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AQMD ADOPTS RULE TO REDUCE EMISSIONS FROM OIL AND GAS PRODUCTION FACILITIES

March 5, 2004

The Southland’s air quality agency adopted a measure today that will reduce ozone-forming emissions from the region’s oil and gas production facilities through improved maintenance requirements and a prohibition on the venting of oil field gas.

“Today’s action will further reduce smog-forming emissions from thousands of oil and gas wells in the Southland” said Barry Wallerstein, executive officer of the South Coast Air Quality Management District.

“In addition, as a result of community concerns regarding oil wells in Southern California, this measure will prohibit all oil and gas operations from venting natural gas,” he said.

AQMD’s Governing Board today unanimously adopted Rule 1148.1, which will reduce hydrocarbons emissions, also known as volatile organic compounds (VOCs), from the extraction of oil.  The rule will require that emissions from residual crude oil in well cellars and produced gas released to the atmosphere be controlled.  A well cellar houses the oil well and captures residual oil.

The rule will affect more than 250 oil and gas facilities in the region that operate more than 3,500 oil wells where petroleum is produced, processed and stored.  These facilities are primarily located in Los Angeles and Orange counties. 

Under Rule 1148.1, facilities will be required to frequently inspect their well cellars and improve maintenance by removing accumulated liquid when the total organic compound concentration or liquid level reaches a specified level. 

Commencing Jan.1, 2006, Rule 1148.1 prohibits the venting of gas to the atmosphere and instead requires it be treated for sale, reinjected back into the ground for future oil extraction activities or used for fuel.  When used for fuel, facilities must use equipment that can demonstrate 95% or greater VOC vapor removal efficiency.

The rule will reduce total VOC emissions by 1.76 tons per day. 

Air districts in Santa Barbara, San Luis Obispo and Ventura counties have adopted similar rules.

Uniquely, AQMD’s regulation will impose additional control requirements on produced gas operations near so-called “sensitive receptors” such as schools, daycare centers and hospitals.

Rule 1148.1 was developed to implement the AQMD’s 2003 Air Quality Management Plan control measure for fugitive VOC emissions. 

In other action today, the Board:

  • Awarded more than $19 million in grants through the Carl Moyer and Clean Fuels programs to reduce emissions from heavy-duty on- and off-road vehicles and equipment.  For the first time this year, funding has been awarded for the repowering of older locomotive diesel engines with new low-emission diesel, liquefied natural gas and diesel-electric hybrid engines that will collectively reduce over 120 tons per year of nitrogen oxide emissions.  Total nitrogen oxide reductions from all the proposed projects is approximately 689 tons per year;

  • Awarded more than $2 million in funding for the development of a demonstration fleet of hydrogen-powered vehicles in five cities in the region.   The cities of Burbank, Ontario, Riverside, Santa Ana, and Santa Monica will participate in the demonstration project which will convert gasoline-powered internal combustion, hybrid-electric 2004 Toyota Prius vehicles to hydrogen-powered vehicles;

  • Amended Rule 1132 – Further Control of VOC Emissions from High-Emitting Spray Booth Facilities – to clarify and improve alternative compliance options and address deficiencies identified by U.S. EPA;

  • Set a public hearing for April 2 to amend Rule 403 - Fugitive Dust; Rule 1186 - PM10 Emission Reduction from Paved and Unpaved Roads and Livestock Operations; and Rule 403.1 - Supplemental Fugitive Dust Control Requirements for Coachella Valley Sources.  The amendments will reduce fugitive dust PM10 emissions from construction, road and agricultural sources and enhance the clarity and enforceability of the fugitive dust rules; and

  • Set a public hearing for April 2 for Proposed Rule 1470 – Requirements for Stationary Diesel-Fueled Internal Combustion and Other Compression Ignition Engines – to adopt the California Air Resources Board’s Air Toxics Control Measure and strengthen the requirements for engines located on or near existing schools.

AQMD is the air pollution control agency for Orange County and major portions of Los Angeles, San Bernardino and Riverside counties.

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