Air Permitting in Texas

The Texas Commission on Environmental Quality (TCEQ) is tasked with evaluating and granting federal and state air quality permits in that state. Fortunately, the agency offers operators an efficient way to fast track permitting and avoid expensive and time-consuming administrative reviews.

The Permit by Rule process allows operator to proceed with flowback and production operations without prior permit approval from the TCEQ if they take steps to mitigate the Potential to Emit (PTE) emissions from oil and gas sites below a certain threshold.

Some explanation of emission sources is in order.

Types of Emission Sources

Texas, like several other states, has regulated targets for emissions of volatile organic compounds (VOC) and nitrous oxides (NOx) that impact field development, operations and economics.

Generally speaking, there are “minor” sources and “major” sources of emissions, the latter subject to Federal Title V permitting – often costing tens of thousands of dollars to prepare, the approval process can take anywhere between four to six months and once approved, require ongoing detailed recordkeeping and audits.

The Major Source permit limits for producers differ from state to state, and these thresholds can be further reduced as a region grapples with ozone levels that exceed the limits set by the EPA.  VOC and NOx are precursors for ozone, i.e., compounds that can form ozone in the presence of sunlight.  Bexar County, or the San Antonio area, has been designated by the EPA as a “non-attainment” region for not meeting air quality standards related to ozone.

The largest source of these regulated substances at oil and gas production sites are from the oil or condensate storage tanks. Faulty hatch seals and pinhole leaks can cause inadvertent venting of VOCs while flaring natural gas generates NOx and uncombusted VOCs.

Texas Air Permit Requirements

The table below summarizes the air permit requirements imposed by TCEQ.

If PTE is less than 25 tpy of VOC or 250 tpy of NOx then the operator can operate under “Permit by Rule,” the least restrictive permitting regime and one allowing the operator to begin flowback and production operations without prior permit approval. These thresholds are lower in areas designated as “non-attainment”.

If PTE is above 25 tpy and less than 100 tpy, an operator is required to file a Standard Permit requiring state review and approval.

Qualifying for Permit by Rule

Since oil or condensate storage tanks are the largest source of these regulated substances at well sites and production facilities, operators can substantially reduce PTE by capturing tank vapor gas.

The TCEQ provides a 95% credit against PTE with the use of a compressor to capture the vapor. This credit can be increased to a 100% offset if operators install emissions reduction technologies, including monitoring of tank pressure and mitigating oxygen ingress in the vapor system.

Keep in mind that there are other factors influencing an operator’s ability to use Permit by Rule and we refer you to 30 TAC 106 of the Texas Administrative Code.

Benefits of Leveraging Permit by Rule

There are several operational, financial and environmental benefits to qualifying for Permit by Rule, including:

• Increased revenue from capturing and selling tank vapor gas that would have otherwise been flared or potentially vented
• Faster permit approvals
• Maintain project schedules by minimizing regulatory red tape
• Achieve financial returns by avoiding unexpected permit delays
• Conserve capital by putting more wells on a pad, reducing infrastructure costs

Texas producers have worked with EcoVapor to obtain the 100% PTE offsets available under the “capture credit” plan, since the company’s technology allows for control and monitoring of tank pressures as well as treating for gas contaminants such as oxygen.  In several instances, the lower PTE allowed higher production on a well pad while still maintaining Permit By Rule status.

EcoVapor is committed to helping oil and gas operators take steps toward a zero emissions wellsite.  Contact us at info@ecovaporrs.com to learn more about how EcoVapor can help you qualify for Permit By Rule in Texas and meet your environmental performance objectives.