ERC calculator petroleum and gas - Module 10 transcript

Watch the video Petroleum and gas ERC calculator training – Module 10 – Process facilities to learn about the Process Facilities, Process Facilities User Build, and Water Facilities User Build sheets and work through examples.

Welcome back to the training for the 2022 edition of the estimated rehabilitation cost calculator for petroleum and gas. This is Module 10. This module will work through entering data into the Process Facilities, Process Facilities User Build, and Water Facilities User Build input sheets.

The Process Facilities user input sheet allows the user to itemise disturbances associated with process facilities. This sheet can also improve alignment with other spatial data sets as the land rehabilitation component is by area and separate from the decommissioning/dismantling/demolition components.

The sheet includes tables for the same groups as in the Main sheet, that is: unconventional gas processing facilities, conventional gas plants, water treatment plants, water transfer stations, bulk oil storage facilities, and liquefied petroleum gas facilities. The layout of each table is similar with the user selecting a capacity or size of facility from the drop-down menu, the quantity in that category, and the land disturbance area in the appropriate land type column. The total land area entry in each row is the total for all the facilities.

The columns to the right of the user entries shows how the calculator has allocated quantities for each row. These are summed at the bottom of the table and multiplied by the default rate to get a total. The totals for the decommission/dismantle/and demolish, and land rehabilitation components, are added together and reported to the top of the sheet and this total reported to the Main sheet. For example, the cost total for the conventional gas plants entered into the input sheet is reported to the conventional gas plants from input sheet line in the Main sheet. The total ERC amount is also displayed at the top of the sheet so the user can see how the total changes with quantity entries.

The rates in the Process Facilities sheet are separated into decommission/dismantle/demolish and land rehabilitation. In the Main sheet, these two activities are rolled into one rate and therefore the rates in the Process Facilities sheet and Main sheet are not the same.

The default rates for decommissioning/dismantling/demolition and land rehabilitation components are shown at the bottom of the table. The hyperlinks for land subrates and process facilities take the user to the Subrates tab which lists all the rates used in the Process Facilities tables. Alternate rates are not available in this sheet. The user should use the Main sheet if alternate rates are justified.

Let's start with the gas processing facilities table. This table is intended for unconventional gas processing facilities such as those associated with coal seam gas operations. As for all the sheets, the first column is for the map ID followed by the name of the facility or group of facilities. In this case we are going to select the first option in the drop-down menu which is a stand-alone gas compressor. This item is different to the rest of the selections as it is the only one that is by single unit whereas the reminder of the selections are by capacity range. We are assuming this row comprises five gas compressors in the project area, so we enter five to the number column. As there are five units, the entry to the land disturbance column must be the sum of all those disturbances. Typically, stand-alone gas compressors disturb a relatively small land area so in this case we will assume each compressor is installed to a 20 metre by 20 metre compound. The entry to be made is then 5 by 20 by 20 divided by 10,000. The divide by 10,000 converts the square metres into hectares as there are 10,000 square metres in one hectare. For this entry we're assuming the stand-alone gas compressors are in a desert area so we enter a 0.2 in the arid column.

For the next three entries we take advantage of the ability to list out all the gas processing facilities in the area. Let's assume the first plant has a capacity 10 terajoules per day and its name is Facility 1. The facility disturbs a land area of 3 hectares and is in a pasture area. The second facility is Facility 2, has a capacity of 450 terajoules per day and disturbs a land area of 10 hectares and again is in a pasture area. The last plant is called Facility 3, has a capacity 800 terajoules per day and disturbs 12 hectares and is in a native area. Looking to the right you can see how the calculator has allocated entries and in the top row you can see how the costs are increasing as we enter each. Down at the bottom of the table you can see how the quantities are multiplied by the default rate to get the total for each column.

The remainder of the tables are used in the same manner. The next table is for conventional gas facilities. Such facilities are typically a smaller capacity than large coal seam gas facilities and consequently the ranges are lower.

The next table is for water treatment plants and these are typically for reduction of salinity and are focused on plants associated with coal seam gas activities. The rates can be used to represent water treatment plants for other resources as the costs associated with modules will generally be similar for similar capacities. The 80 megalitre per day and 100 megalitre per day categories have much higher costs because they assume equipment to further concentrate and crystallise salt. These rates include brine concentrators and thermal crystallizers (BC and TC). All the rates in the table (and the other tables) can be used in a modular fashion, so if a facility includes five by one megalitre reverse osmosis units, five can be entered into the one megalitre per day row. Remember to enter the total land disturbance in the land disturbance columns.

Water transfer stations are typically a collection of tanks, pipes and pumps and serve to move water around fields. They do not include any significant processing facilities so if you have a water transfer station that also has a reverse osmosis unit, the reverse osmosis unit must be added to the water treatment plant table. The scope description in the Main sheet and the Water Facilities User Build sheet provide further information on what constitutes a small, medium, and large water transfer station.

For conventional oil storage facilities, the selection is by oil storage capacity, that is the volume of oil stored in tanks at the facility. Consistent with the general rule throughout the calculator, the oil storage rates include all infrastructure and equipment reasonably associated with such a facility. Items not included in the rates and that must be added separately include: major water treatment plants; major water storage; major power generation facilities that exist to provide power beyond the plant; large camps, for example over 100 person capacity; camps installed to support construction or expansion; and large evaporation ponds, for example greater than 20 megalitres.

For further clarity, items that are included in the rates include: small process ponds; wastewater plants and landfills directly associated with the facility; minor accommodation and offices directly associated with the facility; and open space, laydown, and roads within the facility boundary.

The last table is for liquefied petroleum gas plants of which there are only a few across Queensland. For integrated facilities processing various resources and products, the quantities must be applied to the separate tables.

The Process Facilities User Build sheet is included to allow the user to build a rate for specific facilities whereby the quantities are clearly understood. The sheet is not intended to be used for large complex plants but rather facilities where the quantities are well defined and can be transparently communicated and articulated to the sheet. This would typically be smaller facilities. The sheet operates differently to most of the other sheets in that the entries are made vertically. The cost rates for each item cannot be changed by the user.

Entry to the sheet starts at the top by selecting the appropriate processing plant type. This entry does not affect any of the other quantities, it merely serves to collect costs for the same type of facility for reporting back to the Main sheet. While the sheet is titled Process Facilities, in this case the sheet is only for oil and gas plants. We will discuss a similar sheet for water plants later. One way to undertake the entry is to use process flow diagrams, photographs, and images supported by field visits or communication from operational staff to ground truth the entries.

We will enter quantities for a typical small oil storage facility as an example. The first step is to pick oil storage from the drop-down menu, then enter the name of the facility and any notes that may assist the user and/or the reviewer. This facility has four horizontal 40 kilolitres storage tanks so we enter four to this cell. The facility includes two oil water separators, one pig launcher to clean out pipes downstream, and four pump sets to move oil around the facility and to load trucks. Terminations are pipes that go into or out of the ground and that would require cutting and capping to decommission the facility. This facility has 10 such items so we would enter 10 into this cell. For this facility, the length of piping was measured from a general layout drawing supported by aerial imagery, and confirmed by the operational staff at the facility. The liquid pump and dispose row is for wastewater. For this facility we assume there are generally 10 kilolitres at the facility at any point in time. The facility is remote and does not have any on-site constructed buildings. It has three portable buildings which are a crib room, ablutions block, and a control room. We enter three to the portable buildings row. The last selection are for land rehabilitation which would typically include ripping, placement of growth media, unless the site is in an arid region.

For this facility, the compound is 100 metres by 100 metres, which is one hectare. The land requires ripping, so we enter one to this cell. Growth media is required to support revegetation and the thickness is 150 millimetres. For the volume of growth media, we can enter this as a formula to show how it was derived, which would be 1 times 100 times 100 times 0.15, which equals 1,500 cubic metres. The land is in pasture so we enter one to this cell.

Most oil storage facilities would require a land investigation. This facility is remote and there is no other facilities close by that might otherwise share mobilisation and lump sum costs of the investigation. Consequently we must enter one to the land investigation one off costs row. If a second facility was close by and required investigation this entry could just be 0.5. The land investigation area is only the area that would require investigation. For an oil storage facility this would typically be in and around the oil storage tanks, in-ground separators, and any loadout facilities. For this facility we measured an area of one hectare requiring investigation, so one gets entered into to the land investigation area row. The summary table groups the costs from the quantities entered above and then the total is shown at the top of the sheet. The total for each type of plant is summed and reported to the Main sheet. For example, the cost for all the oil storage facilities entered to the Process Facilities User Build sheet are reported to the conventional oil facilities from user build row in the Main sheet.

Like the Process Facilities User Build sheet, the Water Facilities User Build sheet is included to allow the user to build a rate for specific facilities whereby the quantities are clearly understood. The sheet is not intended to be used for large complex plants but rather facilities where the quantities are well defined and can be transparently communicated and articulated to the sheet. This would typically be smaller facilities. The sheet operates the same as the Process Facilities User Build sheet where entries are made vertically. The cost rates for each item cannot be changed by the user.

Similarly to the Process Facilities User Build, one way to undertake the entry to the sheet is to use process flow diagrams with photographs and images supported by field visits or communication from operational staff to ground truth the entries.

The first step is to enter a map ID, then enter the name and the facility and any notes that may assist the user and/or the reviewer. This facility has four horizontal 40 kilolitres storage tanks so we enter four to this cell. This example facility comprises several panel tanks of varying size and associated piping and pumps. We scroll down to the 7.6 megalitre panel tank and enter the quantity for these, in this case one and then one for the bigger 40 megalitre tank. The facility is continually processing water and in this case we will assume 1,000 kilolitres will remain. The facility does not have any major modules, that is large process units that would require separation into two or more sections for transport or any separators or small process units. The facility does have two pump units so we enter two to the pumps and controls, and has about 200 metres of piping between tanks and pumps. The facility is located in the field and does not have any on-site constructed buildings. It has one portable building which is for storage and a small office. We enter one to the portable buildings row. The last sections are for land rehabilitation which would typically include ripping, placement of growth media unless the site is in an arid region. For this example the land area for rehabilitation is three hectares, obtained from layout drawings and confirmed by aerial imagery. The calculator automatically calculates the volume of growth media required assuming a thickness of 150 millimetres, but the user can over-ride this entry with justification. Water transfer facilities do not generally require land investigation. The summary table groups the costs from the quantities entered above and then the total is shown at the top of the sheet. The total cost for water transfer facilities entered to this sheet is reported to the water transfer stations - user build row in the Main sheet.

As always, for more information or specific instructions, please consult the user guide which is also available on the Business Queensland website, below the download for the calculator. See you in the next module.

Watch the video: Module 10 – Process facilities.