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United States
Environmental Protection
Agency
Air and Radiation
(6202J)
EPA430-F-01-012
February 2001
www.epa.gov/gasstar
Unocal Gulf Region USA
Natural Gas STAR
Case Study Series
nocal Gulf Region
USA's participation |J *M Q fA I 76
in EPA's Natural Gas
STAR Program illustrates how well-planned methane
emission reduction pilot projects can lead to larger initiatives that
significantly benefit the company's bottom line and the environ-
ment. Since joining the program in 1998, Unocal Gulf Region
has successfully implemented and expanded several pilot projects
that have yielded methane emission reductions of 640 million
cubic feet (Mmcf), valued at nearly $1.9 million. Word of Unocal
Gulf Regions accomplishments as a Gas STAR partner has spread
quickly, and its parent company, Unocal Corporation, has now
made methane emission reductions a corporatewide priority.
mm
Unocal Corporation, an international
energy resource and project develop-
ment company, produced 175,000
barrels of petroleum liquid and more
than 1,800 Mmcf of natural gas per
day in 1999. Unocal Gulf Region
USA, formerly Spirit Energy, is one of
Unocal Corporation's exploration and
production units, focusing on oil and
gas resources in the Gulf of Mexico
and onshore in Texas, Alabama, and
Louisiana. Headquartered in Sugar
Land, Texas, Unocal Gulf Region
employs approximately 1,300 people
and operates more than 200 offshore
platforms and about 1,500 active
wells in numerous onshore and off-
shore fields. In 1999, Unocal Gulf
Region's net natural gas production
was 747 Mmcf per day, and net crude
oil production was 40,000 barrels per
day.
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r
Unocal Gulf Region had already started a pilot
project to reduce methane emissions from
pneumatic devices when EPA approached the
company about the Natural Gas STAR
Program. Unocal Gulf Region reviewed the pro-
gram's goals and determined that joining Gas
STAR was consistent with the goals of the pilot
project. In addition, the company felt that partici-
pation in Gas STAR would provide an opportunity
to be recognized for its methane emission reduc-
tion activities and would improve its bottom line.
In 1998, Unocal Gulf Region joined the program
with full support from its president and the
health, environmental, and safety (HES) manager.
The company immediately began promoting
existing pilot programs and its new partnership
with Gas STAR to employees as a unified under-
taking. The new partnership helped Unocal Gulf
Region focus its efforts on improving efficiency
and reducing methane emissions across its pro-
duction operations.
^B nvironmental specialist, James Frederick, is
the implementation manager for the Gas
,^L STAR Program at Unocal Gulf Region. Upon
^•joining the program, Frederick established
two goals for initiating a successful partnership
with EPA: 1) review and inventory past methane
emission reduction efforts and 2) continue pilot
projects as a way to demonstrate Unocal Gulf
Region's commitment to methane emission reduc-
tion programs.
Emission Reduction Inventory
Unocal Gulf Region began its participation by
examining past emission reduction efforts.
Frederick coordinated with nine HES coordina-
tors and nine field supervisors to inventory best
management practices and partner reported
opportunities that Unocal Gulf Region imple-
mented as early as 1990. The inventory highlight-
ed several activities:
• Installation of flash tank separators on glycol
dehydrate rs
• Replacement of high-bleed pneumatic devices
• Use of compressed air, rather than natural gas,
in instrument systems
• Installation of vapor recovery units
• Installation of flare systems
• Consolidation of production tank batteries
• Performance of fugitive emission tests
After verifying the inventory data, Frederick pro-
vided this information to EPA in the company's
first annual Gas STAR report. The report docu-
mented that from 1991 to 1999 Unocal Gulf
Region achieved methane emission reductions of
640 Mmcf, worth $1.9 million. Frederick pub-
lished the results internally on the company's
intranet, spreading the word
about Unocal Gulf
Region's accomplish-
ments and encourag-
ing employees to
think about what
else the company
could do to get the
"biggest bang for
the buck." He also
continues to work
with HES coordinators
and field supervisors to
find other past emission reduc-
tions that were missed during the first review.
Unocal Gulf Region USA
Natural Gas STAR Case Study Series
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"
Pilot Projects
Unocal Gulf Region has found that using pilot proj-
ects to test new methane emission reduction activities
is the best way to establish which practices will be
most cost-effective to implement on a larger scale.
Pilot projects help determine associated costs and
savings, timeframes, staffing, and
operational requirements
before the company
invests in large-scale
improvements.
Just before joining
Gas STAR, the
company initiated
its first pilot proj-
ect with the instal-
lation of an instru-
ment air system at a
facility in Louisiana.
After careful planning
and consideration, Unocal
Gulf Region installed the pilot
instrument air system, thereby achieving substantial
emission reductions and cost savings. See page 4 for
more details on this particular pilot project.
After the success of the instrument air project,
Unocal Gulf Region began considering new projects
to reduce gas losses from high-bleed pneumatic
valves in the company's Gulf of Mexico operations.
One of the options that the company evaluated was
"Not only is Natural Gas STAR a
good vehicle to promote our
company, but it's a good way to
do business. Our business is the
bottom line, and through STAR,
we can make money."
—-James Frederick, Environmental
Specialist, Unocal Gulf Region USA
retrofitting all high-bleed
instruments with
Mizer low-bleed
controllers. The
low-bleed valves
could reduce gas
losses by up to 90
percent per
device.
Initial testing was
performed on two
Mizer controllers to
ensure that implementa-
tion of the pilot project
would not create an additional maintenance burden
for operators. In addition, the company analyzed
operational and economic conditions at several of the
proposed project locations. Unocal Gulf Region con-
cluded that although the Mizer controllers were
promising, there was enough electrical generation
capacity at the evaluated sites to support the installa-
tion of an instrument air system. The instrument air
alternative would eliminate gas losses and provide a
quicker financial return.
Unocal Gulf Region is still considering the Mizer
controllers at other platforms where there is not
enough generation capacity for the instrument air
system. The company hopes to accomplish conver-
sions to either the instrument air system or Mizer
controllers at all major platform facilities within the
next two years.
lith Unocal Gulf Region's successful pilots
'showing strong emission reductions and cost
savings, Unocal Corporation decided to join
the program in October 2000. Although only
Unocal Corporation's domestic facilities will report
program activities to EPA, the corporation wants to
Unocal Gulf Region USA
Natural Gas STAR Case Study Series
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Before joining Gas STAR, Unocal Gulf Region started a pilot project in 1996 at its Fresh Water
Bayou facility in Vermilion Parish, Louisiana. Unocal Gulf Region designed the pilot to test the
conversion of its natural gas-powered pneumatic instrument system to a compressed air-
powered system. Initially, Unocal Gulf Region intended this project to cut overall gas losses
and ensure the facility was not a major source of volatile organic compound (VOC) emis-
is. However, the pilot project had the additional benefit of greatly reducing methane
ssions caused by the intermittent bleed of gas from pneumatic controllers—one of the
istry's largest sources of methane emissions.
To determine the cost-effectiveness of the pilot project, Unocal Gulf Region conducted a
four-step analysis that involved the following:
Step 1: Establishing the technical feasibility of an instrument air system. The facto.
impacting technical feasibility included a facility layout conducive to equipment installatio
ample power supply, and a large number of pneumatic controller conversions. Based on th»
facility's consolidated layout, onsite generators, and plans to convert all pneumatics, the
Fresh Water Bayou facility met the technical conditions needed to maximize emission reduc-
tions and cost savings.
Step 2: Estimating capital costs. Unocal Gulf Region's primary costs were the purchase of
two Quincy rotary screw-type air compressors, a dehydration system, piping, and installation
labor, bringing the initial projected capital outlay to $60,000.
Step 3: Estimating potential savings. Using a turbine meter at the system inlet to measure
the volume of natural gas used daily to feed the pneumatic instruments (e.g., bleeding con-
trollers, chemical pumps, generators, saltwater pump starter), Unocal Gulf Region estimated
that the average gas lost was 190 Mcf per day. This loss was costing the company $570 per
day, based on a gas price of $3 per Mcf.
Step 4: Evaluating the economics. After comparing the capital costs and potential savings,
Unocal Gulf Region determined that it would realize a quick return on its investment. In
addition, the extra revenue generated by the increased gas sales would more than cover the
annual maintenance costs—averaging $4,000 for both compressors—and the instrument air
system would also protect the pneumatics from corrosion.
Unocal Gulf Region's conversion to an instrument air system at its Fresh Water Bayou facility
is paying off. The company is reducing natural gas emissions by 69.4 Mmcf per year, includ-
ing 62.4 Mmcf of methane emissions and 1.5 Mmcf of VOC emissions, saving more than_
$208,000 annually. This success has prompted the company to look for other opportunities
to convert to instrument air systems. In addition, the positive results helped convince Unocal
Gulf Region's senior management that participation in Gas STAR is good for the company.
Unocal Gulf Region USA
Natural Gas STAR Case Study Series
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implement similar methane emission reduction activ-
ities at all of its international facilities.
The expansion of the Gas STAR Program has had
strong support from Unocal Corporation's CEO and
corporate Global Climate Change (GCC) Team,
which is responsible for reducing the corporation's
greenhouse gas emissions. The team promotes
Unocal Corporation's global climate efforts internally
through a Web site and conducts regular meetings to
review corporate procedures, policies, and programs
that impact global climate.
Frederick will be working closely with the GCC
Team and will oversee Unocal Corporation's partici-
pation in Gas STAR. He believes that with the
involvement of the corporate GCC Team, program
expansion will be easy. The GCC Team has closely
followed Unocal Gulf Region's participation in Gas
STAR and will provide insight to help guide the
expansion process. The Gulf Region has already
assigned five gas measurement technicians to the cor-
poration's Gas STAR Program and is designing an
incentive program to encourage field employees to
propose ways to control both methane and carbon
dioxide emissions. The planned incentive program
expects to reward employees with a gift certificate
when their suggestions for operational improvements
are successfully implemented.
In addition to the incentive program, several other
efforts are planned to ensure the success of Unocal
Corporation's Gas STAR Program. In the near
future, the corporation intends to develop a database
to make tracking emission reductions and cost sav-
Being a Gas STAR partner can benefit a
company in more ways than one.
Unocal Gulf Region has found that work-
ing with Louisiana's Department of
Environmental Quality (DEQ) is becom-
ing easier now that the company is a
Gas STAR Partner. Because DEQ is aware
of Gas STAR and the positive efforts and
environmental benefits associated with
the program, DEQ can expedite the
permitting pro* cal Gulf
Region's methane reduction activities.
ings easier. It also is spreading the word about Gas
STAR both internally to employees and externally to
other members of the idustry. A presentation on the
Gas STAR Program is scheduled for the corporation's
upcoming environmental conference. Furthermore,
Frederick is planning to work with the Gulf Coast
Environmental Affairs Group to encourage other
companies to join Gas STAR by demonstrating that
reducing methane emissions is cost-effective.
"As a Natural Gas STAR partner, we are recognized as an environmentally
friendly company. Even regulators are aware of this partnership, which is just
as valuable as the cost savings achieved by reducing methane emissions."
—James Frederick, Environmental Specialist, Unocal Gulf Region USA
Unocal Gulf Region USA
Natural Gas STAR Case Study Series
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tions(Mcf)
600,000
1991 1992 1993 1994 1995 1996 1997 1998 1999
1 Annual 6,205 6,205 87,735 411,697 419,887 540,720 614,050 624,635 627,894
Cumulative 6,205 12,410
42 931,729 l,472,449e,086,499B,711,1343,13! 1
Unocal Gulf Region reports average
methane emission reductions of more
than 371,000 Mcf each year.
Legion's Emission Reduction Savings
$12,000,000-
$10,000,000 -R
$4,000,000-
$2,000,00
1991 1992 1993 1994 1995 1996 1997 1998 1999
Unocal Gulf Region reports an average of
more than $1.1 million in emission
reduction savings annually.
Unocal Gulf Region has the following
recommendations for companies look-
ing to develop and implement a suc-
cessful program:
• Stress revenue gains. Many com-
panies do not realize that reducing
methane emissions saves money,
which means a quick payoff for
implementing reduction activities.
• Gain management support. This is
especially important for implement-
ing a voluntary program because it
adds significance to program activi-
ties and ensures employee cooper-
ation.
"Support from our presi-
dent and CEO has been
key to making our partic-
ipation in Natural Gas
STAR a success."
—James Frederick,
Environmental Specialist,
Unocal Gulf Region USA
Share results. Sharing success sto-
ries internally, especially when
numerous facilities are involved,
encourages teamwork and enthusi-
asm companywide, guaranteeing
program support.
Form a team. When employees
work together on targeted issues,
the desired results are often easier
to achieve.
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