Flint Hills Resources Pine Bend Refinery Emissions Reduction Initiative

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Flint Hills Resources Pine Bend
RefineryEmissions Reduction Initiative

• Deb McGovern
• Regulatory Affairs Manager
• November 18, 2004

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Flint Hills Resources

• A leading producer of fuels, base oils for
  lubricants, and other petrochemical products
• Headquarters are in Wichita, KS, and FHR is a
  wholly owned subsidiary of Koch Industries
• Company has three refineries Rosemount, MN
  (Pine Bend) Corpus Christi, TX and North Pole,
  Alaska
• The Pine Bend refinery has a processing capacity
  of 280,000 barrels per day (12 million gallons)

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Emissions Reduction Initiative(ERI)

• In April 1999, Pine Bend refinery announced
  voluntary plan to reduce overall emissions by 50
  in 5 years
• 10-20 million committed to achieve such
  reductions
• Pine Bend is striving to become one of the lowest
  emitting U.S. refineries
• ERI is part of the companys philosophy to be a
  responsible environmental citizen (i.e., full
  compliance, clean facility, clean products, and
  open and direct communications)

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Air Emissions Data for US Refineries(Sources
USEPA website and Oil Gas Journal)
FHR Pine Bend 1999 220 lb/Mbbl, 29/113 2001
188 lb/Mbbl, 29/113 2004 64 lb/Mbbl, 2/113
1999
2004
Refineries
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FHR Partnership with the MN Center for
Environmental Advocacy

• In April 1999, FHR also announced a unique
  partnership with MCEA to monitor the refinerys
  environmental performance
• This partnership produced a website designed to
  make environmental data accessible,
  understandable and verifiable to the public
• Website was the first comprehensive emissions
  reporting site developed collaboratively between
  an environmental group and industry

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FHR/MCEA Website

• Launched in April 2002 (www.fhrpinebend.com)
• Designed to create a transparent view of the
  environmental performance of the Pine Bend
  refinery
• Tracks FHRs progress on meeting its Emissions
  Reduction Initiative commitment
• Includes a description of the refinery processes,
  emission data, ambient monitoring data, and
  pollution prevention projects

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Independent Review Data Verification

• One key to the success of the FHR/MCEA
  collaboration was the formation of an Independent
  Review Panel chosen jointly by MCEA and FHR
• Panels role is to verify environmental data and
  performance, and provide advice on website
  content
• University of Minnesota was retained to audit
  FHRs calculation methodologies and emissions
  data
• Air, water and waste data reviewed
• QA/QC sampling and analytical protocols reviewed

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ERI Specifics

• FHR pledged to reduce its air, water and waste
  emissions from 18,000 tons to 9,000 tons by the
  end of 2004
• 1997 is the baseline year (represented a typical
  year)
• FHR committed to reduce a variety of pollutants
• Formalized baseline assumptions with MCEA
• air PM-10 subset of PM emissions
• water BOD subset of COD
• waste exclude equipment from demolition
  projects

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ERI Progress

• Baseline year emissions----18,000 tons
• Actual emissions in 2002----13,500 tons
• Actual emissions in 2003----14,600 tons
• For 2004, on target to be below the 9,000-ton
  goal
• Anticipate overall reductions to be
• 63 reduction in air emissions
• 25 reduction in water emissions
• 60 reduction in waste

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FHR Flaring Reductions

• Flaring at refineries is necessary to avoid
  over-pressuring of equipment
• Company set a goal to reduce flaring to improve
  operational and environmental performance
• FHR reduced flare time by 95 in the past six
  years
• We achieved this by implementing operational
  performance and improving existing technology

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Lessons Learned ERI Benefits

• Key Lessons Learned
• Knowledge of emissions is an evolving process
• Need to avoid double counting of emissions
• Dont create disincentives for doing the right
  thing
• Benefits
• Community and regulator support
• Employees pride of ownership and involvement in
  reaching ERI goal
• Good business sense

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Whats Next for Pine Bend?

• Look for ERI announcement with more detail in
  Spring 2005
• FHR is currently working in conjunction with
  USEPA to develop policies to reduce emissions
  during times of start-up, shutdown and
  malfunction