By now, we trust that you have learned the importance to the oil and gas industry to be Berm Free just as we have.  Phrases like ‘Corporate Social Responsibility’, ‘Triple Bottom Line’ and ‘Environmental Stewardship’ are not forsaken in this industry; they are embraced.  But change is needed.  Change requires innovative thinking and attitudes.  Technologies that have once serviced the industry so well are becoming obsolete and ineffective in satisfying the changing values of oil and gas producers, vendors, government, community, environment and regulatory.

Spills Contained.  Not Reclaimed.

How much could the industry improve if producers could eliminate safety hazards and contamination risk of conventional spill technologies yet maintain full compliance with government regulations?

They could reduce the safety risk to operators and contractors who have to enter confined spaces where noxious gasses gather.  They would reduce the number of accidents causing injury by eliminating the need to walk on slippery frozen surfaces.

Producers could reduce the risk of contamination by keeping a fluid spill where it belongs; inside the tank.

All of which can be achieved by using innovative technologies that support a Berm Free industry.

No Room. No Problem.

How many acres of land could remain undisturbed and reclamation costs saved if new technology eliminated the need for spill containment outside of the tank?  The short answer is approximately 1900+ acres.

Thousands of wells are completed in Alberta every year requiring acres of space to ensure that proper spill protection is in place.  New technologies alleviate some of these space requirements by eliminating the need for berm/dyke systems.

Moving Day Just Got A Whole Lot Easier.

What does it cost a producer who has to move a well and still maintain regulatory compliance?  Conventional technologies for secondary spill containment (like berm/dyke systems) require expensive tear downs and set ups not to mention potentially higher reclamation costs.

New technologies that support a berm free industry AND remain fully compliant can eliminate many of those expenses by virtually enabling the operators to “pick up and go” with the storage tank.

The oil and gas industry now has innovative choices to ensure good standing as a corporate citizen and responsible energy developer while continuing to meet all regulatory standards.  We encourage the industry to go berm free with compliance guaranteed.  We’ll bet a berm on it.

Find out more at BermFree.com or visit us on Facebook to join the discussion.  We welcome your comments.

We discussed the footprint associated with using berm/dyke systems for secondary containment in our last blog; No Room No Problem.  So what happens when a site needs to be relocated?  In this fourth installment, the discussion surrounds the complexities and costs (environmental and financial) of relocating well sites.

The two most significant factors affecting the costs of moving well sites are:

1. Tear down
2. Reclamation

The tear down requires labor and equipment to ‘uninstall’ the berm/dyke.  Taking down retaining walls, pulling up and disposing of the liner, packing and shipping the equipment to the new well site all add expense to the move.

The berm/dyke system increases the costs of reclaiming the well site because of its significant foot print.  Hidden contamination from small, undiscovered tears or punctures will unnecessarily escalate the expenses of reclaiming the land.

Eliminating the need for a berm/dyke will save time and expense by eliminating the relocation costs and reducing reclamation costs.

The oil and gas industry is always focused improving asset management, lowering expenses and reducing the environmental impact of its operations.  Going BermFree addresses all of these issues.  Innovative technology eliminates the need for a berm/dyke entirely.  A Berm Free well site yields returns of portability, eliminating tear-downs, lowering moving costs, and reducing environmental impact.

Find out more at BermFree.com or visit us on Facebook to join the discussion.  We welcome your comments.

In this third installment, we will take an intriguing look into land use and the footprint of berms/dykes. Bigger is not always better.

The berm/dyke system is the conventional means to addressing the secondary containment requirements of Directive 055 and is the most widely used by Canadian oil and gas producers. The end user is taking unstated risks with the use of this technology. The additional land use requirements are just one among many tradeoffs.

Land Use

An average 20’ tall 400 bbl (barrel) above ground storage tank with berm/dyke system dimensions (2.5‟x32‟x32‟) will require 1024 ft2 to meet ERCB regulations. Approximately 81,785 oil wells were completed in Alberta from 1955-2009. Assuming one average 400bbl storage tank per well completed, approximately 1919 acres would be needed to satisfy regulatory requirements.

The additional space requirements increase the total area of disturbed land, reduce the area available for wildlife and increase the costs of reclamation.

What if there was a way to eliminate the need for a berm/dyke entirely while still meeting all regulatory requirements? Going Berm Free will result in a smaller environmental footprint and reducing the impact of operations.

To find out more about how to go Berm Free, please visit us at bermfree.com or at our Facebook page. We welcome your comments and feedback about the importance of going Berm Free.

In the second installment of our series about what it means to be ‘Berm Free’, we discuss how conventional technologies contain fluid spills and the risks the oil and gas industry are taking.  The status quo is has been acceptable only because of an absence of innovative alternatives.

The conventional technology used today for secondary spill containment is a berm/dyke system. This is a containment area surrounding an upstream storage tank and its purpose is to contain any fluids that may leak or spill out of the primary storage tank.  The goal is noble yet the technology needs improvement.

Conventional technology only mitigates some of the risks from a spill yet creates additional risks to the people working on site and the environment.

1. Safety Hazards

Oilfield workers are required to climb into and out of the containment berms in order to access the storage tank equipment like valves and instrumentation.  Operators and contractors are exposed to additional safety hazards as a result.

A berm and liner is considered a confined space.  Harmful gasses and noxious emissions like Hydrogen Sulfide (H₂S) can gather in confined spaces creating a safety hazard for operators and contractors who require access to the storage tank.

The surface inside the berm/dyke system become slippery when moisture settles or is frozen.  Water and ice that gather in a containment berm create a safety hazard and increase the risk of injury to oilfield workers on site.

2.  Contamination Risk

Conventional technologies used to contain leaks and spills are essentially open air pits.  A fluid spill is contained outside of the storage tank and exposed to the elements and environment.

A thin layer of rubber lining that is susceptible to punctures and tears are all that stands between open air containment and soil contamination.  A fluid spill (oil or otherwise) may only appear to be fully contained while a tear enables leaking fluid into the soil below.  Once contamination occurs, reclamation costs escalate.

Corporate Social Responsibility, Triple Bottom Line, Environmental Stewardship and Responsible Canadian Energy are important to us, our customers and our neighbors.  We encourage the oil and gas industry to go Berm Free.  Please visit us at BermFree.com or on Facebook.  We would love to hear from you.

Corporate Social Responsibility, Triple Bottom Line, Environmental Stewardship and Responsible Canadian Energy are more than oil and gas industry buzz words cited as rhetoric in board room meetings.  These are values held in high regard by industry employees, executives, vendors, manufacturers, producers, government, benefactors, antagonists and regulatory agencies.  These are also virtues for creating a ‘Berm Free’ industry.

What is a Berm?

A berm or dike system, in our context, is a spill containment area surrounding an upstream storage tank.  The purpose of a berm/dike is to contain any fluids that may leak or spill out of the primary storage tank.

The berm or dike system is a standard practice in the oil and gas industry and has been for several years.  This system has done the job in absence of any new innovations.

So what?

There are several issues with conventional spill containment technology (berms/dikes) used across the industry:

1. A fluid spill is contained outside of the tank.
2. Considerably large footprint to install.
3. Inflexibility for moving the site.
4. Perceived safety and environmental protection

Go Berm Free.

We feel that these issues are important enough to warrant their own web page.  Visit us at http://www.bermfree.com to find out more.

We will be discussing these issues specifically in subsequent blogs and welcome your comments here on our blog site or at our Facebook page.

“Be in the Big” is a reference to behaving as a significant contributor; regardless of physical size.  The phrase describes an attitude and belief after which habits and results will follow.

This past week we were honored as Mike Nielsen and Russ Hebblethwaite accepted awards for Rising Stars and Leaders of Tomorrow.  Both accolades are evidence of playing big.

As an Oilweek “Rising Star”…

To be named one of Oil Week’s 2011 Rising Stars is a huge honor.  Mike Nielsen explained that “being a peer amongst so many talented, diverse and accomplished entrepreneurs was a great experience and I’m sure we’ll continue many meaningful relationships in the future.”

The Rising Stars awards banquet was held at The Hotel Arts in downtown Calgary AB. and was sponsored by KPMG.  The award recipients and emcee, walked the red carpet, socialized by the pool and were greeted by an audience of approximately 250 people.

In the Valedictory Address offered by Todd Hirsch, a Senior Economist at ATB Financial, he said that a star in the celestial sense of the word means to lead, to guide and to forage a path for all those to follow.  It is a responsibility of the stars to guide.

Mike’s award was a result of his extraordinary efforts with his family and his community.  With a solid order of priorities in his family, his community and a growing business, Mike and Enviro Vault have earned a place in the spot light as a leader in innovation with our newly launched DuoVault™.

Mike’s advice for the class of 2012; “Be proud of the work we do in our industry.  Do our absolute best to implement innovative technologies that enable us to produce oil and gas ethically and responsibly.”

As a Business in Calgary “Leader of Tomorrow”…

As Mike received his Rising Stars award, Russ was graciously accepting his award as one of Business in Calgary’s Leader of Tomorrow.

“Leaders of tomorrow is a program that recognizes people in the business community who have contributed to making Calgary the great city that it is, through their personal integrity, values, business initiatives, community involvement, innovation, philanthropic activities. Leaders of Tomorrow individuals are owners and managers of successful private and public companies based in Calgary, and are the primary stakeholders responsible for the performance of their employees and company direction.” – Business in Calgary

The Leaders of Tomorrow award is reserved for the finest and brightest business people in Calgary.  The celebration was held at the Metropolitan Center in Calgary, AB and featured a cocktail reception, three course dinner and ceremony hosted by local celebrity Dave Kelly.

Russ was recognized has having “leadership [that] challenges convention” and “his ability to communicate his vision engages many influencers to follow Russ’s lead.”  Such qualities are highly regarded accolades among the quality of leaders who also earned this award.

If you were on Stephen Avenue on June 8, 2011 it would have been hard to escape the presence of Enviro Vault Canada Ltd. at thelaunch of the DuoVault™ held at the Metropolitan Grill in the heart of downtown Calgary, AB.

An above ground 400 barrel (bbl) storage tank standing 20 feet tall is not your typical Stephen Avenue afternoon scenery.  Special permits were in place to have the DuoVault™ delivered in the early morning hours to be the showcase of the exclusive event.  In addition to the crowd of curious onlookers, the event grabbed the attention of many professionals including engineers, operators, end users and local media.

The event was a great success with over 130 people in attendance, hands-on information directly from Enviro Vault’s leading experts, a medley of food and drink and a positive mark that was definitely left on those who shared in the experience.

Russ Hebblethwaite, CEO and President of Enviro Vault Canada Ltd. explains they invest heavily into research and development for innovative tank technology.  “It’s our commitment to this innovation that will enable us to continue providing the next generation solutions for tank safety and environmental stewardship.”

The DuoVault™; a Tank-in-Tank design is the result of innovative and cutting edge thinking.  It was a design created to increase operator safety, decrease operation, maintenance and construction costs and enable oil and gas producers to reduce their environmental impact and continue compliance with the Energy Resources and Conservation Board’s (ERCB) Directive 055.

The benefits of the DuoVault™ include:

• Reduced operating costs for moving storage tanks
• Smaller environmental footprint on the lease
• Increased safety for operators and contractors working on the site
• 110% secondary containment
• Continuous uninterrupted interstitial space around the primary tank to the high fluid level
• A visual alarm and subsequent shut down for leak detection of the primary tank
• An overfill alarm with inlet shut down switch
• Containment for valves/piping and fluid transfer leaks

Not all technology is created equal. External social, technological, economic and political trends are forcing the oil and gas producers to evolve with their technologies. Operations can no longer depend on conventional technologies that meet minimum regulatory requirements.

The industry must make improvements in spill containment and greenhouse gas emissions while still meeting regulatory requirements. The DuoVault™ is a new technology enabling producers to uphold their social license to operate.

Greenhouse gas emissions (GHG) are on the rise and the Environmental Protection Agency (EPA) is adapting to deal with this inclination. There are many facets to the changing regulations such as light-duty and heavy-duty equipment GHG reduction, mandatory GHG reporting, and waste energy recovery to name a few. The Clean Air Act is extending new regulations for petroleum refineries and fossil fueled power plants as well. These new regulations are targeted at reducing GHG emissions on a large scale. A study done in 2005 shows U.S.A at 21.7 and Canada at 22.6 tons of CO₂ per capita ranking the U.S.A 15^th and Canada 16^th out of 17 countries studied (1).

Three of the main changes affecting the petroleum industry include:

• New Source Performance Standards
  • Flares
  • Sulfur recovery units
  • Fuel gas combustion devices (including heaters and boilers)

• Leak Detection and Repair requirements

• Benzene National Emissions Standards for Hazardous Air Pollutants

(Taken directly from http://www.epa.gov/compliance/resources/cases/civil/caa/oil/)

So far the EPA has reached settlement negotiations with 26 of the largest refineries who represent approximately 90% of domestic refining capacity. These refineries have agreed to reduce their Nitrogen Oxide by more than 87,000 tons per year, Sulfur Dioxide by more than 250,000 tons per year, and Air Toxics including Benzene and volatile organic compounds. Additionally, these refineries are dedicating $5 billion to control technologies while also paying $75 million in civic penalties.  They are also contributing $68.5 million to supplemental environment projects (2).  It should be mentioned that the EPA has refined its GHG Tailoring Rule establishing a common sense approach, which concentrates first on industry leaders, then small businesses.

Starting to tighten up on GHG emissions means the oil industry needs to apply cleaner technologies to pass these regulations. The attention on air emissions affects old technologies that need to be replaced and changes equipment requirements for new facilities.

We have observed one way to reduce the volume and intensity of GHG emissions are by changing the way the industry heats fluids in the winter.  The common practice is to use fire tubes or burners to keep fluid from freezing.  These systems burn natural gas (like a BBQ) to heat fluid which emit CO2 among other gasses.

Technologies such as waste heat energy generators and catalytic heaters are just a few options available to the industry.  Enviro Vault is working to incorporate technologies like catalytic heaters in our vaults to assist the industry in reducing the impact of its operations.

The only question remaining is “What will industry do to take advantage of such innovations?”

(2)  http://www.epa.gov/compliance/resources/cases/civil/caa/oil/

Whether you are in the energy industry or not, it is hard to escape the news of the Environmental Protection Agency’s (EPA) changing regulations. The oil and gas industry is constantly under the media microscope and it is obvious that the EPA will be making strict changes. The Spring Agenda highlights four major focus areas:

• Improving Air Quality
• Assuring The Safety Of Chemicals
• Cleaning up Our Communities
• Protecting American Waters (1)

One reason the EPA is focusing on GHG emissions is because of a correlation between an increase in GHG emissions and acidic content in ocean/water supplies; hence the Improving Air Quality program.  Many resource companies will be required to review their processes and look for alternatives to boilers and heaters.

New requirements for reporting emissions by resource companies have already been implemented over the past year. The GHG Reporting Program requires all energy firms to record and share their emissions as well as energy usage for the upcoming year. These reports are aimed to be shared with the public and help guide policy makers (2).

The main problem facing the industry now is adapting to the changes.

Please keep in touch as we continue the series about the EPA Agenda and its effects on the oil and gas industry.

(2) http://www.nytimes.com/gwire/2010/11/09/09greenwire-epa-issues-emissions-reporting-rules-for-oil-a-30139.html

Ideas without action are just ideas.   A statement we made in a previous blog (Working with Producers and Engineers to Improve Environmental Performance).  With the cooperation of forward thinking, innovative organizations like IMV Projects, ideas have turned into actions.

The DuoVault™ Tank-in-Tank is the result of innovative and cutting edge thinking.  It was a design created to increase operator safety, decrease operation, maintenance and construction costs and enable oil and gas producers to reduce their environmental impact;  all the while, complying with the Energy Resources and Conservation Board’s (ERCB) Directive 055.  Continuous, uninterrupted interstitial space, 110% secondary containment, spill containment, portability and freeze protection are a few characteristics of the DuoVault™.

Agents of change are working together to turn a creative idea into action.

IMV Projects first became aware of the DuoVault™ concept through a technical information session hosted by the Petroleum Technology Alliance Canada.  The concept of being able to make a tank with stand alone secondary containment compliant with Directive 055 was intriguing enough to bring forward to their client.

Enviro Vault worked with IMV Projects to identify the storage tank specifications needed on site and for regulatory approval.   With the specifications defined, two DuoVault™ storage tanks were built.

Representatives of the ERCB were invited to inspect the tanks and they confirmed that “the DuoVault™ tank appears to meet the requirements of Directive 055: Storage Requirements for the Upstream Petroleum Industry. Based on current requirements, a tank with this type of construction does not require additional secondary containment measures such as dikes or berms”.

The benefits of such an affirmation are many:

• Reduced operating costs for moving storage tanks
• Smaller environmental footprint on the lease
• Increased safety for operators and contractors working on the site
• 110% secondary containment
• Continuous uninterrupted interstitial space around the primary tank to the high fluid level
• A visual alarm and subsequent shut down for leak detection of the primary tank
• An overfill alarm with inlet shut down switch.
• Containment for valves / piping and fluid transfer leaks

The agents of change; Enviro Vault and IMV projects are working together to improve the environmental impact and operator safety of oil and gas operations.