and natural gas production
industry that are important to the control of sulfur compounds emissions
into the atmosphere are production operations, sweetening operations,
sulfur recovery operations, and incineration operations.  Figure 3-1
shows a generalized flow diagram of major industry operations and the
emission sources associated with each operation.
     Production operations for the crude oil and natural gas industry
consist of bringing reservoir fluids to the surface and providing the
field processing or treatment required to produce commercial products.
The purpose of the first major operation, well drilling, is to produce a
point of access to the subterranean deposit for exploration, oil and gas
production, water injection, gas injection, or other purposes.
                                 3-1

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     The next major processing operations applied to natural gas after
it has been removed from gas wells or gas/oil wells are the gas-liquid
separation operation and the sweetening operation.   All the onshore
natural gas that is "sour" is sweetened.   Sweetening is the removal of
hydrogen sulfide (H2S) and carbon dioxide (C02) gases present in "sour"
natural gas.  Sour gas is natural gas with a H2S concentration greater
than 0.25 grains per 100 standard cubic feet.   Sour natural gas contains
widely differing concentrations of H2S and C02 and trace amounts of
organic sulfur compounds such as mercaptans (RSH).   H2S is rarely less
                                            2
than 95 percent of the total sulfur content.
     Removal of H2S and C02 from natural  gas streams is necessary to
make the natural gas suitable for consumer use.  Specifications on the
degree of H2S removal allowed are essentially standard and uniform
across the United States.  The maximum H2S content is 0.25 grains of H2S
per 100 standard cubic feet (4 ppmv H2S) of sweetened natural gas.  This
standard remains unchanged as the criterion for "sweet gas" in most
natural gas applications.  Sweet natural  gas is also termed "residue
gas" in the industry.  Generally, C02 may be transported in natural gas
streams as long as the quantity of C02 does not reach the point of
seriously lowering the heating value of the gas.
     Currently, there are a number of processes used to sweeten sour
natural gases.  These processes are listed and described briefly in
Table 3-1.  Several processes are employed frequently for selective
absorption of H2S.  A simplified flow diagram for a typical gas sweetening
facility is shown in Figure 3-2.  Amine treating of sour natural gas for
the removal of H2S and C02 is probably the most widely utilized process
for sweetening the sour gas in the industry.  This process involves
scrubbing the gas with amine solutions that absorb H2S and C02.
Regeneration (stripping operation) of this absorbing solution produces
an acid gas stream, containing H2S, C02, the saturated amount of water
vapor, and negligible amounts of hydrocarbons.  This acid gas stream is
either flared, incinerated, or processed further in a sulfur recovery
facility to recover liquid elemental sulfur from H2S in the acid gas
stream.
                                 3-3

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 3.2  SULFUR RECOVERY OPERATIONS AND SULFUR DIOXIDE (S02) EMISSIONS
      The Claus process is the most widely used process for converting
 H2S in acid gases separated from natural  gas into elemental  sulfur.   The
 feed to the Claus plant is an acid gas stream removed from the original
 sour natural  gas stream by a sweetening process.   Sulfur recovery
 efficiencies  are greater (I.e.,  S02 emissions are lower) with higher
 concentrations of H2S in the feed stream.   A number of Claus sulfur
 recovery process configurations  are used by the industry to  accommodate
 various concentrations of H2S in the acid gas feed.   Currently,  over
 250 Claus sulfur recovery plants are operating worldwide in  petroleum
 refineries and onshore natural  gas processing facilities.  Plant capacities
 range from less than 5 to over 1,000 metric tons  of sulfur feed  per  day.
      The Stretford process is a  wet chemistry process  for converting H2S
 to  elemental  sulfur.   Originally the process  was  used  for removing H2S
 from coal-derived gases;  subsequently it  has  been applied to gases from
 various sources including refinery gases  and  natural gas  streams.  The
 Stretford process is highly  effective in  removing low  concentrations  of
 H2S from contaminated gas streams.   This  process  is  commercially available
 and is  demonstrated in more  than 50  plants  throughout  the  world.   However,
 the Stretford  process  has been utilized on  a  limited scale in  refinery
 and onshore natural  gas processing operations  in  the United  States.
 3.2.1  Claus Sulfur Recovery  Process
      Claus sulfur recovery plants  convert H2S  to  elemental sulfur  by  gas
 phase reactions  at  8  to 10 psig  initial pressure  (with tail  gas  systems
 as  much  as 20  psig)  and at high  temperatures 190°C to 330°C  (375°F to
 625°F),  using  catalysts in stages.  Conversion of the H2S  in the acid
 gas  feed to elemental  sulfur  can be from 70 to 97 percent  complete,
 depending on the  concentration of  H2S in the acid gas feed stream, the
 type of process configuration, and the number of  reaction  stages employed.
 Several side reactions occur during the Claus process, some of which can
produce such compounds as carbonyl sulfide (COS) and carbon disulfide
 (CS2).  Unconverted sulfur compounds that appear  in the tail  gases from
Claus plants are thermally oxidized and emitted to the atmosphere as S02
or processed further for sulfur recovery in a tail gas cleanup unit.
                                 3-7

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     There are four main variations of the Glaus process,  differing
primarily in the way in which the heat balance is maintained:
     1.   the straight-through process,
     2.   the split-flow process,
     3.   the split-flow process with preheating of feed stream, and
     4.   the sulfur-recycle process.
The straight-through process is utilized when the H2S concentration in
the acid  gas feed  is high (greater than 50 mole percent).  The  split-flow
process configuration  is used when the H2S concentration in the feed is
between 20  and  50  mole percent.   If  the feed  stream is  leaner in H2S
than 20 mole percent and at  ambient  temperature, the  flame.is not  self
sustaining  and  the feed stream  must  be preheated to complete the Claus
reaction  when the  split-flow scheme  is employed.  The process may  still
be a net  heat producer. Typically,  the  sulfur-recycle  process  is  used
when the  acid gas  feed contains less than 10  percent  H2S by  volume and
 the problem of a self sustaining flame occurs.   These ranges of H2S
 concentrations  are not sharply defined when used to determine which
 Claus process configuration should be applied in a specific  situation.
 Factors such as the presence of compounds other than H2S and C02 in the
 acid gas, the acid gas feed flow rate, the stability of the acid gas
 composition and flow  rate, past experiences of Claus plant designers,
 economics, and volume percent  ratio of H2S and C02 have a large influence
 on the choice  of  process configuration.
 3.2.2  Claus Tail  Gas Cleanup  Processes
     ' Tail  gas  cleanup systems  can be employed  to process the unconverted
 sulfur compounds  in Claus plant  tail gas.  By  using  these systems  overall
 sulfur recovery is increased,  and S02 emissions are  reduced.   Even after
 condensation of product sulfur,  the tail  gases from  Claus units contain
 appreciable  quantities of H2S, S02, and other  sulfurous compounds.
 Before  1970,  tail gases from Claus  plants commonly were incinerated,  and
  the resulting S02-containing gases  vented through a  stack to the
  atmoshpere.   Because of the regulatory emphasis since 1970  on reducing
  S02 emissions, there are now several viable commercial processes  available
  for Claus tail gas cleanup.  Nearly all these cleanup processes will
  reduce S02 emissions to between 0.0412 and 0.0002 Ib of S02 per pound of
                                   3-8

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sulfur processed (97.94 to 99.99 percent) and are capable of boosting
the overall sulfur recovery efficiency of a Claus plant from 93.'01 percent
to greater than 97.94 percent.
     Three tail gas cleanup processes developed for reducing S02 emissions
through extension of the Claus reaction by operation at low temperatures
are the Cold Bed Adsorption (CBA), the IFP-1 (Institut Francais du
Petrole), and the Sulfreen processes.  Four other processes, the BSRP
(Beavon Sulfur Removal Process), the BSR/Selectox I (Beavon Sulfur
Removal/Selectox I), the SCOT (Shell Claus Offgas Treatment), and the
Cleanair processes have been developed and demonstrated to reduce emissions
from Claus sulfur recovery plants through conversion of the sulfur
compounds present in the tail gas to H2S, followed by H2S recovery.  In
addition, the Well man-Lord and the IFP-2 processes were developed to
reduce Claus plant tail gas sulfur emissions by conversion of sulfur
compounds present in the tail gas to S02, followed by S02 recovery,  the
ammonium bisulfite/ammonium thiosulfate and the MCRC (Mineral and Chemical
Resource Co.) limestone slurry sulfur recovery processes have also been
developed.  ATI these tail gas cleanup processes are described in detail
in Chapter 4.  Figure 3-3 presents these tail gas cleanup processes and
other potentially available processes.
3.3  BASELINE CONTROL EMISSIONS LEVELS
     Emissions of sulfur from onshore natural gas processing operations
originate from H2S contained in "sour" natural gas deposits.  This
sulfur is emitted as H2S (trace amounts) and S02, with the majority of
sulfur emissions occurring as S02.  The major sulfur emissions sources
within onshore natural gas processing operations are as follows:
     1.   S02 from incinerated acid gas emitted from sweetening operations,
     2.   S02 from incinerated tail gas emitted from sulfur recovery
          operations, and
     3.   S02 from incinerated residual tail gas emitted from tail gas
          cleanup systems on sulfur recovery plants.
Nationwide sulfur dioxide emissions from the existing onshore natural
gas sweetening and sulfur recovery facilities in the natural gas produc-
tion industry are estimated to be 250,000 megagrams per year.  These
                                 3-9

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estimates are based on the data available on 82 sulfur recovery facilities
(89 facilities listed) presented in Standford Research Institute (SRI)
International's Chemical Economics Handbook, December 1979 (refer to
Table 9-5 and the Docket Entry A-80-20-A, II-I-44).   The estimates
exclude those onshore natural gas processing facilities that do not
recover sulfur but simply incinerate the acid gases from the sweetening
units.
3.3.1  Sweetening Operation Emissions
     Sulfur emissions from sweetening systems of sour natural gas plants
usually occur as either H2S or S02.  Nearly all "spur" natural gas is
routed to a gas sweetening facility where the H2S is removed and becomes
part of the acid gas stream.   At plants where the quantities of sulfur
available in the feed gas are considered too low to be economically
feasible to recover, the acid gas is often not treated for sulfur recovery.
In fact, the cost would prohibit the constructing and operating of
sulfur recovery units in such situations.  In such cases, the sulfur in
the acid gas is either vented to the atmosphere as H2S or burned with
fuel gas and air in a flare or an incinerator and emitted to the atmosphere
as S02.   However, the H2S in acid gas is most often converted to S02
before being emitted to the atmosphere, and the fraction of H2S emissions
is therefore very small compared to the total sulfur emissions in the
United States.  Several factors, such as the H2S concentration in the
gas, state regulations, and population densities affect whether the H2S
in acid gas is converted to S02 before being emitted to the atmosphere.
     In addition, nitrogen oxides (NO ), hydrocarbons (HC), and parti-
                                     }\
culate matter may be emitted during combustion of acid gas with fuel
gas.  However, incinerators and flares at gas sweetening plants operate
at temperatures ranging from approximately 538°C to 704°C (1,000°F
to 1,300°F).  At these temperatures, the combustion of H2s .   SQ2 is
over 99 percent complete, and significant amounts of nitrogen oxides are
not formed in this low temperature range.  Particulate matter and
hydrocarbons emitted from sweetening operations result from incomplete
combustion of the acid gas.  Incomplete combustion can be caused by
insufficient fuel value in the gas mixture or inadequate mixing of fuel
and air.  These factors are considered in incinerator and flare design
                                 3-11

-------
and operating procedures to insure complete oxidation of H2S and other
reduced sulfur compounds to S02.   Therefore, smokeless flares and
incinerators usually do not produce significant amounts of particulate
or hydrocarbons.
3.3.2  Sulfur Recovery Operation Emissions
     Nearly all sulfur originating in sour natural gas is extracted
during sweetening operations and, if not emitted to the atmosphere after
sweetening, is then routed in the acid gas to a Glaus sulfur recovery
plant.  Unless a tail gas cleanup unit is applied, the exhaust gas
leaving the Claus plant is incinerated, and consequently the tail gas
sulfur is emitted to the atmosphere primarily as S02.
     As in the case of burning acid gas, nitrogen oxides, hydrocarbons,
and particulate matter may be emitted from Claus tail gas incineration.
However, these emissions normally would be insignificant for the same
reasons cited for acid gas flaring or incineration.
     Sulfur compounds emissions from sulfur recovery operations are
influenced by several parameters, including Claus plant reactor bed
temperatures, age and condition of the catalyst used in the Claus process,
the H2S and C02 concentrations in the acid gas feed, the number of
conversion stages in the Claus plant, and the percent capacity  at which
the Claus plant is  operated.
3.3.3  Baseline Control Emission  Levels
      3.3.3.1  SO? Baseline Control Emission Levels.  The S02 baseline
emission  level  is the  level  of emission control (1982 State. S02 controls)
that  would exist  in the natural  gas production industry  in  the  absence
of any additional EPA  standards.  This  baseline emission  level  is
established to  facilitate  comparison  of the economic,  energy and
environmental  impacts  of the regulatory alternatives.   Cur-rent  control
technologies  that represent  industry  practice  are described in  Chapter 4.
Achievable emission reduction levels  from the  application  of these
current  control  technologies are described briefly in Chapter 7.   Current
 industry practice,  data from literature and vendors,  and existing  State
 requirements  for sulfur recovery from natural  gas production activities
provide  the basis for selection  of the S02 baseline control  emission
 levels.
                                  3-12

-------
     Current technologies that represent industry practice can be
classified as (1) sweetening operations with incineration of acid gases,
and (2) sweetening operations followed by sulfur recovery with incinera-
tion of Glaus tail gases.  Assessment of actual industry practice includes
considerations for sulfur recovery plant size, H2S and C02 concentrations
in the acid gas feed, and number of Claus unit catalytic stages.   Three
baseline controls have been developed for the natural" gas production
industry based upon current industry practice.  These baseline controls,
which are applied following sweetening operations, are:
     •    Incineration
     t    Sulfur recovery and incineration (Claus-2 stage)
     e    Sulfur recovery and incineration (Claus-3 stage)
     These baseline controls form the basis of the model plants for
which cost analysis and economic impact study will be conducted.   While
incineration does not reduce S02 emissions, it represents a no control
option, and as such is included in this discussion of control technology
options.  Current control technologies demonstrated at the existing
facilities for efficient, economical, and continuous reduction of S02
emission levels under normal operating conditions are represented through
these baseline controls.
     Baseline controls and baseline emission levels for S02 are presented
in Table 3-2.  An assessment of the baseline control is also presented
in Table 3-2, which shows sulfur recovery efficiency under normal operating
conditions for a specified acid gas H2S/C02 volume percent ratio.
     Specific emission regulations for sulfur recovery plant facilities
currently are applied at the State level.  Direct interface with national
regulations is usually confined to diffusion modeling to show compliance
with ambient standards and significant deterioration standards.  The
degree to which applicable State regulations require S02 emission
reductions depends on the size of the sulfur recovery plant and the H2S
and C02 concentrations in the acid gas feed stream to the Claus unit.
Many states have specific emissions standards for sulfur-recovery plants,
while some use a case-by-case approach based on meeting ambient standards.
     3.3.3.2  H2S Baseline Control Emission Levels.  Current practice of
the natural gas production industry is to flare or incinerate unprocessed
                                 3-13

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acid gases, Claus unit tail gases, and residual tail gases (from tail

gas cleanup systems) before releasing them into the ambient atmosphere.

It is assumed that during thermal oxidation, operated at or above 538°C

(1,000°F), all sulfur compounds, including H2S, COS, and CS2, are converted

to SOg-  Therefore, separate regulations for H2S emissions from the gas

processing industry have not been established, because these emissions

are considered negligible in total amount.   However, any significant

emissions of H2S from the natural gas production industry is not permitted.

3.4  REFERENCES FOR CHAPTER 3

 1.  Railroad Commission of Texas, Oil and Gas Division.  Rules Having
     Statewide Application to Oil, Gas, and Geothermal Resource Operations
     within the State of Texas.  Austin, Texas.  October 22, 1979.
     Docket No. A-80-20-A, Entry II-I-43.

 2.  U.S. Environmental Protection Agency.  Atmospheric Emissions Survey
     of the Sour Gas Processing Industry.  Publication No. EPA-450/3-75-076.
     Research Triangle Park, North Carolina.  October 1975.  Docket
     No. A-80-20-A, Entry II-A-4.

 3.  Kohl, Arthur L. and Fred C. Riesenfeld.  Gas Purification.  Gulf
     Publishing Company.  Houston, Texas.  Third Edition.  1979, pp. 33-39.
     Docket No. A-80-20-A, Entry II-I-71.

 4.  Paskall, Harold G.  Capability of the Modified-Claus Process.
     Western Research & Development.  Alberta, Canada.  March 1979.
     Docket No. A-80-20-A, Entry II-1-41.

 5.  The Ralph M. Parsons Company.  Engineers/Constructors.  Sulfur
     Recovery Study - Onshore Sour Gas Production Facilities -  for TRW
     Environmental Engineering Division.  July 1981.  The study is
     presented in Appendix E.  Docket No. A-80-20-A, Entry II-A-16.
     Also refer to Entry II-A-20 for small sulfur recovery unit study
     (presented in Appendix H) detailing  costs for  Recycle Selectox
     sulfur recovery facilities.

 6.  State Air Laws.  Environmental Reporter.  The  Bureau of National
     Affairs,  Inc.  Washington, D.C.  1979-1981.  Docket No. A-80-20-A,
     Entry II-I-65.
                                  3-15

-------

-------
                     4.  EMISSION CONTROL TECHNIQUES

4.1  GENERAL DESCRIPTION
     For many years the Claus Sulfur Recovery Process has been utilized
to convert hydrogen sulfide (H2S) recovered from sour natural gas treating
processes into elemental sulfur.  This process is the first major step
in reducing the amount of this noxious gas that reaches the atmosphere.
Practically all of the sulfur recovery plants in this country are based
on some version of the Claus process for recovering sulfur from H2S.
     Since 1938, the principal improvements to the Claus process have
been obtained by sequential addition of more catalytic reactors, with
sulfur and heat removal between the reactors to shift the equilibrium of
the Claus reaction towards higher sulfur removals.  This process has now
advanced to the point that sulfur recovery efficiencies have increased
from the 90 to 92 percent levels first obtained in the late 1940's to
present recovery efficiency levels of up to 97 percent of inlet sulfur.
Numerous processes have also been developed during the past decade to
remove residual sulfur compounds from Claus plant tail gas.  Several of
these tail gas cleanup processes are designed to boost the sulfur recovery
capability of the Claus system to 99.9 percent recovery of sulfur contained
                                        3
in the acid gas feed to the Claus plant.
     In general, the sulfur compound emission conversion or control
techniques utilized in the natural gas production industry consist of
incinerators and flaring units, two- and three-stage Recycle Selectox
sulfur recovery units, two- and three-stage Claus sulfur recovery units,
and a variety of Claus tail gas cleanup systems.  The sulfur recovery
technologies currently used in the natural gas production industry are
available to control sulfur compounds emissions from acid gas streams
over the entire range of H2S concentration.  However, factors such as
the H2S and carbon dioxide (C02) concentrations in the acid gas
1,2
                                 4-1

-------
feed, the expected throughput (sulfur intake) of the facility,  the
location, and economics greatly influence the Claus process configuration,
the number of Claus reactors, the type of tail gas cleanup unit, if any,
and Recycle Selectox process, selected for a particular sulfur recovery
facility.
4.2  SULFUR EMISSION CONTROL TECHNOLOGIES USED IN THE INDUSTRY
4.2.1  Incineration
     Incineration is a temperature-controlled process in which fuel gas
and air are supplied to the incinerator in sufficient quantities to
maintain a constant temperature of 538°C - 704°C (1,000°F - 1,300°F) to
ensure complete oxidation of H2S and other reduced sulfur compounds,
such as carbon disulfide (CS2) and carbonyl sulfide (COS), to sulfur
dioxide  (S02).  Employing incineration does not reduce the total amount
of sulfur compound emissions, however, the technique does convert H2S
into less toxic S02.   If the H2S concentration in the acid gas discharged
from a natural gas sweetening facility is very low or the acid gas
throughput is small, the acid gas usually is  incinerated and the resultant
S02  discharged into the atmosphere.  Incineration is always employed as
the  final step in the  Claus  sulfur recovery process (with no tail gas
cleanup  unit).  If a tail gas cleanup unit is applied to the Claus
plant, the residual tail gas from the cleanup unit  is generally
incinerated.  However,  incineration  normally  is not used with the Beavon
Sulfur Removal Process (BSRP).   In this  process the incinerator  is  kept
as a stand-by unit and used  only when necessary.
4.2.2 2-Stage Claus Sulfur  Recovery Process
      A Claus  sulfur recovery facility utilizing two catalytic  stages
generally is  capable of attaining  recovery design efficiencies  of  up to
96.31 percent, depending on  the H2S  concentration in the  acid  gas  fed  to
the  Claus unit.   If the H2S  concentration in the  acid  feed gas  is  as low
as 12.5  percent  by volume,  however,  a two-stage  Claus  plant may be able
to achieve only  a 93.01 percent sulfur  recovery design  efficiency.
These efficiency levels are  achieved when the catalysts are fresh.   Due
 to  sulfation, carbon  deposition, physical attrition among other reasons,
 the  Claus catalysts  (alumina)  gradually degrade with  time.   Sulfur
                                  4-2

-------
recovery design data indicates that catalyst degradation results in an
average of approximately 1.14 percent reduction in efficiency per year
                         4
for a Claus 2-stage unit.   The data also indicates that average-of-run
efficiency is an average of the efficiency when the catalysts are fresh
                                                                         A
and the efficiency when the catalysts are spent and about to be replaced.
     For Claus plants having two catalytic converter stages, the following
                                                4
sulfur recovery efficiencies have been reported.

H2S/C02
mole percent
ratio in
acid gas feed
12.5/87.5
20/80
50/50
80/20
Sulfur
Start-of-run
(fresh catalyst)
93.01
93.46
94.99
96.31
recovery efficiency
End-of-run
(spent catalyst)
89.59
90.14
92.61
93.89
     A flow diagram for a typical two-stage Claus sulfur recovery plant
is shown in Figure 4-1.  The first step in the Claus process is the
complete oxidation of one-third of the H2S in the acid gas to S02 (the
thermal phase):
3H2S
|
o2
                             S02 + H20 + 2H2S + 520.9 kJ
(4-1)
This step is carried out in a reaction furnace, and the released energy
is recovered and used to generate steam.  In the second step (the catalytic
phase), the remaining two-thirds of the H2S is reacted over a catalyst
with the S02 produced in the initial reaction:
               2H-
 ,S + S0  cata1yst>
                       2H0 + 92.9 kJ
                                                       (4-2)
The flow diagram shown in Figure 4-1 indicates that the Claus process
can be separated into two phases, a thermal phase and a catalytic phase.
In the thermal phase, the temperature in the reaction furnace is usually
between 980°C and 1090°C (1800°F and 2000°F).  During the catalytic
phase, the temperature is maintained below 370°C (700°F) and somewhat
                                 4-3

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above the sulfur dew point of the gas mixture.  The normal operating
temperature during the catalytic phase is between 250°C and 300°C
(475°F and 575°i:), but the lower this temperature, the more complete is
the conversion to sulfur.  Therefore, it is advantageous to provide
.several catalytic stages with condensation of the sulfur formed after
each stage.  After the sulfur is condensed following each Claus converter,
the process gas is preheated to reaction temperature before entering the
next catalytic reactor.  The economic incentive of high sulfur prices
and continued demand for liquid sulfur induce an increasing number of
                                     5
producers to recover sulfur from H2S.
4.2.3  3-Stage Claus Sulfur Recovery Process
     Utilizing three catalytic stages, a typical Claus sulfur recovery
facility is capable of attaining efficiencies of 94.72 to 97.31 percent
of the sulfur in the acid gas stream under normal conditions.  These
efficiency levels are achieved when the catalysts are fresh.  Due to
sulfation, carbon deposition, physical attrition among other reasons,
the Claus catalysts (alumina) gradually degrade with time.  Sulfur
recovery design data indicates that catalyst degradation results in an
average of approximately 0.89 percent reduction in efficiency per year
                         4
for a Claus 3-stage unit.   The data also indicate that average-of-run
efficiency is an average of the efficiency when the catalysts are fresh
 and  the  efficiency when the catalysts are spent and about to be replaced.
      For Claus plants  having three catalytic converter stages, the
                                                          4
 following  sulfur  recovery efficiencies have been reported.
                                                                         4

H2S/C02
mole percent
ratio in
acid gas feed
12.5/87.5
20/80
50/50
80/20
4
Sulfur recovery design efficiency
Start-of-run
(fresh catalyst)
94.72
95.60
96.85
97.31
End-of-run
(spent catalyst)
92.06
93.40
95.35
95.97
Sulfur recovery
actual efficiency
(from API)^
93.7
94.1
95.2
96.2
                                 4-5

-------
The sulfur recovery efficiency of Claus plants decreases with a decrease
in H2S concentration.  The loss in sulfur recovery efficiency is associated
with increased concentrations of C02 in the acid gas feed because the
Claus process is equilibrium-limited, and increased concentrations of
C02 and impurities drive the process away from the recovery of sulfur.
These process limitations occur regardless of the H2S concentration in
the acid gas feed; but they are more significant, and sulfur losses
become greater as the H2S feed concentration decreases.
     To improve sulfur recoveries at Claus plants where the acid gas
feed stram contains a lean H2S concentration, a modified Claus process
can be utilized.  Four basic configurations of the modified Claus process
that are being employed currently by the onshore natural gas production
industry are the straight-through, split-flow, split-flow with preheating,
and sulfur recycle configurations.  The differences among these process
configurations are in the methods used to produce the S02 prior to the
first converter.
     4.2.3.1  Straight-Through Configuration.  If the acid gas feed to
the Claus unit contains 50 mole .percent or greater of H2S, the straight-
through configuration is normally utilized, because it provides the
highest overall sulfur recovery and permits maximum heat recovery at a
high temperature.  '
     In the straight-through process scheme, the entire acid-gas stream
and the stoichiometric amount of air to burn one-third of the H2S to S02
are fed through a  burner to the reaction furnace.  Then, sufficient
retention time  is  provided to allow the generated S02 to react with the
unburned H2S to form sulfur vapor.  At the temperatures prevailing in
the reaction furnace, typically above 1090°C  (2000°F), a substantial
amount of elemental  sulfur is formed.  The elemental  sulfur  is condensed
after the gases are  cooled first  in a waste  heat boiler and  then  in a
sulfur condenser.  Up to 70 percent of the overall  conversion of  H2S to
elemental sulfur  can take place  in this thermal-conversion step.  Although
high-pressure  steam  can  be generated  in the  waste  heat boiler,  it  is
preferable to  produce low-pressure  steam  (15 to  50  psig)  in  the  sulfur
condenser in order to cool the  reaction gases  to obtain maximum  sulfur
condensation.   Many  designs  often  use  the  heat from the fourth  condenser
                                  4-6

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to preheat boiler feed water in place of generating steam.   The reaction
gases leaving the sulfur condenser are reheated and passed through the
first catalytic converter where additional sulfur is produced by the
reaction of H2S with S02.  The chemical reaction equations are presented
in Section 4.2.2.  Although these reactions are exothermic, reheating of
the gas is necessary to maintain the temperature above the sulfur dew
point as the gas passes through the catalytic converter, because
condensation and deposition of sulfur on the catalyst causes catalyst
deactivation.  The gases leaving the first catalytic converter are again
cooled, and sulfur is condensed.  The process of reheating, catalytically
reacting, and sulfur condensing is repeated two more times in a three-stage
sulfur recovery  unit.  As conversion progresses through the catalytic
stages and more  sulfur is removed from the gas mixture, the sulfur dew
point of the reaction gases is lowered, permitting operation at
progressively lower temperatures, thus improving conversion.  After
leaving the  last sulfur  condenser, the exhaust gases are either incinerated
to convert all remaining sulfur compounds to S02 before being emitted to
the atmosphere or further treated in a separate tail gas cleanup process.
     Figure  4-2.  shows a  flow diagram for  a three-stage Claus plant
utilizing the straight-through process configuration.
     4.2.3.2 Split-Flow Configuration.   The split-flow process is used
for acid gas streams  containing H2S  in such low concentrations that
stable combustion could  not be  sustained  if the entire gas  stream were
fed to the reaction  furnace.  Generally,  the split-flow configuration is
employed at  Claus sulfur recovery facilities where  the H2S  concentration
in the acid  gas  feed stream is  between 20 and  50 mole percent.
      In the  split-flow process, one-third of the acid gas  is  fed  to  the
reaction  furnace, and all  the  H2S contained  in the  gas  is  combusted  with
the  stoichiometric  amount  of air  to  form  S02.   In  this  configuration,
most  of the  H2S  fed to  the furnace  is  oxidized to  S02,  and little  or no
sulfur  is  produced  in the  furnace.   Then, the  hot  gases are cooled in a
waste  heat boiler and combined with  the  remaining  two-thirds  of the  acid
gas  before entering the  first  catalytic  conversion stage.   The Claus
reactor  and  condenser train of the  split-flow  process  configuration  is
very similar or identical  to  that of the  straight-through process.
                                  4-7

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                                      8
     Figure 4-3 shows a flow diagram for the split-flow configuration of
the modified Glaus process.
     4.2.3.3  Split-Flow With Preheating of Feed Streams Configuration.
In cases where the H2S concentration in the acid gas feed is too low to
achieve a sufficiently high temperature in the reaction furnace using
the two-third bypass employed in the split-flow configuration, acid gas
preheating or the sulfur-recycle configuration is often utilized.   Acid
gas preheating commonly is used to permit processing by the split-flow
method for Claus acid gas feed streams containing 10 to 25 mole percent
H2S.   In addition, recent success has been reported on the use of the
split-flow configuration with preheating of feed streams, with an acid
gas feed stream containing only 8 mole percent H2S where previously the
use of direct oxidation failed because of severe catalyst deactivation.'
     In this configuration of the Claus process, adequate furnace
temperature is achieved by preheating both air and acid gas and by
adding a supplemental fuel gas to the flame.  Problems with CS2 formation
are avoided by use of a specially designed burner in which a set of
concentric pipes carry the fuel gas, fuel gas air, acid gas, and process
air.
     4.2.3.4  Sulfur Recycle Configuration.  Generally, the sulfur
recycle configuration of the Claus process is used when the H2S concen-
tration in the acid gas feed to a Claus sulfur recovery facility is less
than 10 mole percent.   In the sulfur recycle Claus process, product
sulfur is recycled to the furnace and burned with air to produce S02.
Then, the S02 formed in the furnace is combined with the preheated acid
gas feed stream and fed to the Claus reactors as shown in Figure 4-4.
The reactor-condenser train of the sulfur recycle configuration is
similar to that of the straight-through configuration.
4.2.4  Recycle Selectox Process
     The Selectox catalyst in this process enables H2S to be oxidized to
sulfur with air at a low temperature without forming S03 or oxidizing
                                      13
either hydrogen or light hydrocarbons.    This eliminates the need for
high-temperature combustion as in the Claus sulfur recovery process.
This limited test information available for the Selectox process indicates
that it is not affected by the presence of other compounds and that  it
4-9

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Process
Selectox 2-stage


Selectox 3- stage


H2S/C02
ratio
2/98
5/95
12.5/87.5
2/98
5/95
12.5/87.5
Percent
Start-of-run
(fresh catalyst)
80.68
87.90
92.36
83.61
91.40
95.12
efficiency
End-of-run
spent catalyst)
74.83
81.65
85.66
76.92
84.00
87.60
     The sulfur recovery design data presented in Appendix H indicate
that catalyst degradation (assuming 4 year average of the.catalyst's
life) results in an average of approximately 1.68 percent reduction in
efficiency per year for a Recycle-Selectox 2-stage unit and an average
of approximately 1.88 percent reduction in efficiency per year for a
Recycle Selectox 3-stage unit.
     The Selectox and the Claus reactor system are the same:  heating
gas to the desired inlet temperature, reaction in a converter, and
cooling the gas and condensing sulfur in a condenser.  The condensers
produce low-pressure steam.
4.2.5  3-Stage Claus Unit With Tail Gas Cleanup Processes
     The trend to reduce emissions of sulfur compounds to the atmosphere
because of increasingly stringent air pollution regulations has created
the need.for a new group of processes designed to clean up the tail gas
from Claus sulfur recovery units.  There are four commercially available
tail gas cleanup processes which represent a wide spectrum of process
technologies and capabilities  of reducing S02 emissions to the atmosphere.
These  are SCOT, BSRP,  Sulfreen and BSR/Selectox  I processes.  Several
                                                       Q
other  processes are at different stages of development.   Prior to  the
selection and  application  of  a particular process technology, a detailed
review of all  commercially viable processes  should be  made  to determine
the most economical or optimum tail  gas cleanup  process scheme to  be
used for reducing  S02  emissions  from new  or  existing Claus  sulfur  recovery
plants.
                                  4-15

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10
     The four most widely used tail gas cleanup processes are discussed
in the following subsections.   In addition, several other viable processes
for removing sulfur compounds from Claus plant tail gas are described
briefly in Subsection 4.2.5.5 of this chapter.  It should be noted that
a tail gas cleanup unit can also be used with a 2-stage Claus unit and
that the number of stages is an economics decision.
     4.2.5.1  3-Stage Claus Unit With SCOT.  The Shell Claus offgas
treating (SCOT) process, announced to industry in 1972, was developed by
the Royal Dutch/Shell Laboratories in the Netherlands and is licensed in
the United States by the Shell Development Company in Houston.   The SCOT
process is capable of increasing the sulfur recovery efficiency of Claus
units from the usual level of about 95 percent to more than 99.8 percent.
Sulfur recovery design data  indicates start-of-run efficiency (when the
catalysts are fresh) with 12.5 percent H2S in acid gas is 99.89 percent
and with 80 percent H2S in acid gas is 99.99 percent.  However, catalysts
gradually degrade with time due to sulfation, carbon deposition, physical
attrition among other reasons.  The data  indicates that catalyst
degradation results in approximately 0.013 percent reduction in efficiency
per year for a SCOT unit.  Average-of-run efficiency is an average of
the efficiency when the -catalysts  are fresh and the efficiency when the
                                             4
catalysts are spent and about to be replaced.
     The SCOT process consists of  essentially three stages:  (1) heating
and reduction; (2) cooling and quenching; and (3)  H2S absorption, stripping,
and recycle.  In the first SCOT stage, the Claus plant tail gas is
heated to about 300°C (570°F) and  reacted with hydrogen or a mixture of
hydrogen and carbon monoxide over  a cobalt molybdenum catalyst.  All
sulfurous compounds  in the tail gas, including S02, sulfur vapor (S),
COS,  and CS2, are  reduced to H2S.  The hot gas from these highly exothermic
reactions is cooled  in a waste-heat boiler and finally quenched in a
water-quench tower to about ambient temperature.   In the final stage,
the H2S  in  the gas is selectively  absorbed in an alkanolamine  solution.
The effluent gas from the SCOT .absorber, containing about 200  ppmv-500 ppmv
of H2S  is incinerated before  it  is discharged to the atmosphere.  The
rich  amine  is  stripped  in a conventional manner, and the H2S-rich stream
is recycled to the front  of the  Claus  unit.   A flow diagram  for the  SCOT
process  is  given in  Figure 4-7.

                                 4-16

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     Several advantages of the SCOT process are (1) easy adaption to an
existing Claus plant, (2) use of familiar process technology and equipment,
(3) easy and flexible operation, (4) elimination of secondary air and
water pollution, and (5) high degree of sulfur removal over a wide range
of operating conditions.  The disadvantages are (1) higher capital cost,
(2) higher fuel usage, and (3) higher heating and cooling requirements.
The SCOT process, however, is considered to be one of the most flexible
                                                  9 10
tail gas cleanup processes available commercially. '
     Currently, more than thirty-five SCOT units are  in operation worldwide
on Claus plants ranging  in size from 3 metric tons to 2,100 metric tons
of sulfur intake per day.3  Also, more than forty other SCOT systems are
in engineering, construction, or start-up phases.10   In onshore production
activities, one -SCOT unit is  in operation, and two are in engineering
and start-up phases.
     4.2.5.2   2-Stage  Claus Unit With Sulfreen Unit.  Lurgi Apparante-
Technik of  Frankfurt,  West Germany  and France's Societe Nationale des
Pdtroles d'Aquitaine  (SNPA) combined their efforts to develop the Sulfreen
process for Claus tail  gas cleanup.  The  Sulfreen  process, which  is
essentially an extension of the Claus reaction,  is capable of boosting
the overall sulfur  recovery efficiency of the  Claus/Sulfreen system  up
to 98.82 percent.4   This is achieved when the  catalysts are fresh.   Due
to sulfation,  carbon deposition among other  reasons,  the  catalysts
(alumina)  gradually degrade with  time.   Sulfur recovery design  data
indicates  that catalyst degradation results  in approximately 0.29 percent
reduction  per year  for a Sulfreen unit.    The  data indicates that
average-of-run efficiency is  an average  of the efficiency when  the
 catalysts  are fresh and the  efficiency when the catalysts are  spent.
The percentage of sulfur recovery attainable by the Sulfreen  unit depends
 upon the concentration of H2S and S02  in the Claus tail  gas  fed to  the
 unit.
      The Sulfreen process converts H2S and S02 contained in the tail gas
 to sulfur at low temperatures of 127°C to 150°C (260°F to 300°F) by
 extension of the classic Claus reaction:
                                  4-18

-------
2H
                       S + S02 Catalyst - » 3S + 2H20
A special activated alumina is used as, an adsorbent and a catalyst in
the reactors.  This material was selected because of its high adsorption
capacity and ease of desorption of sulfur deposited on its surfaces.
Sulfur formed during the reaction is adsorbed as a. liquid on the catalyst,
which removes it from the reaction zone, thereby allowing the reaction
to move further to the right to obtain a higher conversion than in the
Claus process.  This reduces entrained sulfur to a minimum.  A Sulfreen
unit consists of at least two parallel reactors, one in adsorption and
one in desorption service.  The number of reactors needed for a particular
Sulfreen unit is determined strictly by economic considerations.
Desorption of sulfur is accomplished by means of hot gas in a closed
cycle, after a period of operation during which the catalyst has adsorbed
its limit of sulfur.  The hot gas is passed through the reactor to strip
sulfur from  the catalyst.  The Sulfreen unit operation is simple and
differs only slightly from that of a Claus unit.  There are usually
three reactors, two of which are in adsorption service while one is
being regenerated.  Since only solid adsorbents are used and no liquids
are produced except sulfur, the process is free of liquid waste disposal
problems.  Sulfur that is condensed and drained to the sulfur pit is
bright yellow and 99.9 percent pure and can be combined with Claus
produced sulfur.  A flow diagram for the Sulfreen process  is presented
in Figure 4-8.
                                                                   9
     the Sulfreen process  is a viable,  commercially proven process.
Currently, at least nineteen Sulfreen tail gas cleanup units are in
operation worldwide and  several other Sulfreen units are  in construction.
The Sulfreen process  is  quite  attractive for  large Claus  plants, due
mainly to the possibility  of eliminating a fourth  Claus  converter and
reducing the size  and height of the tail gas  disposal  stack when the
Sulfreen unit is  utilized.  Also,  the process may  be attractive for
smaller  Claus plants  where  an  S02  emission level of 1,500 ppmv  to
2,000  ppmv  is permitted.
     4.2.5.3  3-Stage Claus Unit With Beavon.  The Beavon Sulfur Removal
 Process  (BSRP)  was  developed  by the Ralph M.  Parsons Company and Union
                                  4-19

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Oil Company of California to clean up tail gas streams from Claus sulfur
recovery units.   A BSRP tail gas cleanup system applied to a three-stage
Claus unit can boost overall sulfur recovery to 99.99 percent
(start-of-run),  leaving a sulfur concentraton of 250 ppm or less in the
                  4
residual tail gas.
     The BSRP process employs three distinct steps:  (1) hydrogenation
of sulfurous compounds to H2S in a catalytic converter, (2) cooling of
the converter-effluent gases, and (3) conversion of the H2S in the tail
gas from the cooler to elemental sulfur by use of the Stretford process.
First, the Claus unit tail gas is heated to reaction temperature by
mixing it with the hot combustion products of fuel gas and air.  This
combustion may be carried out with a deficiency of air if the tail gas
does not contain sufficient H2 and CO to reduce all of the S02, COS, CS2
and S (vapor form) to H2S.  The heated gas mixture is then passed through
a catalyst bed (hydrogenation reactor) where all sulfur compounds are
converted to H2S by hydrogenation and hydrolysis.  The hydrogenated gas
stream is then indirectly cooled in the reactor effluent cooler,
generating steam.  The gas is further cooled by direct contact with a
slightly alkaline buffer solution before it enters the H2S-removal
portion of the process.  The Stretford process is used next to remove
H2S from the cooled hydrogenated tail gas, where the H2S is absorbed in
an oxidizing alkaline solution.  The oxidizing agents in the solution
convert the H2S to elemental sulfur.  The oxidizing agents are then
regenerated by contacting with air in the oxidizer tank where the sulfur
is floated off as a slurry.  This sulfur slurry is separated from the
oxidizing alkaline chemicals by filtering or centrifuging.  It is
reslurried with wash water and heated to melt the sulfur.  The molten
sulfur flows from the decanter to the sulfur pit.  The oxidizing alkaline
chemicals are returned to the system and the wash water is discarded.
Tail gas from the absorber does not require incineration and can be
vented directly to the atmosphere.  An incinerator is installed as a
stand-by unit and used during the start-up and shutdown of the BSRP tail
gas cleanup unit and those occasions when the H2S content exceeds 10 ppmv.
A flow diagram for the Beavon Sulfur Removal Process is presented in
Figure 4-9.
                                 4-21

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     Currently, over thirty-six BSRP plants are either operating,  under
construction, or in design at twenty-two locations in the United States
and Japan.
     4.2.5.4  3-Stage Glaus Unit With BSR/Selectox I.  The BSR/Selectox I
process, recently developed by Union Oil Company of California and the
Ralph M. Parsons Company, is a Claus tail gas cleanup system designed to
provide an overall sulfur recovery efficiency in the range of 97.84 percent
to 98.49 percent (average-of-run).  This new process has proven to be
reliable, easy to operate, and the least costly of the known tail gas
cleanup processes.4  The  first industrial  BSR/Selectox I unit began
operation during 1978  in  Lingen, West Germany.
      BSR/Selectox  I  is a  fixed bed  catalytic process consisting of two
steps.  The  first  step is also part  of  the older  Beavon  Sulfur  Removal
Process.  First,  tail  gas from the  second  stage of the Claus plant is
heated to a  reaction temperature of 288°C  to 400°C (550°F  to 750°F)  in
the  reducing gas  generator by mixing it directly  with hot  products from
the  combustion of fuel gas and air.   Some  hydrogen and  carbon  monoxide
are  formed  to supplement the hydrogen in the  tail gas.   The hot gas
mixture is  passed through a single catalyst bed (hydrogenation reactor).
 The tail  gas is hydrogenated to convert S02 and sulfur vapor(s) to H2S
 and hydrolyzed to convert COS and CS2 to H2S.   Then, the hydrogen sulfide-
 containing gas stream is cooled in a contact condenser to reduce water
 partial pressure.  The purpose of cooling is to remove water vapor,
 which increases conversion since water is one of the products of reaction.
 In the second step of the process, the cooled gas stream is reheated to
 a moderate  temperature and mixed with a stoichiometric  amount of air and
 passed over the Selectox-32  catalyst (proprietary catalyst of Union Oil
 Company) to oxidize selectively the hydrogen  sulfide to elemental sulfur.
 Elemental sulfur  is  removed  by  condensation and  is  collected  in  a sulfur
 pit.   At this point,  total  sulfur  recovery is greater than 97  percent.
 Finally, the resulting tail  gas  from the  BSR/Selectox  I unit  is  passed
 through  an  additional Claus  stage  before  incineration  to  increase the
 total sulfur recovery to more than 98  percent.   Alternatively,  the  tail
 gas from the Selectox unit after sulfur condensation is routed to a
 thermal  oxidizer and stack.   A flow diagram  for  the BSR/Selectox I
  process  is  presented in Figure 4-10.

                                   4-23

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     The BSR/Selectox I process recovers 80 to 90 percent of the sulfur
contained in Claus plant tail  gas in a continuous operation that requires
no solvents or chemicals.   Performance of the first industrial
BSR/Selectox I unit has proved that the operation is stable and reliable.
In addition, the process is very cost-effective for an overall  sulfur
recovery of 97.84 to 98.49 percent.
     4.2.5.5  Other Tail Gas Cleanup Processes.  The tail gas cleanup
processes described here are not widely utilized on a commercial scale
in this country in the onshore natural gas production activities and are
not  likely  to be employed  in the near future.  Therefore, these processes
and  their economics have not been  analyzed in  detail.  A few of these
processes are employed on  a commercial  scale elsewhere in the world.
     Claus  3-stage unit with cold  bed adsorption  (CBA) process, developed
by Amoco Production Company, is  basically  an extension of the Claus
reaction on cold  Claus catalyst  bed at  127°C to  150°C (260°F to 300°F).
Overall  sulfur  recoveries  can  be increased to  98 percent.   A final
catalytic  converter  is provided  at a low temperature  to  shift the  reaction
equilibrium to  increase conversion to sulfur.   Sulfur formed during this
process is adsorbed  on the catalyst instead  of leaving the converter in
 the  effluent vapor.   Sufficient catalyst is  provided to  maintain  the
 desired rate of conversion to sulfur.   The catalyst is  regenerated
 periodically to remove adsorbed sulfur and insure continued catalyst
 activity.   When regeneration is complete,  the catalyst is cooled before
 being used again as.the CBA adsorption converter.  Currently,  three
 units (one in the United States)  are in operation at Claus plants with
 capacities ranging from 15 to 900 metric tons of sulfur intake per day.
      IFP-1 (Institut  Francais du  Petrole), or IFP Clauspol 1500, process
 developed  in France is simple in  design and operation, capable of achieving
 an  overall sulfur recovery efficiency  of  approximately 99.3 percent.
 The tail gases from a one-, two-,  or three-stage Claus unit enters  a
 vertical,  packed-tower,at about 127°C  (260°F).   Here the tail  gas  is
 contacted  with a  countercurrent recirculating stream of polyethylene
 glycol  (molecular weight  400) containing  a  dissolved metal-salt catalyst.
 H2S and S02  contained in  the  tail gas  transfers from the  gas phase into
  liquid phase where  the Claus  reaction  takes  place.   The  liquid sulfur
                                   4-25

-------
produced (99.9 percent pure) separates from the solvent and settles to
the bottom of the reactor vessel, where it is removed through a seal
leg.  The IFP-1 reactor does not reduce COS and CS2 present in the Glaus
tail gas feed, and, therefore, these reduced sulfur compounds remain
unchanged in the reactor exhaust gas.  It is essential that the H2S/S02
ratio is kept as near to 2:1 as possible.  The treated tail gas is
incinerated and discharged to the atmosphere as S02.  Currently,
approximately twenty-five units are in operation worldwide for Claus
plants ranging in size from 30 metric tons to 810 metric tons of sulfur
intake per day.3  Only a few units (non-gas applications) exist in this
country.
     The Cleanair process, jointly developed by the J. F. Pritchard and
Company and Texas Gulf Incorporated, is designed around three separate
process steps.  During the first step, COS and CS2 compounds are reduced
by operating the Claus reactors at elevated temperatures.  In the second
step, the Claus tail gas is quenched to remove water  and entrained
sulfur and to reduce the temperature to 50°C (120°F).  Then the cooled
gas is fed to a reactor where H2S and S02  (in a 2:1 ratio) react, lowering
the S02 concentration to less than 250 ppmv.  Water and sulfur produced
during this reaction are removed.  The remaining H2S  is oxidized to
elemental sulfur in a Stretford  unit which is the  third step.  The
purified gas  is then incinerated to  S02 and discharged.  The process  is
capable of recovering 99.9 percent of the  sulfur from the  Claus plant
tail  gas, leaving  no more than 50 ppmv S02 equivalent in the effluent.
The first commercial installation was made at the  Gulf Oil Corporation
refinery in Santa  Fe Springs, California.  No unit is in operation  in
the onshore production  industry  in this  country.
      In  IFP-2 process,  licensed  by Institut  Francais  du  Petrole of
France,  the Claus  plant tail  gas  is  first  catalytically  incinerated to
oxidize  all sulfur compounds  to  S02.  The  incinerated gas  is cooled and
then  fed to an  ammonia  scrubber, where S02 is absorbed and converted  to
ammonium sulfite  ((NH4)2S03)  and ammonium  bisulfite (NH4HS03).  Ammonium
sulfate  and thiosulfates are  also  formed.   Gas  leaving the reactor is
reheated and  vented to  the  atmosphere at less  than 250 ppmv  S02.   The
S02-rich solution  is  fed to an  S02  regenerator,  where the  sulfite  and
                                  4-26

-------
bisulfite are thermally decomposed to S02, NH3 and H20.  Ammonium sulfate
and thiosulfate in the saturated solution drawn from the bottom of the
S02 regenerator are thermally decomposed in a sulfate reducer.  Gases
from the S02 regenerator and sulfate reducer are combined with an H2S-rich
stream and fed to a catalytic reactor where they are contacted with a
polyethylene glycol solvent.  The H2S and S02 react in the solution to
form elemental sulfur.  Gases from the reactor are cooled to condense
out H20 and NH2 as NH4OH.  The NH4OH solution is returned to the ammonia
scrubber.  Any H2S or S02 which leaves the reactor and is not absorbed
by the NH4OH solution is recycled to the incinerator and from there to
the ammonia scrubber.  This process, when applied to Claus unit tail
gas, is capable of reducing the S02 concentration in the residual tail
gas to 300 ppmv or less.
     The Well man-Lord process, licensed by Davy Powergas, oxidizes all
the sulfur compounds present in Claus plant tail gas to S02.  Next, the
hot gases are cooled in a waste heat boiler, then quenched and fed to
the S02 absorber.   The absorber is fed a lean solution of sodium sulfite,
which absorbs the S02 by reacting with it to form sodium bisulfite.  The
clean gases pass to the stack, while the rich bisulfite solution is
regenerated to recover the sulfite solution.  The S02 generated is piped
back to the Claus plant feed or to other processing.   Effluent levels of
less than 100 ppmv S02 in the residual tail gas have consistently been
achieved in commercial installations.    Currently, seven Wellman-Lord
S02 recovery units are in operation treating Claus sulfur recovery plant
tail gas.  One unit was installed several years ago at the Chevron,
El Segundo refinery in the United States.  This process is relatively
expensive.
     Ammonium thiosulfate process, licensed by the J.  F.  Prichard and
Company for Coastal States Gas Corporation, recovers the sulfur contained
in Claus plant tail gas as an aqueous solution of ammonium thiosulfate.
The sulfur compounds in the Claus tail gas are oxidized to S02 and
absorbed by contact with a weak solution of ammonia,  that produces a
solution of mixed ammonium bisulfite,  ammonium sulfite and ammonium
sulfate salts.   Finally,  this solution is converted to ammonium thiosulfate
in a reactor.   The clean tail gas contains S02 concentrations of less
                                 4-27

-------
than 900 ppmv.3  One unit is in operation in the United States  in  the
onshore production field that processes 20,000 megagrams/yr sulfur
intake.
4.2.6  Deactivation of Catalyst Activity and Reduction in the Sulfur
       Recovery Efficiency
     The Claus sulfur recovery process involves a gas phase chemical
reaction in which 2 moles of H2S combine with 1 mole of S02 to produce
3 moles of elemental sulfur.  The reaction is conducted' in the presence
of an  alumina catalyst, which increases the rate of the reaction,  thereby
increasing the recovery of liquid sulfur.  The activity of the alumina
catalyst in converting H2S and S02 to elemental sulfur depends upon its
surface area:  the  larger the area available, the higher the reaction
rate.
     There are three major causes that contribute to a reduction  in the
catalyst surface  area and catalyst activity,  and thus a reduction in
sulfur recovery.  These are  summarized as  follows:
      (1)  sulfation of the alumina catalyst;
      (2)  carbon  deposition  on the catalyst surface  due to  the presence
          of  hydrocarbons;  and
      (3)  physical  attrition of  the  catalyst.
      Aluminum oxide reacts with  the  S02  and 02  present in  the  gas stream;
 is  converted  into aluminum  sulfate;  and  results in  a gradual  reduction
 of  the available active  surface  area.  The hydrocarbons  (e.g., methane
 and ethane)  that may be  carried  over from the preceding  sweetening
 operation,  in the presence  of insufficient air, produce  carbon particles
 that deposit on the catalyst surfaces and decrease  the available  area.
 Physical  attrition of the catalyst in the reactor beds gradually  reduce
 the catalyst surface area.   The combined effect of aluminum sulfate and
 carbon deposition, as well  as attrition, is to deactivate the catalyst
 in a period of 4 years to the point where catalyst replacement becomes
 necessary.
       Sulfur recovery efficiency is higher when the catalyst is fresh,
 i.e., with an entirely active surface, and gradually declines with time
 to its lowest point when the catalyst is spent, i.e., deactivated to the
 point where it is  about to  be replaced.   The reduction in recovery
                                  4-28

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efficiency is not linear with time, however; it is significantly reduced
over a period of 3 to 5 years.   The sulfur recovery design study  indicates
that the average rate of reduction in the sulfur recovery efficiency
varies with the type of sulfur recovery process.  The study shows that
the efficiency of a Claus 2-stage when the catalyst is fresh (start-of-run
efficiency) declines at an average of 1.14% every year.   The efficiency
when the catalysts are replaced at the end of 4 years (end-of-run
efficiency) are therefore approximately 4.6% less than the start-of-run
efficiency.  The rates of reduction in the sulfur recovery efficiency
for Recycle Selectox process were calculated from the data presented in
Appendix H.
     For all technologies, 4 year average catalyst life was assumed in
estimating the annual average rate of reduction in sulfur recovery
efficiency.  For the Claus catalyst the 4 year  life was based on an
average of actual operating data for about 8 facilities.    The 4 year
life assumption for the Selectox catalyst is likely conservative.
Actual Selectox catalyst life probably will exceed the average Claus
catalyst life because the contaminant light hydrocarbons that contribute
to Claus catalyst degeneration have a less detrimental effect on the
Selectox catalyst.    However, because only few actual data are available
on the life of the Selectox catalyst, a 4 year  life was assumed in
estimating the average rate.  The  rates of reduction in the sulfur
recovery efficiency for various technologies are as follows:
       Sulfur  recovery technology
   Average rate of reduction ^
in sulfur recovery efficiency
(4 year average catalyst life)
              Claus  2-stage
              Claus  3-stage
              Sulfreen
              SCOT  (or  BSRP)
              Recycle Selectox  2-stage
              Recycle Selectox  3-stage
           1.14%/year
           0.89%/year
           0.29%/year
          0.013%/year
           1.68%/year
           1.88%/year
                                  4-29

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4.3  COMPARISON OF SOURCE EMISSION DATA AND RALPH M. PARSONS DESIGN STUDY
     Table 4-1 presents a comparison of source emission test data for
ten different Claus sulfur recovery facilities with the results from the
Ralph M. Parsons design study.4  These Claus facilities vary in sulfur
intake size, number of Claus reactor stages utilized, type of tail gas
cleanup system employed, and the H2S concentrations in the acid gas feed
to the Claus sulfur recovery unit.  The design sulfur recovery efficiency
figures from the Parsons study are in close agreement with the source
emission tests data.  The data indicate a range of  sulfur recovery
efficiencies expected for Claus recovery facilities i,n relation to the
H2S concentration  in the acid gas feed stream and the Claus  unit
configuration  utilized.  An alphabetical designation is given for each
source  of  Claus  sulfur  recovery efficiency  data, "o" for operating
(emission  test)  data and "p" for  Parsons design  study data.
                                   4-30

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                   Table  4-1.   COMPARISON  OF  SOURCE  EMISSION TESTS  DATA
                 AND  THE  RALPH  M.  PARSONS DESIGN  STUDY FOR  CLAUS SULFUR
                                           RECOVERY  FACILITIES
Plant
Warren Petroleum's
Monument Facility8

Getty Oil's New Hope
Facility3


Shell Oil's
Thoaasvijle
Facility8
Exxon's Blackjack
Creek Facility0

Shell Oil's Bryans
Hill Facility1^

Shell Oil's Person
Plant Facility"


Exxon's Santa.
Rosa Facility"
Exxon's Flomaton
Facility"

Aquitai tie's Ran
River Facility



Chevron's Fox .
Creek Facility"
Process
equipment
3- stage Claus
unit

2-stage Claus
(two trains in
parallel) with
common 3rd stage
3-stage Claus
unit
3-stage Claus
with SCOT tail
gas cleanup unit
3-stage Claus
unit

2-stage Claus
(two trains in
parallel) with
consson 3rd stage
3-stage Claus
unit
3-stage Claus
unit

2-stage Claus
unit (four Claus
trains in paral-
lel) with Sulfreen
tail gas cleanup
4-stage Claus
unit (two trains)
Sour gas
volumetric
flow rate
(HmVday)*
2.
1.

1.
0.


2.
2.
0.

1.
1.

0.
0.


0.
0.
0.








52
72

70
77


83
46
35

87
83

96
97


73
(d)
(0)

(d)
(0)


(d)
(0)
(o)

(d)
(0)

(d)
(o)


(0)
88 (d)
99 (o)









N/A




N/A

Acid gas Average H2S Liquid
volumetric concentration in sulfur
flow rate dry acid gas recovery
(MmVday)* (volume percentage) (Hg/day)

0.06

0.17


1.29
1.03
0.10

0.25
, 0.21


0.05


0.10
0.52
0.53

3.62




3.40


(o)

(0)


(d)
(o)
(o)

(d)
(o)


(o)


(o)
(d)
(o)

(o)




(o)

32.
24 17.

152.
55 128.


1,295.
84.4 1,174.
86.4 101.

253.
68.9 199.


20.6 19.


80.1 104.
136.
20.6 130.

84 3,834.




77 3,598.

5
8

4
0


2
0
4

9
0


4


6
1
1

0




0-:

(d)
(0)

(d)
(o)


(d)
(0)
(o)

(d)
(o)


(0)


(0)
(d)
(0)

(0)




(0)

Sulfur
recovery
efficiency
(percent)

94.8
94.9
95.0
96.2


96.8
96.64
99.86
99.98


96.43
96.5

95.24


96.5
96.55
96.7
94.5
98.0
98.8



98.65


(0)
(P)
(0)
(P)


(o)
(P)
(o)
(P)


(0)
(P)

(0)


(0)
(P)
(0)
(P)
(0)
(P)



(0

*At 289 K (60°F) and 1.01325 x 10sPa (1.0 standard atmosphere).

Detailed emission source test data developed by U.S. Environmental  Protection Agency,  Emissions Measurement
 Branch.  For test methods and operating conditions, refer to Appendix C of this document.  Tests conducted
 by Radian Corporation, Austin, Texas.

Emission source test data supplied by  the plant facility.  For further details on the  source test data
 supplied by the individual facility, refer to Appendix C of this document.  The data from the facility s
 files do not specify test methods.

(d) Design values.
(o) Operating values for normal or average conditions.
(p) Derived from the Ralph M. Parsons  design study.  Average-of-run efficiency.  Refer to Appendix E.

N/A Information not available.
                                                 4-31

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4.4  REFERENCES FOR CHAPTER 4

 1.  GPA Panelist Outlines Claus Process Improvements in Sulfur Recovery.
     Oil and Gas Journal,  pp. 92-99.  August 7, 1978.  Docket
     No. A-80-20-A, Entry II-I-33.
 2.



 3.


 4.
     Chute,  Andrew E, The Ralph M.  Parsons Company.  Tailor Sulfur
     Plants  to Unusual Conditions.   Hydrocarbon Processing,  pp. 119-124.
     April  1977.   Docket No.  A-80-20-A, Entry II-I-27.

     Gas Processing Handbook.   Hydrocarbon Processing,   pp. 99-170.
     April  1979.   Docket No.  A-80-20-A, Entry II-I-42.
     The Ralph M.  Parsons Company.   Engineers/Constructors.  Sulfur
     Recovery Study - Onshore Sour Gas Production Facilities.  The Study
     was conducted for TRW.   July 1981.   The study is presented in
     Appendix E of this document.  Docket No. A-80-20-A, Entry II-A-16.
     Also refer to Entry -II-A-20 for small sulfur recovery unit study
     (presented in Appendix H) detailing costs for Recycle Selectox
     sulfur recovery facilities.

 5.   Grekel, H., J. W. Palm, and J.  W. Kilmer.  Why Recover Sulfur from
     H2S?  Oil and Gas Journal,   pp. 88-101.  October 28, 1968.  Docket
     No. A-80-20-A, Entry II-I-7.

 6.   Goar, B. Gene, Goar, Arrington & Associates, Inc.  Sulfur Recovery
     from Natural  Gas Involves Big Investment.  Oil and Gas Journal.
     pp. 78-85.  July 14, 1975.   Docket No. A-80-20-A, Entry II-I-17.

 7.   Paskall, Harold G.  Capability of the Modified-Claus Process.
     Western Research & Development.  Alberta, Canada.  March 1979.
     Docket No. A-80-20-A, Entry II-I-41.

 8.   Royan, Tom S. and C. E. Loiselle.  High Sulphur Recovery Achieved
     from Lean Acid Gas.  Paper presented at Canadian Natural Gas
     Processing Meeting.  Calgary, Alberta.  June 14, 1978.  Also
     published in the Oil and Gas Journal, January 29, 1979.  Docket
     No. A-80-20-A, Entry II-I-40.

 9.   GPA H2S Removal Panel-4 and Panel-5.  Processes Clean Up Tail Gas
     and More Claus Cleanup Processes.  Oil and Gas Journal.  August 28,
     1978 and September 11, 1978.  Docket No. A-80-20-A, Entry II-I-34
     and Entry II-I-36.

10.   Shell Claus Off-gas Treating (SCOT) Process, Patents &  Licensing
     Division.  Shell Development Company, A Division of Shell Oil
     Company.  Docket No. A-80-20-A,  Entry No. II-I-60.
                                  4-32

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11.   Genco, Joseph M.  and Samuel S. Tarn.  Characterization of Sulfur
     from Refinery Fuel Gas.  U.S. Environmental Protection Agency.
     Research Triangle Park, North Carolina.  Publication No. EPA-
     450/3-74-055.  June 1974.  Docket No. A-80-20-A, Entry II-A-1.

12.   Crockett, Edward P., Ronald E. Cannon, and J. Brown.  Summarized
     Comments on BID Draft Chapters 3-6 (September 26, 1981) from
     American Petroleum Institute and Gas Processors Association.
     Docket No.  A-80-20-A, Entry II-D-30 and Entry II-D-33.

13.   Hass, Robert H., Margaret N. Ingalls, B. Gene Goar and
     Robert S. Purgason.  Packaged Selectox Units - A New Approach to
     Sulfur Recovery.   Presented at 60th Annual GPA Convention, San
     Antonio, Texas.  March 23-25, 1982.  Docket No. A-80-20-A,
     Entry II-B-31a.

14.   Goar, B. Gene.  First Recycle Selectox Unit Onstream.  Perry/Goar
     Sulfur Systems, Odessa, Texas.  Presented at the 32nd Gas
     Conditioning Conference, Norman, Oklahoma.  March 10, 1982.  (Also
     published in the April 26, 1982 edition of Oil and Gas Journal)
     Docket No.  A-80-20-A, Entry II-B-31a.

15.   Docket No.  A-80-20-A, Entry II-B-28, Average catalyst life in an
     onshore natural gas sulfur recovery facility.  A list of eight
     plant facilities (that were visited) with their individual data on
     average catalyst life.
                                 4-33

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                   5.   MODIFICATION AND RECONSTRUCTION
5.1  BACKGROUND
     An existing facility as defined in Section 60.2 of the General
Provisions (40 CFR 60)  is, with reference to a stationary source, an
apparatus for which a standard of performance is promulgated, and the
construction or modification of which commenced prior to the date of
proposal of that standard.  An affected facility means, with reference
to a stationary source, any apparatus to which a standard is applicable.
An existing facility may become an affected facility and therefore
subject to the standards, through modification or reconstruction, as
described below.  The affected facility in the natural gas production
industry is the sour natural gas sweetening operation - removal of
hydrogen sulfide (H2S) and carbon dioxide (C02) from sour natural
gas - followed by either incineration of the acid gas stream or a sulfur
recovery operation (elemental sulfur recovered from H2S in acid gas)
with final incineration of unconverted H2S.  Emission standards promulgated
under Section lll(b) of the Clean Air Act apply to all facilities within
the natural gas production industry that are newly constructed, modified,
or reconstructed after the date of proposal of the standard.  Uncertainties
may arise as to the determination of whether any existing facility has
been "modified" or "reconstructed".  These issues are addressed in
§60.14 and §60.151, respectively of Title 40 of the Code of Federal
Regulations Part 60, which define conditions under which an existing
facility that is altered may be considered to be modified or reconstructed.
5.1.1  Modification
     Any physical or operational change to an existing facility that
results in an increase in the emission rate to the atmosphere of any
pollutant to which a standard applies may be considered a modification.
                                 5-1

-------
Upon modification, an existing facility becomes an affected facility for
each pollutant to which a standard applies and for which there is an
increase in the emission rate to the atmosphere.  This definition is
described in §60.14.  Certain physical or operational changes that are
not considered a modification include:                           <
     (a)  Maintenance, repair, and replacement, determined to be routine
for the facility.
     (b)  An increase in production rate of an existing facility without
a capital expenditure as defined in §60.2.
     (c)  An increase in the hours of operation.
     (d)  Use of an alternate fuel or raw material if prior to the
standard, the existing facility was designed to accommodate that alternative
use.  A facility shall be considered to be designed to accommodate an
alternate fuel or raw material if its use could be accomplished under
the facility's construction specifications as amended prior to the
change.
     (e)  The addition or use of any system or device whose primary
function is the reduction of air pollutants, except when an emission
control system is removed or replaced by a system that is determined
less environmenta-lly beneficial.
     (f)  The relocation or change in ownership of an existing facility.
     The above exemptions are described in detail in §60.14.
     An increase  in the production rate of an existing facility is
designated as a modification only if there is an increase in the emission
rate and the total  cost necessary to accomplish the change constitutes a
"capital expenditure."  Capital expenditure means an expenditure for a
physical or operational change to an  existing facility that exceeds the
product of the applicable "annual asset guideline repair allowance
percentage (AAGRAP)"  specified in the latest edition of Internal Revenue
Service (IRS) Publication 534 and the existing  facility's original cost
as  defined by Section 1012 of the Internal Revenue Code.
5.1.2  Reconstruction
     Reconstruction means the replacement of components of an existing
facility to such  an extent that (1) the fixed capital cost of the new
components exceeds  50 percent of the  fixed capital cost that would be
                                  5-2

-------
required to construct a comparable entirely new facility, and (2) it is
technologically and economically feasible to meet the applicable standards.
     An existing facility, upon reconstruction, becomes an affected
facility, irrespective of any change in emission rate.  Fixed capital
cost means the capital needed to provide all the depreciable components.
5.2  APPLICABILITY TO THE NATURAL GAS PRODUCTION INDUSTRY
5.2.1  Modifications to the Natural Gas Production Industry
     This section describes typical situations in the industry and
concludes that no modifications are anticipated that would subject the
industry to compliance with the standard.
     In a typical situation, a natural gas processing facility processes
the natural gas throughput from several wells located in one reservoir
or several reservoirs located in a given field.  As this field is further
developed, processing throughput will rise to the plant capacity (design
capacity) where it will normally remain steady-state until the reservoirs
are significantly depleted.  During the period the processing throughput
increases, the sulfur recovery will increase to near design capacity and
remain at that level.   Then, during the period of decreasing processing
throughput, the recovery decreases gradually to low levels.  Emissions
of sulfur dioxide (SO) may increase or decrease during such processing
variations.  However,  the recovery efficiency is not changed (acid gas
HgS/CQa ratio unchanged).  Because a sulfur recovery facility is normally
designed at the maximum anticipated recovery level, increasing or decreasing
recovered sulfur production will not require any significant physical or
operational changes in the recovery facility and will be accomplished
without any capital expenditure.  Therefore, this will not constitute a
modification.
     In another situation, an increase in H2S/C02 volume percent ratio
in the acid gas feedstream will increase recovery efficiency and therefore
sulfur production rate.  A decrease in the ratio in the acid gas feedstream
will decrease recovery efficiency and therefore sulfur production rate.
Emission rate increases when recovery efficiency decreases and vice
versa.   However, these changes are accomplished without a capital
expenditure and, therefore, do not constitute a modification.
                                 5-3

-------
     The acid gas feed stream to a sulfur recovery facility may increase
above the originally designed capacity due to increased processing
activities and/or introduction of other acid gas streams.   This may
necessitate alterations to accommodate the increased processing.   The
alterations may include:  (1) changes to the Claus reaction furnace-
increase in heat exchange capacity, auxiliary burner installation or
replacement of refractory lining, or (2) any Claus process change—split
flow, preheat, or inline burner.  The alterations described may or may
not reduce emission levels, but if the alterations incur no capital
expenditure, as defined in CFR §60.2, the changes would not constitute a
modification and the existing sweetening and sulfur recovery facility
would not be subject to compliance with the standard.
5.2.2   Reconstructions to the Natural Gas Production Industry
     Changes to existing facilities that would  qualify as "reconstructions"
are not anticipated in the natural gas production industry.  The addition
of a catalyst  reactor stage to an existing Claus unit  is not a
"reconstruction"  since the replacement costs are not expected to exceed
50 percent  of  the cost  of an  entirely new facility.
5.3  REFERENCES  FOR CHAPTER  5
1.   Code  of Federal  Regulations  Title 40, Protection  of Environment,
     Part  60.   Published  by  the  Office of the  Federal  Register.
                                  5-4

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              6.   MODEL PLANTS AND REGULATORY ALTERNATIVES

     This chapter defines the model plants which have been selected to
represent the natural gas production industry and the regulatory
alternatives by which sulfur dioxide (S02) emissions from the facility
can be regulated.
6.1  MODEL PLANTS/PARAMETERS
     In order to have a common basis for calculating the various impacts
of each regulatory alternative, the concept of model plants is utilized.
Hypothetical plants are defined in terms of the process, production
rate, raw materials, products, and other parameters that describe the
industry.  Usually several model plants are defined to include the types
and size ranges of plants commonly found in the industry.  Typically,
the model plants reflect the latest technology and describe plants that
are likely to.be built as the industry expands.  Dollar costs, resource
requirements, environmental impacts, and other determinations are then
made for each model plant.  The results are applied in estimating economic
and related effects and levels of pollution control attainable for
selected control  equipment and techniques.
     A total of 21 model plants have been developed to project the
environmental and economic impacts of various emission control alternatives
on natural gas production facilities.  Table 6-1 presents sulfur feed
rate, acid gas H2S/C02 ratio and regulatory alternatives for each of the
21 model plants.   "Sulfur feed rate" means the long tons per day of
sulfur (as hydrogen sulfide) in the acid gas emerging from the sweetening
operation for the specified model plant facility.  "Acid gas H2S/C02
ratio" means volume percent ratio of hydrogen sulfide (H2S) to carbon
dioxide (C02) in the acid gas feed to the sulfur recovery unit.  These
model plants were developed using process data from existing facilities
                                 6-1

-------
               Table  6-1.   NATURAL GAS  PRODUCTION MODEL  PLANTS,
                  BASELINE CONTROLS AND  REGULATORY ALTERNATIVES
Model
plant
1
2
3
4
S
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
*^f* it «•»»*>
Sulfur H2S
feed to
size, C02
LT/D ratio
<0.1 -1
0.1 — *
0.2 — *
0.3 — X
0.4 -1
0.5 — 1
0.6 — 1
0.7 — a
0.8 — 1
0.9 — X
1.0 — i
2.0 .— -1
3.0 — *
4.0 — -1
5.0 — -1
10 -2
100 — 2
555 50/50
555 80/20
1,000 50/50 .
1,000 80/20

Regulatory alternative
I
(baseline
controls)
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
Claus
2-stage
Claus
3-stage
Claus
3-stage
Claus
3-stage
Claus
3-stage
Claus
3-stage

II
None
None
—
—
—
—
—
—
—
—
—
—
—
—
—
Claus
2-stage
Claus
3-stage
Sul f reen
Sulfreen
Sulfreen
Sulfreen
m f- •*•!._.* i /ne
III
—
— .
—
—
—
—
—
—
—
—
Recycle
Selectox
2-stage
Recycle
Selectox
2-stage
Recycle
Selectox
2-stage
Recycle
Selectox
2-stage
Recycle
Selectox
2-stage
Claus
3-stage
Sulfreen
Sulfreen
SCOT/BSRMDEA
or BSRP 3
Sul f reen
SCOT/BSRMDEA
or BSRP 3

IV
—
—
—
—
—
Recycle
Selectox
2-stage
, Recycle
Selectox
2-stage
Recycle
Selectox
2-stage
Recycle •
Selectox
2-stage
Recycle
Selectox
2-stage
Recycle
Selectox
2-stage
Recycle
Selectox
2-stage
Recycle
Selectox
3-stage <.
Recycle
Selectox
3-stage
Recycl e
Selectox
3-stage
Claus
3-stage
Sulfreen
SCOT/BSRMDEA
or BSRP 3
SCOT/BSRMDEA
or BSRP 3
SCOT/BSRMDEA
or BSRP 3
SCOT/BSRMDEA
or BSRP 3
%^» r~
V
—
—
—
Recycle
Selectox
2-stage
Recycle
Selectox
2-stage
Recycle
Selectox
3-stage
Recycle
Selectox
3-stage
Recycle
' Selectox
3-stage
Recycle
Selectox
3-stage
Recycle •
Selectox
3-stage
Recycle
Selectox
3-stage
Recycle
.Selectox
3-stage
Sulfreen
Sulfreen
Sulfreen
Sulfreen
SCOT/BSRMDEA
or BSRP 3
SCOT/BSRMDEA
or BSRP 3
SCOT/BSRMDEA
or BSRP 3
SCOT/BSRMDEA
or BSRP 3
SCOT/BSRMDEA
or BSRP 3

VI
—
—
Recycle
Selectox
2-stage
Recycle
Selectox
2-stage
Recycle
Selectox
3-stage
Sulfreen
Sulfreen
Sulfreen
Sulfreen
Sulfreen
Sulfreen
Sulfreen •
Sulfreen
Sulfreen
Sulfreen
Sulfreen
SCOT/BSRMDEA
or BSRP 3
SCOT/BSRMDEA
or BSRP 3
SCOT/BSRMDEA
or BSRP 3
SCOT/BSRMDEA
or BSRP 3
SCOT/BSRMDEA
or BSRP 3

 Covers the entire ratio range from less than 12.5/87.5 to over 80/20.

3SCOT   - Shell Claus Offgas Treatment
 BSRHOEA - Biavon Sulfur Removal Methyldlethanolamine (MDEA): BSRMOEA equivalent
          to SCOT
 BSRP   - Beavon Sulfur Removal Process

                                          6-2

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along with technical data from a July 1982 report by the American Petroleum
Institute (API) on their gas plant survey, from meeting reports, from
plant visit reports, and from a review of the published studies.
Appendix G contains the API survey information for model plants with
feed rates of 5 LT/D or less.
6.1.1  Model Plant Sizes1
     The sizes (sulfur feed rates) of the model plants specified in
Table 6-1 span the sizes currently existing in the industry and are also
representative of the sweetening and sulfur recovery capacity of projected
future plants within the industry.  The first 15 small size model plants
represent sulfur feed rates of less than 0.1 Mg/d (0.1 LT/D) through
5.0 Mg/d (5 LT/D), and the largest model plant represents 1,016 Mg/d
(1,000 LT/D) of sulfur intake to sulfur recovery unit.  The sizes of the
remaining model plants are 10.2 Mg/d (10 LT/D), 102 Mg/d (100 LT/D) and
564 Mg/d (555 LT/D).
6.1.2  HsS/COg Volume Percent Ratio
     The ratio of volume percent concentration of H2S to that of C02 in
the acid gas feed to the sulfur recovery unit was considered in the
development of each model plant.  The ratio, as found in the industry
practice, ranged from less than 2 percent H2S/98 percent C02 to over
80 percent H2S/20 percent C02-
6.1.3  Baseline Control  Levels
     Baseline controls are defined as those levels of control expected
to be  utilized in new facilities  in the absence of a  standard.  Baseline
controls are used to assess  incremental environmental,  economic, and
energy impacts of each regulatory alternative  applied to the model
plants.
     Baseline control technology  for sweetening and sulfur  recovery
plants was  chosen according  to  the amount of  sulfur available for
processing.  Generally the  larger the rate  of  sulfur  feed rate  and the
higher the  concentration of  H2S in the  acid gas,  the  higher the degree
of control  of  emitted S02.
  Detailed parameters for the model  plants with sulfur feed rates of 5
  through 1,000 LT/D are summarized in Docket Entry A-80-20-A,  II-B-18.
  The parameters included sulfur feed rate (sulfur intake), acid gas H2S/C02
  ratio,  sulfur recovery efficiency and stack gas characteristics.   The
  information was extracted from Appendix E.
                                  6-3

-------
     Three levels of control have been determined to specify baseline
control technologies in the model plants.   Existing State regulations
and existing control levels in current industry practice were reviewed
in determining these control levels.  Table 6-1 presents baseline control
levels for each model plant (see Regulatory Alternative I).  Model
Plants 1 through 15 incorporate sweetening of sour natural gas, with
thermal oxidation to S02 of H2S separated in the sweetening unit into
S02 and subsequent release through an incinerator stack into the ambient
atmosphere (no sulfur recovery).  Model Plant 16 incorporates sweetening
of sour natural gas, with Claus 2-stage sulfur recovery from acid gas,
with thermal oxidation of unconverted H2S into S02 and subsequent release
into the ambient atmosphere through an incinerator stack.  Model Plants 17
through 21 incorporate sweetening of sour natural gas, with Claus 3-stage
sulfur recovery from acid gas, with thermal oxidation of  unconverted H2S
into S02 and subsequent release  into the ambient atmosphere through an
incinerator stack.
6.2  REGULATORY ALTERNATIVES
     The purpose of  this section  is to define the various regulatory
alternatives and consider their  effectiveness for reducing baseline
control emissions.   The effects  of  a  regulatory  alternative can  be
assessed  from  a  summation of  its  effects on a combination of  individual
model  plants.  Six  regulatory alternatives have  been  developed to perform
analyses  on the  model  plants.   These  regulatory  alternatives  are summarized
in Table  6-1.  These alternatives entail various degrees  of emission
control and are  developed  based upon  cost  effectiveness  and incremental
cost effectiveness  values  derived from design  data  and cost figures
provided  by the  Ralph M.  Parsons Company.  This  information is presented
 in detail  in  Appendices  E  and H.  The impacts  of each alternative will
 be evaluated  in  the economic, environmental,  and energy analyses.
 Sulfur recovery  control  technologies  presented in Table 6-1 represent
 those technologies currently in use in the industry and expected to be
 used for many years.
      Under Regulatory Alternative I,  no new source performance
 standard (NSPS)  would be promulgated for the natural  gas production
 industry.  This  alternative uses baseline emission controls.   Regulatory
                                  6-4

-------
Alternatives II through VI were selected as groups of processes that
display increasing values of cost effectiveness and incremental cost
effectiveness.  "Cost effectiveness" is defined as the difference between
the annual!zed cost of the given regulatory alternative and that of the
baseline control divided by the difference in the annual long ton S02
emission reduction of the given regulatory alternative and that of the
baseline control.  "Incremental cost effectiveness" is the ratio of the
additional cost and the additional emission reduction for moving from
one regulatory alternative to the next more stringent alternative.
                                 6-5

-------

-------
                         7.  ENVIRONMENTAL IMPACT

       The environmental impacts associated with each regulatory alternative
  are discussed with respect to both primary and secondary incremental
  impacts on air, water, solid waste, and energy resulting from the use of
  alternative control systems.   Impacts of establishing emission standards
  (based upon application of the different control  systems)  are compared
  with the impacts of not proposing or promulgating standards  of performance
  for new sources.   Both beneficial  and adverse  impacts  are  assessed  for
  each of the model  plants  presented in Chapter  6.   The  regulatory
  alternatives described for  the model  plants consist of various  sulfur
  recovery and/or  tail gas  treatment units.  The applicable sulfur recovery
  efficiencies are applied  to predict the  long-term  effects on nationwide
  emissions that could result from promulgation of each  regulatory
 alternative.
 7.1  AIR POLLUTION IMPACT
 7.1.1  Dispersion Model ing Results
      As part of an air  pollution impact study,  a  dispersion modeling
 analysis of the regulatory alternatives for  the model  plants  with  sulfur
 feed rates  of 5 Mg/d and greater (Table 6-1) was  conducted.   The locations
 of  natural  gas  processing  facilities are generally in  non-urban  areas;
 moreover, S02  is  released  into  the  atmosphere through a tall  stack.
 Therefore,  a single  source model  (CRSTER) was used.  It was also determined
 that  no  treatment of  (building) downwash was required.  The model was
 used  to  calculate maximum  concentration  (ambient) for averaging periods
of 1-hour, 3-hour, 24-hour and a year at various radial distances.   The
six radial locations ranged from 0.4 to 15 kilometers.   Meteorology data
from  locations in West Texas and the Western Gulf Basin regions were
reviewed.  Two surface and upper air data sets,  one for Houston and the
                                 7-1

-------
other for Amarillo, were selected.   In total, 72 scenarios were tested,
twelve model plant sulfur feed rates each with six regulatory alternatives.
Table 7-1 summarizes the results for the 1-hour, 3-hour, 24-hour and
annual averaging periods for both the Houston data and the Amarillo
data.  For each model plant and regulatory alternative combination, the
highest second high (for short-term periods) or highest (for the annual
average) S02 concentration in microgram per  cubic meter is presented,
independent of location distance.  The results  indicate that all of the
scenarios tested meet national  ambient air quality standard (NAAQS)
levels.  The methods, data bases and  results are  documented in the
report available  in Docket Entry No.  A-80-20-A,  II-A-18.
7.1.2 Effects of  Regulatory  Alternatives on Nationwide S02 Emissions
      The summary  of  impacts for the model plants  with each of  the  six
 regulatory  alternatives (presented in Table  6-1)  was extrapolated  to
 estimate the national  air quality  impact over  the period  from  1983
 through  1987.   Using past onshore  natural  gas  sulfur recovery  facility
 growth (Appendix G and Tables 9-8  and 9-9)  that is based  upon  the  American
 Petroleum Institute's July 1982 survey on the onshore natural  gas  processing
 facilities, and the data on new onshore natural gas production from the
 American Gas Association (AGA), the future  growth of the industry for
 the time period of interest was projected.   Historically, natural  gas
 produced offshore has been sweet.   The EPA  assumed that the natural gas
 produced offshore during the projecting period would continue to be
 sweet.  Therefore, gas produced offshore was not considered for the
 growth  projections.  Information  outlining  the methodology used to
 develop this 5-year projection is contained in Chapter 9.
       The projected total  new onshore natural  gas  processing capacities
  for 1983 through  1987  with sweetening and those  with sweetening as well
  as sulfur  recovery  are listed  in  Table 9-21.   The difference  between
  these two  yields  the new production  without sulfur recovery.   The H2S
  removed from this natural  gas  is  incinerated and released to  the  atmosphere.
  This estimates nationwide uncontrolled S02  emissions.  The  number of
  projected facilities not recovering sulfur may then be calculated from
  the above total uncontrolled S02  emissions.  The number  of uncontrolled
                                   7-2

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facilities of sizes (sulfur feed rates) varying from less than 0.1 megagrams
per day through 5.0 megagrams per day that will be constructed between 1983
and 1987 was estimated to be 37 (Table G-7, Appendix G).  By considering
the numbers of facilities both recovering and not recovering sulfur, the
nationwide S02 emissions from each of the regulatory alternatives may be
projected for 1983-1987.  Table 7-2 lists a summary of  sulfur recovery
efficiencies for the model plant regulatory alternatives.
     Data on sulfur feed rate and acid gas H2S/C02 ratio for gas streams
(available from the American Petroleum Institute's Gas  Plant Survey
Report presented in Appendix G) were reviewed.  Percent distribution of
the six acid gas ratio  (2/98, 5/95, 12.5/87.5, 20/80, 50/50, and 80/20)
were developed for each of the five sulfur intake range categories:  <5,
10, 102,  564 and 1,016  Mg/d.  The distribution reflects the percentage
of the gas streams that produce a certain  acid gas H2S/C02 ratio.
     For  each model plant, the product of  the  daily  sulfur feed rate and
the number of projected new  sweetening and sulfur recovery facilities
(Table 9-23 and Table G-6, Appendix G) produces the  total daily sulfur
feed rate.  The projected daily S02 emissions  are calculated  by the
product  of the  sulfur feed rate, the  fraction  of  the gas  streams  that
produce  a certain  acid  gas feed H2S/C02  ratio, the  sulfur penetration
rate  (1  minus  sulfur  recovery efficiency fraction),  and the  S02  conversion
factor (64 Mg  S02/32  Mg S = 2.0).   A  typical  operating  schedule  of
350  days per year  was  assumed to  calculate annual  S02 emissions  by the
end  of 1987.   Tables  7-3  and 7-4  quantify the estimated daily and annual
 S02  emissions,  respectively, resulting from promulgation of a standard
 based upon each of Regulatory Alternatives I through VI.   Table  -7-5
 summarizes the potential  S02 emissions reductions beyond baseline for
 each of Regulatory Alternatives II through VI.  Listed are the 5-year
 projected emission reductions and the percent reductions beyond current
 control  levels (Regulatory Alternative I or baseline emissions).   There
 would be a reduction from the baseline (Alternative I) of 25.6 percent
 with Alternative II, 78.4 percent with Alternative III, 80.5 percent
 with Alternative IV, 93.3 percent with Alternative V,  and 93.6 percent
 for Alternative VI.
                                   7-4

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7.1.3  Secondary Impacts on Air Quality
     Secondary air pollutants are those emissions that are not usually
associated with an uncontrolled facility but that result from the use of
pollution control equipment (i.e. the control of one pollutant results
in the production of another pollutant).  The use of sulfur recovery
units and the type of emission control systems considered in each of the
regulatory alternatives would not result in any adverse secondary impacts.
7.2  WATER POLLUTION IMPACT
     There would be essentially no water pollution impact associated
with any of the six regulatory alternatives.  The by-products thiosulfate
(Na2S203) and sulfite (Na2S03) do tend to build up in solutions during
the Stretford process and this build-up reduces the ability of the
system to remove hydrogen sulfide (H2S).  Formation of thiosulfate can
be controlled , however, to below 1% of the H2S by proper plant
operation. '   The Stretford process is used in the Beavon Sulfur Removal
Process (BSRP) tail gas cleanup system (described in Chapter 4).  The
BSRP tail gas cleanup system is specified as one of two possible tail
gas cleanup systems in Regulatory Altar-natives III through VI (Table 6-2).
The by-product thiosulfate and sulfite is transferred by a purge stream
for further salt recovery treatment.  Salt  recovery methods that are
currently available include evaporation or  spray drying, biological
degradation, and oxidative combustion.  After salt recovery, the solid
                                  #
waste is buried  in sanitary landfills.  Another salt recovery method
currently available is reductive incineration.  Solids that were recovered
from spray evaporation or oxidative combustion can be reduced to a
product that can be recycled through the Stretford process resulting in
economic savings and zero effluent discharge.   Therefore, liquid waste
disposal problems are not considered significant.
     The other sulfur recovery processes and tail gas cleanup systems
(presented in Chapter 4) specified as regulatory alternatives produce no
significant adverse water quality impacts,  as the liquid sulfur  is
recovered for sale.
                                  7-9

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7.3  SOLID WASTE DISPOSAL IMPACT
     There would be no significant adverse impacts on the level of solid
waste produced as a result of promulgation of any one of the six Regulatory
Alternatives specified in Table 6-1.  Instead, there is an economic
incentive to recover the sulfur (which is recovered in liquid, not solid
form) for sale to the sulfuric acid manufacturing industry.  Small
plants with sulfur feed rates below 5 Mg/d may not always be able to
market and sell the recovered sulfur, because the recovered amount would
be small, or the market may not be accessible.  These plants normally
dispose of the recoverd sulfur in a landfill under such circumstances.
However, the disposal impact is not expected to be significant.  The
Stretford process produces by-products (thiosulfate and sulfite).  '
These chemicals can be disposed of or recovered,  creating  an insignificant
solid waste impact.  The other possible  solid wastes that  are  typically
buried  in a sanitary landfill include: 1) spent catalysts  from the
reactor beds  (catalyst replacement  depends  on the replacement  schedule,
normally  every 3 to 5 years); 2)  recovered  sulfur resulting  from  spillage
or leakage when  it  is transferred either to the liquid  sulfur  storage
tank or transferred for  disposal  or sale; and 3)  spent  carbon  absorbers
from the  hydrocarbon  (HC)  recovery  unit  (carbon absorbers  typically last
several years).  The  spent catalyst is often used as  road  gravel  (paving
material) and has  no  adverse  environmental  effect.
7.4  ENERGY IMPACTS
      The  utility requirements associated with Regulatory Alternative I
 (the baseline requirements) for all the  projected new onshore natural
 gas processing facilities are presented in  Table  7-6.   Fifth-year (1987)
 requirements (beyond the baseline requirements)  of electric power, fuel
 gas, 600 psig steam,  50 psig steam, treated boiler feed water and cooling
 water for the projected new facilities for all  the regulatory alternatives
 are presented in Table 7-7.  The utility requirements were based on the
 Ralph M.  Parsons Company's study of onshore natural gas processing
 facilities.5   The data on the number of new onshore natural  gas processing
 facilities and the representative sizes (sulfur  feed rates in megagrams
 per day) of these projected facilities are presented in Table 9-23 and
 Tables G-6 and G-7, Appendix G.  Nationwide fifth-year (1987) utility
                                  7-10

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          Table 7-7.   FIFTH-YEAR  (1987) ENERGY REQUIREMENTS
     BEYOND THE BASELINE  (REGULATORY ALTERNATIVE I) FOR ALL OF THE
        PROJECTED  NEW ONSHORE  NATURAL GAS  PROCESSING FACILITIES
                    FOR THE  REGULATORY  ALTERNATIVES

El ectri c
power,
106 kWh/y
Fuel
gas,
1014 J/y
600 PSIG
steam,
107 kg/y
50 PSIG
steam,
108 kg/y
Treated
boiler feed
water ,
10s kg/y
Cooling
water ,
107 m3/y
Requlatorv alternative
I II III IV V VI
0.0 13.2 62.8 65.1 102 100

0.0 0.0 5.57 6.26 15.6 15.8

0.0 0.0 5.6 7.3 (4.1) (7.3)

0.0 0.0 3.0 3.0 29.6 29.6
- *-*?>•.

0.0 (0.7) (7.2) (7.6) (9.1) (7.7)

0.0 0.0 2.3 4.0 10.9 10.9

aRefer to Table 9-23 and Tables G-6 and G-7 in Appendix G.

bRefer to Table 6-1.
                                  7-12

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requirements were developed assuming 350 days per year, 24 hours per day
facility operation.   There would be an increase in energy (utilities)
usage over Regulatory Alternative I of 0.88 percent with Alternative II;
14.5 percent with Alternative III; 15.9 percent with Alternative IV;
35.8 percent with Alternative V; and 36.03 percent with Alternative VI.
These increased energy requirements result from greater sulfur recovery
efficiency requirements for small, medium, and large size sweetening and
sulfur recovery facilities.
7.5  OTHER ENVIRONMENTAL CONCERNS
7.5.1  Irreversible and Irretrievable Commitment of Resources
     The six regulatory alternatives defined in Chapter 6 would not
preclude the development of future control options nor would they curtail
any beneficial use of environmental resources.  No long-term environmental
losses would result from the regulatory alternatives.
7.5.2  Environmental Impact of Delayed Standards
     The only environmental impact on air pollution associated with a
delay in proposing and promulgating the standard would be an increase in
S02 emissions attributable to the construction of new sulfur recovery
units without tail gas treatment systems.  Additional S02 emissions from
the currently uncontrolled small facilities with sulfur intakes less
than 10 megagrams per day would result provided that a standard based on
Regulatory Alternatives III, IV, V, or VI is delayed.
     Delaying the standard would result in possible water and solid
waste impact reductions, but the related reductions would be minimal
compared with the air quality benefits attributable to promulgation of
the standard.
     Energy utilization by the  industry would be less if the standard
were delayed; however, the industry can reduce this additional expense
with credits derived from the sale of the recovered sulfur.
                                 7-13

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7.6  REFERENCES FOR CHAPTER 7
1.
2.
3.
4.
5.
"State Air Laws."  Environmental Reporter.
Affairs, Inc.  Washington, D.C.  1979-1981.
II-I-65.
The Bureau of National
 Docket No. A-80-20-A,
A.J. Moyes and J.S. Wilkinson.  "High-Efficiency Removal of H2S
from Fuel Gases and Process Gas Streams." Process Engineering,
September 1973, pp. 101-105.  Docket No. A-80-20-A, Entry II-I-72.

A.L. Kohl and F.C. Riesenfeld.  Gas Purification, 3rd ed.  Gulf
Publishing,Company.  Houston, Texas.  1979., pp. 476-487.  Docket
No. A-80-20-A, Entry II-I-73.

Srini Vasan.  "Holmes-Stretford Process Offers  Economic  H2S Removal."
Oil and Gas Journal.  January 2, 1978.  Docket  No. A-80-20-A,
Entry II-1-31.

Ralph M. Parsons Company Engineers/Constructors.  Sulfur Recovery
Study - Onshore Sour Gas Production Facilities, July 1981, and
Small Sulfur Recovery Units - Onshore Sour Gas  Production Facilities,
April 1983.  The Studies were conducted for TRW.  The studies are
presented in Appendix E and Appendix H, respectively of  this document.
Docket No. A-80-20-A, Entry II-A-16 and Entry II-A-20.
                                  7-14

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                            8.   COST ANALYSIS

8.1  COST ANALYSIS OF REGULATORY ALTERNATIVES
     This section summarizes the cost analysis data.  It presents estimates
of the fixed capital costs, annualized costs, capital charges, operating
and maintenance costs as well as sulfur and steam credits for each of
the six regulatory alternatives applied to all twenty-one model plants.
Cost effectiveness and incremental cost effectiveness for each of the
six regulatory alternatives applied to the model plants also are discussed.
All of the estimates are based upon cost data developed in two studies
conducted by a sulfur recovery equipment vendor.   Cost data pertinent
to plants with 5 Mg/d and larger sulfur feed rates are presented in
Appendix E.  Appendix H summarizes the basic cost data for the plants
with less than 5 Mg/d sulfur feed rates.  The cost analysis and data
presented in this chapter are applicable to sweetening and sulfur recovery
technologies conducted onshore for the natural gas production industry.
Cost estimates for sweetening and sulfur recovery technologies conducted
offshore may vary widely from the data presented in this chapter.  The
regulatory alternatives, baseline controls (Regulatory Alternative I),
and model plants are presented in Table 6-1.
8.1.1  New Facilities
     In this section, the  installed fixed-capital and annualized costs
associated with each regulatory alternative  (beyond the baseline controls)
are presented  for all twenty-one model plants.  Sulfur dioxide (S02)
emissions  reductions and cost effectiveness  for each regulatory alternative
also are summarized for the  model plants.  All costs are for  new
facilities.
     8.1.1.1   Capital Costs.  The fixed capital costs that represent  the
initial  investment  for control equipment and installation for 51 different
cases, 39  cases for >5 Mg/d  sizes and 12 cases  for  <5 Mg/d sizes, which
                                  8-1

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represent the size and acid gas ratio ranges in the industry, are presented
in Appendix E and Appendix H of this document.   The cases consider
different model plant sizes (sulfur feed rates) and combinations of
sulfur recovery/tai1 gas processes and acid gas H2S/C02 ratios.   The
cost estimates for the model plant sizes greater than 5 Mg/d are based
upon the following assumptions (Appendix E):
     (1)  Barometric pressure is 14.7 psia;
     (2)  Acid gases are available at 38°C (100°F) and 24.7 psia, saturated
          with water, and containing 0.5 mole percent methane (wet
          basis);
     (3)  Steam is produced at 250, 50, and 15 psig from the Glaus
          stages;
     (4)  Thermal oxidizers are operated at 649°C (1,200°F) with 25 percent
          excess air (to reduce H2S content below 10 ppmv);
     (5)  For cases with waste heat boilers associated with thermal
          oxidizers, steam is produced at 250 psig for the 102 Mg/d
          (100 LT/D) cases and at both 600 and 250 psig for each of the
          564 or 1,016 Mg/d (555 or 1,000 LT/D) cases;
     (6)  Treated, deaerated boiler feedwater is available at 320 psig
          and 110°C (230°F);
     (7)  Cooling water is available at 29°C (85°F) and is returned at
          43°C (110°F);
     (8)  Incinerator stack heights vary from 30.5 to 183 m  (100 to
          600 ft) depending on the quantity of sulfur dioxide emissions;
          stack height was  set to achieve approximately uniform  levels
          of ground-level S02 concentrations;
     (9)  Investment costs  are based on January 1981 Gulf Coast  prices;
     (10)  In the BSR (hydrogenation) sections, steam is produced in the
          102 Mg/d  (100 LT/D) units at 50 psig and in the 564 or 1,016 Mg/d
          (555 or  1,000 LT/D) units at 450  and 50 psig;
     (11)  For the  cases with 1,016 Mg/d (1,000 LT/D) sulfur  input  feeding
          acid gas  with a 50/50 H2S/C02 ratio, the plants are approximately
          the maximum economical  size, and  weaker gases would require
          building two trains.  In order to keep all cases  in only  one
          train, the maximum  sulfur  input with 20/80 H2S/C02 acid  gas
                                  8-2

-------
          feed is 564 Mg/d (555 LT/D).   These plants are about the same
          physical  size as the 1,016 Mg/d (1,000 LT/D) plants with
          50/50 H2S/C02 acid gas feed;  and
    (12)  Initial charge of catalysts is included in the fixed capital
          costs.
     The cost estimates for the model plant sizes smaller than 5 Mg/d
are based upon the following assumptions (Appendix H):
     (1)  Barometric pressure is 14.7 psia;
     (2)  Acid gases are available at 120°F and 24.7 psia, saturated
          with water, and contain 0.5 volume % methane (wet basis)
          maximum.
     (3)  Investment costs in Table H-3 are based on February 1983 Gulf
          Coast prices and include the complete plants through the
          catalytic incinerator and 100-foot-high stack.  (During the
          period from January 1981 to February 1983, Gulf Coast Petroleum
          Products Industry prices increased by about 9.6 percent (Based
          on Chemical Engineering Economic Index for the Petroleum
          Products Process Industry); therefore, the difference between
          the <5 Mg/d plant costs in 1981 dollars and the <5 Mg/d plant
          costs  in 1983 dollars is considered to be insignificant.)
     (4)  The plants use a heating medium for preheaters and reheaters
          and a  cooling medium by a cooler, but can also be recovered by
          circulating it through a reboiler on the regenerator in the
          adjacent amine unit.  For these small plants, such a reboiler
          has not been included as the economics may be marginal.
     The  fixed capital costs  of the regulatory alternatives for the
model plants with sulfur feed rates above 5 Mg/d were taken from the
data in Table E-28, Appendix  E.  These costs include the cost of the
initial catalyst charge and a capital cost for stack sulfur dioxide
monitoring equipment  ($41,000).  Those model plant/regulatory alternative
combinations, for which case-specific costs were not estimated, were
calculated through  interpolation of  the  cost numbers based upon the
model plant  size for  cases with  identical  sulfur recovery technology and
acid gas  H2S/C02 ratio.  The  fixed-capital costs for  the model plants
with sulfur  feed rates below  5 Mg/d  were taken from the cost data presented
                                  8-3

-------
in Table H-3, Appendix H, plus the cost for the initial catalyst charge
(Table H-4) and a capital cost for stack sulfur dioxide monitoring
equipment ($41,000).  Those model plants (less than 5 Mg/d) for which
case-specific costs were not presented, were calculated through
interpolation/extrapolation of the cost numbers based upon the model
plant size for cases with identical sulfur recovery technology and an
acid gas H2S/C02 ratio of 2/98 (i.e., the ratio that yields the highest,  ;
cost for a given plant size in sulfur feed rate).  The fixed-capital
costs (incremental costs beyond the costs of the baseline control
technology) for each new model plant/regulatory alternative combination
are presented in Table 8-1.  In addition, the fifth year (1987) aggregate
fixed-capital costs for all plants projected for construction in the
period 1983 through 1987 are listed at the base of each regulatory
alternative column.
     8.1.1.2  Annualized Costs.  The annualized cost is the summation of
capital charge cost, operating and maintenance costs, and other expenses
minus credits, if any, from the use of by-product steam and the sale of
elemental sulfur generated by the control processes.  Credit components
are deducted from the cost components.  An operating schedule of 24 hours
per day and 350 days per year was used to calculate cost and credit
components.
     Table 8-2 lists the 20 cost components, 7 credit components and the
cost (and credit) factors  used to estimate each component for the model
plants with greater than 5 Mg/d sulfur rates.  The cost (and credit)
factors presented in Table 8-2 were used to calculate  in a step-by-step
fashion the annualized costs for the 39 cases for which case-specific
fixed-capital costs were estimated.   These data (presented in Appendix E)
were used as the basis for estimating annualized costs for specific new
model plant/regulatory alternative combinations.  The  annualized costs
for the 39 cases are presented in Table E-29, Appendix E.  Those model
plant/regulatory alternative combinations  for which case-specific costs
were not estimated, were calculated through interpolation  of the cost
numbers based upon  the.model plant size (sulfur  feed rate) for cases
with identical  sulfur  recovery technology  and acid gas H2S/C02 ratio.
                                  8-4

-------
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-------
             Table 8-2.  COMPONENTS OF ANNUALIZED COSTS AND
       FACTORS TO CALCULATE THESE COMPONENTS FOR THE MODEL PLANTS
               WITH GREATER THAN 5 Mg/d SULFUR FEED RATES
Annualized Costs = Operating Costs + General Expenses - Steam and
  Sulfur Credits.

A.  Operating Costs:
    1.
Direct costs:
a.  Utilities consumed:  Based upon 24 h/d, 350 d/y schedule.

    1.  600 PSIG steam, $15.98/Mg
    2.  50 PSIG steam, $12.68/Mg
    3.  Treated boiler feed water, $3.31/Mg
    4.  Cooling water, $13.21/103m3 circulated
    5.  Electric power, $0.05/kWh
    6.  Fuel gas, $4.74/109J
    7.  Catalyst and chemical, ranging $2.27/day to $3,579/day
          depending upon size and technology.

b.  Utilities generated (credits):  Based upon 24 h/d,
      350 d/y schedule.

    8.  600 PSIG steam, $15.98/Mg
    9.  450 PSIG steam, $15.43/Mg
   10.  250 PSIG steam, $14.88/Mg
   11.  50 PSIG steam, $12.68/Mg
   12.  15 PSIG steam, $9.92/Mg
   13.  Steam condensate, $2.76/Mg
   14.  Sulfur recovered, $98.42/Mg

c.  Operating labor:   Based on 8 hr/operator (or supervisor),
      3 shifts/d, 365  d/y schedule.

   15.  Operators per  shift:  ($14.50/h rate)
                 Cases
               (For cases, refer
                 to Table E-29)
         d.
        1 and 2

        3,4,5,9,10,14,15,19,20

        6,7,8,11,12,13,16,17,18,29,30,31

        All others

   16.  Supervisors per  shift:   ($18.80/h  rate)
          All cases except 1  and 2

    Maintenance  and repair:      ,

   17.  Labor, 1.5% of fixed-capital  costs

   18.  Materials, 2% of fixed-capital  costs
                                                        Number  per  shift

                                                           negligible

                                                             0.75

                                                             1.25

                                                             2.25


                                                             0.25
                                (continued)
                                    8-6

-------
                         Table 8-2.  Concluded
                                                        I (1 * i)"
        e.   Operating supplies:
           19.   Operating supplies,  10% of operating labor
        f.   Laboratory charges
           20.   Laboratory charges,  10% of operating Tabor
        g.   Continuous stack S02 mass emission monitor system
           21.   Operating costs, $37,900/y
    2.   Fixed charges:
           22.   Capital charges - fixed-capital costs x
                                                        (1 + i) -1
                                = 0.11746 x fixed-capital  costs
                where, i = 10% (interest rate)
                       n = 20 years  (equipment life)
           23.   Local taxes, 1% of fixed-capital costs
           24.   Insurance, 0.6% of fixed-capital costs

    3.   Plant overhead costs:
           25.   Plant overhead, 25% of operating labor plus maintenance
                  and repair
B.   General Expenses:
    1.   Administrative costs:
           26.   Administration, 1% of total operating costs
    2.   Distribution and selling costs:
           27.   Distribution and selling, 1% of total operating costs
Source:    (i) The factors to calculate components 20, 23, 26, and 27
                 were taken from Reference 2.
          (ii) The factor to calculate component 22 was taken from
                 Reference 3.
         (iii) The factor to calculate component 21 was based upon
                 information from Western Research and Development>
                 Calgary, Canada.
          (iv) The factors to calculate the remaining components were
                 taken from Reference 1 (Appendix E).
                                   8-7

-------
     Table 8-3 lists the 19 cost components and the factors used to
estimate each component for the model plants with less than 5 Mg/d
sulfur feed rates.  The cost factors presented in Table 8-3 were used to
calculate in a step-by-step fashion the annualized costs for the 12 cases
for which case-specific fixed-capital costs were estimated.   These data
(presented in Appendix H) were used as the basis for estimating annualized
costs for specific new model plant/regulatory alternative combinations.
The annualized costs for the 12 cases are presented in Table H-7,
Appendix H.  Those model plant/regulatory alternative combinations for
which case-specific costs were not estimated, were calculated through
interpolation/extrapolation of the cost numbers based upon the model
plant size for cases with identical sulfur recovery technology and an
acid gas H2S/C02  ratio of 2/98 (i.e., the ratio that yields the highest
cost for a given  plant size in sulfur feed rate).
     The annualized costs (incremental costs  beyond the baseline) for
each model plant/regulatory alternative combination are presented in
Table 8-4.   In addition, the fifth year (1987) aggregate annualized
costs for all plants projected for construction  in the period 1983
through 1987 are  listed at the base  of each  regulatory alternative
column.   Incremental costs for capital charge cost, operating and
maintenance  costs and other expenses  and  incremental  credits, from  steam
and  sulfur generated for each model  plant/regulatory  combination are
presented in Table 8-5, 8-6 and  8-7,  respectively.  Sulfur"credits were
assumed to be zero for  the model  plants with sulfur feed rates below
5  Mg/d.   For this plant size range  it also was assumed  that a  sulfur
disposal  cost of  $25/LT was incurred.
      8.1.1.3 Cost Effectiveness.   To determine cost  effectiveness  for
each individual model  plant in  Regulatory Alternatives  II  through  VI,
the  annualized  costs  (from Table 8-4) associated with each of  these
regulatory alternatives were  subtracted  from the annualized costs
associated with the baseline  controls (Regulatory Alternative  I)  and
then divided by the S02 emissions reductions (calculated  in Chapter 7)
 for  each of the regulatory alternatives  (II through VI) beyond the
 Regulatory Alternative I emissions.   Cost effectiveness and incremental
                                  8-8

-------
             Table 8-3.   COMPONENTS OF ANNUALIZED COSTS AND
       FACTORS TO CALCULATE THESE COMPONENTS FOR THE MODEL PLANTS
                 WITH LESS THAN 5 Mg/d SULFUR FEED RATES
Annualized Costs = Operating Costs + General Expenses
A.   Operating Costs:

     1.   Direct costs:
          a.   Utilities consumed:
          f.
                      Based on 24 h/d, 350 d/y schedule
                    Electric power, $0.05/kWh
                    Fuel gas, $4.74/109J
                    Catalysts, ranging $1.48/day to $56.4/day depending
                      upon size and technology
               Utilities generated (credits):  Based upon 24 h/d,
                 350 d/y schedule
               4.   Assumed zero credits for the model plants with less
                      than 5 Mg/d sulfur feed rates

               Operating labor:  Based on 8 hr/operator (or supervisor),
                 3 shifts/d, 365 d/y schedule
               5.   Operators per shift:  ($14.50/h rate)
 1.
 2.
 3.
                    Cases
             (For cases, refer
              to Table H-5)
                    1 through 12 (all the cases)
Number per shift
      0.75
                    Supervisors per shift:
                      All the cases
                              ($18.80/h rate)
                                                0.25
 Maintenance and repair:
 7.    Labor, 1.5% of fixed capital costs
 8.    Materials, 2% of fixed-capital costs

 Operating supplies:
 9.    Operating supplies, 10% of operating labor

 Laboratory charges:
10.    Laboratory charges, 10% of operating labor
 Continuous stack S02 mass emission monitor system:
11.    Operating costs, $37,900/y

 Storage and disposal of recovered sulfur:
12.    Storage, disposal costs, $0.25/Mg/mile (100 miles
        average distance for disposal assumed)
                               (continued)

                                 8-9

-------
                          Table 8-3.   Concluded
B.
     2.    Fixed charges:

              13.                                             i  (1 + i)
                    Capital  charges = fixed-capital  costs x 	v   -—
                                                            (1 + i) -1

                                    = 0.11746 x fixed-capital  costs

                    where,  i = 10% (interest rate)
                           n = 20 years (equipment life)

              14.    Local  taxes, 1% of fixed-capital costs

              15.    Insurance, 0.6% of fixed-capital costs
     3.
     Plant overhead costs:

         16.
                    Plant overhead, 25% of operating labor plus
                      maintenance and repair
General Expenses:

1.   Administrative costs:
         17.   Administration, 1% of total operating costs

2.   Distribution and selling costs:
         18.   Distribution and selling, 1% of total operating costs

3.   Contingency costs:
         19.   Contingency factor,  5% of total operating costs
Source:        (i)  The factors to calculate components 10, 14, 17, 18,
                      and 19 were taken from Reference 2.
              (ii)  The factor to calculate component 13 was  taken from
                      Reference 3.
              (iii)  The factor to calculate component 11 was  based upon
                      information from Western  Research and Development,
                      Calgary, Canada.
              (iv)  The factors to calculate the  remaining components
                      were  taken from Reference 1 (Appendix H).
                                  8-10

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cost effectiveness were calculated for each model plant size in each
regulatory alternative.  The cost effectiveness is the annualized cost
(beyond the baseline control) per megagram of S02 emissions reduction
achieved (beyond the baseline control).  The incremental cost effectiveness
of Alternative III is the additional annualized cost of Alternative III
over Alternative II divided by the additional S02 emissions reduction
achieved by Alternative III over Alternative II.  This same approach is
used to calculate the incremental cost effectiveness for Alternative IV,
V and VI.  The cost effectiveness and incremental cost effectiveness
values for each regulatory alternative/model plant combination is
summarized in Table 8-8.
     For the model plants with sulfur feed rates below 5 Mg/d, cost-
effectiveness values were calculated for the Recycle Selectox 2-stage
and 3-stage processes.  Table 8-9 presents cost effectiveness values for
the Recycle Selectox 2-stage process and Table 8-10 for the Recycle
Selectox 3-stage process.  Table 8-11 presents  incremental cost effective-
ness values between the Recycle Selectox 2-stage and 3-stage processes
for these  small size model plants.
     No  additional costs are incurred  because affected facilities are
expected already to be in compliance with any existing applicable
regulations.  No other regulatory requirements  are being imposed on the
affected facilities.
8.1.2  Modified or Reconstructed  Facilities
     As  stated in Chapter 5  of this document, no physical  or operational
changes  in the industry are  anticipated that would qualify an existing
facility as  "modification."  Also,  the cost  attributable to any  replacement
would  not  exceed  50 percent  of the  cost to construct  a  comparable,
entirely new facility.  Consequently,  no  situations are anticipated  that
would  constitute  a  "reconstruction" to an  exisiting facility.  Therefore,
the costs  for "modification" or  "reconstruction"  have not  been developed.
                                  8-15

-------




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-------
     Table 8-9.  COST EFFECTIVENESS OF RECYCLE SELECTOX 2-STAGE PROCESS



Model
plant
1
2
3
• 4
5
6
7
8
9
10
11
12
13
14
15


Sulfur feed
rate, LT/D
<0.1
(0.034 avg.)
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
2.0
3.0
4.0
5.0


Annuali zed
costs of
incinerator,
$/year
(baseline
controls)
154,000
154,000
154,000
154,000
154,000
154,000
154,000
154,000
154,000
154,000
154,000
154,000
154,000
154,000
154,000
Incremental
annual i zed
costs (beyond
the baseline
controls) of
Recycle
Selectox
2- stage
$/year
408,000
421,000
434,000
446,000
461,000
475,000
488,000
501,000
515,000
528,000
541,000
674,000
765,000
856,000
448,000


Reduction
in S02
emissions
from the
baseline
control .
Mg S02/year
17.8
52.4
105
157
210
262
314
367
419
471
525
1,050
1,570
2,100
2,620


Cost
effectiveness,
$/Mg S02
22,900
8,030
4,130
2,840
2,200
1,810
1,550
1,370
1,230
1,120
1,030
642
487
408
. 171
Monitoring and recordkeeping  costs  are  included.    Sulfur  credits  are  not
 accounted for in  the model  plants with  sulfur  feed  rates below  5 LT/D.
 Instead,  storage  and disposal  costs of  recovered  liquid sulfur  are accounted
 for.   Sulfur (and steam)  credits are accounted for  in  the  model plants with
 sulfur feed rates 5  LT/D  or larger.   Sulfur  credit  from sale  at $100/LT.

DBased upon end-of-run sulfur  recovery efficiency  of 74.83  percent  of
 Recycle Selectox  2-stage  at 2 mole  percent H2S in the  acid gas  stream.
                                     8-17

-------
    Table 8-10.  COST EFFECTIVENESS OF RECYCLE SELECTOX 3-STAGE PROCESS
Incremental
annuali zed
costs (beyond
Annuali zed the baseline
costs of controls) of
Model
plant
1

2
3
4
5
6
7
8
9
10
11
12
13
14
15
incinerator,
$/year
Sulfur feed (baseline
rate, LT/D controls)
<0.1
(0.034 avg.)
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
2.0
3.0
4.0
5.0
154,000

154,000
154,000
154,000
154,000
154,000
154,000
154,000
154,000
154,000
154,000
154,000
154,000
154,000
154,000
Recycle
Selectox
3- stage
$/year
611,000

618,000
626,000
633,000
640,000
648,000
656,000
664,000
670,000
678,000
685,000
759,000
833,000
906,000
483,000
Reduction
in S02
emissions

from the
baseline Cost
control . effectiveness,
Mg S02/year $/Mg S02
18.3

53.8
108
162
215
269
323
377
431
485
538
1,080
1,620
2,150
2,690
33,400

11,500
5,800
3,910
2,980
2,410
2,030
1,760
1,550
1,400
1,270
703
514
421
180
Monitoring and recordkeeping costs  are included.   *»••»• ^•;-1i"-  r^n"
 accounted for in the model  plants with sulfur feed rates  below 5  LT/D.
 Sead  storage and disposal costs of recovered Hfl""*01^,^  "
 for.   Sulfur (and steam) credits are accounted for in the model p ants  with
 sulfur feed rates 5 LT/D or larger.  Sulfur credit from sale at $100/LT.

bBased upon end-of-run sulfur recovery efficiency of 76.92 percent of
 Recycle Selectox 3-stage at 2 mole  percent H2S in the acid gas stream.
                                      8-18

-------
       Table 8-11.  COST EFFECTIVENESS OF RECYCLE SELECTOX 2-STAGE AND
                RECYCLE SELECTOX 3-STAGE PROCESSES AND THEIR
                       INCREMENTAL COST EFFECTIVENESS
                             Cost
                        effectiveness'
                          of Recycle
                           Selectox
      Cost
effectiveness*
  of Recycle
   Selectox
   Incremental
      cost   .
 effectivness
  from Recycle
Selectox 2-stage
Model
plant
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Sulfur feed
rate, LT/D
<0.1
(0.034 avg.)
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
2.0
3.0
4.0
'5.0
2- stage,
$/LT S02
22,900
8,030
4,130
2,840
2,200
1,810
1,550
1,370
1,230
1,120
1,030
642
487
408
171
3- stage,
$/LT S02
33,400
11,500
5,800
3,910
2,980
2,410
2,030
1,760
1,550
1,400
1,270
703
514
421
180
to 3- stage,
$/LT S02
408,000
135,000
65,600
42,600
30,600
23,700
19,100
15,900
13,200 ,
11,400
9,840
2,910
1,550
854
478
-Cost effectiveness = Annualized costs of the given regulatory alternative
 minus annualized costs of the baseline control divided by the annual long
 tons S02 emissions further reduced from the baseline control.
Incremental cost effectiveness (ACE) = Difference between the annualized
 costs of the given and the previous regulatory alternative divided by the
 difference in the annual long tons S02 emissions reduction between the
 same alternatives.
                                     8-19

-------
8.2  REFERENCES FOR CHAPTER 8
1.
2.
The Ralph M. Parsons Company, Engineers/Constructors   Sulfur
Recovery Studies-Onshore Sour Natural Gas Production Facilities.
The studies were conducted for TRW.  July 1981 and April 1983.  The
studies are presented in Appendices E and H.  Refer to Appendix E
and Appendix H of this document.  Docket No. A-80-20-A, Entry II-A-16
and Entry II-A-20.

Peters  M S  , and K.D. Timmerhaus.  Plant Design and Economics  for
Chemical Engineers,  Second Edition.  McGraw-Hill Book Company,  New
York, 1968.  Docket  No. A-80-20-A,  Entry II-I-74.

U.S.  EPA, Economics  Analysis  Branch, Capital and Operating  Costs  of
Selected Air Pollution Control  Systems,  EPA 450/5-80-002, EPA
Contract No. 68-02-2899,  R.  B.  Neveril,  CARD,  Incorporated,
December 1978.   Docket No. A-80-20-A,  Entry II-A-11.

Docket  No.  A-80-20-A,  Entry  II-B-29, Methodology  for  converting
Parsons' costs  data  (in  Appendix E) to the  annualized costs presented
in Chapter  8 of the  Background Information  Document.   Step-by-step
sample  calculations  to  calculate annualized costs  also are  included.

Docket  No.  A-80-20-A,  Entry II-B-44,  Methodology for converting
 Parsons'  costs data (in Appendix H) to the  annualized costs presented
 in Chapter 8 of the Background Information  Document.   Step-by-step
 sample calculations to calculate annualized costs also are included.
                                   8-20

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           9.  ECONOMIC ANALYSIS OF THE REGULATORY ALTERNATIVES

9.1  INDUSTRY PROFILE
     This section describes the general business and economic conditions of
the natural  gas production industry.  The primary focus of the discussion
is on the production facilities that recover elemental liquid sulfur from
acid gas.
     Growth projections for the year 1987, five years after a proposal  date
of 1982 for the NSPS, were developed to illustrate the future trend of the
industry.  The profile and the projections are presented to aid in the
determination of economic, energy, and environmental impacts of the
proposed standard.
9.1.1  The Natural Gas Production Industry
     The natural gas system in the United States consists of producers,
processors, dealers, interstate and intrastate pipelines, distributors and
consumers.
     The production industry includes hundreds of firms engaged in the
exploration, drilling, producing and processing of natural gas although a
relatively small number of companies dominate the industry.  The American
Association of Petroleum Geologists (AAPG) states that the 16 largest firms
in the industry found 40.3 percent of 41.3 trillion cubic feet of natural
gas discovered during the period from 1969 to 1978.  The AAPG also states
that the 16 largest companies accounted for approximately 60 percent of
industry expenditures for geological and geophysical information and lease
acquisition.  However, these large companies spend almost twice as much
money as smaller firms on predrilling exploration and one-half as much as
the others on wildcat drilling.
                                    9-1

-------
     Some companies engage in the operations of drilling, producing and
processing of natural gas.  Additionally, if the natural gas is sour,
companies incorporate a sweetening operation that removes H2S and C02
from the sour natural gas.  Sulfur can then be removed from the separated
acid gas.  Other companies drill for and produce sour natural gas, but
contract with companies owning sweetening facilities to perform the
sweetening and sulfur recovery operations for them.  Individual ownership
or joint ownership in one or all of these operations exists in this
industry.  In the 1960-1979 period, about 19 percent of onshore natural gas
was estimated to have undergone  sweetening.  Roughly one third of this, or
6.3 percent, has been associated with natural gas  sulfur recovery.  The API
Gas Plant Survey data (presented in Appendix G)  indicated that in 1982,
about 24 percent of  the onshore  natural  gas was  sour and 32  percent of
this, or 7.7 percent of the onshore natural gas, was associated with sulfur
recovery.  Historically the natural gas  that has been  produced offshore has
been sweet.  For the growth projections  EPA assumed that during  the   ,
projecting period  the natural  gas  produced- offshore would be  sweet.
     About two-thirds of  all  natural  gas is transmitted in  pipelines across
state lines  to  be  sold  in various  metropolitan  areas.   The  remainder  is
sold in intrastate markets.   Approximately  100  pipeline companies  operate
the  interstate  pipeline network.  This  sector  of the  industry, more  so than
the  production  sector,  tends  to be dominated  by large  companies.   In  1971,
the  four largest  pipeline companies accounted  for  35  percent of  the  total
 interstate  pipeline  volume,  while the 20 largest companies  transported.over
93 percent  of  the  gas.                                            .          .
      Companies  involved in final distribution  of the  gas constitute  the
 least  concentrated sector of the industry.   Over 1,600 companies buy gas
 from pipelines  and distribute it to various communities.  Because they
 operate in  different service areas, these companies rarely compete with one
 another, and are often regulated by state or local agencies.
      There is some vertical  integration in the industry with pipeline .
 companies often owning producing wells.  However, few companies  engage i'n
 production, transmission and distribution of the gas.   In contrast,
 horizontal  integration is quite extensive.  In the production sector, many
                                     9-2

-------
companies produce crude oil and natural gas liquids in addition to natural
gas although no one company predominates.  In addition, many have
investments in coal, oil shale, synfuels and mineral industries.
     9.1.1.1  Number, Size and Location of Natural Gas Wells.  The American
Gas Association (AGA) reports that in 1979 over 20 trillion cubic feet of
natural gas was produced by nearly 170,000 producing gas wells located in
30 states.  The leading producing states are Texas, Louisiana, Oklahoma,
New Mexico and Kansas.  The number of wells and production by state are
shown in Table 9-1 which lists the states in rank order according to
                                         t.            •
average gas well size (flow rate) based on revised 1979 figures from
     o
AGA.     The largest wells on average are located in Alaska and produce
over 10,000'Mcfd.  The  smallest wells on average are located in Oregon,
Indiana and Maryland where the average gas wells produce less than 10 Mcfd.
Nonassociated (non-oil  producing) gas wells, which produce less than a
maximum of 60 Mcfd, are defined by the Natural Gas Policy Act to be
stripper gas wells.
     Based on the figures  in Table 9-1, the distribution of domestic gas
wells and production by well size is estimated to be as follows.
           Well Size
             (Mcfd)
         Less than 100
             100-400
             400-800
         More than 800
Percent of
Total Wells
     43
     25
     22
     10
    TOO
   Percent of
Total Production
         2
        20
        36
        42
       100
     At the  low end of the well size distribution, about 43 percent of all
producing gas wells supply two percent of total production.  At the high
end, about ten percent of the wells supply 42  percent of total net wellhead
production from dry gas and condensate wells.  Excluded from this
distribution are oil wells which also produce  gas.
     9.1.1.2  Natural Gas Production Costs from New Wells.  The cost of
producing natural gas is highly variable and depends on many factors such
as  drilling  depth, probability of drilling a producing well, well flow
rates, etc.  Among these factors, drilling costs are the most  important.
                                    9-3

-------
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In 1979, the petroleum industry spent approximately $16.1 billion  for
drilling and equipping onshore and offshore oil and, gas wells and  dry      ;
holes.  The average depth of gas wells in 1979 was 5,493 feet.  -.The average
cost per foot was $80.66y up from $:68.37 in 1978.  Table 9-2 shows that  the
industry spent $12.8 billion for drilling and equipping 47,263  onshore oil
and gas wells and dry holes.
     The, average depth of onshore gas wells in 1979 was 5S337 feet.  In
1979, the average cost of drilling an onshore gas well was $367,710. -Costs
for drilling- and equipping onshore gas wells through  the "Christmas tree"
(wellhead) are analyzed in Table 9-3 for selected depth intervals.  Average
costs per well by 'depth interval from the Joint Association Survey data  are
allocated a share of dry hole drilling costs and escalated 17.2 percent  to
obtain an estimated cost of drilling and equipping a  producing  gas well  in
1980 dollars;, vAt'2,000, i4,000, r8,000 and 12,000 feet,; the estimated
drilling costs per well:are $89,000, $211,000^ $949,000 and $1,875,000,
respectively.          :-:::                     '.-...
     Drilling costs are combined with Department of'Energy estimates of
additional fteld equipment costs and annual operating and maintenance
costs.  Total unit wellhead production costs are shown'in Table 9-4. "Field
equipment costs and operating and maintenance costs are variable^with  gas
flow rate.  As shown in Table 9-4, field equipment costs (including
dehydrators, field, gathering pipelines, etc.) between the "Christmas tree"
.and point of transfer typically average $15,000 for a igas^ well: producing 50.
Mcfd and $64,000 for a;well producing 5,000 Mcfd.  Annual operating and    '
maintenance costs average $6,000 per year for a gas: well'producing 50  Mcfd
and $29,000 for a gas well producing 5,000 Mcfd.  These costs are  expressed
in 1980 dollars. 4'5        -      •-:  .:   '.'•.';    .    :.  •  -;, "'•
 '••"   Estimated average  unit total costs'(1980 $/Mcf)rfor new weTls at  the
selected depths and flow rates  are shown in Table 9-4.  These costs are
based on the'following  assumptions:  20 percent royalty payments',  15
percent depletion,,allowance, 6  percent annual production decline rate, 6
percent annual operating cost decline rate, 20-year well life,  8 percent
inflation,  10 percent nominal industry weighted cost  of capital, 47;p'ercent
marginal corporate income tax rate,  10 percent  investment tax credit rate,
                                   :  9-5;

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 Table 9-3.  ESTIMATED COST OF DRILLING AND EQUIPPING ONSHORE NATURAL GAS
                   WELLS, BY SELECTED WELL DEPTHS, 1980
           Item
Unit    2,000
Well depth  (feet)	
 4,0008,00012,000
Cost per onshore gas well
  drilled

Dry hole factors a

Cost per producing
  gas well drilled

Escalation factor

Cost per producing
  gas well drilled
1979$   63,000   142,000   578,000   1,064,000
         1.2

1979$   76,000.


        1.172

1980$   89,000
  1.3       1.4        1.5

180,000   810,000   1,600,000


 1.172     1.172      1.172

211,000   949,000   1,875,000
a  Dry hole cost factor equals the ratio of total  cost divided by total
    costs for gas and oil  wells, by depth interval

   American Petroleum Institute, 1979 Joint Association Survey on Drilling
    Costs, February 1981,  edition.  Table 3 page 9.
                              9-7

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                                                       1 "3  7^  /fi
and accelerated cost recovery system (over ten years).   '    '     The
equation for estimating the average unit costs in Table 9-4 is shown in
Appendix F.
     The unit costs displayed in Table 9-4 illustrate the variability of
new gas well production costs.  The magnitude of the costs are indicative
of average production costs under the assumed conditions.  Variation of
those conditions and individual well circumstances naturally affect actual.
costs.
     The total unit costs of natural gas production from individual
producing new wells range over at least four orders of magnitude (e.g.,
from $.05 per Mcf to over $70.00 per Mcf).  Although the average costs of
new natural gas for an individual producer, gas field, or composite for the
industry is indeterminant from the data presented above due to a lack of
new well characteristics (flow rates, decline rates, and. depths), Table 9-4
does indicate several important characteristics of the industry.  First,
new gas production requires large front-end investments for exploration and
development drilling..  Second, there is a significant risk that any
individual well will be dry or too small to recover total costs.  Third,
operating costs are relatively small, hence once drilling costs are sunk,
it is often economical for the operator to operate the well to cover short
run variable costs while making some contribution, however small, to
capital recovery.  Consequently, some wells produce at a loss against total
costs.  Economic profits on individual wells or gas fields are inversely
related to well depth and positively related to'well flow rate, all other
things being equal.
9.1.1.3  Natural Gas Sulfur Recovery Facilities
     In 1980, there were 31 companies that owned a total of 89 onshore
natural gas sulfur recovery facilities.  These facilities had a total
capacity of approximately 10,600 megagrams of recovered sulfur per day.
Table 9-5 presents these 31 companies, their sulfur recovery facilities,
and their combined daily capacity.    Table 9-5 indicates that no single
company operator controls the industry.  However, a major fraction of the
combined sulfur recovery capacity is controlled by a relatively small
number of companies.  The five largest operators have a combined capacity
of 8,238 megagrams of recovered sulfur per day, which is 77.4 percent of
                                    9-9

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TaWe 9-5  ONSHORE NATURAL GAS SULFUR RECOVERY FACILITY  OPERATORS,  1979
Number
1
2
3
4
5
§
7
8
9
10
11
12
13
14
15
16
17
16

Company/operator
Shell Oil Company
Exxon Company USA
Amoco Production Company
Pursue Gas Processing and Petroleum
Company (Mid- American Oil and Gas
and Pursue Energy Corporation)
Chevron U.S.A., Inc. (Standard Oil
Company of California)
Getty Oil Company
Warren Petroleum Company (Gulf Oil
Corporation)
Phillips Petroleum Company
El Paso Natural Gas Company
Cities Service Company
Aminoil U.S.A., Inc. (R.J. Reynolds
Industries, Inc. )
Texaco, Inc.
Husky Oil Company
Trans-Jeff Chemical Corporation
Marathon Oil Company
Colorado Interstate Gas Company
(Coastal States Gas Corporation)
Atlantic Richfield Company
Natural Gas Pipe Line Company of
America
(conti
Number of
operating facilities
7
7
10
1
1
3
6
5
5
4
2
9
3
1
2
. 1
2
4
nued)
Daily sulfur 1
intake capacity 1
(combined), Mg/d 1
2,207
1,974 '
1,962
1,095
1,000
' 354
281
279
276
271
230
90.
85
80
66
66
"49
•47












3







9-10

-------
                     Table  9-5.   Continued
Number
19
20
21
22
23
24
25
26
27
28
29
30
31
Company/operator
Tonkawa Gas Processing Company
(Texas Oil and Gas Corporation)
Intratex Gas Company (Houston
Natural Gas Company)
Diamond Shamrock Corporation
Sinclair Oil Corporation (Little
America Refining Company)
MGF Oil Corporation
Union Oil Company of California
Lone Star Gas Company
Northern Natural Gas Company
Suburban Propane Gas Corporation
Pioneer Gas Products Company
(Pioneer Corporation)
West! and Oil Development
Corporation
Gulf Energy and Development
Corporation
Dorchester Gas Corporation
TOTAL
Source: Chemical Economics Handbook -
Number of
operating faci
2
1
1
1
1'
1
1-
1
1
2
1
1
2
89
Stanford Research
Daily sulfur
intake capacity
lities (combined), Mg/d
35
' 33
30
25
22
18
15
14
14
9
5.
5
3
10,640.
Institute (SRI)










5

8

International, December,  1979.
                             9-11

-------
the total capacity of the industry.  In addition, the 15 largest operators
have a combined capacity of 10,250 megagrams per day or 96.3 percent of the
total industry capacity.  The remaining 16 operators have a combined
capacity of 3.7 percent of the total.  This distribution implies that small
producers tend to leave processing activities to the larger firms.  Some of
these smaller operators are gas transmission (pipeline) companies engaged
in the production of oil and gas.  However, most of these sulfur recovery
facility operators are  diversified oil and gas  producing companies  and are
ranked among the  largest 100 industrial corporations listed by  Fortune
Magazine.
      Appendix G  (Table  G-8) presents  the  American  Petroleum  Institute's
July 1982  survey  on  the onshore  natural gas  processing  facilities.  Data  on
cpacity, throughout,  as well  as  H2S  and C02  mole percent are  listed for
each gas stream.   Table 9-6  summarizes the  observed frequency of  sweetening
facilities by  H£S (percent)  in sour  natural  gas and by  facility capacity
 (MG/day).   The  two-way frequency distribution  is for streams  with
 sweetening only.   (The underlying data are  presented in Table 6-2).  Table
 9-6 indicates  that small capacity facilities tend to be associated with
 very lean H2S percentages in the sour natural  gas.  Table  9-7 presents
 the observed frequency of sulfur recovery facilities by H2S (percent) in
 sour natural gas and by facility capacity (Mg/day).  This two-way frequency
 distribution is for streams with sulfur  recovery only.   (The underlying
 data are presented in Table G-3).  Table 9-7 indicates that facilities with
 large sulfur recovery  capacities tend to be associated with high H2$
 percentages in the sour natural  gas.  Table 9-6 and 9-7 also demonstrate
 that the H2S concentrations range widely from  less than 0.1  to above 15
 mole percent.  A higher H2S percentage yields  more sulfur and  less sweet
 gas (residue gas) and  vice versa.
       In 1980,  1,707,000 megagrams of sulfur were  recovered from  onshore
 natural gas, which  is  equivalent to  4,877 megagrams per day  (1 year  = 350
 days).  This  represents  72.5  percent industry  capacity utilization.   The
 percentage of  capacity utilization  in the  industry for the years  1951
 through 1980,  the number of new facilities  added each  year,  and  their
 capacities are presented in Table 9-8.
                                      9-12

-------
Table 9-6   OBSERVED FREQUENCY OF SWEETENING  FACILITIES BY H2S PERCENTAGE
     IN  SOUR  NATURAL GAS AND FACILITY CAPACITY,  JULY 1982
Facility
capacity,
Mg/d
<0.l
0.1
0.2
0.3
0,4
0.5
0.6
0.7
0.8
0.0
1
2
3
4
' 5
>5
Total
Source:





H2S percentage in sour natural gas
<0.1 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 2 3 4 5 >5
51 . 1 1
21
11 1 1
5 11
42 21
313-
3 1 2
31
1 1
12
24321 9 1 1
411152 21
423 1 5 11
1 13 2.1 221

2 7132111 662 22
97 9 19 12 13 12 3 3 15 0 10 11 4 0 2 3
Appendix G, Table G-2.
Table 9-7. OBSERVED FREQUENCY OF SULFUR RECOVERY FACILITIES
BY H2S PERCENTAGE IN SOUR NATURAL GAS AND
FACILITY CAPACITY, JULY 1982
-™-l.!2.. H2S percentage in sour natural gas
Mg/d <0. 5123456789 10 11-15 >15 Total
<10 31212 11 11
10-49 5753432 1 3 33
50-99 4 329
100-199 21 14
>200 134
Total 8873954 3134 6 61

Total
53
3
13
7
9
7
6
4
2
3
23
17
17
13
0
'36
213.






              Source:  Appendix G, Table G-3.
                                    9-13

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     The natural  gas sulfur recovery industry has added 1 to 9 new
facilities each year since 1971.  The addition of new operating facilities
is presented in Figure 9-1 for each year from 1971 through 1982 and for
each 5-year period from 1950 through 1970.  Similarly, the total new sulfur
recovery capacity added for each 5-year period from 1950 through 1970 and
for each year from 1971 through 1982 is shown in Figure 9-2.
     Not all capacity additions mean expanded output.  The capacity of a
sulfur recovery facility is generally designed to accommodate the highest
potential sulfur input to the facility.  Facilities are designed this way
in order to insure that the primary operation at the site will never be
shut down because of failure of the sulfur recovery operation.
     The size distribution for  seven categories of existing sulfur recovery
facilities  is presented in Table 9-9.  By 1982, sixty-two facilities,
representing 69.7 percent of the total, will fall in the smallest two
categories  (less than  10 and 10 to 49 Mg/day), and the average  capacity of
these facilities will  be approximately 10.2 megagrams per day.  The fifth
and  sixth categories  (200 to 499 and 500  to 999 Mg/day)  include seven
facilities  (7.9 percent of total) with an average capacity  of  approximately
564  megagrams  per day.  The  last category (1,000 and above  Mg/day) includes
four facilities  (4.5  percent of total) with an average capacity of
approximately  1,016 megagrams  per  day.  Table 9-9 also indicates  that  the
capacity distribution  at  the end of  1972  is about the  same  as  that at  the
end  of  1982.   Therefore,  the capacity  distribution estimated  at the end of
1982 is projected to  remain  unchanged  for the period  from  1983 through 1987
and  is  used as the  basis  for further  analyses.
      Sulfur recovery  facilities are  not uniformly  located  across  the  United
 States.  Typically, the  facility  is  operated  at  the  field  where the  sour
 natural gas is produced.   Forty-nine  facilities  are  located in Texas  and  10
 facilities  in  New Mexico.   The,Mississippi-Alabama-Florida  region contains
 13 facilities  and Wyoming has  8 facilities.
      Employment in  natural  gas sulfur recovery  is  not labor intensive.  The
 operations  are automated and,  therefore,  are  controlled  by instrumentation.
 Approximately 10 persons are employed in  labor,  supervision,  maintenance/
 repair and administration in a typical  onshore  natural  gas sulfur recovery
 facility of 100 megagrams sulfur intake per day.   Installation of
                                   •  9-15

-------
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additional control equipment to enhance sulfur recovery and thereby reduce
sulfur compounds emissions should not significantly increase the number of
employees per facility.
     9.1.1.4  Natural Gas Market.  Although the natural gas component of
total domestic energy production has decreased from 40 percent in 1973 to
34 percent in 1980 as indicated in Table 9-10, the natural gas production
industry  is expected to continue to supply a significant fraction of total
domestic  energy demand.  Exploration and production activities for natural
gas are anticipated to continue to increase as a  result of phased natural
gas price deregulation and expected price  increases.  The U.S. supply of
natural gas from  domestic production is price  inelastic, according to Neri
(1977) who reports that the  1980 implied price elasticities for  domestic
natural gas production are 0.06 and 0.24 for the  American Gas Association
(AGA) TERA Model  (1973) and  the MacAvoy-Pindyck  (M-P) models  (1975),
respectively.   Both models are based on similar  theoretical concepts with
respect to exploration and discovery processes but  differ  in  estimation  of
the  processes.  The TERA  model relies  upon econometric  and engineering
elements  while  the M-P model  is wholly econometric  in  approach.   Both  deal
with the  long-run dynamic behavior of  drilling,  new discoveries, reserve
additions, and  production.                                            "•;
      Domestic aggregate  retail price  elasticities of demand  for  solid
 fuels,  natural  gas,  electricity  and petroleum  are shown in  Table 9-11.
 These elasticities  represent the  change in final  demand for  each fuel  with
 respect to a  change  in the price  of all  four aggregate fuel  types.
 Therefore, the diagonal  corresponding  to  direct  price elasticity should
 have a negative sign.   For example, the domestic retail price elasticity
 for natural  gas is -.426, indicating a rather price inelastic aggregate
 retail  demand.   Electricity has  the highest cross price elasticity with
 respect  to natural  gas with a value of .228, indicating that a one percent
 increase in the retail natural gas price causes  a'.228 percent increase in
 the aggregate quantity demanded of electricity.   All of the cross price
 elasticities are positive, representing interfuel substitution.
                                     9-19

-------
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                                                             9-20

-------
Table S-l.l.  AGGREGATE RETAIL PRICE ELASTICITIES OF DEMAND, U.S.
                       (Estimate for 1985)
With respect tq
Solid fuels
Natural gas
Electricity
Petroleum -
Source: The Global

Solid
fuels
-,215
.005
.011
.002
2000 Report
Price elasti
Natural
gas
..030
-.426
.052
.013
city of demand
Electricity
.131
.228
- . 376
.077

Petroleum
.031
.062
.111
-.263
to the President, (Volume III:
     Documentation),  A  report  prepared  by  the  Council  on  Environmental
     Quality  and  the  Department  of State.   April  1981.  p.  301.
                          9-21

-------
     The U.S. is a net importer of natural  gas and imports have remained
fairly constant since 1973, ranging from 953 billion cubic feet in 1975 to
1,253 billion cubic feet in 1979.  In 1980, the U.S. imported 994 billion
cubic feet of natural gas primarily from Canada, Mexico, and Algeria.
Exports of natural gas declined from 77 billion cubic feet in 1973 to 55
billion cubic feet in 1980.  Exports are primarily to Japan and Mexico.
     g.1.1.5  Sulfur Market.  Over 90 percent of  sulfur produced  in the
U.S. is consumed  as feedstock in  the manufacturing of sulfuric acid, which
in turn is utilized in the  fertilizer industry  and other  industries.
Demand  for sulfur is  derived from the demand  for  sulfuric  acid and  is
likely  to be somewhat inelastic  with respect  to price but  elastic with
respect to industrial  production and income in  sulfur consuming
industries.
      Domestic sulfur production  from various  sources  for  the  period from
 1950 through 1980 is  shown in  Figure 9-3.   This figure  indicates that
 Frasch mines are the main source of domestic sulfur.   Over the last 30
years, Frasch production has increased at an uneven pace  reaching a peak in
 1974 at approximately 8 million metric tons.   The Frasch  mining  segment of
 the sulfur industry is experiencing high energy costs and resource
 depletion.   The  share of total sulfur production that is  recovered from
 petroleum refineries, natural  gas sulfur recovery, and smelter gases has
 increased from 2 percent of the  total  in 1950  to over 38 percent in 1978.
 These trends are shown  in  Figure 9-4 and Table 9-12.  Table 9-12 also shows
 that in 1978 natural gas  sulfur  recovery ranked  as the fourth most
 important source of  sulfur production following  Frasch mines, recovery  from'
 petroleum refineries, and  elemental imports.
       Recovered  sulfur  is  expected  to  show  continued  steady growth  because
 of  environmental considerations.  Sulfur  recovery  that is  required by
 environmental  regulations is  effectively  nondiscretionary, usually being
 the by-product of another -industry.   Consequently,  the recovered elemental
  sulfur segment of total sulfur supply tends  to be  highly price  inelastic.
 Mined sulfur and imports are  likely'to  be more price elastic than  recovered
  sulfur.
                                      9-22

-------
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                  Table 9-12.  DOMESTIC SULFUR SUPPLY -  1973  STATISTICS
         Soures
I (1)  Frasch mining
  (2)  Recovered  from petroleum refineries
 •(3)  Recovered  from natural  gas
  (4)  Smelter .gases
  (5)  Other*
  (6)  Elemental  imports
                                                Percent of Total
41.4
16.9
12.9
 8.1
 4.7
16.0
   a Includes pyrites (imported and domestic), stocks, and  various  sulfur-
     containing compounds produced directly without  any  elemental _sulfur
     requirements.  Not included are imports of such  sulfur-containing
     materials as H2S04 and liquid SO^
     Source:   Chemical Economics Handbook - Stanford  Research Institute (SRI) Inter-
              national , December 1979.
                                           9-25

-------
     Exports of sulfur declined to 1.6 million megagrams in 1982, while
imports remained steady at 2.5 million megagrams.  Annual  sulfuric acid
exports are small, less than 100,000 megagrams, and are primarily to Canada
and Mexico.  Sulfuric acid imports are also small, under 500,000 megagrams
per year, and are primarily from Canada.
9.1.2  The Natural Gas Sulfur Recovery Industry—Growth and Projections
     This section discusses the historical production of natural gas, the
price history of natural gas, the production history of liquid sulfur
recovered from the natural gas production operations, and  the price history
of liquid sulfur.  Natural gas production is projected  for the years 1985,
1990 and 2000 and distributed to the  categories  of onshore, offshore,
discoveries from existing fields, and new fields.  This section  also
presents the new sulfur  recovery capacity added  each year  for the period
from 1950 through 1982 and the projected  number,  sizes  and capacities of
new facilities  that  are  projected to  be constructed and in operation during
the period  from 1983 through  1987.
     9.1.2.1   Historical  Data.   Marketed  production of  natural  gas
increased  from 5.42  trillion  cubic  feet  in  1949  to a  peak  of  22.65  trillion
cubic  feet  in  1973,  an  average  of 6.0 percent  annually.  In  1974 and  1975,
marketed production  decreased 4.6 percent and  6.9 percent, respectively.
After  1976, marketed production  declined  slightly to  19.7  trillion  cubic
 feet  in 1979.
      Total  gross withdrawals  of natural  gas from both gas  wells and oil
 wells  generally follow the same trend as  marketed production.  However,  the
 volume of natural  gas withdrawn from oil  wells has remained relatively
 constant at about three to five trillion cubic feet  per year from 1949 to
 the present.  Table 9-13 presents total natural  gas  production distributed
 between onshore and offshore production for the years 1949 through 1979.
 Onshore production  declined from 99.1 percent of the total in 1954 to 72.4
 percent of the total in 1979.  Figure 9-5 shows natural gas gross
 withdrawals and marketed production  from gas wells and oil wells from 1949
 through 1979. 12  The difference between gross withdrawals and marketed
 production represents quantities from gas wells and oil wells that were
 either vented, flared or used for  reservoir repressuring.  In 1978, there
                                      9-26

-------
       Table 9-13.  NATURAL GAS GROSS WITHDRAWALS AMD MARKETED ONSHORE AND OFFSHORE PRODUCTION, 1949-1979
Production in Trillion Cubic Feet
Year
1949
1950 •'
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969 •
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979b
From
Gas Wells
4.99
5.60
6.48
6.84
7.10
7.47
7.84
8. '31
8.72
9.15
10.10
10.85
11.20
11.70
12.61
13.11
13.52
13.89
15.35
16.54
17.49
18.59
18.93
19.04
19.37
18.67
17.38.
17.19
17.42
17.39
17.17
From
Oil Wells
2.56
2.88
3.21
3.43
3.55
' 3.52
3.88
4.07
4.19
3.99
4.13
4.23
4.27
4.34
4.37
4.43
' 4.44
5.14
4.91
4.79
5.19
5.19
5.16
•- 4.97
4.70
4.18
3.72
3.75
3.68
3.91.
3.75
Gross
Withdrawals '
7.55
8.48
9.69
. -10.27
10.65
10.98
11.72
12.37
12.91
13.15
14.23
15.09
15.46
16.04
16.97
17.54
17.96
19.03
20.25
21.33
22.68
23.79
24.09
24.02
24.07
22.85
21.10
20.94
21.10
21.31
20.92
Marketed
Production
5.42
6.28
7.46
8.01
8.40
8.74
9.41
10.08
10.68
11.03
12.05
12.77
13.25
13.88 -
14.75
15.55
16.04
17.21
18.17
19.32
20.70
21.92
22.49
22.53
22.65
21.60
20.11
19.95
20.03
19.97
19.67
Onshore
Production
NA
NA
NA
NA
NA
8.66
9.28
9.94
10.51
10.77
11.70
12.33
12.77
13.24
13.99
14.70
15.10
15.84
16.33
17.00
17.86
18.70
18.74
18.77
18.67
17.37
15.85
15.65
15.49
14.37
14.25
Offshore
Production
NA
NA
NA
NA
NA
0.08
0.13
0.14
0.17
0.26
0.35
0.44
0.48
0.64
0.76
0.85
0.94
1.37
1.84
2.32
2.84
3.22
3.75
3.76
3.98
4.23
4.26
4.30
4.54
5.10
5.42
Percentage
Onshore
NA
NA
.NA
NA •
NA
99.1
98.5
98.6
98.4
97.6
97.1
96.6
96.4
95.4
94.8
94.5
94.1
92.0
89.9
88.0
86.3
85.3
83.2
83.3
82.4
80.4
78.8
78.4
77.3
74.5
72.4
Offshore
' NA
.NA
NA
NA
NA
0.9
1.4
1.4
1.6
2.4
2.9
3.4
3.6
4.6
. 5.2
5.5
5.9
8.0
10.1
12.0
13.7
14.7
16.8
16.7
17.6
19.6'
21.2
21.6
22.7
25.5
27.6
NA = Not Available.

a Marketed production is derived.  It is gross withdrawals from producing reservoirs,  less  gas  used for reservoir
  repressurizing and quantities vented and flared.

  Estimated, based on reported data through November.

c Data from U.S. Department of the Interior, Geological  Survey - Conservation Division, Outer Continental  Shelf
  Statistics.
  Mote:   Sun? of components may not equal total due  to  independent rounding.   Beginning with 1965 data,  all  volumes
         are shown on a pressure base of 14.73 psia at 60°F.   For prior years, the pressure base is 14.65  psia at
         60°F.
  Sources:

     o

     o
1949 through 1975, U.S.  Department of the Interior,  Bureau  of Mines,  Minerals.Yearbook,  "Natural  Gas"
chapter.
1976 through 1978, U.S.  Department of Energy,  Energy Information  Administration,  Natural  Gas  Production
and Consumption, annual.
                                                        9-27

-------
                                                                          CM
                                                                            OJ
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                                                                            (O
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CVI
                           9-28

-------
 were nearly 157,000  producing gas wells in the United States.   Although
 most natural  gas  is  produced from natural  gas wells, about 18  percent is
 produced from crude  oil  wells.   Figure 9-6 portrays onshore and offshore
.natural  gas production for the period 1954 through 1979.
      The nominal  price of natural gas remained reasonably steady for the
 long period from  1955 through 1970.   Since 1973, the price has increased
 steadily in real  terms.   Figure 9-7  shows  selected natural gas prices for
                                                    p
 three categories  for the period 1955 through 1979.    In  1979, the price
 of natural  gas at the wellhead was $1.13 per million Btu, $1.85 per million
 Btu at the  city gate and $2.50 per million Btu delivered  to the ultimate
 customer.   Deregulation  of the price of natural  gas before the end of 1985
 will boost  the revenues  and profitability  margins for the industry.  This
 will contribute to growth in capital availability which could  potentially
 be used for more  drilling, deeper drilling, and increased exploration and
 production  of tight  gas  formations.
      Since  the Oil Embargo in 1973,  the financial condition of the crude
 oil and natural gas  production industry has been improving steadily in both
 revenues and net  profits.  Composite financial data shown in Table 9-14
 reveals increased revenues, from $15,292 million in 1976  to $38,000 million
 in 1980.  During  the same period, net profits increased from $1,155 million
 to $1,925 million.  Composite net profit margins as a percent  of sales
 declined from 7.6 percent in 1976 to 5.1 percent in 1980.  This fact
 indicates that production costs have risen at a faster pace than prices.
 Also, total capital  has  grown at a slower pace than revenues and profits.
 Consequently, return on  'total assets and return on equity have improved.
 According to Value Line  Investment Survey, the composite  industry will
 continue to have  a healthy financial future into the 1980's.  It is
 projected that in the period 1983 through  1985, the industry will have a
 composite net profit margin of 4.6 percent on annual revenues  of
 approximately $70 billion, in current dollars.  The long  term  debt ratio is
 projected to be 45.5 percent.  Total capital is projected to increase to
 $35,500 million in current dollars or 51 percent of revenues in 1983-85.
                                                                          13
                                     9-29

-------
93
O
O

e
o
                                                                    1979
             Figure 9-6.
Onshore and offshore marketed natural

     gas production/
                                     9-30

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9-32

-------
     Table 9-15 shows recovered sulfur production from natural gas
production facilities and from petroleum refinery operations for the years
1960 through 1980. 9  For the period 1971 through 1980, recovered sulfur
from natural gas plants accounted for 39 to 46 percent of the total
recovered sulfur production. Sulfur recovered from petroleum refinery
operations accounted for 54 to 61 percent.  Separate data for natural gas
plants and petroleum refineries for the years 1960 through 1970 were not
available.  Therefore, the production figures for these years are derived
values based upon the 1971 through 1980 average of 43 percent of recovere'd
sulfur from natural gas plants and 57 percent from petroleum refinery
operations.
     During the period from 1973 to 1979 when natural gas production
remained relatively constant, the production of sulfur recovered from
natural gas increased 68 percent from 1,063,000 megagrams in 1973 to
1,760,000 megagrams in 1979.  A contributing factor to this growth was that
sulfur recovery from natural gas was becoming economically attractive.
     Sulfur prices during the last 27 years are shown in Table 9-16 in
terms of actual and constant 1980 dollars per ton.  Approximately 90
percent of all sulfur shipments are reflected in this table.  Prices are
based on the average reported rates for elemental sulfur (Frasch and
recovered) f.o.b. mine or plant.
     An ample supply of Frasch stocks resulted in a fairly stable sulfur
market prior to 1964.  Market prices rose in 1967 and 1968 due to the rapid
growth in the fertilizer industry and a shortage of sulfur supply.  In late
1968, a serious oversupply developed which led to a general collapse of the
sulfur market through 1973.
     There have been several factors contributing to dramatic sulfur price
increases since 1974.  Among these are: the rapid expansion of the
fertilizer industry and its ability to pass on sulfur costs to farmers,
logistic .problems restricting delivery from other sources, higher
production costs, and continued dependency upon Frasch sulfur.
     Table 9-17 presents a history of published prices for liquid sulfur at
Tampa terminals in Florida for the period from 1969 through 1979.  Tampa is
one of several major Gulf ports where sulfur is traded in large volumes and
market trends can be observed.  Actual prices received by producers would
depend on local sulfur markets or transportation costs to a suitable
                                    9-33

-------
            Table  9-15-
RECOVERED ELEMENTAL SULFUR PRODUCED  IN  THE UNITED  STATES, 1960-1980

fear
•HI! II II. ••>•••••••—
i960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
•MH«Mi«*HB"
3 srt/ti
r ly

Total
(103 Mg)

779
872
914
962
1,037
1,234
1,259
1,288
1,375
1,437
1,480
1,620
1,981
2,455
2,674
3,017
3,188
3,624
4,062
4,070
3,930


urea ror y
	 	 	 	 — 	
From natural
gas plants
(103 Mg)
	 	 	
335a
375
393
413
446
530
541
554
591
618
637
648
832
1,063
1,238
1,364
1,298
1,426
1,753
1,760
1,707

ears 1960 through 1
t-nral na<; 15 43 D6r
Percentage of the
total from natural
gas plants
43.0
43.0
43.0 '
43.0
43.0
43.0
43.0
43.0
43.0
43.0
43.0
40.0
42.0
43.3
,46.3
45.2
40.7
39.3
43.2
43.2
43.4
970 are derived values b<
•cent of the total recovei
From petroleum
refineries
(103 Mg)
444b
497
521
549
591
704
718
734
784
819
843
972
1,149
1,392
1,436
1,653
1,890
2,198
2,309
2,310
2,223
>sed on the assumptic
"ed sulfur productior
Percentage of the
total from petroleum
refineries
57.0
57,0
57.0
57.0 •
57.0
57.0
57.0
57.0
57.0
57.0
57.0
60.0
58.0
56.7
53.7
54.8,
59.3
60.7
56.8
56.8
56.6
,n that sulfur
1 *
   production
Source:   Bureau of Mines, Minerals Yearbook.  1960-1980  reprints.
                                                      9-34

-------
       Table 9-16.   TIME-PRICE RELATIONSHIP FOR SULFUR, 1955-1981
Year
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
Average annual
Actual
prices
27.50
26.07
24.02
23.44
23.09
22.76
22.75
21.41
19.67
19.87
22.12
25.36
32.12
39.49
26.62
22.77
17.19.
16.76
17.56
28.42
44.91
45.72
44.38
45.17
55.75
88.93
111.00 P
price, dollars per metric ton
Based on
constant 1980 dollars
80.21
73.68
. 65,65
62.98
60.61
58.79
58.23
53.81
48.70
48.45
52.79
58.63
72.09
84.90
54.43
44.18
31.77
29.74
29.48
43.88
63.47
.61.41
56.32
53.42
60.78
88.93
NA
NA - Not available
P  Preliminary
a  Frasch and recovered sulfur, f.o.b.  mine/plant
Source:  Bureau of Mines, Sulfur:   Mineral  Commodity Profile, 1979.
                                  9-35

-------
Table 9-17   PUBLISHED PRICE  FOR LIQUID SULFUR
             AT TAMPA TERMINALS
:::.:: 	 •
Date
December 12, 1969
February 1, 1970
November 1, 1970
March 10, 1971
July 7, 1973
September 12, 1973
May 1, 1974
June 6, 1974
July 22, 1974
January 1, 1975
April 24, 1975
December 1, 1975
May 1, 1978
February 9, 1979
June 10, 1979
September 1979
November 1979
March 1981
— — — — —— — — — — —
Source: Chemical


Dollars per
long ton
32.00
30.00
27.00
25.00
23.00
31.00
36,50
42.00
50.00
57_. 00
61.00
65.00
63.50
73.25
78.25 '
85.75
95.50 .
140.00
Fronomies Handbook - Stanford

Dollars per
metric ton
31.49
29.53
A ^ F*^t
26.57
24.60
27.56
**** & *
30.51
4» .• AO
35.92
41.34
49.21
P~ 1** 1 rt
56.10
60.04
63.97
6.7 . 42
72.09
«•«• A *
77.01
84.40
93,99
L37.79 . .
Research Institu
hom-iral and Pnoin
   ( jRl ;  ill I.G; i 111+<*"*••— • j 	     "       _—
   ing News  Vol. 59  March 23, 1981, p..25.
                             9-36

-------
market, such as Tampa.  The price has increased over 200 percent from
$30.51 per metric ton in September 1973 to $93.99 per metric ton in
November 1979.  Historically, the sulfur price has been quite unstable.
The March 1981 price was $140 per long ton f.o.b. Tampa.   '
     9.1.2.2  Five-Year Projections.  In this subsection,  projections for
the number of new facilities constructed in the years 1983 through 1987 are
developed.  The size distribution of new facilities is developed based upon
the industry's historical trend.  Information on the projection of'natural
gas prices with deregulation are discussed.
     Production of natural gas by conventional techniques  has exceeded the
rate of reserve additions in recent years.  Consequently,  conventional
reserves and  conventional production are expected to continue declining.
Annual production of conventional natural gas is expected  to decline
roughly 1.5 to 2.0 trillion cubic feet every five years through 1995.  The
production of associated and dissolved gas in oil is expected to decline
less rapidly  than the production of nonassociated gas, due to higher price
incentives for crude oil.  Total domestic natural gas production is
expected to continue declining.
     Table 9-18 presents projected lower 48 states conventional natural gas
production for the period 1980 through 2000. 15   In 1985,  production is
projected to  be 19.7  trillion cubic feet, decreasing to 18.5 and 17.7
trillion cubic feet  in  1987 and  1990, respectively.
     Natural  gas  supply projections are conducted by various oil and gas
companies as  well as  government  and independent  study groups.  Table 9-19
presents a comparison of 1990 projection forecasts presented by the
Department of Energy  (DOE), the  American Gas .Association  (AGA), Exxon,
Tenneco, and  other private study groups.     AGA's forecast of 16.3
quadrillion  Btu per year is 2.8  percent lower than DOE's  forecast  of 17.8
quadrillion  Btu per year, and Exxon's forecast of 14.9 quadrillion Btu  is
'16.3  percent  lower than DOE's forecast.  The AGA's forecast of projected
lower  48  states conventional  natural  gas production was chosen for the
present  analyses  for  several  reasons.  AGA's forecast provides, as shown  in
Table  9-18,  a detailed  breakdown of production  including  newly discovered
onshore  and  offshore  categories.  AGA's forecast also compares well with
Exxon's,  Tenneco's,  and DOE's as indicated  in Table 9-19.  Projections  for
                                     9-37

-------
    Table 9-18.  PROJECTED LOWER-48 STATES
CONVENTIONAL NATURAL GAS PRODUCTION, 1980-2000

Production, trillion standard cubic feet
Gas source
Onshore
Old inter*
Old intra*
Old direct sale
New
Offshore
Old inter* 'b
New inter
Total
Old inter
Old intra
Old direct sale
New
TOTALd
1980

4.9
3.6
4.0
1.5

5.6
0.1

10.5
3.6
4.0
1.6
19.7
1985

3.6
2.4
2.6
3.6

4.1
3.4

7.7
2.4
2.6
7.0
19.7
1990

2.0
1.3
1.5
4.9

1.4
6.6

3.4
1.3
1.5
11.5
17.7
Includes gas used as compressor fuel and net storage
Including new additions
cPost-1976 leases only.
^Totals may not add due
Source t Arneri Can uai «j-
Resource Analys"
from

pre-1977

to independent
is Mod
el (TERA)
leases.

rounding.
30-1," Appendix
1995

1.1
0.7
0.8
4.8

0.7
6.5

1.5
, 0.7
0.8
11.3
14.6
injecti


i sties,'"
A. Fig
2000

0.7
' 0.4
0.5
3.8

nil
5.4

,0.7
0.4
0.5
9:2
10': 8
ons.


Total Energy
ure A-2, p. 21
                       9-38

-------
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the amount of sulfur that will be recovered from natural gas were not
available.  However, it is expected that with the increased new onshore
discoveries of natural gas and increased deep well drilling activities,
recovery of elemental sulfur will increase and will continue to be
economically attractive.  Full sulfur recovery capacity utilization is
expected within the  range of  limiting factors, such as  the sour gas,supply
rate.
     The  projection  of the number of new onshore  natural gas sweetening and
sulfur  recovery facilities was based upon:
      (1)   historical  data on  the sulfur  intake capacity (sulfur  feed  rate)
           distribution of the existing 89  onshore natural  gas  sulfur
           recovery facilities,
      (2)   the  projected  new  discovery  of onshore  natural  gas for the  period
           1983-1987,
      (3)   the  projected  sulfur  composition of the newly discovered gas,  and
      (4)   the  distribution  among various plant sizes of the projected
           sulfur production from newly discovered gas and, therefore, the
           number and size distribution of new facilities.
      The following factors were also considered  in making these
 projections:
      (1)  The combined sulfur intake capacity of the 89 existing sulfur
           recovery  facilities is approximately 10,640  megagrams per  day
           (Table  9-5).
      (2)  Historically, the  percent capacity utilization  of these
           facilities has ranged from as high as  88  percent to as  low as  47
           percent (Table 9-8).
       (3) Recovered sulfur  produced  in  the  U.S.  has  consistently  increased
           from 335,000  megagrams  in  1960  to 1,707,000  megagrams in 1980
            (Table 9-15).
       (4) The price of  liquid  sulfur has  increased from $32  per megagram in
            December 1969 to $94 per megagram in  November 1979  (Table 9-17).
       g.1.2,2.1  Sulfur Intake  Capacity Distribution.  Table 9-9 indicates
  that the percent distribution  of sulfur intake  capacity of all  existing
  facilities  at the end of 1972  is the same as the percent distribution at
  the end of 1982.  The Oil  and Gas Journal, lists recent worldwide
  construction of 22 sulfur recovery units with a size  distribution of 63
                                      9-40

-------
percent at 0-34 Mg/d, 23 percent at 35-74 Mg/d and 14 percent at greater
than .500-Mg/d.  The Oil and Gas Journal's distribution compares well with
the 1972 and 1982 distributions among the existing 89 facilities.
Therefore, the 1982 distribution was considered the basis for the
distribution of the projected sulfur in newly discovered gas among various
plant sizes.
     9.1.2.2.2  Projected New Onshore Natural Gas Production.  Projected
new onshore natural gas production for each individual year for 1983-1987,
was derived from the American Gas Association's (AGA) data (Table 9-18).
This derivation is presented herewith in a tabular form (Table 9-20).  An
average of 6.2 percent per year depletion was assumed for new discoveries.
The projected new production discovered in each year is as indicated in
Table 9-21.
     9.1.2.2.3  Projected Sulfur in Newly Discovered Onshore Natural Gas.
Sulfur (as hUS) in sour natural gas, that is further processed for sulfur
recovery, has increased at a consistent rate.  Table 9-22 indicates that
the sulfur content increased from 1.32 mole percent (average) in 1960 to
5.92 mole percent (average) in 1980.  The sulfur content values in Table
9-21 were derived based on the following:  (1) 25 percent of total onshore
production in 1982 was sour and, therefore, was sweetened and (2) three-
                                                                   17 1 ft
fourths of the sour gas was further processed for sulfur recovery.   '
This represents an average of 18.75 percent of the total onshore production
that was processed for sulfur recovery'in the 1982.  These sulfur content
values in sour natural gas were obtained from the 1982 API survey.  To
estimate sulfur in new gas, it is assumed that 25 percent of the total
onshore production will be sour and three-fourths of the sour gas will be
                                       22 23 24
further processed for  sulfur recovery.    '   '    That is, an average of
18.75 percent of the total new onshore discovery will be processed for
sulfur recovery.  Therefore, the remainder (6.25 percent) will be
incinerated without sulfur recovery.  This view is supported by two facts:
(1) increased deep well drilling activities will be enhanced by price
deregulation; and  (2)  the  increasing price of recovered sulfur compounded
with the decreased supply  from Frasch mines.  Also, with the increased
price of recovered sulfur, it becomes more economically feasible to recover
sulfur.  However,  in the absence of any reliable information or
26
                                    9-41

-------
      Cuaulativ*
      Production
        (tscf)
                               N«w onshor, eduction.  trillion standard cubic fMt

                             1979       	i^T"  1382     1983     1984    1985
1978    0.68   0.25    0.43
1379
       1.09    0.238   0.403   0.449
!980    1-SO   0.223   0.378   0.421  0.478	



mi    1.92   0.209   0.355   0.395  0.443    0.513^



       2.34    0.196   0.333   0.371



        2.76    0.184   0.312  0-348



 1984    3.18    0-172  0-293   0.326



 1985    3.60   0.1S2   0-275



 1986



 1987
                                                                                       0.483
'"o^r^To^r  0.30S    „.»,    ..»!    0.07    ..«»    ..»»   ...«_
                                                                                               0.50
  Hots:   (1)  "
                                                           20, 1977.

             ("Or §*Kcufi^j *e i «•*- *—     rtort
             April 20, 1977 through 1980.                         indicated by the  last numoer  in
         (3)  Nevdy discovered production for an '""^fa[9^ individual  ne^ly discovered production
             the  ro* for a specified year.  For ^mple   "au s        letion rate  Of S percant is
             (Jroducad in 1980 only) is 0.478  we{•   * ^ J^duction for a specified year.  For examole,
             applied to  derive individual _n«wiy a"";"-:=  ,;    a,  w ^g's cumulative production of

             «  -. ^-SrJ^f^i-bi.r.rrr^                  's °'sa""
                                                  9-42

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data, the sulfur content (as HgS) in new onshore discoveries was assumed
to remain the same as the current weighted average of 5.8 mole percent
(Appendix 6, Table S-3).  The sulfur content value (weighted average) for
the period 1983 through 1987 and the projected new sulfur recovery capacity
is indicated in Table 9-21.
     9.1.2.2.4  Distribution of New Sulfur in Various Plant Sizes.  The
projected sulfur  in new onshore discoveries for the period  1983 through
1987 was distributed among  various plant  sizes according  to the 1982  plant
size distribution.   It was  assumed that all new discoveries will  require
construction and  operation  of  new  sulfur  recovery facilities.   This
resulted  in 30  facilities  processing  gas  for  sulfur  recovery  during  the
period 1983 through  1987.   The sulfur (0.2  mole  percent as  shown  in
Appendix G, Table G-2)  in  the  portion of  the  new  gas  that is  sweetened and
 incinerated without  sulfur recovery was divided among the remaining
 facilities  with capacities that range from less than 0.1 raegagrams per day
 to 5.1 megagrams per day.   These small facilities are described in Appendix
 G, Tables G-5 and G-7.   This resulted in 37 facilities that sweeten sour
 gas but do not recover sulfur.  Projected new sulfur recovery facilities
 are presented in Table 9-23.
      The projected volume  of new onshore natural gas in  1980 and 1987, by
 category relevant to this  analysis,  is summarized in Table 9-24.  In  1987,
 domestic production is projected to  be 18.5  trillion cubic feet.  Including
 imports and total domestic natural gas,  total natural  gas  supply  is
 expected to be approximately  20 trillion cubic feet.   New  onshore natural
 gas production  is projected to  be 2.8 trillion cubic feet.   Twenty-five
 percent  of this  is  assumed to be  sour, which is  equivalent to  .70 trillion
 cubic feet of  gas  requiring sweetening at  new facilities.   The total volume
 of new onshore natural  gas associated with sulfur recovery in  new
  facilities is  projected to be three-fourths  of .70  trillion cubic feet or
   53 trillion cubic feet.   This will  represent approximately 2.7,percent of
  the total  estimated domestic natural gas supply of 20 trillion cubic feet
  in 1987.  Thus, in 1987,  the proposed S02 NSPS could apply to only 2.7
  percent of the total domestic natural gas supply.  This figure places an
                                       9-46

-------





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                          9-47

-------
     Table 9-24.   ESTIMATED NATURAL GAS PRODUCTION,  ONSHORE VOLUME,
      SWEETENED VOLUMES,  VOLUMES ASSOCIATED WITH SULFUR RECOVERY,
                              1980 AND 1987
Category 1980
— 	 	 • • -(ten
Natural gas production (lower 48 states) 19.7
Onshore natural gas production 14.0
0 7 b
Onshore natural gas treated *•/
for HoS removal
Onshore natural gas associated .90
with sulfur recovery
e
New onshore natural gas
production
e
New onshore natural gas treated b
for HpS removal in new facilities
e
New onshore natural gas associated c
with sulfur recovery in new facilities
Baseline
1987 (est
(tcf)
18.5
11.1 a
2.8 c

.93

2.8

.70

. .53

.)









c



a  1987 estimates assumed 60 percent of domestic supply is onshore.
b  Nineteen percent of onshore gas is sour in 1980.
5  Twenty-five percent of onshore gas will be sour.
d  Seventy-five percent of new sour natural gas is projected to be
   treated for sulfur recovery.
e  Not applicable.
                                   9-48

-------
upper bound on any supply quantity impact of these regulations in 1987.
Furthermore, considering the price elasticity of domestic-retail natural
gas demand (-.426), the maximum potential retail price impact is less than
a 5 percent price increase.  These impacts are further clarified in the
following sections of this chapter.
     By 1985, almost all categories of natural gas production will be
deregulated.  Very little new gas will be. subject to controls; most old
intrastate gas will be decontrolled, and the quantity of old interstate gas
that remains controlled will decline rapidly over time.  Natural gas prices
are projected by the U.S. Department of Energy to increase due of the
Natural Gas Policy Act and phased deregulation of prices during the period
1983 through 1987.  Deregulated prices are expected to boost exploration
and production activities.  The history and projections of natural gas
                                     21
prices are summarized in Table 9-25.     In 1987, the average wellhead-
price of new natural gas, including intrastate and interstate, is
interpolated to be $4.80 per Mcf in 1980 dollars.
                                    9-49

-------
  Table  9-25.   NATURAL GAS PRICES:   HISTORY  AND PROJECTIONS  FOR 1965-1995
                 (1980 Dollars per Thousand  Cubic Feet)
            Price
      History
T9T3	I97TT978"
                                                            Projection
                                                                19901995
Domestic Wellhead Prices
  Old Interstate
  New Interstate
  Old Intrastate
  New Intrastate
  North Alaska
  Average

Synthetic Gas Prices
  High-Btu Coal  Gas
  Medium-Btu Coal Gas

Imported Gas Prices
  Canadian Gas
  Mexican Gas
  Liquefied  Natural  Gas

Delivered  Prices
   Residential
   Commercial
   Raw Material
   Large boilers
   Industrial,  Other
   Refineries
   Electric Utilities

 Alternative Fuel Cost
  MA
  NA
  NA
  NA

 0.39
   NA
   NA
 2.55
 1.74
   NA
   NA
 0.85
   NA
 0.97
  NA
  NA
  NA
  NA

0.38
  NA
  NA
 2.22
 1.59
   NA
   NA
 0.84
   NA
 0.69
1.01
  NA
  NA
  NA

1.11
2.63
  NA
1.68
 3.02
 Z.59
   NA
   NA
 1.76
   NA
 1.88
  10
 ,88
 ,59
 .15
                                 1.29
3.55
                         5.19
                         4.03
6.77
6.77
6.44
•5.90
5.32
4.67
5.71
4.73
4.96
5.17

6.79
 ,40
 .62
 .67
 .02
3.73
                        4.57
                        4.91
7.54
7.54
7.00
                                 6.26
5.69
4.88
4.95
4.92
4.83
4.82
      1.52
      5.00
      4.12
      5.25
      2.02
      4.55
                       5.13
                       5.93
       9.28
       9.28
       8.39
         ,03
         .46
         .68
         .73
         .69
        5.59
                                 7.57   9.04
 a Source for historical data  is Volume 2 of the EIA Annual Report to
   Congress, 1979, and  the  following  EIA Energy Data Reports:  Natural Gas
   0r!3i.r.tHnn an? Consumption,  1978;-United States  Imports and Exports of
   Natural Gas,  1978; and,  Natural'and Synthetic Gas,  19/8.
 b Projections  for the  middle  oil  price scenario.
 5 Major  fuel-burning installations.                               ^«nav.c  i-n
 d Inflated  by  GNP implicit price  deflator, 9.0 percent  from  1979  dollars  to
   1980 dollars.
    Notes:   NA = Not available.
            — = Not applicable.
  Source-   DQE/EIA Annual  Report  to Congress,  19SO,  Vol.  13,  pg
                                 90.
                                   9-50

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9.2  ECONOMIC IMPACT ANALYSIS                                       •
     This section contains a discussion of the economic analysis
methodology used to assess the impacts of alternative regulations
controlling sulfur dioxide (SO,,) emissions from sour natural gas
sweetening and sulfur recovery processes.  In addition, estimates of these
economic impacts are presented.
     Total additional before-tax annualized costs of controls  in 1987, 'the
fifth year of controls, for the projected sixty-seven new natural gas
sulfur recovery plants range from zero under Regulatory Alternatives I and
II to $98.7 million under Regulatory Alternative VI.  Aggregate after-tax
annualized emissions control costs amount to less than one-half of one
percent of the total projected value of new natural gas production,in 1987
under Regulatory Alternatives  I through VI.  Thus,  the impacts of SOg
emissions regulations on expected returns from natural gas  exploration and
development are relatively small and the effects on exploration for and
development of new natural gas fields  are expected  to be negligible.
    , Unit emissions control costs serve as a useful indicator  of
profitability impacts per Mcf  on individual regulated plants,  assuming no
natural gas price  impacts.  As shown in Table 9-26, across  'all model
plants, unit emissions control costs range from zero under  Regulatory
Alternative I to $10.48 per Mcf under  Regulatory Alternative VI.  'In
general, and assuming that the effects of the regulations on the
exploration for and development of new natural gas  are negligible, natural
gas  production .and price  impacts are expected to be negligible under
Regulatory Alternatives I through VI.  Under Regulatory Alternatives  IV, V
and  VI, additional emissions control costs are estimated to cause  less than
9  small natural gas  sulfur recovery  plants to be unable to  fully  recover
total production costs  (see Table 9-27).   It is further estimated  that one
to two  of  these nine  plants will likely be curtailed under  Regulatory
Alternatives V-VI  because unit variable costs  (including emissions control
costs)  will exceed the  forecasted price of natural  gas.  The degline  in
natural  gas  production  associated with these potential curtailments would
be negligible.
                                     9-51

-------
Regu 1 atorv alternative 	 ____rr_ 	
Model
plant
	 	 —
1
2

3
4
5
S
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Sire Acid gas feed
jsul fur intake L H2S/C02 ratio
Mg/d LT/eT by voiume
	
<0 . 1
0.1

0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
2
3
4
5.1
10.2
10.2
101.6
101.6
563.8
563.3
1,015.9
1,015.9
	 •
0.1

0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
' 1
2
3
4
5
10
10
100
100
555
555
1,000
1 ,000
12.5/87.5
12.5/87.5

12.5/87.5
12.5/87.5
12.5/87.5
12.5/87.5
12.5/87.5
12.5/87.5
12.5/87.5
12.5/87.5
12.5/87.5
12.5/87.5
12.5/87.5
12.5/87.5
12.5/87.5
50/50
12.5/87.5
50/50
20/80 '
50/50
80/20
50/50
80/20
11 IU
0 0
0 0

0 0
0 0
0 0
o o
o o
o o
o o
o o
0 .13 to 2.10
0 .07 to 1.05
0 .04 to .70
0 .03 to .52
0 .03 to .42
0 .00 to .01
0 .00 to .02
0 .01 to .03
0 .01 to .05
a &

0 .02 to .09
a a

0 .02 to .07
	 nr
0
0


0
0
.26 to 4.19
.22 to 3.49
.19 to 2.99
.16 to 2.62
.15 to 2.33
.13 to 2.10
.07 to 1.05
.05 to .83
.04 to .62
.03 to .50
.00 to .01
.00 to .02
.01 to .03
.01 to .05
a

.02 to .09
a

.02 to .07
V
0
0
o

.44 to 6.99
.33 to 5.24'
.31 to 4.96
.26 to 4.14
.22 to 3.54
.19 to 3.10
.17 to 2.76
.16 to 2.48
.•08 to 1.24
.05 to .33
.04 to .62
.03 to .50
.01 to .13
.01 to .20
.14 to .53
.21 to .85
a

.02 to .09
a

.02 to .07

0
0
.66 to 10.48

.44 to 6.99
.39 to 6.20
.38 to 6.09
.32 to 5.08
.27 to 4.35
.24 to 3.81
.21 to 3.38
.19 to 3.05
.10 to 1.52
.06 to. 1.02
.05 to .76
.04 to .61
.01 to .13
.01 to ,.20
.14 to '.53
.21 to .85
a

.02 to .09
a

.02 to .07
Regulatory Alternative  I  is  the baseline.
4  Hot estimated.   No plants are  projected
for this  model  plant.
                                                      9-52

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Table -S-27. INCREASES IN THE CUMULATIVE NUMBER OF ONSHORE SOUR NATURAL
GAS SULFUR RECOVERY PLANTS UNABLE TO FULLY COVER TOTAL
EXPLORATION AND PRODUCTION COSTS DUE TO REGULATORY ALTERNATIVES, 1987
Model
plant
1
2
3
4
5
6
7
8
9
10
11
' 12
13
14
15
16
17
18
19
20
21
22
23

II-III
0
0
0
0
' 0
0
0
0
0
0
0
0
0
0
0
0
0
0
" 0
0
0
0
0
Regulatory al
IV
0
0
0
0
0
<1
<1
<1
<1
<1
<1.
0
0
0
0
0
0
0
0
0
0
0
0
ternative
V
o
0
0
<1
' <1
<1
<1
<1
<1
<1
<1
0
0
0
0
0
0
0
0
0
0
0
0

VI
0
0
1
<1
<1
<1 .
<1 '
<1
<1
<1
<1
. o
0
0
0
0
0
°-
'0
0
0
0
0
Regulatory Alternative I is the baseline.
< - "less than"                   9-53

-------
     Sulfur supplies are expected to increase slightly as a result of
regulations which require increased sulfur recovery efficiency.  Under
Regulatory Alternatives IV, V and VI, natural gas sulfur recovery would
increase by approximately 0.1 million metric tons.  This represents about a
0.5 percent increase in total projected sulfur supply in 1987 and could
cause a slight decrease in local market sulfur prices.
     The remainder of Chapter 9  is  organized as follows.  A discussion of
the impact assessment methodology is presented in Section 9.2.1.  Section
9.2.2 presents a detailed  discussion of the  estimated economic  impacts of
each S02 regulatory  alternative.  Section  9.3 describes  the potential
socioeconomic and  inflationary  impacts.
9.2.1   Economic  Impact  Assessment Methodology
     Each  regulatory alternative will  have two  effects  on  the decisions  of
firms to  produce onshore  natural gas  from new  fields.   First, by increasing
the  expected  total  costs  of exploring  for and  processing onshore natural
gas, the  regulatory alternatives reduce  the expected returns  to firms from
exploration for and exploitation of new  natural  gas fields I/.  Thus, firms
will be likely  to reduce levels of exploration activities, thereby reducing
 the number of fields that will  be  discovered.   Second,  by increasing the
 costs  of obtaining gas from discovered sour natural gas fields, regulatory
 alternatives may reduce the production of gas from those fields.  In this
 analysis, the impacts of the regulatory alternatives on the  rate of
 exploration and discovery of new fields are assessed qualitatively.  The
 effects of the regulatory alternatives on the rate of production of  natural
 gas from discovered fields are  assessed quantitatively.
      The methodology used  in the analysis  is as  follows.  Initially,  it is
 assumed that the baseline  forecasts of the  number  and  size of  potential
 natural gas sulfur  recovery plants presented  in  Table  9-23 are unaffected
 by each regulatory  alternative.  This amounts .to the assumption that the
 T7	ro the extent  that  exploration  activities  are non-directional  (that
      is   concerned  with  the discovery of hydrocarbons  in  the form  of oil
      and/or  natural  gas)  the effect  of  the regulation  on  exploration
      activities will  be  diminished.
                                    9-54

-------
effects of each standard on expected returns to exploration for and
exploitation of new natural gas fields are negligible and therefore that
these activities will not be curtailed as a result of" the regulatory
alternatives.  The validity of this assumption for each regulatory
alternative is examined carefully.  The methodology used to carry out this
assessment is described later in this section.
     Second, the percent FLS in sour natural gas is estimated for each
model plant projected to be constructed under the baseline scenario.  These
projections of the quality of natural gas in each plant are obtained using
the data presented in Table 9-7 and pertain to sour gas that is subject to
sweetening and sulfur recovery.  These data account for the forecasted 5.8
percent H?S in sour natural gas between 1980 and 1987 (presented in Table
9-21) V.  It is necessary to estimate the distribution of plants by FUS
percentage and sulfur capacity in order to calculate the level of sweet gas
output for each model plant.  This estimate is required to calculate unit
emissions control costs.
     Third, long run baseline average total costs of producing sweetened
natural gas from new wells in 1987 (measured in 1980 constant dollars) are
estimated.  The estimation procedure is as follows.  Data on new well
onshore natural gas production costs for 1980 were obtained from the API
and DOE.  These data are presented in Table 9-4.  These cost estimates are
adjusted to reflect costs of production in 1987 under the assumption that
the average total costs of .new gas production will, in the absence of
regulation, rise to $4.80 per Mcf from the 1980 level of $2.00 per Mcf.
This forecasted rise in real production costs is predicated on the
assumption that the natural gas industry is competitive ana that in the
long run, average total costs of production from new wells will be equal to
the expected price of natural gas.  In this case, the expected price is
assumed to be the forecasted deregulated natural gas price of $4.80 per
T7Between 1980 and 1987, the average proportion of H^S by volume in sour
     natural gas is expected to remain about 5.8 percent.  The distribution
     of plants by percent I-LS natural gas presented in Table 9-7 is
     qualitatively adjusted to take account of this projected H~S
     concentration to obtain the distribution of plants by hLS
     concentration presented in Tables 9-33 through 9-55.
                                '  "9-55

-------
Mcf I/.  Total costs of production vary from well to well as a result of
differences in well depths and gas flow rates.  These differences may be
substantial, ranging from $.05 per Mcf to $72.18 per Mcf in terms of 1980
dollars.  Clearly, if a firm knew before the fact that the unit total costs
of producing natural gas from an individual well would exceed  average
revenues from the  sale of that gas  (that is, the market  price  of  natural
gas),  it would not drill the well.   However,  in  general, until  the  well  has
been drilled  and  is  in operation, the  firm  does  not know what  its unit
total  costs of production will be.   Consequently,  once  the well  has been
drilled,  the  firm bases  its  decision on  whether  or not  it will operate  the
well,  on  whether or  not  unit variable costs of production  exceed average
 revenues  (i.e.,  the  well-head price).   Unit variable costs  of production of
 natural gas are  relatively  small  when compared to unit total  costs, ranging
 from a minimum of $.03 per Mcf to a maximum of $.93 per Mcf in terms of
 1980 constant dollars.  (See Table 9-4, Column 4.)  Note that unit variable
 costs of production include field equipment costs and operating  and
 maintenance costs.  These are costs that can be avoided by firms if they
 decide not to produce gas from a given field, once the depth  of  the field
 and well sizes have been determined.  Further note that unit  variable
 costs, defined as costs that could  be avoided once the  nature  of the well
 has been determined, also include  all costs associated  with compliance  with
 •each  regulatory  alternative  because these  costs could also be avoided  by
 the firm  if  it  decided  not  to produce  gas  from  a  particular well.   The
 methodology  used to compute  before-tax  and after-tax  costs of pollution   -.
 control  for  each model  plant is  presented  in  Section  9.2.1.1.  In  the'case
 of non-processing gas producing  firms that sell  sour  gas  to  processors, the
 cost of compliance  would be reflected in  increased charges  by the
  processing company to cover the  costs associated with the  regulatory
  alternatives, or alternatively,  an equivalent reduction in the well head
  price paid for the sour gas.  In the case of gas producing/processing
  companies, costs of compliance would be directly incurred.
  I/   This forecast price was obtained from DOE and is measured in terms of
  ~~    constant 1980 dollars.
                                    9-56

-------
     The above discussion provides a simple decision rule for the firm with
respect to whether or not it will choose to produce and process gas from
any given well.  If price exceeds unit variable cost then the well will be
utilized to produce natural gas.  Under the assumed baseline, all of the 67
facilities forecasted to be constructed will be used to process natural gas
as the forecasted deregulated price of $4.80 per Mcf exceeds the maximum
forecasted unit variable cost of $0.93 per Mcf.  Curtailments will occur as
a result of each regulatory alternative if and only if unit pollution
control costs  exceed the difference between the predicted price and
pre-regulation unit variable costs, given the assumption that the  impacts
of the  regulatory alternative on exploration and exploitation of  new fields
are  negligible.
      The extent to which each regulatory alternative  is  likely  to  affect
exploration and drilling activities is assessed  in  two ways.  First, the
impact  of  each regulatory  alternative  on the expected  number  of facilities
that will  recover, or  more than recover, all costs  of  production  is
calculated.   These data provide a  qualitative  measure  of the  extent  to
which the  regulatory  alternatives  will  reduce  expected returns  from
exploration  for and  exploitation of potential  natural  gas  fields.   Second,
the  total  costs of each regulatory alternative relative  to  the  value of
total new gas production are computed.   The methodology  used  to estimate
the  effect of each  regulatory alternative  on  potential  profitability of the
exploration  and plant processing operations,  predicted under  the baseline
 scenario, requires  further discussion.   This  discussion  is  presented in
 9.2.1.2.
      .The above analysis is carried out under the assumption that the well
 head price for sweet gas will be unaffected by any of the regulatory
 alternatives.  The basis for this assumption is as follows.  Sour natural
 gas  cannot be sold at sweet natural gas prices.  Either it is priced below
 sweet gas or  is not marketed.  The main reason for a differential between
 sour and  sweet natural gas prices, according to industry sources, is that
 H2S  in natural gas is  corrosive to compressors, valves and other pipeline
 and  natural  gas processing equipment.  Pipeline companies are therefore
 reluctant to  accept natural gases with a high H2S  concentration.
                                    9-57

-------
Consequently, sour gas must be sweetened, i.e., the H^S must be removed,
or blended with sweet natural gases in order to be marketable as sweet gas
according to industry standards.
     Sweetening is performed by either producers, gas processors or
pipeline companies.  These operations may be vertically integrated or
independent operations depending on local market conditions.  It is common
practice for gas processors and pipeline companies to charge producers and
dealers (third parties) a treating fee for sulfur removal against sour gas.
This practice pushes sweetening costs backward to the producer.  The
producer then chooses either to sell sour gas at the sour gas price, to
install and operate his own sweetener and sell sweetened natural gas or to
cap his sour gas producing well(s).  The alternative of capping the sour
gas well(s) may be a temporary measure until a sufficient number of
exploration wells are drilled and enough gas discovered to justify further
field development costs.
     Under existing and expected market  conditions, producers and their
leaseholders (royalty owners) bear the cost of sweetening their produced
sour natural gases.  Regulations which require additional emissions control
costs on new sweetening and new sulfur recovery operations  in the onshore
natural gas production industry will effectively increase sour gas
sweetening costs in new plants and producers and leaseholders of hew sour
gas will thus  incur lower net incomes.   Individually, sour  gas producers
are not expected to be able to  pass-on additional emissions  control costs
because this would  require sweetened natural gas to sell at  a premium over
naturally  sweet gas.  Historically, producers  have been unable to obtain
such a premium and  none is expected in the  future.  Thus, if natural gas ,
prices were  to increase due  to  SO^ emissions  regulations, they would only
increase as  a  result  of plant curtailments  and associated supply shifts.
But, as shown  in Table 9-24, even  in the unlikely event  that all new sour
natural gas  sulfur  recovery  plants and their  associated  natural gas
production were curtailed, the  loss of domestic  natural  gas  supply would
not exceed .51 trillion cubic feet, less than  3  percent  of  total domestic
natural gas  consumption.   The expected number  of curtailments under the
most stringent regulatory  alternative  is much  less severe,  less than one
tenth  of one  percent  of projected  domestic  consumption,  implying a
negligible increase in domestic prices.
                                   9-58

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     9.2.1.1  AnnualIzed and Unit Emissions Control Costs.  Before-tax
annualized costs' (BTAC) and after-tax annualized costs (ATAC) of emissions
controls are computed for each model plant and regulatory alternative using
the following equations:
      BTAC = IQ CRF + 0&MQ
      ATAC = I  CRF TAXF + (1-t) 0&MQ
                                       (1)

                                       (2)
where,
        I  = initial base year investment
      O&M  = annual operating & maintenance costs less applicable
             by-product (sulfur and steam) credits
              r(l+r)n
       CRF =
,  the  capital  recovery factor
               r = the real cost of capital = 1 -
                             1+d
                            1+inf
               n = economic life of the asset, i.e. the capital recovery
                   period  (variable by asset)

      TAXF =  1-itc - t  PVDEP

              itc = investment  tax  credit  rate
               t = corporate  income tax rate
           PVDEP = present value of annual  depreciation factors per $1
                   of  investment,  i.e.
                      Y     DEP.
            PVDEP  =
                   y  =  1  (l+d)y
                   Y  =  length  of  the  depreciation  period, 3,  5,  10 or  15
                        years

                   d  =  nominal discount  rate  (the  weighted  nominal cost of
                        capital)
                                  9-59

-------
           DEP   =  annual  depreciation  factors  calculated using  the  most
             y   advantageous depreciation methods for the firm,  either
                  (1)  rapid amortization of pollution control  investments
                  or (2)  accelerated cost recovery as allowed by the 1981
                  Economy Recovery Act.
     Inflation and the weighted, nominal, after-tax cost of capital are
projected to be 8 and 10 percent, respectively.  The inflation rate is
based on recent estimates obtained from the DRI econometric model  of the
U.S. economy. 25  The nominal weighted after-tax cost of capital for the
natural gas industry was based on'a composite natural gas  industry stock
price earnings  ratio of 7 to 8.   In addition, the  marginal corporate income
tax rate was assumed to be 47 percent, the  debt ratio was  assumed  to be  45
percent, and the  nominal pre-tax  interest  rate on  new debt for  domestic
corporations was  estimated to be  13 percent.
     The real  industry cost  of  capital  (value  of  r)  was computed to be
  019.   This  is based  on  the  estimated nominal  discount  rate  (d=.10) and  the
 inflation  rate (inf =  .08);  r = l-(H-d)/(l+1nf).   Thus  the real  industry
 cost  of capital,  based  on  1980  industry and financial  market conditions, is
 .019.   This'is a  different rate than  used  in Chapter 8.  The rate  used  in
 Chapter 8  is a constant 10 percent used by the government to make
 interindustry cost-effectiveness comparisons.   The rate used in Chapter 9
 depends on financial  and market conditions and is appropriate for capital
 budgeting and economic impact analysis.
      Unit emissions control costs for each model   plant, measured in 1980
 dollars per Mcf  of sweet gas, are computed using  the following equation.
      Unit emissions
      control  cost
                                  ATAC
                                      (3)
Sweet gas volume
 where  ATAC  is  the  after-tax  annualized  cost  of  emission  controls  as  defined
  in  Equation 2.   Sweet gas  volume  is  a function  of  the  sulfur  intake  of  the
  natural  gas sulfur recovery  plant and the H2S and  H2S/C02  ratios  in  the
  sour natural gas (See Table  9-28, Footnote a).
                                    9-60

-------
     The estimated 1987 baseline sweet gas sales and sulfur sales
associated with each model plant and regulatory alternative are shown in
Tables 9-28 and 9-29, respectively.  Natural gas and sulfur volumes
associated with each level of sales can be derived by simply dividing each
level of sales by the appropriate baseline price per unit.  For natural
gas, the baseline price is $4.80 per Mcf.  For sulfur, the baseline price
is $98.43 per Mg.
     9.2.1.2  Long-run Profitability of Regulated Plants.  In the context
of this analysis, a new onshore natural gas sulfur recovery plant and its
associated natural gas production is defined to be profitable in the long
run if the wellhead gas price is greater than or equal to its actual unit
production costs for drilling and equipping wells (including dry holes).
These costs include field equipment, operating and maintenance
expenditures, sweetening costs and baseline net sulfur recovery revenues.
In post regulation scenarios, incremental SC^ emission control costs are
also included in addition to exploration and development drilling costs.
     Note that this definition of new plant long run profitability takes
into account the recovery of total production costs, including a return on
investment.  Therefore, in the long run a plant is unprofitable if it fails
to recover total production cost as defined above.  It is important to
recognize, however, that although a particular well may fail to yield
revenues that cover all production costs, it will never-the-less be
operated if all variable costs of production are covered (that is, as long
as the price of natural gas exceeds average variable costs).  However, a
well will not be operated if average variable operating costs exceed the
price of natural gas.  Under this scenario, a plant can make no
contribution to the recovery of exploration and drilling costs.
     Under the baseline scenario, 54 of the 67 projected sulfur recovery
plants will be profitable in the long run, and thirteen will not.  All 67
sulfur plants, however, will be operated because their variable unit costs
are smaller than the predicted wellhead price for sweet gas of $4.80 per
Mcf.  The estimation procedure used to calculate the number of natural gas
sulfur recovery operations that, under the baseline scenario, would cover
all production costs is as follows.  A probability distribution of total
                                  9-61

-------
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                                                                       9-62

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-------
unit production costs of natural gas from new sour wells was estimated
utilizing the distribution of gas production by well size  (Table 9-1) and
the distribution of the numbers of new wells drilled by depth  (Table 9-2).
It is assumed that existing well sizes (flow rates) reflect  expected new
well sizes and that well size and well depth are  independent.  The marginal
and bivariate distributions of well  depth,  flow  rate and  the combination  of
well depth and flow rate thus obtained are  shown  in Table 9-30.
     The  probability  estimates  are  created  in  order to approximate  the
distribution  of  197S-1980  natural  gas  production costs to the wellhead  from
new wells.  The  distribution  indicates  that,  in  1979-80 total  unit
production  costs associated with  production from new  wells,  averaged over
the  entire  distribution, were approximately $2.00 per Mcf.
      For the  reasons  discussed in Section 9.2.1  above, by 1987,  average
 total  unit  production costs are assumed to increase to $4.80 in terms -of
 1980 constant dollars.  It is also assumed that total  unit costs of
 production rise in proportion to the increase in average  total unit costs
 across the entire distribution of production costs of gas from new wells.
      Utilizing these assumptions, the following probability distribution
 for the  average total cost of producing natural gas from  new  sour gas wells
 was obtained.
                  .Cost  of  Production
                 (1980$/Mcf sweet  gas)
                    less than 2.40
                     2.40 to 3.60
                     3.60 to 4.80
                    4.80 and above
 Estimated
probability

    .60
    .10
    .10
    .20
  Approximately 20 percent of all natural gas produced from new sour gas
  wells will have total unit operating costs in excess of $4.80 per Mcf.
  Sixty percent will have total unit production costs below $2.40 per Mcf.
  Approximately 10 percent will have total costs between $2.40 and $3.60 per
  Mcf and an additional 10 percent will  have total costs between $3'.60 and
  $4.80 per Mcf.  Given the above distribution for average total costs of
  production,  under the baseline scenario, 80% or 54 of the 67 projected
  natural gas  sulfur recovery  facilities  and their associated natural gas
  production processes will cover all  production costs while 13 will  not.
                                    9-64

-------



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9-65

-------
     The projected distribution of 1987  wellhead  production  costs from new
sour gas wells is used to estimate the corresponding  distribution of long
run baseline unit producers'  surplus.   Unit producer  surplus is  measured as
price less baseline long run unit production cost per Mcf.   The  resulting
preregulation distribution of unit producer's surplus is summarized below:
                                         Baseline
                                          unit
                   p™ssr
                (1980 $/Mcf sweet  gas)—	—
     4  80         less  than 2.40     2.40 to 4.SO (3.60)         .60
     4  80          2.40 to 3.60      1.20 to 2.40  1.80          .10
     4.80          3.60 to 4.80         0. to 1.20 (.60)         .10
     4.80         4.80  and above       less  than 0.0             .^u
     Note:   The numbers  in  parenthesis  indicate  the midpoint of the range.

      The distribution of baseline producer surplus presented  above
 indicates the level  of additional emissions control  costs  that new sulfur
 recovery plants can incur and continue to cover all  production costs.
 Thus, if all plants were located at the mid-point of the range of the  above
 probability distribution for producer surplus,  then  10 percent of the  new
 onshore natural gas production from sour natural gas would become
 unprofitable  in the long run if  incremental S02 emissions control costs
 exceeded $.60  per Mcf.  Approximately 20 percent would become unprofitable
 in  the  long  run if  incremental control costs exceeded $1.80 per  Mcf.
 Approximately 80 percent  remain  profitable even if  incremental  control
 costs were as high  as  $2.40  per  Mcf.
       In order to estimate  the  numbers  of  each  type  of model plant that are
 expected to cease  to  cover total  production costs as  a  result of each
 regulatory alternative, the  proportions  of each type  of model plants
 expected to have  negative producer surpluses were estimated.  To obtain
 measures of the actual number of plants  that are  likely  to become
  unprofitable in the long run, these proportions were  multiplied  by  the
  baseline projections of the numbers of each type of model  plants.   In order
  to assess the effect of each regulatory alternative on  long  run  industry
  profitability, the number of plants expected  to be  unprofitable  in  the long
  run under each regulatory alternative is compared with  the number of  plants
  projected to  be unprofitable in the long run under  the  baseline  scenario.
                                    9-66

-------
9.2.2  Economic Impacts of SO^ NSPS Regulatory Alternatives on Sour Gas
       Sweetening and Sulfur Recovery Plants
     This section presents the economic impacts that are associated with
each regulatory alternative.
     9.2.2.1  Net Annualized Costs Per Plant.  The incremental before-tax
and after-tax net annualized costs for Individual model plants associated
with Regulatory Alternatives I through VI are shown in Tables 9-31 and
9-32, respectively.  These costs were computed using the methodology
presented in Section 9.2.1.1 and provide a basis for further economic
impact analysis.  A comparison of before-tax and after-tax net annual iked
costs provides a measure of the income tax consequences of the regulatory
alternatives to the firm, assuming that the firm has taxable net income and
                    „   •••?&"*••
does not pass additional emissions control costs forward to consumers-or
backward to suppliers.  The results indicate that almost 50 percent of the
before-tax costs of emissions control will be borne indirectly by the
federal government through investment tax credits and depreciation and
expense deductions.
     9.2.2.2  Unit Emission Control Costs, Curtailments and Long Run
Profitability of Model  Plants.  The relative impact of each regulatory
alternative on sour gas sweetening and sulfur recovery plants is indicated
by the magnitude of the emissions control cost per Mcf of associated sweet
gas output.  Assuming no price impacts, the unit emissions control costs
also indicate profitability impacts per Mcf.  The unit emissions control
costs for twenty-three model plants, six regulatory alternatives and
thirteen different H2$ percentages in sour natural gas are shown in  •••
Tables 9-33 through 9-55.  The tables also present the estimated
distribution of model plants according to the predicted H?S content of
sour natural gas.
     The unit emissions control costs are compared to the 1987 wellhead
price of $4.80 per Mcf for new natural gas, to the projected onshore
natural gas production costs from new sour gas wells, and to the projected
baseline unit producer surplus.  If unit emissions control  costs exceed
$.60, they are marked with one asterisk (*) indicating a 10 percent
estimated probability that any given model plant would cease to cover total
production costs due to the regulatory alternative.  If unit emission
                                  9-67

-------

"aole 5-31.
MODEL PLANT 8EFORE-TAX ANNUAL IZED COST
, BY REGULATORY ALTERNATIVE
Regulatory alternative
Mod* I
plant
1
2
3
4
5
5
7
3
9
10
11
12
13
14
IS
16-17
18-19
20
21
22
23
Size
(sulfur intake)

Mg/a LI /a
<0.1
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
2
3
4
5.1
10.2
101.6
563.8
563.3
1,015.9
1,015.9
<0.1
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Z
3
4
5
10
100
555
555
1 ,000
1 ,000
Acid gas feed
H2S/C02 ratio
by volume
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
50/50
80/20
50/50
80/20
II
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
142
-56
-119
-7
III 	
	 Thousands
0
0
0
0
0
0
0
0
0
0
428
428
428
428
428
44
452
142
3,374
-119
4,718
	 iv
of 1980
0
0
0
0
0
428
428
428
428
428
428
428
506
506
506
44
452
9,581
3,374
15,316
4,713
V
dol lars 	
0
0
0
428
428
506
506
506
506
506
506
506
506
506
506
388
7,352
9,581
3,374
15,316
4,718
VI
0
0
428
428
506
600
600
600
600
600
600
600
600
600
600
388
7,352
9,581
3,374
15,316
4,718
Regulatory Alternative '.  is the baseline.
*  Covers tne entire ratio range from 12.5/87.5  co  80/20.
                                                       9-68

-------
                fable 3-32.  MODEL PLANT AFTER-TAX ANNUALIZEO COST, 8Y REGULATORY ALTERNATIVE
Regulatory alternative
Model
plant
1
2
3
4
5
6
7
•8
9
10
11
12
13
14
15
16-17
18-19
20
21
22
23
Size
(sulfur intake
Mg/d
<0.1
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
2
3
4
5.1
10.2
101.6
563.3 .'
563.8
1,015.9
1,015.9
)
Li/d
<0.1
0..1
0.2
0.3
0.4
0.5
0.6
0.7
0.3
0.9
1
2
3
4
5
10
100
555
555
1,000
1,000
Acid gas feed
H2S/C02 ratio
by volume
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a.
a
a
50/50
80/20
50/50
80/20 .
II
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
84
-25
-52
1
III
	 Thousands
0
0
0
0
0
. 0
0
0
0
0
234
234
234
234
234
24
245
84
1,834
-52
2,555
IV
of 1980
0
0
0
0
0
234
234
234
234
234
234
234
277
277
277
24
245
5,125
1,834
8,185
2,555
V
dollars 	
0
0
0
234
234
277
277
277
277
277
277
277
277
277
277
221
3,940 '
5,125
1,834
8,185
2,555
VI
0
0
234
234
277
340
340
340
340
340
340
• 340
340
340
340
221
3,940
5,125
1,834
8,135
2,555
Regulatory Alternative I  is  the  baseline.
a  Covers the entire ratio range from 12.5/87.5  to 30/20.
                                                     9-69

-------



















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control  costs exceeds $1.80 per Mcf, they are marked with two asterisks
(**) indicating a 20 percent estimated probability that any given model   .
plant would cease to cover total production costs due to the regulatory
alternative.  Three asterisks (***) indicate that the incremental control
costs are over $2.40 per Mcf, a level which exceeds half of the projected
baseline price for new natural gas in 1987 and which would indicate more
than a 20 percent probability that any given model plant would cease to
cover total production costs due to the  regulatory alternative.  As shown
in  Table 9-33, four asterisks (****)  indicate that unit control costs
exceed $3.87 per Mcf, a level certain to cause curtailments since average
variable operating costs would exceed the  price  of natural gas.
     No plant  curtailments are predicted under Regulatory Alternatives
I-IV.  Under Regulatory Alternative V, one plant would  likely  be curtailed.
Under Regulatory Alternative VI, two  plants would likely be curtailed.   The
decline in  natural gas production  associated with these  potential
curtailments would be negligible.
     The above projection  of  curtailments  is based on  the assumption  that
exploration and development  of  new gas fields would  be  unaffected by  the
regulation.  In order to  qualitatively assess the reasonableness of this
assumption, the increase  in  the  number of  plants that  fail  to  cover total
production costs  is  calculated  for each  regulatory alternative utilizing
the methodology described in  Section  9.2.1.2.
      The  results of this  analysis  indicate that, under Regulatory
Alternatives I-III,  costs are not  expected to  cause  any increase in the
 number of  plants unable  to cover total  production costs.   Therefore,  these
 three regulatory alternatives would have virtually no  effect  on
 exploration and development of new natural gas  fields.
      At most, nine small  plants are estimated to become unprofitable in the
 long run under Regulatory Alternative VI.   To obtain a more direct measure
 of the impact of Regulatory Alternatives  I through VI  on expected returns
 to natural gas exploration, the ratio of  the expected aggregate cost of
 each regulatory alternative to the wellhead value of projected new gas
 production is calculated.  These estimates are  presented below:
                                   9-93

-------
Regulatory
alternative
     I
    II
   III
    IV
     V
    VI
     Estimated
aggregate after-tax
    annualized
       cost
 (millions 1980$)

        0.0
        0.0
       12.2
       13.5
       51.9
       53.5
       Projected
    wellhead value.           Cost to
of new onshore natural        value
   gas production _!/          ratio
  (millions of 1980$)       (percent)

        11,600                 0.0
        11,600                 0.0
        11,600                 0.1
        11,600                 0.1
        11,600                 0.4
        11,600                 0.5
     Under Regulatory Alternatives I through VI, the aggregate costs of

compliance are less than 1 percent of the total projected value of new

onshore natural gas production in 1987.  Thus, under Regulatory

Alternatives I through VI, the impacts of S02 emissions control costs on

expected returns from natural gas exploration and development are
relatively small.  These results suggest that the effects of Regulatory

Alternatives I through VI on exploration and development are likely to be

negligible.
     9.2.2.3   Expected Quantity and  Price Impacts Due  to SQp NSPS.  Sulfur

dioxide emissions  regulations on new onshore sour natural gas production

facilities are not expected  to cause significant quantity or price  impacts

in  either the  natural gas or sulfur  markets.  Changes  in natural gas

production or  price are  negligible under Regulatory Alternatives I  through

VI  since the number of curtailed plants  is  zero or negligible.

     Sulfur  recovery  from onshore  natural gas would  increase slightly as  a

result of regulations that  require a greater  percentage  of  available  sulfur

to  be  recovered.   This would increase  new onshore natural gas  sulfur

recovery from  1.2  million metric tons  in  the  baseline  to  1.3 million  metric

tons under  Regulatory Alternatives  IV,  V  and  VI.  This represents  about  a

0.5 percent  increase  in  total  projected  sulfur  supply  in  1987.   This  could

cause  a slight decrease  in  local  sulfur  prices  in markets near  new natural

gas sulfur  recovery.  These effects  would most  likely  occur in  Texas,  New

Mexico, Wyoming,  Alabama, Mississippi,  Arkansas,  and  North  Dakota  where

new onshore  sour natural gas discoveries  can  be expected.

T7Based  on  2.42 trillion cubic  feet (Table 9-20)  and $4.80/Mcf.
                                   9-94

-------
9.3.  POTENTIAL SOCIOECONOMIC AND INFLATIONARY IMPACTS
     Sulfur dioxide emissions regulations on new onshore sour natural gas
sulfur recovery facilities are not expected to cause major socioeconomic or
inflationary impacts.  Curtailments in the construction of new plants are
projected to be negligible.
     Total additional before-tax annualized costs of controls in 1987, the
fifth year of controls, for the projected sixty-seven new natural gas
sulfur recovery plants are estimated to be as follows:
             Regulatory
          alternative,
 Total  additional  before-
tax annualized cost, 1987 -
  (million 1980 dollars)
a/
                  I
                'II
                III
                 IV
                  V.
                 VI
           0.0
           0.0
          22
          24
          95
          98.7
 a/   These  estimates  are  obtained  from Table  9-56.

      Individual  natural  gas  sulfur recovery  plant  operators  are  not
 expected to  be able  to  pass  forward additional  sulfur emissions  control
 costs to consumer sectors.   Costs may be passed backward to  sour gas
 producers, but often natural  gas  sulfur.recovery and  sour natural  gas
 production will  be vertically integrated.  Thus, sour gas producers  are
 generally expected to absorb the  additional  emissions control  costs.
      A slight increase  in sulfur  production  may occur as a result of
 increased sulfur recovery.   This  may cause sulfur  prices to  fall slightly.
 This impact, however, is expected to be small  and  regional in  nature.
 Sulfur consuming industries, particularly fertilizer  manufacturers,  could
 benefit from slightly expanded sulfur supply and lower prices.   Sulfur
 importers to the U.S. and the Frasch mining  segment of the sulfur industry
 may be adversely impacted by increased sour  natural gas sulfur recovery,
 but again expected impacts will be slight regardless  of the  regulatory
 alternative chosen.
                                   9-95

-------
Table 9-56 TOTAL BEFORE TAX NET ANNUALIZED COST a
REGULATORY ALTERNATIVES, 1987
Requlatorv alternative
Model
plant
I
2
3
4
5
5
1
8
9
10
11
12
13
14
15
16-17
18-19
20
21
22

23
Total
Size
(sulfur intake)
Hg/d
<0.1
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Z
3
4
5.1
10.2
101.6
563.3
563. 8
1,015.9
t f\1 C Q
1,U13.3
Li/d
<0.1
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
2
3
4
5
10
100
555
555
1,000
1 000

Number of
model plants
11
1
3
1
2
1
1
1
1
1
5
3
3
2
1
18
9
0
2
0
1
67
It
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-.1
0
-.007
-.107
III IV v
	 Millions of 1980 dollars 	
ooo
0 0 ' 0
ooo
0 0 .4
0 0 .8
0 .4 .5
0 .4 .5
0 .4 .5
0 .4 .5
0 .4 .5
2.1 2.1 2.5
1.3 1.3 US
1.3 1.5 1.5
.8 1.0 1.0
.4 .5 .5
'"' t
.8 .8 7.0,
4.1 4.1 66.2
ooo
6.7 6.7 6.7
ooo
4.7 4.7 4.7
22.2 24.7 95.3

VI
0
0
1.3
.4
1.0
.6
.6
.6
.6
.6
3.0
1.8
1.8
1.2
.6
7.0
66.2
0
. 6.7
0
4.7
98.7
Regulatory Alternative I  is the baseline.
3    The total  costs for each model  plant  segment  equals  the number of model plants per segment times
     before-tax annualized cost per  plant.   (Table 9-31}
the
                                                     9-96

-------
               No significant net employment, productivity or balance of payments
          impacts are expected as a result of sulfur emissions regulations on the
          onshore natural gas production industry.  Some slight displacements
          could occur if the natural gas industry shifts production resources away
          from known marginal sour gas reserves and towards exploration and
          development of known sweet gas reserves.
                                             9-97
_

-------
9.4  REFERENCES FOR CHAPTER 9

 1   AAPG Pinpoints Roles of Independents, Biggest Companies, Oil & Gas
     Journal, January 28, 1980, p. 81.  Docket No. A-80-20-A,
     Entry II-I-55.

 2.  A Statistical Record of the Gas Utility Industry, Gas Facts -
     1979 Data.  American Gas Association, Department of Statistics.
     Docket No. A-80-20-A, Entry II-I-49.

 3   American Petroleum  Institute, 1979 Joint Association Survey on
     Drilling Costs, February 1981.  Docket No. A-SU-20-A, Entry 11-1-77.

 4.  U.S. Department of  Energy, Energy Information Administration,
     Cost and Indexes for Domestic Oil and Oilfield  Equipment and
     Production Operations, 198'0~!

 5.  Personal telephone  communication between Mr. J. Wagner  of  DPRA
     Incorporated  with Mr. Velton  Funk,  DOE EIA,  Dallas, Texas  on
     February 17,  1982.  Docket No.  A-80-20-A,  Entry II-E-42.

 6.  Stanford  Research Institute  (SRI) International,  Chemical  Economics
     Handbook,  December  1979.  Docket No. A-80-20-A, Entry  II-I-44.

 7.  Neri,  J.  A.   "An  Evaluation  of  Two  Alternative  Supply  Models  of
     Natural Gas,"  The  Bell  Journal of  Economics,  Spring 1977,
     pp.  289-302.   Docket  No.  A-80-20-A, Entry II-I-78.

 8  The Council  on Environmental  Quality and the Department of State,
     The Global  2000 Report to the President  (Volume III:   Documentation),
     April  1981.p.  301.  Docket  No. A-8U-20-A,  Entry II-I-80.

  9  U.S.  Department of the Interior, Bureau  of Mines, Minerals Yearbook -
      Sulfur and Pyrites, 1960 to 1979 Preprints.   Docket No. A-80-20-A,
      Entries II-I-l, 2,  3,  4, 5,  6,  8,  9, 13, 15, 19, 23,  and 39.

 10.   U.S.  Bureau of Mines, Sulfur:  Mineral Commodity Profile, 1979.
      Docket No. A-80-20-A, Entry II-I-39.

 11.   U.S.  Department of Energy, Energy Information  Administration.
      DOE/EIA-0173(79)/2, Annual Report to Congress  - 1979.  Volume Two
      (of three):  Data, U.S. Department of the Interior, U.S.  Geological
      Survey - Conservation Division, Outer Continental Shelf Statistics,
      June 1980.  Docket No. A-80-20-A,  Entries II-I-45 and  II-I-58.

 12.  U.S. Department of Energy, Energy  Information  Administration,
      DOE/EIA-0173(79)/2, Annual Report  to Congress  -  1979,  Volume Two
      (of three):  Data.  Docket No. A-80-ZO-A, Entry  II-1-45.

 13.  A. Bernhard & Company.  "Natural Gas Industry, Value Line Investment
      Survey," July 18,  1980.  Docket No. A-80-20-A, Entry II-I-79.

 14   Stanford Research  Institute  (SRI)  International,  Chemical  Economics
      Handbook, December 1979.  Docket No. A-80-20-A,  Entry  II-1-44.
                                  9-98

-------
15.   American Gas Association, "Total Energy Resource Analysis Model (TERA)
     80-1," Gas Supply and Statistics, Appendix A, Figure A-2, p. 21,
     1980.  Docket No. A-80-20-A, Entry II-I-62.

16.   U.S. Department of Energy, Energy Information Administration,
     DOE/EIA-0173(79)/3, Annual Report to Congress - 1979, Volume Three
     (of three):  Projections.  Docket No. A-80-20-A, Entry II-I-46.

17.   TRW Environmental Division, Research Triangle Park, North Carolina,
     for U.S. EPA, Office of Air Quality Planning and Standards, Emission
     Standards and Engineering Division, Source Category Survey Report -
     Phase I Onshore Production, March 19, 1980.  Docket No. A-80-20-A,
     Entry II-A-13.

18.   Personal communication between Mr. K. Joshi of TRW Environmental
     Division with Mr. Richard M. Schulze of Trinity Consultants in
     Richardson, Texas, on April 23, 1981.  Docket No. A-80-20-A,
     Entry II-E-16.

19.   Documented meeting between TRW, EPA and API Task Force held July 21
     and 22, 1980 at TRW Environmental Division offices in Research
     Triangle Park, North Carolina.  Docket No. A-80-20-A, Entry II-E-6.

20.   U.S. Environmental Protection Agency, Industrial Environmental
     Research Laboratory, Research Triangle Park, North Carolina,
     Multimedia Assessment of the Natural Gas  Processing Industry,
     EPA-600/2-79-077, April 1979, Section 5,  p. 28.Docket No. A-80-20-A,
     Entry II-A-12.

21.   U.S. Department  of Energy,  Energy Information Administration,
     DOE/EIA-0173(79)/3, Annual  Report to Congress - 1979, Volume Three
     (of  three):   Projections.   Docket No. A-80-20-A, Entry II-I-46.

22.  Personal communication between  Mr. K. Joshi of TRW Environmental
     Division with Mr.  E. E.  Ellington of Purwin & Gertz,  Inc.  in Dallas,
     Texas,  on  August 27, 1981.  Docket No. A-80-20-A, Entry  II-E-23.

23.  Personal communication between  Mr. K. Joshi of TRW Environmental
     Division with Mr.  James  Myers of Texas Air Control Board,  Permit
     Section in Austin, Texas,  on August  27, 1981.  Docket No.  A-80-20-A,
     Entry II-E-24.

24.  Personal communication between  Mr. K. Joshi of TRW Environmental
     Division with Mr.  David  Parnell  of Ford,  Bacon and Davis  Engineers
     and Constructors in Dallas, Texas, on August 28, 1981.   Docket
     No.  A-80-20-A,  Entry II-E-25.

25.  Data Resources,  Inc., Trendlong 2005 Forecasts,  September 1980.
     Docket  No. A-80-20-A, Entry II-I-81.
26.  U.S.  Energy  Outlook - Oil  and Gas  Availability,  National  Petroleum
     Council,  1974.  Docket No.  A-80-20-A,  Entry II-I-82.

                                 9-99

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APPENDIX A - EVOLUTION OF THE BACKGROUND INFORMATION DOCUMENT

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A.I  LITERATURE REVIEW

     Date                Source

August 28, 1974         (Report)
                    EPA-68-02-0611
December 1974
October 1975
February 20, 1976
    (Report)
EPA-650/2-75-030
    (Report)
EPA-450/3-75-076
    (Report)
EPA-68-02-2082
January 1977        (Draft report)
                         EPA
March 2 and 3, 1977 U.S. EPA NAPCTAC
                    Minutes of Meeting
                    (first NAPCTAC)
August 1977


August 1978



January 8, 1980

February 7, 1980
(Report) EPA
     AP-42

    (Report)
EPA-450/3-78-047
Rockwell International

Shell Oil Company
Houston, Texas
   Data or Information

Characterization of Sulfur
Recovery in Oil and Natural
Gas Production

Sulfur Compound Emissions of
the Petroleum Production
Industry

Atmospheric Emissions Survey
of the Sour Gas Processing
Industry

Economic Impact of New Source
Performance Standards on Sulfur
Recovery Plants Associated with
Natural Gas Processing Plants

An Investigation of the Best
Systems of Emissions Reduction
for Sulfur Compounds from Crude
Oil and Natural Gas Processing
Plants

Comments from API and the
industry representatives on
the proposed S02 NSPS on
crude oil and natural gas
onshore production plants.

Compilation of Air Pollutant
Emission Factors, Third Edition

Evaluation of Emissions from
Onshore Drilling, Producing,
and Storing of Oil and Gas

Offshore program data

Forecast data for the lower
48 States' onshore natural gas
production conventional
facilities
                               A-2

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     Date

July 29, 1980
October 6, 1980
November 25, 1980
     Source

Energy Resources
Conservation Board,
the Province of
Alberta, Canada

Energy Resources
Conservation Board,
the Province of
Alberta, Canada

Benfield Corporation
Pittsburgh, PA
February 20, 1981   Getty Oil Company
                    Houston, Texas
April 14, 1981
April 29, 1981
May 12, 1981



May 27, 1981



July 1, 1981



July 1981



September 3, 1981
Home Oil Company, Ltd.
Alberta, Canada
Ralph M. Parsons Co.
Pasadena, California
Lone Star Gas Company
Warwink, Texas
Northern Natural Gas
Company, Midland,
Texas

Colorado Interstate
Gas Company, Table Rock,
Wyomi ng

(Subcontracted report)
The Ralph M. Parsons Co.
Pasadena, California

Exxon Chemical Co.
Baton Rouge, LA
   Data or Information

Sour Natural Gas Industry
Guidelines (Existing)
Sour Natural Gas Industry
Guidelines (newly promulgated)
Cost information for the Benfield
Sweetening Process for sour
natural gas

Comments and recommendations on
sulfur recovery operations

Technical and cost data on the
modified Claus sulfur recovery
facility for Carstairs-Crossfield
plant

Information and assumptions for
developing design criteria and
cost estimates for sulfur recovery
study in onshore sour gas
production facilities, presented
in Appendix E

Recovered sulfur production from
sour natural gas stream (acid gas)
at Warwink Gas Treating Plant

Recovered sulfur production from
sour natural gas stream (acid gas)
at Hobbs Sulfur Recovery facility

Recovered sulfur information
Sulfur Recovery Study, Onshore
Sour Gas Production Facilities,
presented in Appendix E

EPA requested costs information,
including total operating costs
and fixed-capital costs of the
Baytown, Texas, refinery sulfur
recovery plant by authority under
Section 114 of the Clean Air Act
(42 U.S.C. 7414)
                              A-3

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     Date
September 3, 1981
September 3, 1981
July  1982
 April  1983
     Source

Pursue Gas Processing
and Petrochemicals Co.
Jackson, Mississippi
Union Oil Company
Wilmington, California
The American  Petroleum
Institute  (API)
 (Subcontract report)
 The Ralph M.  Parsons
 Pasadena, California
                                          Co.
 A.2  PLANT VISITS

      Date

 December 18, 1979
      Company

 Exxon Company, U.S.A.
 Jay Field, Florida
 December 19, 1979
 Phillips Petroleum
 Chatham, Mississippi
   Data or Information
EPA requested costs information,
including total operating costs
and fixed-capital costs of the
Brandon, Mississippi, sour
natural gas production sulfur
recovery plant by authority
under Section 114 of the Clean
Air Act (42 U.S.C. 7414)

EPA requested costs information,
including total operating costs
and fixed-capital costs of the
Los Angeles, California, refinery
sulfur  recovery plant by authority
under Section 114 of the Clean
Air Act (42 U.S.C. 7414)

The API's gas plant  survey
containing data/information
on 731  gas streams.  The data
included  July  1982 capacity,
throughput and gas stream
H2S and C02  concentrations
for onshore  sour natural
gas sweetening and sulfur
recovery  operations.

Small  sulfur recovery
 (Recycle  Selectox process)
 units,  onshore sour  gas
production facilities,
presented in Appendix H
      Plant/Information

 Blackjack Creek sulfur recovery
 facility/gained familiarity with
 process equipment and operating
 conditions (sour natural gas
 sweetening, sulfur recovery, and
 tail gas cleanup operations),
 information confidential

 Chatham sulfur recovery facility/
 gained familiarity with process
 equipment and operating conditions
 (sour natural gas sweetening and
 sulfur recovery operations)
                                A-4

-------
     Date

August 8, 1980
August 15, 1980
     Source

Shell Canada Resources,
Ltd.
Waterton, Alberta,
Canada
Union Oil Company
Chunchula, Alabama
August 19, 1980
August 21, 1980
August 22, 1980
August 26,  1980
Getty Oil Company
Streetman,
Texas
Intratex Gas Company,
(Houston Natural Gas),
Pecos, Texas
Warren Petroleum Company,
(Gulf Oil), Monument,
New Mexico
 Shell Oil Company
 Brandon, Mississippi
 September  9,  1980
Warren  Petroleum
Company,  (Gulf Oil),
Kildeer,  North Dakota
   Data or Information

Waterton sulfur recovery
facility/gained familiarity with
process equipment and operating
conditions (sour natural gas
sweetening, sulfur recovery, and
tail gas cleanup operations)

Chunchula sulfur recovery
facility/gained familiarity with
process equipment and operating
conditions (sour natural gas
sweetening and sulfur recovery
operations)

Teas sulfur recovery facility/
gained familiarity with process
equipment and operating conditions
(sour natural gas sweetening and
sulfur recovery operations)

Mi Vida sulfur recovery facilities/
gained familiarity with process
equipment and operating conditions
(sour natural gas sweetening and
sulfur recovery operations),
information confidential

Monument sulfur recovery facility/
gained familiarity with process
equipment and operating conditions
(sour natural gas sweetening and
sulfur recovery operations),
information confidential

Thomasville sulfur recovery
facility/gained familiarity with
process equipment and operating
conditions (sour natural gas
sweetening and sulfur recovery
operations)

Little Knife sulfur recovery
facility/gained familiarity with
process equipment and operating
conditions (sour natural gas
sweetening, sulfur recovery, and
tail gas cleanup operations),
information confidential
                               A-5

-------
     Date
August 12, 1982
     Source

Perry Gas Processors,
Odessa, Texas
August 12, 1982
Sid Richardson Carbon
and Gasoline Company,
Winkler County, near
Kermit, Texas
   Data or Information

Perry gas processing facility/
gained familiarity with
process and operating data
on their Recycle Selectox
process.  A part of the
i nformati on confi denti al.

Sid Richardson Carbon and
Gasoline's Recycle Selectox
3-stage sulfur recovery
facility.  Gained familiar-
ity with process equipment,
and operating conditions on
their Recycle Selectox
facility that recovers
liquid  sulfur from lean acid
gas stream.  Information
confidential.
A.3  EMISSION  SOURCE TESTING
     Date

March  5-27,  1981
     Company

Warren Petroleum's
Monument Plant Facility,
Monument, New Mexico
 April  8-12,  1981
Getty Oil's  New  Hope
Facility, Mt.  Pleasant
Texas
 May 12-18,  1981
 Shell  Oil's
 Thomasville  Facility,
 Brandon,  Mississippi
 1980, 1979, 1978,
 and 1977
 Exxon Company,  U.S.A.
 Jay Field,  Florida
   Data or Information

Emission rates of S02, H2S,
total reduced sulfur, and
NO ; liquid sulfur production
ra£e; sulfur recovery
efficiency, plant operating
conditions.  Developed by
and received from EPA/EMB.

Emission rates of S02, H2S,
total reduced sulfur, and
NO ; liquid sulfur production
ra£e; sulfur recovery
efficiency, plant operating
conditions.  Developed by
and received from EPA/EMB.

Emission rates of SO, H2S,
total reduced sulfur, and
NO  ; liquid sulfur production
ra£e; sulfur recovery
efficiency, plant operating
conditions.  Developed by
and received from EPA/EMB.

Annual  stack test reports  (last
four years) on Blackjack Creek
sulfur  recovery  facility.
Supplied by the  facility.
                               A-6

-------
     Date

1975, 1974, 1973,
and 1972
1975, 1974
and 1973
June 4-10, 1975
     Company

Shell Oil Company
Cass County, Texas
Shell Oil Company
Karnes County, Texas
Exxon Company, U.S.A.
Jay Field, Florida
November 12, 1973   Exxon Company, U.S.A.
                    Flomaton, Alabama
September 24-27,    Aquitaine of Canada, Ltd.
1974                Ram River, Alberta,
                    Canada
November 6-8, 1974  Chevron Standard, Ltd.
                    Fox Creek, Alberta,
                    Canada
     Plant/Information

General information, flow diagrams,
and operation and test data on
Bryans Mill plant sulfur recovery
facility.   Supplied by the facility.

General information, flow diagrams,
and operation and test data on
Person plant sulfur recovery
facility.   Supplied by the facility.

Air pollution emission test,
composition and flow data on
Santa Rosa plant sulfur recovery
facility.   Developed by and
received from EPA.

Performance test, composition
and flow data on Flomaton sulfur
recovery facility.  Developed by
and received from EPA.

Air pollution emission test on
Ram River plant sulfur recovery
facility.   Developed by and
received from EPA.

Emission tests on Fox Creek plant
sulfur recovery facility.
Developed by and received from
EPA.
A.4  MEETINGS WITH INDUSTRY
     Date
December 1979
July 1980
July 21-22, 1980
       Attendees

American Petroleum Institute
(Environmental Task Force)

American Institute of Chemical
Engineers, Philadelphia, PA
American Petroleum Institute
(Environmental Task Force)
and other representatives of
the natural gas production
industry
        The natural gas
        production industry

        Seminars concerning sour
        natural gas processing
        technologies

        Exchange of information
        among TRW, EPA and the
        industry on various
        agenda concerning
        natural gas production
                              A-7

-------
     Date

May 1; 1981
       Attendees

American Petroleum Institute
(Environmental Task Force)
January 28, 1982
American Petroleum Institute
(Environmental Task Force)
July 13, 1982
The Ralph M. Parsons Co. ,
Pasadena, California, and the
Union Oil Co. of California,
Brea, California
December  1,  1982     Texas  Eastern  Gas  Pipeline
                     Co.,  Houston,  Texas
 January  13,  1983
Texas Oil  and Gas  Corporation,
Dallas, Texas and  the  Indepen-
dent Petroleum  Association  of
America, Washington, D.C.
Exchange of  information
among TRW, EPA and the
industry on  model plants,
Parsons' cost estimations,
and  regulation format,
etc.

A  presentation on cost
effectiveness of the
•Claus 2-stage technology
When applied to sizes
less than  10.2 Mg/d sulfur
intake.  A presentation
on projected growth in the
industry for 1983-1987.
Discussions  among TRW, EPA
and  the  industry on the
items in the Agenda
involving  both S02 and
VOC  NSPS developments.

A  presentation by the
Parsons  and  Union Oil
on the  Recycle Selectox
2-stage  and  3-stage
processes  to recover
liquid  sulfur from lean
acid gas streams.
Discussions  among TRW,
EPA  and  the  Parsons on
the  methodology used by
the  Parsons  to .estimate
catalyst performance
degradation.

Discussions  of Texas
Eastern  Gas  Pipeline
Company's  comments on
the  draft  proposed NSPS
for  S02  emissions  in the
natural  gas  production
industry with enclosed
information  on their
analysis on  incremental
cost impact.

Discussions  of Texas
Oil  and Gas  Corporation's
comments on  the  small
plant  size cutoff  and
the  potential economic
 impacts from regulating
small  plants.
                               A-8

-------
     Date
       Attendees
July 19, 1983
Union Oil Company, Brea, CA
and the Ralph M. Parsons Co.
A.5  REVIEW PROCESS

     Date

August 14, 1981
September 25, 1981
September 25, 1981
October 30, 1981
December 23, 1981
 February 1982
Discussed response
to EPA/TRW questions
on the capabilities
and limitations of
the Recycle Selectox
process and the
Selectox  catalyst.
                         Data or Information

                         EPA concurs on the baseline
                         control levels, the form/
                         number of model plants and the
                         regulatory alternatives

                         Draft Chapters 3, 4, 5, and
                         6 mailed to the industry.

                         Finalized concurrence memo on
                         baseline controls, seven model
                         plants and six regulatory
                         alternatives.

                         Submittal of tabular costs
                         (Tables 8-1 through 8-42) to EPA
                         to be included in Chapter 8 ot the
                         Background Information Document;
                         (cost effectiveness, incremental
                         cost effectiveness of the six
                         regulatory alternatives for each
                         of the seven model plants, total
                         annualized costs, sulfur and steam
                         credits, net annualized costs per
                         megagram recovered sulfur, fixed-
                         capital costs, sulfur recovery
                         efficiency and S02 emissions, and
                         sweetening operations costs for
                         all the model plants)

                         Decision on basis for the standard
                         recommending NSPS development,
                         including recommended size cutoffs
                         for affected facilities.

                         Analyzed industry comments on Draft
                         Chapters 3-6 of the Background
                         Information Document
                               A-9

-------
     Date

April 9, 1982
July 21, 1982
August 23, 1982
January, 1983
June,  1983
Data or Information

Draft copies of the Background
Information Document, Preamble,
and Regulation submitted to
EPA for the EPA's Working Group
review.

EPA presentation to NAPCTAC
Committee of the preliminary
results of their development
of a new source performance
standard for S02 emissions'
from the Natural Gas Production
Industry.  The meeting was held
in Dallas, Texas.

Minutes of the NAPCTAC meeting
held in Dallas, Texas on
July 21, 1982 were distributed
to the NAPCTAC Committee
members, Industry representa-
tives  and various Interest
Groups.

Draft  copies of the Background
Information Document, Preamble
and Regulation submitted to EPA
for AA concurrence package for
proposal in Federal -Register.

Revised draft copies of the
background  information
document, preamble and
regulation  submitted to EPA
for AA concurrence., Revisions
incorporate new  cost and
performance data for Recycle
Selectox technologies on
small  plants.
                               A-10

-------
APPENDIX B - INDEX TO ENVIRONMENTAL IMPACT CONSIDERATIONS

-------


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                 APPENDIX C - EMISSION SOURCE TESTS DATA

     The emission source tests data on ten Claus sulfur recovery facilities
gathered during the development of the proposed Natural Gas Production
New Source Performance Standards are summarized in this appendix.  As
part of the data gathering process, detailed emission source tests were
conducted by EPA's Emissions Measurement Branch at three facilities.
These facilities are Warren Petroleum's Monument plant facility, Getty
Oil's New Hope facility and Shell Oil's Thomasville facility and are
described in Section C.I.  These facilities represent the existing
industry practice for Claus sulfur recovery technology, for the size
range of sulfur intake (sulfur feed rate) to sulfur recovery unit, and
for the hydrogen sulfide (H2S) and carbon dioxide (C02) volume percent
ratio in the acid gas feed stream to sulfur recovery unit.  The three
facilities are described; the source testing methods used are identified;
and the detailed data obtained during the tests program are presented.
The emission source tests data that were gathered from other sources for
seven additional facilities are also described.  The data indicate a
range of sulfur recovery efficiencies expected for Claus facilities in
relation to the H2S and C02 concentrations in the acid gas feed stream
and the technology utilized.
C.I  PROCESS DESCRIPTION OF THE FACILITIES AND THE TESTS RESULTS
C.I.I  Warren Petroleum's Monument Plant Facility
     Warren Petroleum's Monument plant facility is a sour natural gas
processing facility that combines removal of associated natural gas
liquids, sour natural gas sweetening, and liquid sulfur recovery.  The
natural gas feed to the plant is produced from the surrounding wells.
First, the natural gas liquids are separated, and then acid gas  (H2S and
C02) in the natural gas  is separated using an ethanolamine sweetening
                                 C-l

-------
unit.   The acid gas from the sweetening unit is delivered to a Claus
sulfur recovery plant.   In the Claus process sulfur is recovered from
the acid gas via a vapor phase catalytic reaction.   The natural  gas
processed at the facility has a higher concentration of C02 than H2S,
and since both are removed by the sweetening unit,  the acid gas feed  to
the Claus plant is relatively dilute in H2S content (about 24 percent by
volume H2S in the acid gas feed during the test period).  The facility
was treating approximately 19.9 Nm3/s sour natural  gas (60.7 MMscf/day)
and was producing an average of 18.3 Mg/d liquid sulfur (18 LT/D) during
the test period.  A simplified flow diagram for the facility is shown in
Figure C-l.  The Claus plant is a three-stage catalytic unit.  Liquid
sulfur from the Claus plant is collected in a below-ground storage tank
and sold.  The Claus plant tail gas is routed to an incinerator, where
any remaining H2S and other reduced sulfur compounds  in the tail gas are
oxidized to S02 prior to  release into the atmosphere.
     Testing of the Claus plant incinerator stack  gas was performed  to
determine  the level of  S02, H2S, and total reduced sulfur  (TRS) emissions.
In addition, the  liquid sulfur production rate was monitored  in order to
determine  the sulfur recovery efficiency of the Claus plant.  Table  C-l
lists  the  various parameters measured  during the testing as well as  the
sampling  and analysis methods used  to  measure  these parameters.
     The  test  results for the S02,  H2S, and TRS concentration levels are
summarized in  Table C-2.  Table C-2 also presents  liquid sulfur production
rates,  S02 (including TRS expressed as S02) emission  rates and  sulfur
recovery  efficiencies for the  Claus plant  during the  testing period.
Figure C-2 graphically  presents  sulfur recovery efficiency,  stack  S02
 (including TRS) emission rate,  and  liquid  sulfur production on a daily
basis  for the  testing period.   Table C-3  presents  information on the
daily  average  velocity, temperature,  composition,  and actual  flow  rate
of the incinerator stack gas,  and Table C-4 presents  daily S02, H2S  (as
 S02)  and TRS (as S02)  emission rates.   The NOX test results are summarized
 in Table C-5,  and the  normal plant operating conditions during the test
 period are summarized in Table C-6.
      Claus plant sulfur recovery efficiency for the facility was calculated
 based upon the following procedure:
                                  C-2

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      Table C-l.   SAMPLING/ANALYSIS PARAMETERS AND METHODOLOGY
            AT WARREN PETROLEUM'S MONUMENT PLANT FACILITY
Measured parameter
    Methodology
Stack gas volumetric flow rate
Stack gas dry molecular weight
Stack gas moisture content (H20)
Stack gas sulfur dioxide (S02)
Stack gas nitrogen oxides (as N02)
Stack gas hydrogen sulfide (H2S)
Stack gas total reduced sulfur  (TRS)'
Liquid  sulfur production
EPA Method 2
EPA Method 3
EPA Method 4
EPA Method 6
EPA Method 7
EPA Method 11
EPA Method 16A
No reference method
 Includes  H2S,  carbon  disulfide  (CS2)  and  carbonyl  sulfide  (COS).
                               C-4

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           Table C-4.  DAILY aS02) H2S (AS S02) AND TRS (AS S02)
                     EMISSIONS DURING THE TEST PERIOD

Test
date
(1981)
_.
3/5
3/6
3/7
3/8
3/9
3/10
3/11
3/12
3/13
3/17
3/18
3/19
3/20
3/21
3/22
3/23
3/24
3/25
3/26
3/27
S02 emission
kg/h lb/h
78.0
83.0
87.6
90.9
82.1
75.3
71.8
62.0
99.2
85.3
83.9
72.7
80.6
89.4
87.3
79.9
84.7
84.0
64.4
76.7
172.0.
182.9
193.1
200.4
181.0
165.9
158.3
136.6
218.8
188.0
184.9
160.3
177.7
197.0
192.5
176.2
186.7
185.1
142.0
169.2
H2S emi
kg/h
<0.02
<0.02
<0.02
<0.02
<0.02
<0.02
<0.02
<0.03
0.05
<0.02
<0.02
<0.02
<0.02
<0.03
<0,02
<0.02
<0.02
<0.02
<0.02
<0.02
ssion
Ib/h
<0.05
<0.05
<0.05
'<0.05
<0.05
<0.05
<0.05
<0.06
0.10
<0.05
<0.05
<0.05
<0.05
<0.06
<0.05
<0.05
<0.05
<0.05
<0.05
<0.05
TRS emission
kg/h Ib/h
c
0.5 1.1
0.9 1.9
0.7 1.6
c
0.5 . 1.1
1.2 2.7
0.6 1.4
0.5 1.2
c
0.5 1.1
0.8 1.7
0.6 1.3
c
1.1 2.5
0.8 1.8
0.6 1.3
0.4 0.9
0.5 1-0
0.4 0.8
aH2S and TRS not included.
Includes H2S, COS and CS2-
cNot available.
                                     C-8

-------
        Table C-5.  DAILY NO  TEST RESULTS AND STACK EMISSIONS
Test
Date
(1981)
3/5
3/6
3/7
3/8
3/9
3/10
3/11
3/12
3/13
3/17
3/18
3/19
3/20,
3/21
3/22
3/23
3/24
3/25
3/26
3/27
Test
period
Concentration
range (ppm)
6.3 -
1.4 -
3.0 -
10.1 -
8.5 -
9.4 -
10.0 -
13.7 -
9.4 -
11.1 -
9.7 -
13.2 -
11.4 -
b
10.7 -
13.7 -
10.8 -
8.6 -
9.3 -
10.8 -
1.4 -
11.6
4.7
8.5
10.9
10.0
11.2
11.7
14.4
10.3
13.0
11.2
18.1
13.4
b
13.9
14.3
12.2
12.5
10.8
12.0
18.1
Average
concentration
(ppm)
8.7
<4.1
5.3
10.6
9.0
10.7
10.7
14.0
9.7
12.1
10.5
15.3
12.5
b
12.3
14.0
11.5
9.9
12.0
11.3
10.1
Average N0x
emissions
kg/h Ib/h
0.15
<0.07
0.10
0.17
0.14
0.17
0.17
0.23
0.16
0.20
0.19
0.25
0.20
b
0.21
0.24
0.20
0.17
0.20
0.20

0.32
<0.15
0.21
0.38
0.31
0.38
0.37
0.50
0.36
0.44
0.41
0.55
0.45
b
0.46
0.52
0.44
0.38
0.44
0.43
11.04
 NO   expressed as  N02.
5 x
 Sample not taken.
                                  C-9

-------
        Table C-6.   WARREN PETROLEUM'S MONUMENT PLANT FACILITY
              OPERATING CONDITIONS DURING THE TEST PERIOD
(1) Sour natural gas volumetric flow rate to the sweetening unit:

         Average:  19.9 Nm3/s(60.7 MMscf/day)a
         Maximum:  20.4 Nm3/s(62.2 MMscf/day)
         Minimum:  19.4 Nm3/s(59.1 MMscf/day)

(2) Concentration of H2S in sour natural gas entering the sweetening
    unit (volume basis):
         Average:
         Maximum:
         Minimum:
0.79%
1.03%
0.43%
(3) Acid gas volumetric flow rate to the Claus unit:
         Average:  0.70 Nm3/s(2.12 MMscf/day)
         Maximum:  0.75 Nm3/s(2.29 MMscf/day)
         Minimum:  0.67 Nm3/s(2.04 MMscf/day)

(4) Acid gas composition  (dry volume basis):
         Average:
         Maximum:
         Minimum:
H2S%

24.0
24.5
22.5
CO 2%

76.0
75.5
77.5
 (5)  Catalyst  bed temperatures  (average):
                           Inlet
          1st Reactor
          2nd Reactor
          3rd Reactor

 (6) Catalyst weights:
          Reactor Bed #1
          Reactor Bed #2
          Reactor Bed #3
     478  K  (400°F)
     478  K  (400°F)
     478  K  (400°F)
          Outlet

       587 K (596°F)
       493 K (427°F)
       480 K (405°F)
           6,804 kg  (15,000  Ibs)
           8,165 kg  (18,000  Ibs)
           6,804 kg  (15,000  Ibs)
 (7) Dates catalyst beds changed:
                     Bed #1   August 1980
          Bed #2 and Bed #3   March 1977
                               (continued)
                                  C-10

-------
                          Table C-6.   Concluded
 (8) Catalyst life expectancy:
          3 years to 5 years
 (9) Design sulfur recovery efficiency :
          94.7%
Standard conditions:   288.7 K (60°F), 1.01035 x 10s Pa(29.92 in.  Hg).
                                   C-ll

-------
(1)  FLOW RATES


     o  Actual cubic meter per second (ACMS)


     ACMS = Velocity x Stack Cross Sectional Area


     Example:  Based on average values of the test dated March 7
     ACMS = 6.8
     ACMS =10.4 m3/s


     o  Dry standard cubic meter per second (DSCMS) @ 288.7 K (60°F) and

          1.01035 x 105 Pa (29.92 in. Hg)


                                               -•  -i T            mole
     ncpMc - APMC v Barometric Pressure   Standard Temp      i-fraction
     DSCMS - ACMS x  standard Pressure  x   Stack Temp  x    L   ^0



     Example:  Based on average values of the  test dated March 7
                                                     -0. 15)
     DSCMS = 10.4



     DSCMS =2.5 ms/s


 (2)  EMISSION  RATES


     o   Emission Rates  - S02  and TRS  (kg/h)
      _  .   .    _ .     Concentration of Compound (ppm.dry)
      Emission Rate = -  5  -   —   x
                      compound mole wt
                        molar volume
      Example:   Based on average values of the test dated March 7
™  r •   •    D 4-  - 3.640 (ppm SO?, dry)
S02 Emission Rate = -* -  iQB —  —   x


                    60 sec   60 min

                     min        h


S02 Emission Rate = 88.3 kg/h
                                                            0.064 kg S02
                                                          x  Q. 02375 m3
                                  C-12

-------
        Similarly,  for a TRS  concentration of 34 ppm dry,  the TRS Emission
        Rate  is  0.8 kg/h.
   Note:   TRS emission rates  are expressed as S02;  total  S02  emission
          rate is therefore the sum of S02 and TRS  emission rates.
   (3)   CLAUS PLANT SULFUR RECOVERY EFFICIENCY

                 ,.„.  .               Sulfur Recovered	   inno/
        Recovery Efficiency = Sulfur Recovered + Sulfur Emitted x 1UU/0

        where:
             Sulfur recovered = liquid sulfur production,  (Mg/d)
             Sulfur emitted = S02 + TRS emission rates (expressed as
                              elemental sulfur), (Mg/d)
        Example:  Based on average values of the test dated March 7
        Sulfur Recovery Efficiency =
	18.7 Mg/d	
18.7 Mg/d +   [(88.3 + 0.8) kghS°2  x  J2k 9SQ  x ^
        Sulfur Recovery Efficiency = 94.6%
                                       2
   C.I.2  Getty Oil's New Hope Facility
        Getty Oil's New Hope Facility is a sour natural gas processing
   facility that combines removal of associated natural gas liquids, sour
   natural gas sweetening, and liquid sulfur recovery.  After the natural
   gas liquids are removed, the natural gas is sweetened using a diglycolamine
   sweetening unit.  Liquid sulfur is recovered from the acid gas generated
   in  the sweetening process by a Claus sulfur recovery unit.  The natural
   gas processed at the facility contains more H2S than C02, and therefore,
   H2S concentration in the acid gas feed to the Claus plant is relatively
   high (about 55 percent by volume H2S in the acid gas feed during the
   test period).  The facility was treating approximately 8.9 Nm3/s sour
   natural gas (27.0 MMscf/ day) and was producing an average of 131.1 Mg/d
   liquid sulfur (128 LT/D) during the test period.  A simplified flow
   diagram for the facility is shown in Figure C-3.  The Claus plant is a
   dual-train, two-stage catalytic unit, with the third catalytic reactor
                                     C-13

-------
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                                                       C-14

-------
being common to both the trains.   Liquid sulfur from the Claus plant is
collected in a below-ground storage tank and sold.   The Claus plant tail
gas is routed to an incinerator to oxidize the residual H2S and other
reduced sulfur compounds to S02 prior to emission to the atmosphere.
     Testing of the Claus plant incinerator stack gas was performed to
determine the level of S02, H2S, and TRS emissions from the stack.  In
addition, the liquid sulfur production rate was monitored in order to
determine the sulfur recovery efficiency of the Claus plant.  The various
parameters measured during the testing at the facility and the sampling
and analysis methods used to measure these parameters are listed in
Table C-7.
     The test results for the S02, H2S, and TRS concentration levels are
summarized in Table C-8.  Table C-8 also presents liquid sulfur production
rates, S02 (including TRS expressed as S02) emission rates and sulfur
recovery efficiencies for the Claus plant during the testing period.
Figure C-4 graphically presents the sulfur  recovery efficiency, stack
S02  (including  TRS) emission rate, and liquid sulfur production on  a
daily basis  for the testing period.  Table  C-9 presents  information on
the  daily average  velocity, temperature, composition,  and actual  flow
rate  of  the  incinerator  stack gas  and Table C-10 presents daily S02, H2S
(as  S02)  and TRS  (as  S02)  emission rates.   The NOX  test  results are
summarized  in Table C-ll,  and the  normal plant operating conditions
during  the  test period  are listed  in Table  C-12.
      Claus  plant  sulfur  recovery  efficiency for  the facility was  calculated
based upon  the following procedure:

 (1)   FLOW RATES
      o  Actual  cubic  meter per  second  (ACMS)
      ACMS = Velocity  x Stack Cross Sectional  Area
      Example:  Based  on average values  of the test dated April  8
                                  C-15

-------
      Table C-7.   SAMPLING/ANALYSIS PARAMETERS AND METHODOLOGY
                   AT GELL OIL'S NEW HOPE FACILITY
Measured parameter
    Methodology
Stack gas volumetric  flow rate.
Stack gas dry molecular weight
Stack gas moisture content (H20)
Stack gas sulfur dioxide (S02)
Stack gas nitrogen oxides (as N02)
Stack gas hydrogen sulfide (H2S)
Stack gas total reduced sulfur  (TRS)'
Liquid  sulfur production
EPA Method 2
EPA Method 3
EPA Method 4
EPA Method 6
EPA Method 7
EPA Method 11
EPA Method 16A
No reference method
 Includes  H2S,  CS2  and  COS.
                                 C-16

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                                                       C-17

-------
                150 r
  Liquid Sulfur 140
Production, Mg/d130

                120
                110
                 700 r

   Stack S02
   Emissions     600

 (includes S02
   plus TRS),    500
      kg/lT
      Sulfur
     Recovery
96
95
    Efficiency, % 94
                              8
                              10
                                                         11
                                                12
                                      Test Date  (April  1981)
      Figure C-4   Summary of Liquid Sulfur Production, Stack SO- Emissions
        and Sulfur Recovery Efficiency at Getty Oil's New Hope Facility.
                                        C-18

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-------
           Table C-10.  DAILY aS02, H2$ (AS S0£) AND TRS  (AS S02)
                      EMISSIONS DURING THE TEST PERIOD
Test
date
(1981)
4/8
4/9
4/10
4/11
4/12
so2
kg/h
535
621
490
472
476
emission3
Ib/h
1,180
1,370
1,080
1,040
1,050
H2S
kg/h
33
39
46
19
13
emission
Ib/h
72
87
101
41
28
TRS
kg/h
63
88
46
34
41
. . b
emission
Ib/h
138
195
101
76
91
H-LS and TRS not included.
'includes H2S,  COS and CS2>
                                      C-20

-------
       Table C-ll.   DAILY NO  TEST RESULTS AND STACK EMISSIONS

Test
date Concentration
(1981) range (ppm)
4/8 <3.0 - 13.0
4/9 <3.0 - <13.0
4/10 <3.0
4/11 <3.0
4/12 <3.0
Average
concentration
(ppm)
<6.3
<6.3
<3.0
<3,0
<3.0
Average aNO
emissions
kg/h Ib/h
<0.3 <0.6
<0.3 <0.6
<0.1 <0.3
<0. 1 <0.3
<0.1 <0.3
NO  expressed as N02.
                                 C-21

-------
              Table C-12.   GETTY OIL'S NEW HOPE FACILITY
              OPERATING CONDITIONS DURING THE TEST PERIOD
(1) Sour natural gas volumetric flow rate to the sweetening unit:

         Average:  8.9 NrnVs (27.0 MMscf/day)a
         Maximum:  9.2 NmVs (28.0 MMscf/day)
         Minimum:  8.6 NrnVs (26.1 MMscf/day)

(2) Concentration of H2S in sour natural gas entering the sweetening
    unit (volume basis):
         Average:
           Range:
7%
6.5% - 10%
(3) Acid gas volumetric flow rate to the Claus unit:

         Average:  2.0 NnvVs (6.1 MMscf/day)
         Maximum:  2.1 Nm3/s (6.4 MMscf/day)
         Minimum:  1.9 NrnVs (5.7 MMscf/day)
(4) Acid gas composition (dry basis):
         Average:
         Maximum:
         Minimum:
H£S%

55.0
55.6
54.4
co2%
45.0
44.4
45.6
 (5) Catalyst bed  temperatures:
                                Inlet
     1st Train:
          1st  Reactor
          2nd  Reactor

     2nd Train:
          1st  Reactor
          2nd  Reactor
     Common Bed Reactor
          3rd  Reactor
          490  K  (423°F)
          504  K  (447°F)
               Outlet

            555 K (539°F)
            518 K (473°F)
          490  K  (422°F)          565  K  (557°F)
          505  K  (450°F)          530  K  (495°F)
          Average  of  Inlet  and  Outlet:
          500  K  (400°F)
 (6) Dates catalyst beds changed:
          1st Train (1st Reactor and 2nd Reactor)
          2nd Train (1st Reactor and 2nd Reactor)
          Common Bed Reactor

 (7) Design sulfur recovery efficiency :

          96%
                                    August 1980
                                    August 1980
                                           1972
Standard conditions:  288.7 K (60°F), 1.01035 x 10s Pa (29.92 in. Hg).

Supplied by the facility.
                                C-22

-------
     ACMS = 20.9 m3/s

     o  Dry standard cubic meter per second (DSCMS) @ 288.7 K (60°F) and
          1.01035 x 105 Pa (29.92 in.  Hg)
     ncpuo _ APMC; y Barometric Pressure   Standard Temp     i-
     DSCMS - ACMS x  standard Pressure  x   Stack Temp  x   X

     Example:   Based on average values of the test dated April 8
nqrMc - on Q
DSCMS - 20.9
1.0H363 x
                                          Pa   288.7 K
                              Q_n
                            X U u-
                         x
                         x  1-01035 x 10b Pa    725 K

     DSCMS =6.1 m3/s

(2)  EMISSION RATES

     o  Emission rates - S02 and TRS (kg/h)


     Emission Rate = Concentration of Compound (Ppm,dry) x DSCM$ x


                     Compound Mole wt
                       molar volume

     Example:  Based on average values of the test dated April 8


     S02 Emission Rate = 8,950 (ppm*),, dry) x 6 , m3/s x  0.064^ SO,


                         60 sec   60 min
                           min  x   h

     S02 Emission Rate = 529.6 kg/h

     Similarly for a TRS concentration of 1,050 ppm dry, the TRS emission
rate is 62.3 kg/h.

Note:  TRS emission rates are expressed as S02 ; total S02 emission
       rate is therefore the sum of S02 and TRS emission rates.

(3)  CLAUS PLANT SULFUR RECOVERY EFFICIENCY

              __,. .               Sulfur Recovered _   -,nno/
     Recovery Efficiency = sulfur Recovered + Sulfur Emitted x 10CU
                                 C-23

-------
       where:
             Sulfur recovered = liquid sulfur  production,  Mg/d
             Sulfur emitted = S02  + TRS emission  rates  (both  expressed  as
                              elemental sulfur),  Mg/d
        Example:   Based on average values of the  test dated April  8
        Sulfur Recovery Efficiency =
            _ 147.0 Mg/d
147.0 Mg/d +  [(529.6 kg/h S02+62.3 kg/h TRS) x

                                                         1>00  kg
                                                                          x 100%
     Sulfur Recovery Efficiency = 95.4%

C.I. 3  Shell Oil's Thomasville Facility
     Shell Oil's Thomasville facility is a sour natural gas processing
facility engaged in sweetening of the sour gas and recovering sulfur
from the acid gas generated in the sweetening operation.  As the gas is
dry, no liquids are associated with the gas.  Natural gas feed to the
plant is produced from six local gas wells.  The gas is sweetened in a
Sulfinol sweetening unit.  The Sulfinol unit was treating about 28.5 NmVs
sour natural gas (87 MMscf/day) during the test period.  The acid gas
stream from the Sulfinol unit  is relatively rich in H2S (about 84.4 percent
by volume H2S in the acid gas  feed during the test period).  The acid
gas stream  is fed to a Claus sulfur recovery plant.  The Claus plant was
producing an average of  1,174  Mg/d liquid  sulfur (1,155 LT/D) during the
test period.  A simplified flow diagram of  the facility is  shown in
Figure C-5.  ,The Claus plant  is a three-stage catalytic unit.  A portion
of the acid gas feed stream bypasses  the  reaction  furnace  and is used  to
fuel the  three  in-line burners (for the purpose of reheating).   Liquid
sulfur from the Claus plant is collected  in a below-ground storage  tank
and  sold.   The  Claus plant tail  gas  is  routed to an incinerator  to
oxidize  any residual H2S and  other  reduced sulfur  compounds to  S02  prior
to  release to  the  atmosphere.
     Testing  of the Claus plant incinerator stack  gas  was  performed to
determine the  level of  S02, H2S,  and TRS  emissions.   In addition,  the
 liquid  sulfur production rate was monitored in  order to determine  sulfur
                                  C-24

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recovery efficiency of the Claus plant.  Table C-13 lists the various
parameters measured during the testing and the sampling and analysis
methods used to measure these parameters.
     The test results for the S02, H2S, and TRS concentration levels are
summarized in Table C-14.  Table C-14 also presents liquid sulfur
production rates, S02 (including TRS expressed as S02) emission rates,
and sulfur recovery efficiencies for the Claus plant during the test
period.  Figure C-6 graphically presents sulfur recovery efficiency,
stack S02 (including TRS) emission rate, and  liquid sulfur production on
a daily basis for the test period.  Table C-15 presents the daily average
velocity, temperature, composition and actual flow rate of the incinerator
stack gas and Table C-16 presents daily  S02,  H2S  (as S02) and TRS (as
S02) emission rates.  The NOX test results are summarized in Table  C-17.
Table C-18  lists normal  plant operating  conditions during the test
period.   In  addition, Table  C-19  shows a comparison of the test results
obtained  by  the  EPA/Emissions Measurement Branch  and the results of the
tests conducted  at the same  time  by the  company's operations support
group trailer  laboratory.
     Claus  plant sulfur  recover efficiency  for the facility was calculated
based  upon  the  following procedure:
 (1)   FLOW RATES
      o     Actual  cubic meter per second  (ACMS)
      ACMS = Velocity x Stack Cross  Sectional  Area
      Example:   Based on  average values of the test dated May 12
      ACMS = 23.0
                                    x n
      ACMS = 151.5 m3/s
      o    Dry standard cubic meter per second (DSCMS) @ 288.7 K (60°F)
           and 1.01035 x 10s Pa (29.92 in. Hg)
                     Barometric Pressure v Standard Temp
      DSCMS - ACMS x  stancjard Pressure
Stack Temp
                                                         x
   mole
1-fraction
   H20
                                   C-26

-------
        Table C-13.   SAMPLING/ANALYSIS  PARAMETERS  AND  METHODOLOGY
                   AT SHELL OIL'S THOMASVILLE FACILITY
    Measured parameter
  Methodology
Stack gas volumetric flow rate
Stack gas dry molecular weight
Stack gas moisture content (H20)
Stack gas sulfur dioxide (S02)
Stack gas nitrogen oxides (as N02)
Stack gas hydrogen sulfide (H2S)
Stack gas total reduced sulfur (TRS)a
Liquid sulfur production
EPA Method 2
EPA Method 3
EPA Method 4
EPA Method 6
EPA Method 7
EPA Method 11
EPA Method 16A
No reference method
 Includes H2S, CS2 and COS.
                              C-27

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-------
        Liquid Sulfur
      Production, Mg/d
    Stack S02 Emissions

(includes S02 plus

          kg/h
    1250



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    1100

    3500


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                         97
       Sulfur Recovery
        Efficiency,  %
                         96 -
                                 12      13      14      15

                                     Test Date  (May 1981)
                                            16
      Figure C-6.
Summary of Liquid Sulfur Production, Stack S02 Emissions,
and Sulfur Recovery Efficiency at Shell  Oil's
            Thomasville Facility.
                                      C-29

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             Table  C-16.   DAILY S02,  H2S (AS S02)  AND TRS (AS S02)
                       EMISSIONS DURING THE TEST PERIOD

Test
date
(1981)
5/12
5/13
5/14
5/15
5/18
S02 emi
kg/h
3,103
3,239
3,048
2,985
3,375
ssion3
Ib/h
6,840
7,140
6,720
6,580
7,440
H2S
kg/h
6.5
12.8
16,1
7.1
9.8
emission
Ib/h
14.4
28.2
35.4
15.6
21.6
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kg/h
65.3
111.6
114.3
84.4
100.7
ssion
Ib/h
144
246
252
206
222
 H2S  and TRS  not  included.
'includes H2S,  COS  and CS2.
                                      C-31

-------
Table C-17.  DAILY NOV TEST RESULTS AND STACK EMISSIONS
                     /\
Testi ng
date
(1981)
5/12
5/13
5/14
5/15
5/18
aNO expressed
y\
Concentration
range (ppm)
<3.0-6.2
<3.0
<3.0-3.7
<3.0-4.7
<3.0-5.4
as N02.
Average
concentration
(ppm)
<4.2
<3.0
<3.2
<3.7
<3.8

Average
N0x
emissions
kg/h Ib/h
<1.0 <2.3
<0.8 <1.7
<0.8 <1.7
<0.9 <2.0
<1.0 <2.1

                            C-32

-------
             Table C-18.   SHELL OIL'S THOMASVILLE FACILITY
              OPERATING CONDITIONS DURING THE TEST PERIOD
(1) Sour natural  gas volumetric flow rate to the sweetening unit:
         Average:   28.5 Nm3/s(87.0 MMscf/day)a
         Maximum:   28.7 Nm3/s(87.7 MMscf/day)
         Minimum:   28.5 Nm3/s(86.8 MMscf/day)

(2) Concentration of H2S in sour natural gas (combined from all  the six
    wells) entering the sweetening unit:  (% H2S from the individual
    gas wells ranges from 28.8% to 45.3%)
         Average:   35.1%

(3) Acid gas volumetric flow rate to the Claus unit:

         Average:   11.9 Nm3/s(36.4 MMscf/day)
         Maximum:   12.2 Nm3/s(37.1 MMscf/day)
         Minimum:   11.8 Nm3/s(36.1 MMscf/day)
(4) Acid gas composition (dry basis):


         Average:   84.4
         Maximum:   85.4
         Minimum:   84.0

(5) Catalyst bed temperatures (average):
                          Inlet
                                       co2%
                                       15.6
                                       14.6
                                       16.0
         1st Reactor
         2nd Reactor
         3rd Reactor
                        497 K (435°F)
                        481 K (407°F)
                        479 K (403°F)
          Outlet

       603 K (625°F)
       510 K (459°F)
       486 K (415°F)
(6) Catalyst (Kaiser S-201) weights; dimensions:

         Reactor Bed #1      102,285 kg   (225,500 Ibs)
         Reactor Bed #2
         Reactor Bed #3

         Each Bed Volume
         Each Bed Diameter
         Each Bed Thickness
                             102,285 kg
                             102,285 kg

                             138.8 m3
                              12.0 m
                               1.22 m
   (225,500 Ibs)
   (225,500 Ibs)

(4,902 cubic feet)
(39.5 feet)
(4 feet)
(7) Dates catalyst beds changed:

         Bed #1, #2 and #3   April, 1979
                              (continued)
                                  C-33

-------
                         Table  C-18.   Concluded
 (8)  Individual  bed efficiency (approximate):
          Bed

           #1
           #2
           #3
Efficiency

    72%
    68%
    19%
 (9) Catalyst normal  life expectancy:
          5 years  (3 years - 5 years range)

(10) Design sulfur recovery efficiency :   97.83%

Standard conditions:  288.7 K (60°F), 1.01035 x 10s Pa (29.92 in. Hg)

Supplied by the facility.
                                    C-34

-------






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-------
     Example:   based on average values of the test dated May 12

     ncrMc - it;i c /-APMC^ v 1-011363 x 105 Pa   288.7 K   n_n ?
     DSCMS - 151.5 (ACMS) x  x.01035 x 105 Pa x  876 K  X (1 °-2

     DSCMS = 35.8 m3/s

(2)  EMISSION RATES

     o    Emission Rates - S02 and TRS (kg/h)

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                              compound mole wt
                                molar volume

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     S02 Emission Rate = 8907 (ppm SO^diy) x 35.8 ma/s x 0 064 kg S02 x
                                     10^

                              60 sec .. 60 min
                                mi n      h

          S02 Emission Rate = 3,093.4 kg/h

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     Rate is 64.8 kg/h

     Note:      TRS emission rates are expressed as S02; total S02 emission
               rate is therefore the sum of S02 and TRS emission rates.

     (3)  CLAUS PLANT SULFUR RECOVERY EFFICIENCY

          n        ....... .                Sulfur Recovered	 v inno/
          Recovery Efficiency = Su1fur Recovered + Sulfur Emitted x W0/0

          where:
               Sulfur recovered = liquid sulfur production, (Mg/d)
               Sulfur emitted   = S02 + TRS emission rates (expressed as
                                  elemental sulfur), (Mg/d)

          Example:  Based on average values of the test dated May 12

          Sulfur Recovery Efficiency =

    	1,241 Mg/d	
1,241 Mg/d + [(3,093.4 kg/h S02+64.8kg/h TRS) x g32^9^ x


          Sulfur Recovery Efficiency = 97.0%
                                                            Mg
24 h-
                                                                          x  100%
                                  C-36

-------
 C.I.4  Exxon's Blackjack Creek Facility
      The Blackjack Creek facility is a sour natural  gas processing
 facility that employs a three-stage Claus sulfur recovery plant with a
 SCOT tail  gas cleanup unit.   A simplified flow diagram for the facility
 is shown in Figure C-7.   Acid gas from sweetening unit flows  to the
 Claus plant at an average rate of 1.134 NmVs  (3.459 MMscf/day) with an
 average hydrogen sulfide concentration of 85.8 percent by volume.   The
 facility recovers approximately 105.2 Mg/d liquid sulfur (103.6 LT/D)
 and normally operates at 99.8 percent recovery efficiency.  Residual
 tail  gas from the SCOT unit  is routed to an incinerator where the  remaining
 H2S and other reduced sulfur compounds are oxidized  to S02  prior to
 emission to the atmosphere.   Table  C-20 presents  annual  stack emissions
 and sulfur recovery efficiency tests  data from 1977  through 1980 that
 were  supplied by the  facility.   Sulfur recovery efficiency  is  calculated
 as  sulfur  inlet minus  stack  sulfur  emission, divided by sulfur inlet.
 C.I.5  Shell  Oil'  Bryans  Hill  Facility5
      The Bryans  Mill  facility  is  a  Claus  sulfur recovery  facility  that
 began operation  as  a  two-stage plant  in 1962 and  was  expanded  to a
 three-stage  plant in  September 1967.   During 1975, the  average  inlet
 sour  natural  gas  flow  rate was  21.2 Nm3/s  (64.7 MMscf/day), the  average
 liquid  sulfur  production was 191 Mg/d  (188  LT/D)  and  H2S  concentration
 in  the  sour  natural gas averaged 7.8 percent by volume.   A  summary  of
 the source emission tests conducted during  1973 and  1974  is presented in
 Table C-21.  During the period  from March 1972 through June 1975, the
 H2S/C02  volume percent ratio in the acid gas feed stream  averaged 68.9/31.1
 and Claus plant  sulfur recovery efficiency  ranged from 95.20 percent to
 97.81 percent, whereas liquid  sulfur production ranged from 230.3 Mg/d
 (226.7  LT/D) to 164.6 Mg/d (162 LT/D).  Stack gas temperature  was an
average 859 K  (1086°F).  Sulfur recovery efficiency is equal to sulfur
production divided by the sum of sulfur production and sulfur  in the
Claus tail gas.
C.I.6  Shell Oil's Person Plant Facility6
     The Person Plant facility is a Claus sulfur recovery facility  that
utilizes two parallel  two-stage Claus trains with a common third-stage
reactor bed.  The plant began operations in 1962 as two-stage  unit.  A
                                 C-37

-------
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second two-stage train was placed in operation in 1965.  Third-stage
converter common to both the trains along with Glaus plant tail gas
incinerator were added in 1970-71 revisions.  During 1975, the average
sour natural gas flow rate was 11.2 NrnVs (34.1 MMscf/day), and the
average daily sulfur production was 13.9 Mg/d (13.7 LT/D).  The H2S
concentration in the sour natural gas averaged 1.12 percent by volume,
with an average acid gas feed stream H2S/C02 volume percent ratio of
20.6/79.4.  Stack gas temperature averaged 822 K (1020°F).  A summary of
the source emission tests conducted during 1973 through 1975 is presented
in Table C-22.  Sulfur production ranged from 14.4 Mg/d (14.2 LT/D) to
23.2 Mg/d (22.8 LT/D) and sulfur recovery efficiency ranged from
92.95 percent to 97.7 percent.  Sulfur recovery efficiency is equal to
sulfur production divided by the total of sulfur production and sulfur
in the Glaus tail gas.
C.I.7  Exxon's Santa Rosa Facility
     The Santa Rosa facility is a three-stage Glaus sulfur recovery
facility processing 8.4 Nm3/s (25.7 MMscf/day) sour natural gas.   The
facility produced 104.7 Mg/d liquid sulfur (103 LT/D).   Acid gas flow
rate was 1.2 Nm3/s (3.65 MMscf/day) with 77.3 percent by volume H2S in
it.  The source emission tests conducted by EPA in June 1975 indicated
sulfur recovery efficiency of 97.7 percent achieved with 80.1 percent by
volume H2S in the acid gas feed stream (typical sulfur recovery efficiency
range 96 percent to 97 percent).  The incinerator was operated at tempera-
tures of 783 K (950°F), 839 K (1050°F) and 950 K (1250°F).  Total reduced
sulfur (COS, CS2 and H2S) was reduced from 219 ppmv to 18 ppmv as the
incinerator temperature was increased from 783 K (950°F) to 950 K (1250°F).
                                8
C.I.8  Exxon's Flomaton Facility
     The Flomaton facility is a three-stage Claus sulfur recovery facility
designed to process 11.5 Nm3/s (35 MMscf/day) sour natural gas with
sulfur recovery of 135.8 Mg/d (133.7 LT/D).   The acid gas flow rate is
6.1 Nm3/s (.18.5 MMscf/day) acid gas and contains 20.6 percent by volume
H2S in it.  During the source emission test program in November 1973,
the facility recovered 130.1 Mg/d (128 LT/D) liquid sulfur with 96.7 percent
sulfur recovery efficiency.
                                 C-41

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             Table  C-22.   SHELL OIL'S PERSON PLANT FACILITY SOURCE
                             EMISSION TESTS DATA3
Liquid sulfur SQ emissionsb
Test production 2
date Mg/d LT/D Mg/d LT/D
11/06/75 21.4 21.08 3.3 3.196
3/10/75 14.4 14.16 2.0 1.926
4/10/74 18.5 18.24 1.3 1.252
4/18/73 23.2 22.82 1.1 1-066
Sulfur
recovery
efficiency, %
92.95
93.63
96.68
97.70
Supplied by the facility.
Includes TRS.
                                     C-42

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C.I.9  Aquitaine of Canada, Ltd.'s Ram River Facility
     At the Ram River facility, acid gas containing 84 percent H2S by
volume is processed by four two-stage Claus sulfur recovery units operating
in parallel.  Each of the four Claus trains is designed to recover
1,016 Mg/d liquid sulfur (1,000 LT/D).  The tail gases from these four
Claus plants are routed to two Sulfreen tail gas cleanup units.  Each
Sulfreen unit consists of three reactors, with two in adsorption cycle
and one in regeneration cycle at any given time.  This is the largest
sulfur recovery facility of its kind in Canada.  During the source
emission tests conducted by U.S. EPA in September 1974, sulfur recovery
efficiency ranged from 97.4 percent to 98.3 percent (average of 98 percent)
while sulfur intake ranging from 3568 Mg/d (3512 LT/D) to 4100 Mg/d
(4036 LT/D).
C.I.10  Chevron Standard, Ltd.'s Fox Creek Facility"
     The fox Creek facility consists of two four-stage Claus sulfur
recovery units, each with a capacity of recovering 1727 Mg/d (1700 LT/D)
liquid sulfur.  This is the largest facility of its kind in Canada.   The
acid gas feed stream containing 77 percent H2S by volume flows into each
Claus unit at an average rate of 19.7 Nm3/s (60 MMscf/day).   During the
source emission tests conducted by U.S.  EPA in November 1974, sulfur
production from each Claus unit ranged from 1784 Mg/d (1756 LT/D) to
1814 Mg/d (1785 LT/D), with sulfur recovery efficiency ranging from
98.6 percent to 98.7 percent.
10
                                 C-43

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C.2  REFERENCES
 1.
 2.
 3.
 4.
 5.
  7.
  8.
  9.
EMB Report No. 80-OSP-4.  Onshore Production of Crude Oil and
Natural Gas - Sulfur Plants, Emission Test Report, S02 testing at
the Warren Petroleum Monument Plant, Monument, New Mexico.  June 1981.
Docket No. A-80-20-A, Entry II-A-15.

EMB Report No. 80-OSP-9.  Onshore Production of Crude Oil and
Natural Gas - Sulfur Plants, Emission Test Report, S02 testing at
the Getty Oil New Hope  Plant, New Hope, Texas.  July 1981.'  Docket
No. A-80-20-A, Entry II-A-14.

EMB Report No. 80-OSP-6.  Onshore Production of Crude Oil and
Natural Gas - Sulfur Plants, Emission Test Report, S02 testing at
the Shell Oil Thomasville Plant, Thomasville, Mississippi.  July 1981.
Docket No. A-80-20-A, Entry II-A-17.

Annual stack  test reports (1980, 1979, 1978, and  1977) on the
Blackjack Creek facility located in the Jay Field, Florida, submitted
to Florida Department of Environmental Regulation by Exxon Company,
U.S.A.  New Orleans, Louisiana.  Docket No. A-80-20-A, Entry II-D-17.

Bryans Mill plant (Cass County, Texas).   Process  data and general
information (operation  and  test data  for  1975, 1974, 1973, and
1972) presented to  EPA  by Shell Oil Company in January 1976.
Docket No. A-80-20-A, Entry II-D-11.

Person plant  (Karnes County, Texas) Gas treating  and  sulfur plant
data  (operation and test data  for 1975, 1974,  and 1973) .for EPA  by
Shell  Oil  Company in January 1976.  Docket  No. A-80-20-A,
Entry II-D-11.

EMB Report No. 75-SRY-9.  Air  Pollution Emission  Test,  Emissions  •--•-
from  an  oil  and natural gas field sulfur  recovery plant  at  Exxon
Company,  U.S.A.,  Santa  Rosa plant,  Jay, Florida,  February 1976.
U.S.  EPA,  Office  of Air Quality Planning  and  Standards,  Emission
Measurement Branch, Research Triangle Park,  N.C.  and additional
information on the  Santa  Rosa  facility received  from EPA.   Docket
No. A-80-20-A,  Entry II-A-7.

Sulfur Recovery  Unit Performance Test, November  12,  1973, on Flomaton
production facility, submitted to  State of Alabama,  Air Pollution
Control  Commission  by Exxon Company,  U.S.A.,  New Orleans, Louisiana,
and composition,  flow data on  the Flomaton facility received from EPA.
Docket No.  A-80-20-A,  Entry II-A-21.

Air Pollution Emission Test, Report No.  75-SRY-6.  Source testing
 of Ram River plant sulfur recovery facility.   Aquitaine of Canada,
 Ltd., Ram River,  Alberta.   November 1975.  U.S.   EPA, Office of Air
 Quality Planning and Standards, Emission Measurement Branch, Research
Triangle Park, N.C.  Docket No. A-80-20-A, Entry II-A-6.
                                  C-44

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10.   Air Pollution Emission Test, Report No.  75-SRY-5.   Source testing
     of Fox Creek plant sulfur recovery facility.   Chevron Standard,
     Ltd., Fox Creek, Alberta.  November 6-8, 1974.   U.S.  EPA, Office of
     Air Quality Planning and Standards, Emission Measurement Branch,
     Research Triangle Park, N.C.  Docket No. A-80-20-A, Entry II-A-5.
                                 C-45

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APPENDIX D - EMISSION MEASUREMENT AND CONTINUOUS MONITORING

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D.I  EMISSION MEASUREMENT METHODS
     During the standard support study for sulfur recovery plants at crude
oil and natural gas processing facilities, three facilities were tested.
These facilities were equipped with Glaus sulfur recovery plants followed
by tail-gas incinerators fired with sweet natural gas.
     The test program at these facilities consisted of measurement of the
sulfur recovery efficiency of the sulfur recovery plant and the nitrogen
oxides emission rate.  The sulfur omission rate was determined by sampling
the incinerator exhaust stack to measure sulfur dioxide, hydrogen sulfide,
and total reduced sulfur.  EPA Reference Methods 6 and 11 (40 FR Part 60,
Appendix A) and proposed Method 16A (Federal Register, Volume 46, No. 117,
June 18, 1981), respectively, were used successfully without modification.
The exhaust gas flow rate was determined by Methods 1, 2, 3, and 4.  For
Method 3, the gas composition was analyzed using thermal conductivity gas
chromatography instead of Orsat apparatus.
     The incinerator exhaust sulfur rate was combined with the sulfur
recovery rates determined from plant  instrumentation to calculate sulfur
recovery efficiency.
     Measurements of nitrogen oxides  were performed using EPA Method 7.
     All gaseous measurements were conducted at  a single point in the
exhaust stacks because the sampling locations at these facilities were
approximately 8-10  equivalent stack diameters downstream of disturbances,
and the velocity profiles were relatively uniform.  In addition, no  glass
wool plugs were used for filtration in the gaseous sampling trains because
of the low particulate concentrations in  the exhaust  gases.
     In previous testing programs at  similar facilities in petroleum
refineries, the sulfur species in the emissions  were  measured by a different
procedure.  These  facilities were equipped with  Glaus sulfur recovery  units
and additionally with tail gas treatment  units.  The  full  test programs  are
described  in Appendix C  of the "Standard  Support and  Environmental  Impact
Statement, Volume  I:  Proposed Standards  of Performance for Petroleum
Refinery Sulfur Recovery Plants," EPA Publication No. EPA-450/2-76-016a,
September  1976.  EPA Method  15  (40 CFR Part 60,  Appendix  A), identified  as
Method 18  in the above document, was  used to determine  individual  reduced
sulfur compounds.   This  technique employs a field gas chromatograph  equipped
                                  D-2

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with a flame photometric detector.  The use of a chromatographic technique
instead of a wet chemical approach, as is in proposed Method 16A, was
advantageous because the total sulfur concentrations were lower and one of
the purposes of testing was to identify the species of sulfur.
     A potential limitation on the use of Method 16A at plants equipped
with a reduction-type tail gas treatment device would be that insufficient
oxygen is available in the exhaust gases to support complete oxidation of
reduced sulfur to sulfur dioxide prior to the sample collection in the
impinger train.  At those locations, it will be necessary to use Method 15.
0.2  PERFORMANCE TEST METHODS.
     The EPA reference test methods are available for all measurements
necessary to determine the total sulfur emissions from sulfur recovery
plants.  Process instrumentation is available to measure the additional
parameters necessary to compute the sulfur recovery efficiency achieved by
a system, and to compute the minimum required emission reduction under the
regulation.
     The format of the draft sulfur regulation is in terms of a minimum S02
emission reduction efficiency.  In addition, this minimum reduction is a
function of the total  sulfur feed rate to the sulfur recovery process and
the concentration of hydrogen sulfide in the feed.   In order to determine
the emission reduction limitation required,  these parameters must be measured
during a performance test.
     The procedures specified for the measurement of H2S concentration in
the acid gas feed are the Tutwiler^ ' procedure and process chromatography.
It is expected that all new facilities will  use one of these techniques for
routine process monitoring.   The Tutwiler procedure is a direct iodine
titration of an H2S sample in a specially designed burette.   If chromato-
graphic techniques are used, then the ASTM Recommended Practices for General
                             (2}
Gas Chromatography Proceduresv ' should be followed.   It is required that
at least one sample be collected and analyzed each hour during the performance
test period, which is  a minimum of 12 hours.   The concentration is in terms
of mole percent.
(1) "Gas Engineer's Handbook," Fuel  Gas Engineering Practices, First Edition,
    The Industrial  Press, New York 1966, p.  6-25.   Docket No."A-80-20-A,
    Entry II-I-67.
(2) ASTM Method E-260,  1973.
                                 D-3

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     All the results are averaged to determine a mean H2S concentration for
the performance test for use in the regulation equation.
     The sulfur feed rate to the recovery unit is determined by multiplying
the average H2S content by the volumetric flow rate of the acid gas stream.
Process flow meters are available to measure this flow rate and are expected
to be available at new facilities.  The meter type is not specified by the
regulation, but it should be installed and operated according to the
manufacturer's recommendations and accepted standard practices.  The volumetric
flow is expressed in terms of standard cubic feet per day.  Standard conditions
are 20°C and 760 mm Hg.  The average flow rate for the performance test
period is used with the average H2S content to calculate the average sulfur
feed rate in terms of long tons per day.
     The average sulfur feed rate and the average H2S content of the acid
gas are used in the regulation equation to determine the minimum required
S02 reduction efficiency.
     The actual S02 reduction efficiency achieved during the performance
test is determined by measurements of the stack emissions and the sulfur
production rate.  The ratio of the sulfur accumulated in the product storage
tank to the total sulfur out of the process is used as the measure of
actual recovery efficiency achieved.
     The sulfur production rate is determined by measuring the accumulation
of liquid sulfur in the product tanks.
     Process level indicators or  manual soundings are used to determine the
level of liquid sulfur in the storage tank at the beginning and end of each
test run.  Each test run is a minimum of 4 hours, and triplicate runs are
required.  The level readings are converted to mass of sulfur using the
tank geometry calibrations and the density of the liquid product.  The
change  in mass is divided by the  test run duration to obtain a sulfur
production rate.  The  individual  results from the three  runs are averaged
to obtain a mean value for use in the actual recovery efficiency equation.
     The determination of the sulfur emission rate requires the measurement
of sulfur dioxide, total reduced  sulfur compounds, and exhaust gas flow
rate.  The exhaust gas flow rate  is determined using EPA Methods 1, 2, 3,
and 4,  for traverse point selection, velocity measurement, gas molecular
weight, and moisture content, respectively.  These procedures  are applicable
to all  sources.
                                  D-4

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     The procedures used to determine the total sulfur compound concentration
will vary depending on the type control device.  The EPA Method 6 is used
to determine S02 concentration at all facilities.  For those facilities
where final sulfur removal is by an oxidation process, or where there is
more than 1.0 percent by volume of oxygen in the exhaust gas, EPA Method ISA
may be used to measure the total reduced sulfur compound concentration.
The use of this method is limited to those sources where enough oxygen is
present in the sample gas to allow oxidation of all reduced compounds to
S02 in a furnace used in the procedure.  For those control devices that
incorporate a reduction atmosphere where little excess oxygen is present in
the exhaust gas, EPA Method 15 is used to measure the reduced sulfur compound
concentration.
     The testing period for each run is a minimum of 4 hours.  For Methods 6
and 16A, the run may be one 4-hour sample, or a series of shorter samples
whose total duration is 4 hours.  If multiple samples are used, then a
time-weighted mean is computed for the run result.  For Method 15, 16 samples
spaced equally over at least a 4-hour period are required for each run.
The average for the 16 samples is computed as a run result.
     Since the stack velocity, gas molecular weight, and moisture content
are not expected to vary significantly during the run, the minimum sampling
times per run are less.  A velocity traverse is required at the beginning
and end of each run.   A moisture sample of at least 10 minutes each is
required at the beginning and end of each run.   The gas sample is either
integrated continuously over the sample run, or grab samples may be collected
and analyzed at 1-hour intervals.  The mean results of these measurements
are used to calculate a stack volumetric flow rate for each run.
     Finally, for each run the total sulfur emission rate is calculated by
adding the S02 and TRS concentrations (converted to S02 equivalents),
multiplying by the stack gas flow rate, and converting the mass result to
an elemental sulfur basis.
     The sulfur emission rate for each run is averaged for use in the
actual sulfur recovery rate equation.
     The measured sulfur emission rate and sulfur production rate are
combined in the equation:
                                    S
                              R =
                                  S + E
(100)
                                 D-5

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   where:   R = the actual  sulfur recovery rate achieved during the performance
               test (%)
           S = the average sulfur production rate during the performance
               test, Kg/hr as sulfur
           E = the average total sulfur emission rate during the performance
               test, Kg/hr as sulfur
The minimum required S02 emission reduction efficiency is calculated by:
                        Z=88.51X°-0101Y°-0125
   where:  Z = the minimum required S02 emission reduction efficiency
           X = the average sulfur feed rate to the sulfur recovery unit
               during the performance test (LT/D)
           Y = the average H2S concentration in the acid gas feed during
               the performance test (mole percent)
To determine compliance, R is compared to Z.   If R is greater than or equal
to Z, then the facility is in compliance.
     The cost of  a performance test using these procedures  is estimated to
be from $10,000 to $15,000.
D.3  CONTINUOUS MONITORING
     The draft standard requires  continuous emission monitoring of the
sulfur mass  rate  and  monitoring  devices  to measure and  record the  rate  of
liquid sulfur production  and the  temperature  of the  gas  leaving the  combustion
zone of  a  combustion  device  that  is a  continually operated  part of the
sulfur recovery  system.
     The monitoring device  for  temperature  is expected to be a  standard
thermocouple or  similar device.   Such  devices when  selected and  installed
according  to standard accepted  practices are  capable of measuring within
±1 percent,  or within ±10°F at  1000°F.
      The monitoring device  for  the rate of liquid sulfur accumulation is
 expected to be a level indicator in the product storage tank.   The resolution
 necessary to obtain a ±2  percent accuracy for this  level indicator will
 depend on the geometry of the storage tank and the relative accumulative
 rate at each facility.  The alternative of measuring the volumetric flow
 rate of liquid sulfur would also be acceptable.
      The continuous monitoring system necessary to measure the sulfur mass
 emission rate would consist of an instrument to measure the sulfur species
                                  D-6

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concentration, an instrument to measure the stack gas velocity or volumetric
flow rate, and a data processing device to combine the measurements into a
mass rate output.
     For those sources that incorporate a final flue gas oxidation in the
process unit, an S02 analyzer would be used to measure sulfur concentration.
Performance Specification 2 would be used to evaluate the instrument
performance.  Method 6 would be used to evaluate the relative accuracy of
the analyzer.
     If the sulfur recovery system does not incorporate a continually
operated oxidation device, and the sulfur species emitted are reduced
compounds, then  a total reduced sulfur analyzer would be used to measure
total sulfur  emissions.  Performance Specification 5 would be used to
evaluate the  instrument system, with EPA Method 15 used to determine relative
accuracy.
     The EPA  has not proposed a performance specification for velocity or
volumetric flow  measurement devices.  If the volumetric flow device is
considered to be an emission monitoring system, then these would be necessary
before affected  facilities would be required to install and operate these
systems for continuous monitoring purposes.  However, if the exhaust gas
flow measurement is considered to be a process parameter monitoring device,
then the precedent has been that manufacturers' specifications and nationally
accepted recommended standard practices may be cited as selection,
installation, and operation specifications.
     Instrument  systems are commercially available that are designed to
measure S02 or TRS based total sulfur mass emission rates.  At this time,
EPA has not conducted  field evaluations of these systems, and the only
information available  as to the accuracy, operability, and reliability of
these  systems are vendor information and literature sources.
     The  estimated cost of the monitoring devices  for temperature and level
indicator or  product flow rate are  about $3,000 each installed.  However,
these  devices are usually installed as standard equipment and any additional
cost attributable to the regulation would be a different data recording
system.     '
     The  estimated costs of a  sulfur mass monitoring system are  an installed
capital  cost  of  $30,000 to $40,000  and an annual operating cost  of $10,000
to $15,000/year.
                                  D-7

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    SULFUR RECOVERY STUDY
ONSHORE SOUR GAS PRODUCTION FACILITIES
                 APPENDIX E
                 July 1981
                   E-l


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                        SECTION 1  (SECTION E-l)
                             DESIGN BASIS
INTRODUCTION

This study was prepared for the development of New Source Performance
Standards for S02 emissions from Onshore Natural Gas Production Facilities.
This report provides investment costs, direct operating cost data,  process
descriptions, process flow diagrams, and atmospheric emissions for 39 cases
with different sizes and combinations of sulfur recovery and tail gas
processes.  For explanations of process names and abbreviations used,
refer to Definitions in this section.
                                      E-2

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DESIGN CRITERIA AND ASSUMPTIONS

Listed below are assumptions used  for design  criteria  and  cost  estimating for
this study:

      (1)  Barometric pressure is  14.7  psia.

      (2)  Acid gases are available  at  100°F  and 24.7  psia,  saturated with
           water, and contain 0.5  vol % methane (wet basis).

      (3)  Steam  is produced at  250, 50, and  15 psig from the Glaus units.

      (4)  Thermal  oxidizers are operated at  1,200°F with 25% excess air (to
           reduce H2S content below 10  ppmv).

      (5)  For  cases with waste  heat boilers  associated with thermal
           oxidizers, steam is  produced at 250 psig for the 100-LT/D cases
           and  at 600 and 250 psig for  the 555- or 1,000-LT/D cases.

      (6)  Treated,  deaerated boiler feedwater is available at 320 psig and
           230°F.

      (7)  Cooling  water is available at 85°F and is returned at 110°F.

      (8)  Stack heights vary from 100 to 600 ft depending on the quantity of
            sulfur dioxide emissions (see Tables 1-1, 1-2, and 1-3); stack
           height was  set to achieve approximately uniform levels of
           ground-level S02 concentration.

       (9)   Investment  costs are based  on January 1981 Gulf Coast prices.

      (10)   In the BSR (hydrogenation)  sections, steam is  produced  in  the
            100-LT/D units at 50 psig and in  the 555- or 1,000-LT/D units  at
            450 and 50  psig.

      (11)   For the cases with 1,000-LT/D sulfur input  feeding  acid  gas  with  a
            50/50 H2S/C02 ratio, the plants are  approximately the maximum
            economical size and weaker  gases  would  require building  two
            trains.  In order to keep all  cases  in only  one train,  the  maximum
            sulfur input with 20/80  H2S/C02 acid gas feed  is 555 LT/D.
            These plants are about the  same physical size  as the 1,000-LT/D,
            plants with  50/50 H2S/C02 acid  gas  feed.
                                      E-3

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DEFINITIONS
The following list provides definitions, terminology, and abbreviations used
in this report.
        the nyd"gena?ion reaction is generated within the process.
















  Gas Components :
            H2S
            S02
            02
            N2
            CO
            co2
            cos
            cs2
            H20
Hydrogen Sulfide
Sulfur Dioxide
Oxygen
Nitrogen
Carbon Monoxide
Carbon Dioxide
Carbonyl Sulfide
Carbon Disulfide
Water
  Lb Mols/Hr: The  pounds  per  hour  divided  by the molecular weight  of  the
     component•
   LT/D:  Long tons (2,240 pounds) per day.
   MDEA:  Methyl diethanolamine, used in aqueous solution to absorb H2S and
      part of the C02 from gas.

   MM: Millions.
                                       E-4

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SCOT: A process proprietary to Shell Oil Company. It is believed similar to
   BSR/MDEA, and published literature indicates use of extraneous hydrogen
   for the hydrogenation reaction.

Selectox: A catalyst developed by Union Oil Company of California which
   oxidizes H2S directly to elemental sulfur and in a temperature range
   substantially lower than required for uncatalyzed oxidation.

Sour Gas: Natural gas containing H2S. When the H2S and usually the  C02
   are absorbed and stripped from the hydrocarbons in any  of  various  treating
   units, the stripped gas containing the H2S and C02 is called acid  gas.

Thermal Oxidizer: A combustion chamber for converting all  sulfur compounds  in
   the tail gas to S02 by burning the required amount of fuel. These  are
   sometimes called incinerators.

Vol. ppm or ppmv: The parts per million of a component on  a volume  basis.
                                      E-5

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FEED GAS COMPOSITIONS




The feed gas (acid gas)
                                    in pound mols per hour for all the cases
       rs^^
Icid gas; some physical solvents  (e.g.,  Selexol) produce dry acid gas.
                                       E-6

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STACK HEIGHTS

The sulfur emissions as SC>2 in vol  % and  in  Ib/hr  are  provided for each of
the cases, along with the assumed stack heights, in Tables 1-2, 1-3, and 1-4.

These stack heights were determined from  experience to roughly approximate
the same ground-level concentration of S02 for  all cases.

In the various tables under "Thermal Oxidizers", the BSRP  cases state No*
with a footnote: *Combustor only. At the  top of the Stretford section
absorber, there is a combustor for  emergency use only with a stack above the
combustor. The elevation at the  top of this  stack  varies from about 100 to
150 ft above grade depending  on  the size  and location of the unit.

The sulfur emissions are end  of  run. The  vol %  concentrations can be
converted to parts per million (ppmv) by  multiplying by 10,000. The Ib/hr of
S02 can be converted to LT/D  of  S02 by multiplying by 0.0107.
                                      E-7

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                             Table 1-1 (Table E-l)
            Onshore Sour Natural Gas  Sulfur Recovery Study for TRW
                            Feed Gas Compositions
H2S/C02 Ratio        80/20
Sulfur Input, LT/D

Case No.

Mols/hr

H2S
C02
     Total
H20
H2S/C02 Ratio
Sulfur Input, LT/D
Case No.

Mols/hr

H2S
C02
CH4
H20
    * "Total
                                                      50/50
1,000 5 10
19 1,3 5,7
2,911.2 14.56 29.11
727.8 14.56 29.11
19.0 .15 .30
146.3 1.17 2.34
3,804.3 30.44 60.86
20/80
5 10 100 555
10, 10B, 21,24
6,6B,8 12,14, 27,
2,4 & 8B 16, 18 30,33
14.56 29.11 291.1 1,615.7
58.24 116.44 1,164.4 6,642.8
.38 .76 7.6 42.2
2.93 5.85 '58.5 324.8
76.11 152.16 1,521.6 8,445.5
100 1,000
9,11,13 20,23,26
15 & 17 29 & 32
291.1 2,911.2
291.1 2,911.2
3.0 30.4
23.4 234.1
608.6 6,086.9
12.5/87.5
5 10 100
6A,6C, 10A &
4A 8A & 8C IOC
14.56 29.11 291.1
101.92 203.77 2,037.7
.61 1.22 12.2
4.68 9.36 93.6
121.77 243.46 2,350.4
                                       E-8

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                            SECTION 2 (SECTION E-2)

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EMISSIONS AND INVESTMENT COSTS

The emissions for the various cases  are provided  as  outlined below.
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 Tables 5-4,  5-5, and 5-6
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                             SECTION 3  (SECTION E-3)

                           SULFUR RECOVERY PROCESSES
RECYCLE SELECTOX PROCESS DESCRIPTION

The Selectox catalyst enables H2S to be oxidized to  sulfur with  air  at  low
temperature, eliminating the need for high-temperature  combustion  as in the
Glaus Sulfur Recovery Process.

When supplied with the proper amount of air,  the oxidation of  one-third of
the H2S ?o S02 and reaction with the remaining  two-thirds of H2S occur
simultaneously" in the presence  of the Selectox  catalyst to form  elemental
sulfur:
                         H2S + 3/2 02-
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                         2H2S + S02-
effective overall reaction is therefore:
                         3H2S + 3/2 02-
                                               r H20

                                               2H20
                                                3H20
 The process is called Selectox when the acid gas feed strength is 5/, H2S or
 less! The exothermic reaction with 5% gas results in a reasonable maximum
 reactor outlet temperature. After the Selectox reactor, the gas is cooled in
 & sulfur condenser, which produces steam and condenses sulfur.

 When the acid gas feed contains more than 5% H2S, some of  the cooled lean
 gaTfrom the sulfur condenser is reheated and recycled to  the Selectox
 factor inlet to maintain approximately 5% H2S at the reactor inlet. This
 process is called Recycle Selectox.

 Gas  from the sulfur condenser proceeds through one  or two  Glaus  stages ,  each
 with a reheater, converter,  and  sulfur condenser.

 The  Recycle Selectox  2-Stage Process,  shown  in Figure  3-1, has  one Selectox
 and  one  Glaus  stage.  The Recycle Selectox 3-Stage  Process   illustrated  in
 Figure  3-2, is  identical but has a second Glaus  stage  added.
  The system for the Selectox and the Glaus reactors is the              .
  to the desired inlet temperature , reaction in a converter , and cooling the
  gas and condensing sulfur in a condenser. The condensers produce low-pressure
  steam.

  The first industrial plant using Recycle Selectox is in an advanced state of
  construction and is expected to start operation about November 1981. Selectox
  catalyst has been proven in 3-1/2 years of operation in a relevant industrial
  plant.                              E_16

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-------
GLAUS PROCESS DESCRIPTION

The Glaus reaction consists of combining 2 mols of H2S with  1 mol  of  S02
to form elemental sulfur:
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2H20
                                 (1)
Normally, for gases rich in H2S  (50% to 80%),  in  the  so-called  Glaus
Process the acid gas is burned with the proper amount of  air  to oxidize
one-third of the H2S to make the  required  amount  of S02 to  combine  the
remaining two-thirds to create the following reaction:
                        H2S +  3/2  02-
-**-S02 + H20
                          (2)
This makes a high enough  temperature  to  trigger  the  reaction thermally.
However, when acid gas  is weak  in H2S, such as in the cases  with
H2S/C02ratios of 20/80  and  12.5/87.5, the  C02 dilution makes the
temperature in the reaction furnace too  low.  A sulfur-burning modification is
therefore used to make  the  required S02  by burning recovered sulfur in the
reaction furnace:
                              S -4- 02-
   -S02
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The preheated  acid  gas  containing all of the H2S goes directly to the first
converter, where  it reacts  with the S02 made in the reaction furnace. The
first  converter  is  followed by one or two additional converters.

The Glaus  2-stage process is illustrated in Figure 3-3. The acid gas flows
through  a  knockout  drum to  trap entrained liquid or slugs. The gas enters the
reaction furnace  along  with air, which is ratio-controlled to burn one-third
of  the H2S to  form  S02. The gases are cooled in the reaction cooler,  -
which  produces high-pressure steam, and are further cooled in Condenser 1,
which  produces low-pressure steam. Sulfur is condensed and flows through a
seal into  the  sulfur pit.'The gas is heated in Reheater 1, flows through
Converter  1  and  through Condenser 2. This constitutes the first catalytic
Stage. The second catalytic stage is identical. The sulfur collected from all
three  condensers flows  into the sulfur pit.

The Glaus  3-stage process,  shown in Figure 3-4, is identical to the 2-stage
process  in Figure 3-3 plus the addition of a reheater, a converter and a
condenser.

The Glaus  sulfur-burning 2-stage process, shown in Figure 3-5,  is the same as
-the'2-stage process in Figure 3-3, except that sulfur instead of acid gas is
burned in  the reaction furnace, and the acid gas is preheated and goes to
 Converter  1.

 The Glaus  sulfur-burning 3-stage process, shown in Figure 3-6,  is identical
 to the 2-Stage process in Figure 3-5 plus the  addition of a reheater, a
 converter and a condenser.
                                      E-19

-------
The acid gas preheatcrs are usually heated by steam. The reheaters can be
either auxiliary burners, which heat the process gases with either acid gas
or fuel gas, or steam-heated shell-and-tube units.
                                      E-20

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                            SECTION 4 (SECTION E-4)

                              TAIL GAS PROCESSES
THERMAL OXIDIZERS. WASTE HEAT BOILERS. AND  STACKS

The two types of arrangements for burning the  combustibles  in tail gases to
convert all sulfur compounds and sulfur vapor  into  S02 are  shown in
figure 4-1. The combustion  takes place with 25% excess air  and the addition
of the required amount  of fuel  gas  to maintain a temperature of 1.200 F. This
temperature is considered necessary to ensure  that  the stack gases will
contain less than  10 ppm of H2S.

For Cases  1 and 2, which have no  sulfur  recovery,  the acid  gas is thermally
oxidized directly with no  fuel  gas  required. It is  necessary to use more than
25% excess air  to  limit the stack temperatures to 1,500 F.

For small  plants, which have no waste heat recovery such as in Cases 1
through 8c!  the thermal oxidizer  is in the base of the stack. The stack
provides more  than sufficient residence time for completion of reactions.
This  is shown  on the left  side of Figure 4-1.

For  all other  cases, except BSRP Cases 13,  14,  26, and 27, which  only  require
In emergency comS"tor, the scheme shown on the right  side  of  Figure 4-1 is
 used! The thermal oxidizer must have sufficient residence  time  to ensure
 achieving complete  combustion  before entering  the waste  heat  boiler where  the
 gambling cooled. Because the pressure  drop through the  waste  heat  boiler
 Imposes a sfight pressure  on the thermal oxidizer, an air  blower  is  required.
                                        E-25

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BSR/MDEA PROCESS DESCRIPTION

The flow diagram for the BSR/MDEA Process is provided in Figure  4-2.  The  BSR
or hydrogenation section is identical to the corresponding  section  in the BSR
Process, except that: it is somewhat larger to handle the recycled gas.

In the BSR section the sulfur recovery unit tail gas is heated to reaction
temperature in the reducing gas generator by mixing it with the  products  of
combustion of fuel gas and air. Some hydrogen and  carbon monoxide are formed
to supplement the hydrogen in the tail gas. The gas enters  the hydrogenation
reactor, where all sulfur compounds (S02, &*, COS, CS2> are converted
to H2S, and is then cooled in the reactor effluent cooler,  which produces
steam. The gas is further cooled in the contact condenser by evaporating
water in the lower section and condensing and cooling  in the upper  section.

The cooled gas enters the MDEA absorber, where essentially  all of the H2S
and some of the C02 are absorbed by cool MDEA solution, which enters  at the
top. The gas, containing a small amount of H2S, goes to the thermal
oxidizer, waste heat boiler  and stack.

The rich MDEA from the bottom of the absorber is  preheated  by lean  MDEA and
fed to the MDEA regenerator, where the H2S and C02 are  stripped  from  the
MDEA solution. This acid gas is recycled  to  the Claus  unit.
                                      E-27.

-------

-------
BEAVON SULFUR REMOVAL PROCESS (BSRP) DESCRIPTION

The flow diagram for the Beavon Sulfur Removal Process  (BSRP)  is  shown in
Figure 4-3. The process consists of the BSR or hydrogenation section and the
Stretford section.

In the BSR section, the sulfur recovery unit  tail  gas is  heated to  reaction
temperature in the reducing gas generator by  mixing  it  with the products of
combustion of fuel gas and air. Some hydrogen and  carbon  monoxide are formed
to supplement the hydrogen in the tail gas. The gas  enters the hydrogenation
reactor, where essentially all sulfur compounds (S(>2» Sx, COS, C§2) are
converted to l^S, and is then cooled in the reactor  effluent cooler,  which
produces steam. The gas is further cooled in  the contact  condenser  by
evaporating water in the lower section and condensing and cooling in the
upper section.

In the Stretford section the cooled hydrogenated gas is contacted in a
venturi scrubber and an absorber, where the H2S is absorbed in an oxidizing
alkaline solution. The I^S is converted to elemental sulfur by the
oxidizing agents in the solution. The solution is  regenerated  by  contacting
with air in the oxidizer tank where sulfur is floated off as a slurry. After
separating the sulfur from the chemicals by filtering or  centrifuging, with
water washing, it is reslurried with wash water and  heated to  melt  the
sulfur. The molten sulfur flows from the decanter  to the  sulfur pit.  The
chemicals are returned to the system and the  wash  water is discarded.

The offgas from the absorber typically contains less than 1 ppm of  I^S
and, therefore, does not need to be thermally oxidized. A combustor and short
stack on top of the absorber are provided for rare occasions when the l^S
content exceeds 10 ppm.
                                     E-29

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SULFREEN PROCESS DESCRIPTION

The Sulfreen Process, shown in Figure 4-4, takes advantage of  furthering  the
Claus reaction by operating below the sulfur dewpoint of the reaction gas
mixture:
                        2H2S + SO 2-
-3S + 2H20
Liquid sulfur is adsorbed on the catalyst which  removes  it  from the  gas,
thereby allowing the  reaction  to move  further  to the right  and obtaining  a
higher conversion  than  in the  Claus  process  where the tail  gas is above the
sulfur dewpoint.

The  catalyst  is  alumina, usually the same  type used in the  Claus process.

After a period  of  operation when the catalyst  has adsorbed  its limit of
sulfur, the  reactor  enters  a closed-cycle  desorption operation, where recyle
gas  is'heated and  passed through the reactor to strip sulfur from the
catalyst,  then  through  a sulfur condenser.  This condenser cools the gas and
generates  low-pressure  steam.  Sulfur is condensed and drained to the sulfur
pit.

There are  usually three reactors,  two of which are in adsorption service
while one  is being regenerated.
                                     E-31

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BSR/SELECTOX PROCESS DESCRIPTION

The flow diagram for the BSR/Selectox Process is provided  in Figure 4-5. The
process consists of a BSR or hydrogenation section and a Selectox  section.

In the BSR section the sulfur recovery unit tail gas  is heated  to  reaction
temperature in the reducing gas generator by mixing it with the products of
combustion of fuel gas and air. Some hydrogen and carbon monoxide  are  formed
to supplement the hydrogen in the tail gas. The gas enters the  hydrogenation
reactor, where all sulfur compounds (S02> Sx, COS, CS2) are converted
to H2S, and is then cooled in the reactor effluent, which  produces steam.
The gas is further cooled in the condenser by circulating  water
countercurrent to the gas. The purpose of cooling is  to increase the
potential conversion by removing water, which is one  of the products of
reaction.

The gas from the condenser is reheated to a moderate  temperature and combined
with air, after which it enters the Selectox reactor  where the  H2S is
directly oxidized to elemental sulfur:
                        H2S -I-  1/2 02-
H20
The gas is cooled by generating  low-pressure  steam,  and the  condensed sulfur
flows to the sulfur pit. The  tail  gas  from the  sulfur  condenser goes  to a
thermal oxidizer, waste heat  boiler  and  stack.
                                     E-33


-------
E-34

-------
                            SECTION 5 (SECTION E-5)

                               INVESTMENT COSTS
INVESTMENT COSTS VS. SULFUR EMISSIONS

The total investment costs are compared with sulfur emissions  for  each  case
in Tables 5-1, 5-2, and 5-3. These investment costs are based  on January  1981
Gulf Coast prices and include all design, engineering, purchasing  of
equipment and materials, and construction costs  and contractors' fees,  but do
not include the initial charge of catalysts and  chemicals.  The investment
costs were developed separately for each sulfur  recovery  process,  tail  gas
process, and thermal oxidizer, waste heat boiler,  and  stack.  These separate
costs are provided in Tables 5-4, 5-5, and  5-6.

The costs for the initial  charge of catalysts and  chemicals are given in
Tables 5-7, 5-8, and 5-9.
                                       E-35

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-------
                            SECTION 6 (SECTION E-6)

                          DIRECT OPERATING COST DATA
UTILITIES, CATALYSTS. AND CHEMICALS

The utilities and the catalyst and chemical  costs  are  provided  in  Tables  6-1
through 6-8 for all cases except No.  1 and No.  2,  which  do not  require  any.

The utilities for each case are in two groups,  those to  be supplied  to
battery limits, which are costs, and  those exported to battery  limits,  which
are credits.

The Glaus units produce  250-,  50-, and 15-psig  steam.  The  15-psig  steam is
sometimes condensed with the energy being wasted but the condensate  being
recovered. However, it is exported to battery limits in  all  cases  as it can
be useful in preheating  or deaerating boiler feedwater.

The waste heat boilers recovering heat by cooling  hydrogenation reactor
effluent gas produce  50-psig steam for the  100-LT/D  cases  and both 450- and
50-psig steam for the 555- and 1,000-LT/D cases.

The thermal oxidizer waste heat boilers  produce 250-psig steam for the
100-LT/D cases and both  600- and  250-psig steam for  the  555- and 1,000-LT/D
cases.

Chemical costs for the Stretford  process, in industrial  experience, have
varied widely. Plant  design  has a major  effect  on such costs, especially  the
design of the sulfur  slurry  separation  section  of the  plant. Both investment
and chemical costs herein  apply  to  advanced design incorporating very
complete separations, with relatively high  investment  costs  but low chemical
costs. It will be noted  that a relatively  large error  in estimating chemical
costs has but a minor effect on overall costs.
                                       E-46

-------
                            Table 6-1 (Table E-17)

                Onshore Sour Natural Gas Sulfur Recovery Study

                         Utilities and Catalyst Costs

                       Recycle Selectox 2-Stage Process
CASE NO.                         3       4         4A         6B         6C

Sulfur Input, LT/D                 55            5       10           10
H2S/C02 Ratio                  50/50   20/80    12.5/87.5    20/80    12.5/87.5

REQUIRED FROM BATTERY LIMITS

600-psig Steam, Ib/hr            373     616       857      1,230      1,713
Treated B.F. Water, Ib/hr      1,566   1,652      1,740      3,304      3,379
Electric Power, kW                77      70         65        110        100
Fuel Gas, 106 Btu/hr            0.59     1.22       1.88       2.44       3.76

EXPORTED TO BATTERY LIMITS

50-psig Steam, Ib/hr             635     660       675     ,1,920      1,950
15-psig Steam, Ib/hr              76     144       214        288        429
Steam Condensate, Ib/hr        1,173   1,416      2,275      2,230      3,950

Catalyst Cost, $/day            4.73     4.70       4.97       9.40       9.93
                                      E-47

-------
                           Table  6-2  (Table  E-18)

                Onshore Sour Natural Gas Sulfur Recovery Study

                         Utilities and Catalyst Costs

           Claus Process - No Tail Gas or Waste Heat Recovery Units
CASE NO.

Claus - No. Stages
Sulfur Input, LT/D
H2S/C02 Ratio

REQUIRED FROM BATTERY LIMITS

600-psig Steam,  Ib/hr
Treated B.F. Water,  Ib/hr
Electric Power,  kW
Fuel  Gas,  106 x  Btu/hr

EXPORTED TO BATTERY  LIMITS

250-psig Steam,  Ib/hr
50-psig Steam,  Ib/hr
 15-psig Steam,  Ib/hr
 Steam Condensate, Ib/hr

 Catalyst  Cost,  $/day
                                       6
                  6A
                                                                 8
                                           8A
    22          2
   10     10         10
50/50  20/80  12.5/87.5
  239    848    1,302
2,560  2,894    3,095
   51     56       59
 0.95   2.34     3.72
 1,409   1,277     1,239
    0     122       221
   217     411       545
 1,096   1,848     2,302

  2.27    4.12      5.86
    3      3          3
   10     10         10
50/50  20/80  12.5/87.5
  343  1,057    1,615
2,636  3,044    3,308
   53     58       61
 1.01   2.43     3.78
 1,409   1,277     1,239
   129     364      512
   162     314      461
 1,202   2,057     2,615

  3.40    6.18      8.78
                                       E-48

-------
                            Table 6-3 (Table E-19)

                Onshore Sour Natural Gas Sulfur Recovery  Study

                         Utilities and Catalyst Costs

          Glaus Process - With Waste Heat Recovery - No Tail Gas Unit
CASE NO.

Claus - No. Stages
Sulfur Input, LT/D
H2S/C02 Ratio

REQUIRED FROM BATTERY LIMITS

Treated B.F. Water, Ib/hr
Electric Power, kW
Fuel Gas, 106 x Btu/hr

EXPORTED TO BATTERY LIMITS

600-psig Steam, Ib/hr
250-psig Steam, Ib/hr
50-psig Steam, Ib/hr
15-psig Steam, Ib/hr
Steam Condensate, Ib/hr

Catalyst Cost, $/day
          10
10A
   19
     3       33
   100     100        100
 50/50   20/80  12.5/87.5
36,650  51,770    65,230
  . 233     273       308
 10.11   24.30     37.84
20
                                                21
5,490
15,160
7,880
1,620
5,430
7,930
14,984
11,640
3,140
12,570
11,710
15,736
12,120
4,610
19,150
3
1,000
80/20
3
1,000
50/50
3
555
20/80
 34.00   61.80
87.83
        332,000  365,000  285,300
          1,676    1,876    1,275
          83.13    124.6    159.3
 65,305   89,200   44,036
169,206  151,601   83,165
 79,751  104,211   82,280
  4,043    5,400    5,800
  4,000    4,000   61,664

 266.98   339.98   343.08
                                      E-49

-------
                            Table 6-4  (Table E-20)

                Onshore Sour Natural Gas Sulfur Recovery Study

                  Utilities and  Catalyst and Chemical Costs

                            BSR/MDEA Tail Gas Cases
CASE NO.

Clsus - No. Stages
Sulfur Input, LT/D
H2S/C02 Ratio

REQUIRED FROM BATTERY LIMITS

Cooling Water (25°F Rise), gpm
50-psig Steam Required, Ib/hr
Treated B.F. Water, Ib/hr ,
Electric Power, KW
Fuel Gas,  106 x' Btu/hr

EXPORTED TO BATTERY LIMITS

600-psig Steam, Ib/hr
450-psig Steam, Ib/hr
250-psig Steam, Ib/hr
15-psig  Steam,  Ib/hr
Steam  Condensate, Ib/hr

Catalyst and  Chemical
Costs, $/day
                                      11
           12
23
                                                                     24
3
100
50/50
3
100
20/80
3
1,000
50/50
3
555
20/80
1,638
13,277
44,430
565
20.5
6,021
77,523
70,950
1,020
48.0
16,380
133,904
442,500
4,513
205
33,420
436,073
391,500
5,318
266.5
5,213

15,406
1,950
33,547
7,747
—
15,865
4,202
117,663
89,600
28,590
154,056
6,498
281,800
72,542
8,824
88-, 051
7,770
644,976
292.40    645.00   2,923.90   3,578.60
                                      E-50

-------
                             Table 6-5  (Table E-21)

                Onshore Sour Natural Gas Sulfur Recovery  Study

                         Utilities and  Catalyst Costs

                       Recycle Selectox 3-Stage Process
CASE NO.
  8B
  8C
  10B
Sulfur Input, LT/D
H2S/C02 Ratio
Waste Heat Recovery

REQUIRED FROM BATTERY LIMITS
Catalyst Cost, $/day
11.37
12.76
114.67
 IOC
10
20/80
No
10
12.5/87.5
No
100
20/80
Yes
100
12.5/87.5
Yes
600-psig Steam, Ib/hr
Treated B.F. Water, Ib/hr
Electric Power, kW
Fuel Gas, 106 Btu/hr
EXPORTED TO BATTERY LIMITS
600-psig Steam, Ib/hr
250-psig Steam, Ib/hr
50-psig Steam, Ib/hr
15-psig Steam, Ib/hr
Steam Condensate, Ib/hr
1,538
3,551
114
2.54



2,160
288
2,538
2,141
3,782
104
3.82



2,240
429
3,243

57,038
827
25.37

3,275
2,232
36,100
2,880
16,880

70,148
727
38.18

6,610
3,365
30,930
4,290
32,910
128.04
                                      E-51

-------
                            Table 6-6  (Table E-22)

                Onshore Sour Natural Gas Sulfur Recovery Study

                  Utilities  and  Catalyst and Chemical  Costs

                     Beavon Sulfur Removal Process (BSRP)
CASE KO.

Sulfur Input, LT/D
H2S/C02 Ratio

REQUIRED FROM BATTERY LIMITS

Treated B.F. Water, Ib/hr
Cooling Water (25°F Rise), gpm
Electric Power, kW
Fuel Gas, 106 x Btu/hr

EXPORTED TO BATTERY LIMITS

450-psig Steam, Ib/hr
250-psig Steam, Ib/hr
50-psig Steam, Ib/hr
15-psig Steam, Ib/hr
Steam Condensate, Ib/hr

Catalyst and Chemical
Costs,  §/day      '   -
  13
 14
26
                                                                     27
   100
 50/50
  100
20/80
1,000
50/50
  555
20/80
31,240
1,320
700
7.34
39,920
2,136
870
17.65
310,400
13,200
5,850
73.36
219,500
11,850
4,530
97.97
—
14,580
11,770
1,380
2,360
-
10,230
20,020
2,400
5,364
24,030
145,800
118,460
3,020
7,650
27,420
56,780
101,490
1,670
21,645
181.40    295.30   1,814.00   1,639.00
                                       E-52

-------
                            Table 6-7 (Table E-23)

                Onshore Sour Natural Gas Sulfur Recovery Study

                         Utilities and Catalyst Costs

                             BSR/Selectox Process
CASE NO.                             17         18

Claus - No. Stages
Sulfur Input, LT/D
H2S/C02 Ratio

REQUIRED FROM BATTERY LIMITS

Cooling Water (25°F Rise), gpm
Treated B.F. Water, Ib/hr
Electric Power, kW
Fuel Gas, 106 x Btu/hr

EXPORTED TO BATTERY LIMITS

600-psig Steam, Ib/hr
450-psig Steam, Ib/hr
250-psig Steam, Ib/hr
50-psig Steam, Ib/hr
15-psig Steam, Ib/hr
Steam Condensate, Ib/hr

Catalyst Cost, $/day                101.00      195.00
   32
33
2
100
50/50
2
100
20/80
2
1,000
50/50
2
555
20/80
186
39,383
343
15.3
388
60,028
419
37.2
1,860
393,201
2,575
153
2,153
333,282
1,913
206
8,200
-
15,066
12,800
2,170
7,227
19,178
-
15,052
19,940
4,110
17,007
82,003
23,890
150,656
119,800
5,400
32,370
106,455
27,300
83,539
100,481
5,800
86,288
1,010.00    1,082.00
                                      E-53

-------
            Table 6-8 '(Table E-24.)

Onshore Sour Natural Gas Sulfur Recovery Study

         Utilities and Catalyst Costs

               Sulfreen Process
CASE NO.

Claus - No. Stages
Sulfur Input, LT/D
H2S/C02 Ratio

REQUIRED FROM BATTERY LIMITS

Treated B.F. Water,  Ib/hr
Electric Power, kW
Fuel  Gas,  106 x Btu/hr

EXPORTED TO BATTERY LIMITS

 600-psig  Steam,  Ib/hr •
 250-psig  Steam,  Ib/hr
 50-psig Steam,  Ib/hr
 15-psig Steam,  Ib/hr
 Steam Condensate, Ib/hr

 Catalyst Cost,  $/day
                       15
 16
                                           29
                      30
3
100
50/50
3
100
20/80
3
1,000
50/50
3
555
20/80
37 , 348
365
11.9
55,737
445
26.9
372,061
2,863
119.4
307,234
2,130
149.5
6,106
15,224
7,669
1,620
5,641
11,382
15,382
11,273
3,140
12,937
95,367
152,246
102,100
5,400
6,111
63,172
85,369
80,241
5,800
63,703
                       68.00
124.00
                                           680.00
                      686.00
                         E-54

-------
       SULFUR RECOVERED

       The  average  sulfur  recovered  in LT/D for each of the cases is given in
       Tables 6-9,  6-10, and  6-11. These figures are based on the average of
       start-of-run and end-bf-run recoveries,  and are provided for applying credits
       for  sulfur sales in the  calculation of operating costs.
                                              E-55
_

-------
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OTHER DIRECT OPERATING COST DATA
CD
    The  required number of operators per  shift are:

              Case No.

    1  and  2

    3, 4,  4A, 6B, 6C,  8B, 8C,  10B,  IOC

    5, 6,  6A, 7, 8,  8A, 9, 10,  10A,  19, 20,  21

    All  others
                                                         No. Per Shift

                                                           Negligible

                                                              0.75

                                                              1.25

                                                              2.25
     Add 0.25 to all cases except 1 and 2 for shift supervision.
(2)  Values for utilities

     Steam:
          Pressure, PSIG      600
          $/l,000 Ibs         7.25

     Treated boiler feed water
     Recovered condensate
     Cooling water
     Fuel
     Electricity
     Credit for recovered sulfur
                                        450
                                        7.00
250
6.75
 50
5.75
 15
4.50
                                        $1.50/1,000  Ibs
                                        $1.25/1,000  Ibs
                                        $0.05/1,000  circulated gas
                                        $5.00/MMBtu's
                                        $0.05/KW hr
                                        $100/LT
(3)  For annual  maintenance costs assume:

     Labor
     Materials
     Operating supplies
     Overhead

     Depreciation
     Insurance
                                            of investment
                                        2% of investment
                                        10% of operating labor
                                        25% of operating and
                                          maintenance labor
                                        20 years life
                                        0.6% of investment
 (4)  Operating schedule:  24 h/d, 350 d/y.

 CAPITAL  COSTS

     The fixed-capital  costs that represent the initial investment for

 control  equipment  and installation  (including  catalyst charge) for

 39  different cases, which represent the size and acid gas ratio ranges

 in  the industry, are presented  in Table 6-12 (Table E-28).  The cases

 consider different model plant  sizes and  combinations of  sulfur

 recovery/tail gas  processes and acid gas  H2S/C02 ratios.

 ANNUALI2ED  COSTS

     The annualized costs for 39 different cases, which represent the

 size and acid gas  ratio ranges  in the industry, are presented  in

 Table 6-13  (Table  E-29).  The cases are the same as those for  which

 capital  costs were developed in Table E-28.
                                   E-59

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-------
                                APPENDIX F
        Unit natural gas production cost, UPC, (Table 9-4) equals:
1-itc -

n
t z
n
(l+d)y

!d+Ie
+ (1-t)
L
'l-rnv'l M-t + t ri»n1 \ 7
L (l+qrate)y
OM r
0 y=l (l+r)y
(l+qrate)y
UPC =
It was assumed that:
          itc = investment tax credit rate, .1
            t = corporate income tax rate on marginal  income, .47
            n = depreciation period, 10
         Dep  = ACRS depreciation rates, 10 year life
            d = nominal discount factor, .10
           1^ = drilling cost, input $
           Ie = equipment cost, input $
          OC  = annual operating and maintenance cost, input $
            L = well life, 20
        qrate = production (and operating cost) decline rate, -0.06
            r = real discount factor, .019
           Q  = annual production, input mcfy.
          roy = royalty payment rate, .2
         depl = percentage depletion allowance, .15
                                  F-l

-------

-------
             APPENDIX G - THE AMERICAN PETROLEUM INSTITUTE'S
                          GAS PLANT SURVEY DATA

     The American Petroleum Institute (API) submitted a report on their
gas plant survey containing data/information on 731 gas streams.  The
data included current (July 1982) capacity, current throughput, and gas
stream H2S and C02 concentrations for gas sweetening and sulfur recovery
operations.
     The API data were analyzed to determine the average (weighted) H2S
concentration of the sour gas streams where sulfur recovery is performed
and the average (weighted) H2S concentration of the sour gas streams
where only sweetening is performed.   This appendix presents:  (1) EPA's
analysis of the API data, (2) projections on the amount of sulfur in the
newly produced sour natural gas for the period of 1983-1987, (3) distri-
bution of the projected sulfur into sweetening and sulfur recovery
facilities,  and (4) the API Gas Plant Survey Report.
G.I  ANALYSIS OF THE API DATA
     In analyzing API's gas plant data, the gas streams (a total of
731 streams) were distributed into three categories:   (1) streams that
are naturally sweet and require no further sweetening,  (2) streams that
are sour and have sweetening without sulfur recovery,  and (3) streams
that are sour and have sweetening with sulfur recovery.   Table G-l
presents a summary of the results of the analysis that was performed on
the data.   The analysis indicates that the average (weighted) H2S
concentration in the sour gas streams without sulfur recovery is 0.2 mole
percent.   The 217 streams without sulfur recovery are  presented in
Table G-2.   The analysis also indicates that the average (weighted) H2S
concentration in the sour gas streams where sweetening and sulfur recovery
both are performed is 5.8 mole percent.   The 61 streams of this type are
presented in Table G-3.   The analysis as presented in  Table G-l also
                                 G-l

-------
indicates that about 23.2 mole percent of the present natural  gas processing
is sour and requires sweetening either with or without sulfur recovery.
The remaining 76.8 percent is already sweet and needs no treatment.
G.2  PROJECTIONS OF NEW SULFUR PRODUCTION IN THE PERIOD OF 1983-1987
     Based on the analysis of the API data summarized in Table G-l, the
following assumptions were developed to predict the projected sulfur
production and recovery from natural gas processing in the period  of
1983-1987:
     (1)  The natural gas that is produced offshore is sweet and new
          discoveries are expected to be sweet.
     (2)  An average of 25 percent of the newly discovered onshore
          natural gas during the projection  period of 1983-1987 would be
          sour,  and the remaining 75 percent would be sweet.
     (3)  An average of about 75.8 percent of  the new sour gas would be
          subjected to sweetening and sulfur recovery.  The average H2S
          concentration  in these sour gas streams would be 5.8 mole
          percent.
      (4)  An  average of  about 24.2 percent of  the new sour gas would be
           subjected to sweetening only.  The average  H2S  concentration
           in  these  sour  gas  streams  would be 0.2 mole percent.
     Total  estimated  new onshore  natural  gas production  for  the  period
 was obtained  from data supplied  by  the  American Gas  Association  (Ref. 15.-,
 Chapter 9).   This projected  gas  production was used  to  predict the
 annual total  gas throughput  for both sweetening only and sweetening with
 sulfur recovery operations;  utilizing the percentage of total  production
 presented above.  The gas throughput and average H2S concentration in
 the sour gas stream for sweetening only operations were used to predict
 the annual and total  sulfur in gas streams  from sweetening only operations
 for the 1983-1987 period.  The gas throughput and average H2S concentration
 in the sour gas stream for sweetening with  sulfur recovery operations
 were  used to predict the added new sulfur recovery capacity in the
 period.  Tables G-4 and 6-5 present the annual and total sulfur production
 and recovery figures for the 1983-1987 period.
       Table G-4  indicates that the revised fifth year (1987) projection
 of total new sulfur recovery capacity  added to the industry would be
 3,244 megagrams per day.  Table G-5  indicates that the amount of  sulfur
  removed  from the sour gas streams at plants with sweetening only  would
  total 38.9 megagrams per day by the end of  1987.
                                   G-2

-------
G.3  DISTRIBUTION OF THE PROJECTED SULFUR PRODUCTION INTO SWEETENING AND
     SULFUR RECOVERY FACILITIES
     The projection of the fifth year (1983-1987) total sulfur content
of sour gas streams with sulfur recovery, 3,244 megagrams per day, was
distributed into a number of sulfur recovery facilities of various
sulfur intake sizes (sulfur feed rates).   The size distribution for the
projection period is based on the current size distribution prevailing
in the industry.  This resulted in 30 new sulfur recovery facilities:
18 facilities of 10 megagrams per day each, 9 facilities of 102 megagrams
per day each, 2 facilities of 564 megagrams per day each and 1 facility
of 1,016 megagrams per day.  Table G-6 indicates the projected population
of new sulfur recovery facilities and their sulfur intake size distribution
for the 1983-1987 period.
     The projected fifth year (1987) total sulfur in sour gas streams
with sweetening only, 38.9 megagrams per day, was distributed into
sweetening facilities with sulfur intake sizes (rates of sulfur emerging
from the sweetening unit) ranging from less than 0.1 to 5.0 megagrams
per day.  This resulted in 37 facilities.  Table G-7 presents the projected
population of new sweetening facilities and their sulfur intake size
distribution in the 1983-1987 period.  The size distribution for the
projection period is assumed to remain the same as the current size
distribution of 5 or less megagrams per day facilities existing in the
industry.
G.4  API GAS PLANT SURVEY DATA
     A copy of the API's original report on their survey of the onshore
natural gas plant streams (731 streams) that was submitted in July 1982
to the U.S EPA is presented in Table G-8.
                                 G-3

-------
         Table G-l.   ANALYSIS OF THE API  GAS PLANT SURVEY DATA
                     ONSHORE NATURAL GAS  PROCESSING

(1)  Current total  throughput = 36.543 billion cubic feet per day
(2)  Throughput with sweetening only = 5.808 billion cubic feet per day
     Sweetening only = 15.89% of the total throughput
(3)  Throughput with sulfur recovery = 2.685 billion cubic feet per day
     Sulfur recovery = 7.35% of the total throughput
(4)  Throughput that is already sweet (no treatment needed) = 28.050 billion
     cubic feet per day
(5)  % of the onshore production that is sour =
      throughput with sweetening + throughput with sulfur recovery
                            total throughput
                         =  5.808 + 2.685
                                36.543
                         =   8.493
x 100
                            36.543
                         = 23.24%
                                   x 100
 (6)  Well-head  sweet gas  (no treatment required) = 76.76% of the total
     throughput
 (7)  Average  (weighted) H2S in the  sour  gas throughput with sweetening only
                                                       =0.2 mole percent
 (8)  Average  (weighted) H2S in the  sour  gas throughput with sulfur  recovery
                                                       = 5.8 mole percent
 3The API survey was based upon the information published  in  the  OGJ  Report
  presented in Oil  and Gas Journal, July 13,  1981,  page 94.
                                    G-4

-------
Table G-2.   ANALYSIS OF THE API's GAS PLANT SURVEY DATA -
     SOUR NATURAL GAS STREAMS WITH SWEETENING ONLYa
Plant or
stream no.
4
8
9A
37
46
47
55
71
73B
89
116
125
126L
127
128
129
130
131
133
151
152
153
167
168
169
170
Current
throughput
(thousand cubic
feet per day)
26,823
1,700
2,700
2,300
3,500
800
5,200
464
400
920,000
3,500
18,000
40,000
100,000
150,000
15,000
30,000
30,000
20,000
2,700
35,000
3,400
7,000
1,700
26,000
65,400
H2S mole
percent
0.02
2.75
2.7
0.01
0.08
0.6
0.4
0.5
0.2
0.02
0.31
0.0032
0.0016
0.004
0.004
0.004
0.004
0.004
0.004
0.068
2.0
0.03
0.25
0.002
0.0028
0.0018
Sweetening
process
DGA
MEA
MEA
IrSp
SCIS
SMCS
Amine
DEA
Amine
-
DEA
DEA
DEA
IrSp
DEA
DEA
DEA
DEA
-
MEA
Amine
DEA
DEA
MEA
DEA
DEA
Acid gas
disposal
I
F
- F
-
-
-
I
I
F

F
V
V
-
V
V
V
V
-
I
V
I
-
V
V
V
                       (continued)
                          G-5

-------
Table G-2.  Continued
Plant or
stream no.
197A
197B
197C
196A
196B
196C___
196F
196E
193
194
195A
198
200A
200B
200C
200D
200E
200F
200G
200J
200K
200M
200N
200P
200Q
202
Current
throughput
(thousand cubic
feet per day)
6,000
10,000
7,000
260
1,700
600
500
2,500
13,000
1,800
350
5,000
10,000
4,600
10,000
4,600
10,000
4,600
4,600
25,000
4,600
4,600
4,600
4,600
10,000
2,000
H2S mole
percent
0.016
0.020
0.0032
0.08
0.07
0.08
0.15
0.0008
0.1
8.0
6.7
0.158
0.825
0.825
0.825
0.825
0.825
0.825
0.825
0.825
0.825
0.825
0.825
0.825
0.825
0.04
Sweetening
process
IrSp
Ami ne
Sulf
IrSp
IrSp
IrSp
Amine
IrSp
MEA
NSul
Amine
DGA
Sulf
Sulf
Sulf
Sulf
Sulf
Sulf
Sulf
Sulf
Sulf
Sulf
Sulf
Sulf
Sulf
Ami ne
Acid gas
disposal
-
-
-
-
-
-
-
-
F
F
F
F
F
F
F
F
F
F
F
F
F
F
F
F
F
V
      (continued)
          G-6

-------
Table G-2.   Continued

Plant or
stream no.
206
207
211
212
213
217
218
223
225
226
235
236
238
240
245
246
248
250
252
256
257
259
261
262
282
293B

Current
throughput
(thousand cubic
feet per day)
35,000
1,000
6,187
4,000
1,028
3,000
18,000
67,430
9,590
103,690
9,400
16,000
3,600
8,000
19,000
61,000
65,110
20,732
4,277
4,000
600
6,000
900
1,500
6,000
2,000

H2S mole
percent
0.006
0.003
0.35
2.0
0.0016
0.16
0.47
0.24
0.03
0.22
0.52
2.0
1.21
0.3
0.20
0.09
0.16
0.24
0.27
0.003
0.012
1.65
0.0022
0.5
0.001
0.44

Sweetening
process
'
IrSp
Sulf
-
IrSp
OEA
ADEA
MEA
MEAG
MEAG
DGA
Amine
MEA
MEA
Amine
Amine
Amine
Amine
Amine
IrSp
MDEA
MEA
IrSp
Amine
-
"

Acid gas
disposal
-
-
F
F
I
F
F
F
F
• F
F
I
F
F
F
F
F
F
-
F
I
-
F
-
"™
     (continued)
         G-7

-------
Table G-2.  Continued
Plant or
stream no.
304A
309
315
319
322
326
336A
336B
336C
336D
336E
336F
336G
340A
352A
363B
365A
366A
384
387
388
389
390
391
392
393
Current
throughput
(thousand cubic
feet per day)
2,500
3,500
35,000
29,000
69,000
24,000
57,000
2,000
2,000 .
3,000
2,500
2,500
1,000
20,000
1,500
20,000
22,000
70,000
40,000
12,140
282,490
29,820
15,840
124,860
184,680
29,370
H2S mole
percent
0.42
0.0025
1.58
0.004
0.001
0.3
0.046
0.42
0.51
0.80
0.47
0.38
0.68
0.006
0.18
0.05
0.30
0.02'
0.35
0.67
N/A
N/A
0.1
N/A
0.06
0.41
Sweetening
process
MEA
-
MEAA
-
DEA
IrSp
-
Ami ne
Amine
Ami ne
Amine
Ami ne
Amine
Ami ne
Amine
DEA
DEA
MDEA
MEA
MEAG
DGA
PrC
MEAG
PrC
DGA
DGA
Acid gas
disposal
F
-
F
-
I ,
-
-
-
-
-
-
-
'
F
F
F
I
I
I
F
N/A
V
F
V
I
I
      (continued)
          G-8

-------
Table G-2.  Continued

Plant or
stream no.
394
398A
398B
403
410
412A
412B
413
414
420
427E
429
430A
431
432
433B
443
445
452A
452B
452C
454
457
465A
465B
482
Current
throughput
(thousand cubic
feet per day)
21,910
9,000
6,500
3,000
10,000
630
26,903
8,000
24,834
10,000
25,000
30,000
6,000
53,000
103,000
6,000
600
140,000
80,000
18,200
700
14,500
102,000
11,000
5,000
24,500
H2S mole
percent
0.05
0.15
0.06
0.0013
0.0034
0.294
0.065
0.04
0.04
0.015
0.08
0.0037
0.0025
0.0035
0.045
0.0015
0.5
0.033
0.0011
1.0
0.07
0.003
0.02
1.07
0.96
0.002
Sweetening
process
MEAG
MEA
MEA
MEA
IrSp
Ami ne
AmC
-
AmC
IrSp
MEA
MDEA
DEA
DEA
KCO
-
Amine
MEA
DEA
DEA
DEA
DEA
DEA
MEA
-
*"•
Acid gas
disposal
F
I
F
F
-
F
V
-
V
-
F
I
I
V
I
-
I
F
F
F
F
F
F
-
-
F
     (continued)
         G-9

-------
Table G-2.  Continued
Plant or
stream no.
484
485
488
494
495
498
501
506
507
508
511
513
516
518
520
524
530
543
553
554
555A
556
558
559B
559C
559D
Current
throughput
(thousand cubic
feet per day)
98,000
6,500
8,500
9,500
2,100
55,297
24,000
5,800
4,000
43,000
13,000
28,000
9,000
27,000
414
1,500
10,000
3,700
7,800
68,700
2,800
7,600
9,300
2,900
2,900
2,900
H2S mole
percent
0:0007
1.199
5
0.2
0.5
0.03
0.048
0.0016
0.02
0.06
0.004
0.003
0.16
0.03
0.0288
3.0
0.003
0.2
0.024
0.5
0.0327
0.0093
0.0018
0.1179
0.0165
0.1198
Sweetening
process
MDEA
MEA
IrSp
MEA
MEA
Sulf
MEA
DEA
DEA
DEA
'
IrSp
MEA
HPCA
OEA
MEA
MEAT
MEA
DGA
DGA
IrSp
IrSp
MEA
MEA
-

Acid gas
disposal
V
I
-
F
F
I
F
I
I
I
-
-
F
-
F
F
I
F
F ,
I
-
-
F
-
-

      (continued)
          G-10

-------
Table G-2.  Continued
Plant or
stream no.
562
563
564
565
567
568
569
570
571
575
576
577
578A
578B
579B
580B
581
583
595
599
601
611
612
615
620
626
Current
throughput
(thousand cubic
feet per day)
6,000
6,000
3,000
8,000
5,000
30,000
30,000
35,000
14,000
65,000
90,000
10,000
141,000
9,000
115,000
3,500
1,500
18,300
1,340
8,000
2,850
35,000
25,000
6,000
185,000
16,000
H2S mole
percent
0.004
0.02
0.39
1.0
0.8
0.21
0.21
0.3
1.75
0.39
0.15
0.40
0.03
1.0
0.07
0.016
1.0
0.1
2.2
0.03
0.45
0.11
0.13
0.67
0.009
0.2
Sweetening
process
IrSp
Amine
Amine
IrSp
IrSp
Amine
Ami ne
Ami ne
IrSp
MEA
MEA
-
MEA
DEA
• -
MEA
DEA
-
MEA
MEA
MEA
Amine
Ami ne
Ami ne
Ami ne
Amine
Acid gas
disposal
-
F
F
-
-
F
-
V
-
F
F
-
F
F
-
-
F
I
I
F
F
F
F
F
F
F
      (continued)
         G-ll

-------
Table G-2.  Continued

Plant or
stream no.
634
635
637
638A
641
643
644
649
653
654
657
670
671
672
673
674
678
681
684
685
687
689
690
692
693
698
Current
throughput
(thousand cubic
feet per day)
9,962
1,795
22,718
500
9,468
1,693
699
3,000
7,500
22,500
5,900
14,000
12,000
9,000
29,000
3,000
7,000
10,000
33,000
120,474
5,700
8,900
1,900
51,500
10,000
15,000
H2S mole
percent
0.02
0.06
0.21
6.0
0.3
0.01
2.44
0.4
2.6
' 0.27
0.07
0.3
0.1
0.55
1.00
0.07
0.003
0.02
0.55
0.25
0.1
0.008
0.008
1.08
0.024
0.0032
Sweetening
process
-
-
-
Amine
-
-
-
MEA
DGA
MEA
MEA
MEA
DEA
DEA
DEA
DEA
Sulf
Sulf
'
-
Ami ne
IrSp
-
DprC
IrSp
Sele
Acid gas
disposal
- .
- '
-
F
-
-
-
F
F
F
F
F
F
F
F
F
V
I
-
•
F
-
-
F
•

     (continued)
        G-12

-------
                         Table G-2.  Concluded

Plant or
stream no.
710B
720A
720B
720C
724
729C
730
Current
throughput
(thousand cubic
feet per day)
1,500
50,000
5,000
2,000
2,500
3,000.
3,000

H2S mole
percent
2.2
1.5
0.5
0.5
0.35
7.0 .
1.6

Sweetening
process
MEA
-
-
DEA
DEA
DGA
MEA

Acid gas
disposal
_
-
.
-
V
I
F
Average (weighted) H2S concentration in the sour natural gas streams
with sweetening only:  0.2 mole percent.
                                 G-13

-------
Table G-3.  ANALYSIS OF THE API's GAS PLANT SURVEY DAJA -
   SOUR NATURAL GAS STREAMS WITH SULFUR RECOVERY ONLY
Plant or
stream
no.
1
2
3
7
* 17
19
23
* 14
67
68
* 69
* 70
200H
204
205
221
224
227
228
229
231
237
249
253
254
258
260
361
Current
throughput
(thousand cubic
feet per day)
20,000
33,600
110,000
12,330
9,000
1,700
12,900
40,000
20,800
114,900
21,127
186,850
30,000
5,606
98,114
88,000
190,270
29,975
100,000
34,982
28,000
30,500
54,000
38,400
140,000
53,700
16,780
125,000
H2S mole
percent
16.75
1.0
21.0
3.5
1.5
8.6
0.15
0.19
10.1
13.5
0.0416
0.064
1.79
7.6
36.3
1.096
0.23
2.23
0.5
2.7
1.375
1.1
0.83
2.5
0.3
3.85
9.5
0.25
Sulfur
recovery unit
Claus 3-stage
Claus 3-stage
Claus 3-stage
Claus 3-stage
Stretford
Claus 2- stage + SCOT
Oxi dati on/Reducti on
Stretford
Claus 3-stage + SCOT
Claus 3-stage
Stretford
Stretford
Claus
Claus
Claus
Claus 2-stage
Claus 3-stage
Claus 3-stage
Claus 3-stage
Claus 3-stage
Claus 3-stage
Claus 3-stage
Claus
Claus 3-stage
Claus
Claus
CBA
Claus
Sulfur
recovered,
LT/day
120
11.36
810
12.9
5.0
5.8
0.77
(2.0 design)
2.5
78
540
0.156
1.219
23.1
13
1,089
27.04
9.62
23.9
18
26
18
11.46
16.1
34.1
10
82.9
58.8
12.1
(continued)



G-14


-------
Table G-3.   Continued


Plant or
stream
no.
364A
365B
365C
385
386
402
428
476
478
492
505
537
546
557
566
585
596
616
619
630
633
640
647
651
656
658
660
661
663
675
Current
throughput
(thousand cubic
feet per day)
69,000
12,000
41,000
107,360
15,230
20,000
6,000
23,500
45,000
2,000
9,400
17,000
59,000
1,000
4,000
6,700
30,650
28,512
7,778
1,800
37,487
78,666
62,063
60,000
10,400
19,900
34,300
10 , 150
11,100
70,352

H2S mole
. percent
0.46
11.00
4.42
1.03
6.29
5.0
1.7
2.04
4.209
4,8
3.8
3.0
1.28
5.25
3.6
30.00
2.0
6.46
27.20
7.50
2.15
1.05
1.8
7.7
3.8
4.7
3.5
0.09
5.4
5.52

Sulfur
recovery unit
Claus 3-stage
Claus 3-stage
Claus 3-stage
Claus 3 stage
Claus 3-stage
Claus 2-stage
Claus 2-stage
Claus 1- stage
Claus 3-stage
Claus 2-stage
Claus
Claus 2-stage
Claus 2-stage
Claus 3-stage
Claus 3-stage
Claus 3-stage
Claus 2-stage
Claus 3-stage
Claus 2-stage
Claus
Claus
Claus
Claus
Claus 3-stage
Claus 2-stage +CBA
Claus 2-stage
Claus 2-stage
Claus 2-stage
Claus 2-stage
Claus

Sulfur
recovered,
LT/day
11.3
47
65
31.13
35.59
24
3.5
10.47
63
2
12.35
15 -
21.5
3.10
4.5
76.0
7.56
113.3
68.4
4.5
29.0
27.0
37.0
174
14.4
24.21
27.6
3.1
26.0
118
(continued)


G-15



-------
                            Table G-3.  Concluded
	
Plant or
stream
no.
677
682
701
713
726
727
729B
Current
throughput
(thousand cubic
feet per day)
38,400
20,528
50,000
3,200
5,400
11,700
8,000

H2S mole
percent
31.85
1.16
3.8
14.9
6.0
10.0
12.0

Sulfur
recovery unit
Claus + SCOT
Claus
Claus 2- stage + ATS
Claus 3-stage
Claus
Claus
Claus + CBA

Sulfur
recovered,
LT/day
384
7
68
11.2
14.5
50
36.1
aAverage (weighted) H2S concentration in the sour natural gas streams with
 sulfur recovery only:   5.8 mole percent.
^Considered offshore stream.
                                      G-16

-------
















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-------
            Table G-5.  SULFUR IN SOUR NATURAL GAS STREAMS
             WITH SWEETENING ONLY IN THE PERIOD 1983-1987
	
Year
1983
1984
1985
1986
1987
Total


Throughput for
sweetening only
106 ft3
36,380
38,180
39,670
31,100
32,260

Average H2S in
the sour natural
gas stream,
mole percent
0.2
0.2
0.2
0.2
0.2
Sulfur
in the
gas streams
added in ,th|
specified year
10s Mg/y Mg/d
2:76
2.91
3.02
2.38
2.49
7.96
8.34
8.68
6.79
7,06
in the period of 1983-1987
177,590

13.6
38.9
a350 days/year operating schedule.
                                  G-18

-------
Table G-6.  PROJECTED POPULATION OF NEW SULFUR RECOVERY FACILITIES
       AND THEIR SULFUR INTAKE SIZE DISTRIBUTION, 1983-1987

Year
1983
1984
1985
1986
1987
Number
Percent of
total number
New sulfur
recovery
capacity,
Mg/d

10
3
4
4
4
3
I8-
60

180
Average size (Mg/d)
102 564
1
2 1
3
2
1 1
9 2
30 6.7

918 1,128

1,016 Total
4
7
1 8
6
5
1 30
3.3 100

1,016 3,244
                               G-19

-------
I
                    Table G-7.   PROJECTED  POPULATION  OF  NEW SWEETENING  FACILITIES
                        AND THEIR SULFUR INTAKE  SIZE  DISTRIBUTION,  1983-1987
Sulfur intake
size (avg.),
Mg/d
<0.1 (0.034 avg.)
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
2.0
3.0
4.0
5.0
Percent
of total
sulfur, %
0.95
0.2
1.3
1.05
1.8
1.75
1.8
1.05
0.8
3.15
13.15
16.05
26.75
24.95
5.25
TOTAL 100%
Amount of
sulfur in the
specified size,
Mg/d
0.369
0.078
0.506
0.408
0.700
0.681
0.700
0.409
0.311
1.23
5.12
6.24
10.41
9.71
2.04
38.9
Number
of the
facilities
11
1
3
i
2
1
1
1
1
1
5
3
3
2
1
37
                                                 G-20

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-------

-------
SMALL SULFUR RECOVERY UNITS
ONSHORE SOUR GAS PRODUCTION FACILITIES
              APPENDIX H

-------
                                  SECTION 1

                                DESIGN BASIS
                       j-
                                                         o


 INTRODUCTION

 This study was prepared  for TRW to assist the U.S. Environmental Protection

 Agency in promulgating  New Source Performance Standards  for  Onshore

 Production Facilities. Specifically,  this study is to provide data to enable

 determination of cost-effectiveness for different sizes of  small  sulfur

 recovery units with  feed acid gases of  low H2S content.



 This report provides  investment costs, direct operating cost data, process

 descriptions, process flow diagrams,  and atmospheric emissions for  the

 following 12 cases:

Case
No.
1
2
3
4
5
6
7
8
9
10
11
12
Sulfur
Feed Rate
(LT/D)
0.5
0.5
0.5
2.0
2.0
2.0
2.0
2.0
2.0
5.0
5.0
5.0
Mol %
H2S in
Acid Gas
2.0
5.0
12.5
2.0
5.0
12.5
2.0
5.0
12.5
2.0
5.0
12.5
                                               Sulfur Recovery Process

                                             Selectox Two-Stage
                                             Recycle Selectox Two-Stage
                                             Recycle Selectox Two-Stage
                                             Selectox Two-Stage
                                             Recycle Selectox Two-Stage
                                             Recycle Selectox Two-Stage
                                             Selectox Three-Stage
                                             Recycle Selectox Three-Stage
                                             Recycle Selectox Three-Stage
                                             Selectox Three-Stage
                                             Recycle Selectox Three-Stage
                                             Recycle Selectox Three-Stage
For  explanations  of terminology  and abbreviations used,  refer to

Definitions  in this section.
                                     H-2

-------
DESIGN CRITERIA AND ASSUMPTIONS


Listed below are assumptions used for  design criteria and cost estimating for

this study:
                       tr



   (1)  Barometric pressure is 14.7  psia.




   (2)  Acid  gases are available at 120°F and  24.7 psia,  saturated with

       water, and contain 0.5 vol%  methane (wet basis)  maximum.




   (3)  Investment costs in Table  2-2 are based on February 1983 Gulf  Coast


       prices and  include  the complete plants through the catalytic

       incinerator and 100-ft-high  stack.




   (4)  The plants  use a heating medium for the  preheaters and reheaters  and

       a cooling  medium for  the sulfur  condensers. Excess  heat is removed

       from  the  cooling medium  by a  cooler, but  can also be recovered by

       circulating it  through a reboiler on the regenerator  in the adjacent

       amine  unit.  For these small plants,  such  a reboiler has not been

       included as the  economics may be marginal.
                                   H-3

-------
 DEFINITIONS




 The following list  provides definitions,  terminology, and abbreviations used



 in  this report:








 Acid Gas;  The  gas containing H2S (and  C02>  resulting from  treating of



 sour natural gas. Also  contains small amounts of hydrocarbons  and  water.








 Catalytic Incineration;  Process by which  sulfur compounds are catalytically



 oxidized to S02-








 Glaus; The name of the  gas  phase reaction  where 2 moles  of  H2S  combine



 with 1 mole of S02 to form 3 moles of sulfur and 2 moles of water.








 End-of-Run;  After a certain  period of  operation,  the activity  of  a



 catalyst declines to a point where it is economical to shut down  and  replace



 it  with fresh catalyst. End-of-run is defined as that point  when the percent



 recovery has declined to a specified value. For this study, average lives of




 5 years  for the Selectox  catalyst and 3 years for the alumina catalyst have



 been assumed.  The S02 emissions  in the tables in  this report are based on




 end-of-run  recoveries. The LT/D of sulfur recovered in Table 4-2 are average



 during  run,  calculated by averaging the  start-of-run and  end-of-run



 recoveries.
Gas Components;   H2S  Hydrogen Sulfide



                 S02  Sulfur Dioxide



                 02   Oxygen
                                     H-4

-------
                  N£   Nitrogen



                  C0£  Carbon Dioxide



                  H20  Water
                       **


                  CH4  Methane






Lb  mol/hr:  The  pounds  per  hour divided by  the  molecular weight  of  the



component.






LT/D; Long tons  (2,240 pounds)  per day.






MM; Millions.






Selectox;  A catalyst developed by Onion Oil  Company of California which



oxidizes  H2S  directly  to elemental sulfur  and in a temperature  range



substantially  lower than required for uncatalyzed oxidation.






Sour Gas;  Natural  gas containing H2S. When the H2S and usually the



C02 are  absorbed from  the hydrocarbons by a suitable solvent in any of  the



various treating units, and then stripped from the solvent,  the stripped gas



containing the H2S and C02 is called  acid gas.






Tail Gas;  Exit gases from a sulfur recovery unit.






Vol ppm or ppmv; The parts per  million of a component on a volume basis.
                                    H-5

-------
FEED GAS COMPOSITIONS




The  feed gas compositions are provided  in Table  1-1. The gases are saturated




with water at the conditions stated  in Design Criteria and Assumptions.  These




are  representative,  although the  water and  hydrocarbon contents vary from




plant to plant depending on design and operation of the upstream facilities.
                                    H-6

-------
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                                            H-7

-------
                                  SECTION 2




                              SUMMARY OF  RESULTS
                       *-








The  compositions  of the exit gases  at: end-of-run are given in Table 2-1, and




the sulfur recoveries for start-of-run and  end-of-run are shown in Table  4-2,




Section 4.









Total  installed costs are listed in Table  2-2. It is evident from observing




the investment costs of the 2  LT/l5 sulfur input  cases that  the differential




between two-stage  and three-stage  units becomes smaller  as the gas  gets




richer in H£S.









A discussion of service  facilities that  might be required is provided in this




section.









Information necessary for calculating operating costs is shown in Section 4.
                                     H-8

-------













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H-9

-------
Table H-3 - Total Installed Costs
(Table 2-2)

Case
No.
1
2

4
5

• 7
8

10
11
12
Sulfur
Input
(LT/D)
0.5
0.5
0.5
2.0
2.0
2.0
2.0
2.0
2.0
5.0
5.0
5.0

'% H2S in
Acid Gas
2
5
12.5
2
5
12.5
2
5
12.5
2
5
12.5

No. of
Stages
2
2
2
2
2
2
3
3
3
3
3
3


Type
Selector
Recycle Selectox
Recycle Selectox
Selectox
Recycle Selectox
Recycle Selectox
Selectox
Recycle Selectox
Recycle Selectox
Selectox
Recycle Selectox
Recycle Selectox
^ 	 '•! Ill |ll !•

$MM
~" " 	
1.71
1.60
1.53
2.17
1.95
1.80
2.51
2.20
1.98
3.32
2.69
2.36
             H-10

-------
Table H-4 - Cost of Initial  Charge  of Catalysts
(Table 2-3)
Case
No.
1
2
3
4


7

9
10
11
12
Sulfur
Input:
(LT/D)
0.5
0.5
0.5
2.0
2.0
2.0
2.0
2.0
2.0
5.0
5.0
5.0
% H2S in
Acid Gas
2
5
12.5
2
5
12.5
2
5
12.5
2
5
12.5
No. of
Stages
2
2
2
2
2
2
3
3
3
3
3
3
Type
Selectox
Recycle Selectox
Recycle Selectox
Selectox
Recycle Selectox
Recycle Selectox
Selectox
Recycle Selectox
Recycle Selectox
Selectox
Recycle Selectox
Recycle Selectox
Cost
($)
8,800
4,300
2,600
35,200
17,100
10,200
37,000
17,800
10,500
92,400
44,400
26,000
                     H-ll

-------
SERVICE FACILITIES




With  regard to offsites ,  only two utilities are  required: (1) natural gas,



which is readily available, and (2) electrical power, which is available  at



most locations.








For very remote locations where electrical power is not available, gas engine



generators can be used.  The small sulfur recovery plants use only  50  to




100 kW,  and the entire  adjacent facilities would use from 500 to 1,000 kW.



The investment  cost and fuel for gas engine generators of  this size are  as



follows:




                                                 Generator Size
                Item



       Investment  Cost  ($)




       Natural Gas (MMBtu/hr)
500 kW




430,000



    5.5
1,000 kW




830,000



   11.0
The  cost  of the  natural gas,  assuming $5.00/MMBtu,  is  equivalent to



$0.055/kWh.








Since power generation  would have  to  be installed  for the rest of the



facilities, the  incremental cost over purchased  power for the small amount of



power  required  for the sulfur recovery unit would  not be a  significant factor



in the total cost of sulfur recovery.
Molten  sulfur can be  hauled away in  tank trucks for  sale,  or poured into




blocks and stored  indefinitely to be broken up  later and hauled away as  solid



•ulfur.  Costs in  this  study include a simple sulfur loading rack but no other



transportation facilities.






                                    H-12

-------
 RECOMMENDATIONS AND SUGGESTIONS
 While this study  was  based on very weak gases, from 2%  to  12.5%  H2S, the
 Recycle Selectox process, works very well on acid gases containing up  to 100%
 H2S.  The recycle  system  merely increases  in size, but the  cost is still
 less  than Glaus-type  sulfur recovery  units  and does not  involve  boiler
 feedwater  treatment  and steam boiler operations. It has the additional
 advantage of pushbutton operation;  in response to a power failure or other
 shutdown  causes, the plant can be stopped  and restarted by  pushing the
 necessary buttons.  These factors are mentioned  to emphasize that  the  process
 is  practical and economical for  gases  stronger in H2S than those  covered in
 this study.


The total  installed costs for the  sulfur recovery units seem to  levfel out as
the plants get smaller.

No suggestions for further  study are  apparent at this  time.
                                    H-13

-------
                                 SECTION 3




                            PROCESS DESCRIPTION
A catalyst  called Selectox  is  used for sulfur  recovery from gas streams




containing H2S. This catalyst selectively oxidizes H2S to sulfur with air  at




low temperatures without forming 803 or oxidizing either hydrogen or  light



hydrocarbons. The process is  entirely catalytic, eliminating  the need  for  a



thermal  reaction  furnace  and resulting in a  simplified  Claus process.




One-third of the H2S is oxidized  catalytically with air to  form S02,  which



then reacts with the remaining  H2S  to form elemental sulfur according to the



principal Claus reactions.
                   H2S + 3/2 02-




                    2H2S + S02-
  •S02 + H20
—3S + 2H20
The  once-through  process  is  called Selectox  for  acid gas feed streams




containing  less than 5% H2S. For feed gas streams  containing  5%  H2&  or



greater,  a  recycle stream lean in H2S is used to limit  the temperature rise



from the exothermic  reactions  to  a reasonable maximum  considering the  Claus




chemical  equilibrium and equipment metallurgy. This process is called Recycle



Selectox.
                                    H-14

-------
The  Selectox two-stage process illustrated in Figure  3-1  has  a  Selectox stage

and one Clans stage whereas the Selectox  three-stage  process  in Figure 3-2

has  a  Selectox stage and two Glaus  stages. The Recycle Selectox two-stage and
                       *•
three-stage processes in Figures 3-3 and 3-4 are identical to  Figures  3-1 and

3-2, respectively,  except  for the addition of a blower  to recycle a portion

of Condenser No. 1  effluent back to  Reheater No.  1.
                                     H-15

-------
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                                H-19

-------
                                  SECTION 4




                       '  DIRECT  OPERATING COST DATA








The utilities requirements and  the  annual catalyst costs are  provided in



Table 4-1.









The sulfur recoveries  as a percentage at the start-of-run and  end-of-run and



as average LT/D are  shown  in Table 4-2.
                                    H-20

-------











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OPERATING LABOR AND MAINTENANCE




For operating labor, assume 0.75 of an operator's time per  shift  and




0.25 of a supervisor's time per shift.   The actual requirement will be




somewhat less because these units need little operator attention.









Annual maintenance will be on the order of 3-1/2% of investment,  including




1-1/2% for labor and 2% for investment.









Table H-7 presents annualized costs for 12 cases of sulfur  feed rate/acid




gas ELS concentration/Recycle Selectox process combinations.
                                   H-23

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                                   TECHNICAL REPORT DATA
                            (Please read Instructions on the reverie before completing)
(.REPORT NO.
 EPA-450/3°82-023a
                                                            3. RECIPIENT'S ACCESSION NO.
». TITLE AND SUBTITLE
 S02 Emissions 1n Natural Gas  Production Industry
 Background Information for Proposed Standards
                                                          6. REPORT DATE
                                                            November  1983
                                                          6. PERFORMING ORGANIZATION CODE
 AUTHOR(S)
                                                            8. PERFORMING ORGANIZATION REPORT NO.
>. PERFORMING ORGANIZATION NAME AND ADDRESS

 Office  of A1r Quality Planning and Standards
 U.S. Environmental Protection Agency
 Research Triangle Park,  N.C.  27711
                                                            10. PROGRAM ELEMENT NO.
                                                           11. CONTRACT/GRANT NO.
12. SPONSORING AGENCY NAME AND ADDRESS
                                                            13. TYPE OF REPORT AND PERIOD COVERED
Director for A1r Quality Planning and Standards
Office of Air,  Noise, and Radiation
U.S. Environmental Protection  Agency
Research THanale Park., N.L
                                                            14. SPONSORING AGENCY CODE
                                  g
                                 >7
                                                             EPA/200/04
15. SUPPLEMENTARY NOTES This  report discusses the  regulatory alternatives considered during
  development of the proposed new source performance standards and the environmental
  and  economic impacts associated with each  regulatory alternative.	
16. ABSTRACT
       Standards of performance for the control  of SOa emissions  from natural gas
  sweetening operations  are being proposed  under Section 111 of the Clean Air Act.
  This document contains background information  and environmental  and economic
  impact assessments of  the regulatory alternatives considered  in developing the
  proposed standards.
17.
                                KEY WORDS AND DOCUMENT ANALYSIS
                  DESCRIPTORS
                                               b.IDENTIFIERS/OPEN ENDED TERMS
                                                                         c. COSATI Held/Group
  A1r Pollution
  Pollution Control
  Standards of Performance
  Sulfur Dioxide  (S02)
  Natural Gas Production
                                             Air Pollution Control
13b
18. DISTRIBUTION STATEMENT
  Unlimited
                                              18. SECURITY CLASS (This Report)

                                                Unclassified	
                                                                          21. NO. OF PAGES
                                                                               436
                                               20. SECURITY CLASS (Thispage/

                                               	Unclassified
                                                                          22. PRICE
EPA Perm 2220-1 (Rev. 4-77)    PREVIOUS EDITION i« OBSOLETE

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