TYPICAL ENVIRO VAULT® COST SAVINGS SCENARIOS FOR WESTERN CANADA (May 2010)

Following are a list of different problems likely to be encountered over the lifetime of the average tank and the related costs involved. These costs were based on a field located relatively close to a service centre where equipment and manpower are readily available. Costs in more remote locations will run much higher. Sources used to estimate the following cost estimates are local service companies experienced in: spill clean ups, valve changes, fire tube repair and replacement, vacuum and steam truck companies as well as input from local oil company representatives.  Rates shown within this outline are based on rates in effect as of May 2010. Costs shown are averages. Updated May 2010.

Scenario 1 a): Valve damage and replacement costs

A vacuum truck is dispatched to the lease to pull a load of water off the 3’ valve but upon arrival they find the valve to be frozen.  A pipe wrench is used on the valve for extra leverage which results in a broken valve.

Average Total: $1,100.00

Enviro Vault® Solution:

An option for catalytic heat provides freeze protection for valves and prevents lost production.  In a heavy oil application, the latent heat from the process fluid keeps the valves from freezing.

Scenario 1 b): Steam truck to thaw valve

The truck driver calls into dispatch to advise them of the frozen valve and request further instruction. Dispatch takes 10 - 15 minutes tracking down the operator and lining up alternate work for the truck. Dispatch may be advised to line up a steamer to go out and thaw the valve. If a steamer is available right away it may take 1 - 2 hours for it to travel to location, thaw the valve and return to base.

Average Total: $470.00

Enviro Vault® Solution:

An option for catalytic heat provides freeze protection for valves and prevents lost production. In a heavy oil application, the latent heat from the process fluid keeps the valves from freezing.

Scenario 2 a): Fire tube failure

The sample taps mounted on the exterior of the tank are frozen so the operator is unable to ascertain sand height in the tank.  The sand builds up over the fire tube and causes a fire tube failure. Fires have resulted as the oil enters the broken fire tube, in some cases destroying the entire tank.  A picker truck is needed to remove the stack, then return and reinstall it. If sand is built up enough on the fire tube, the tank must be emptied and the door pulled so a crew can enter and use a jackhammer to remove the build up. A steamer is then called to clean up the damaged tube prior to repair and often to clean the mess made on the tank during the change out.

Average Total: $3900.00 

Average Total: $37,500.00

Additional Info:

The ThermoVault® provides an alternative to heating with a fire tube by using multiple catalytic heaters. Catalytic heaters are sized to the energy requirement and provide freeze protection.  Testing is planned during the summer of 2010 to determine if catalytic heat is more efficient, uses less fuel gas, has cleaner emissions, and can heat the tank fluid to a desired temperature.  The ThermoVault® will increase safety, efficiency and productivity by eliminating the possibility of fire tube failures.   

Scenario 2 b): Frozen or sanded off sample line resulting in spill

Operator attempts to take a sample but upon opening the tap they see that the fluid is barely moving. Operator decides to do other duties while the frozen plug works itself free. Operator forgets, drives away and eventually the plug does come free resulting in a spill.

Scenario 2 c): Foam over/overfill

Inability to obtain a sample causes the water level in the tank to rise above the fire tube resulting in poor heat transfer to the oil above. As cool oil has a tendency to foam, the likelihood of a spill is very real.  The cost savings are provided on the next page.  

Average Total: $4100.00

Enviro Vault® Solution:

Samples are taken more on the inside of the tank as opposed to the side of the tank wall with Enviro Vault® sample lines.  180 degree elbows are installed, thereby substantially reducing the potential for sanded off lines.  This solution also provides enhanced operator safety so they don’t have to climb a ladder to take samples. This solution eliminates the possibility of a spill and clean up costs associated.

NOTE: 

If the scenario 2 b) and 2 c) were to take place in a group tank setting, the clean-up costs could easily triple.

Scenario 3: Insulating 4 inch valves (fibreglass or urethane foam)

Initial cost to insulate valves with fibreglass. Insulation eventually gets soaked or breaks down offering little insulating value.  Every 2 years it must be removed and replaced with the old insulation disposed of at a landfill.  Some valves are reinsulated every year.

Average Total: $250.00

Cost to insulate four valves with urethane foam.

Average Total: $350.00

Enviro Vault® Solution:

There is still the possibility of valves freezing even when insulated.  Valves inside of an Enviro Vault® are protected against freezing with the option of catalytic heat. 

Scenario 4: Valve freezes and cracks

Cost and installation of a new valve.  A vacuum truck might have to pull fluid down to enable valve change (if unable to utilize valve change plug).  If the tank has to be fully emptied to facilitate the valve change, the fluid handling costs could be a lot higher.

Average Total: $900.00

Enviro Vault® Solution:

Operators advise that the valve life is being extended by at least 2 - 3 times. An average valve life on a tank without an Enviro Vault® is 6 to 8 months on high use valves. Very few valve changes reported on Enviro Vault® equipped tanks.   

Scenario 5: Vandalism and Theft

Vandalism and theft are unpleasant realities. Numerous incidents of vandalism have cost producers hundreds of thousands of dollars, likely more. The costs due to theft are unknown. 

Enviro Vault® Solution:

All sample taps, HLSD switches, valves and even sales oil valves can be installed inside an Enviro Vault® which can be locked. These incidents can be greatly reduced or eliminated.

Operator Safety and Productivity:

“Slip and fall” accidents are a major cause of lost time accidents in the oil industry.  All valves in the Enviro Vault® are at ground level, eliminating the need to climb an icy ladder to get a sample while hanging on precariously with one hand. “Strain” injuries from opening and closing frozen valves are also eliminated.

Keeping personnel off the ladders was a main concern expressed by operators:

With all valves kept warm and easily accessible, operators can keep much more accurate track of fluid and sand levels, in much less time. This enables them to book fluid and sand handling services more accurately, avoids time consuming delays for both themselves and truckers dealing with frozen valves.  Operators spend much less time handling sample fluid and arranging cleanup on and around tanks.  The Enviro Vault® has proven to lower operating costs per well.  Operators spend more time working on other areas of the lease such as maintenance of skid and wellhead drive, and spending more time looking into production optimization. It’s no secret, or surprise, that an operator given the best tools to do his job is not only much more efficient, they’re much happier.

The general consensus of the operators is that; “next to the pickup truck they drive, the Enviro Vault® is the most valuable tool they have.” 
         

Public Image, Board Approval, and Insurance Reduction:

At a time when land owners and government regulations are becoming more stringent, an investment of this kind goes a long way to showing real commitment to environmental issues. There is also a potential reduction in insurance premiums on leases equipped with systems such as the Enviro Vault®, as spills, accidental or intentional and environmental damage are obviously reduced.                   
 

SUMMARY:

As you can see, there are numerous reasons to incorporate ENVIRO VAULT®. One stop on an Enviro Vault® equipped location on a cold winters day will provide all the evidence required to see that it is, in fact, a necessary and vital tool for today’s oil industry. It is very difficult to conclude an actual dollar saving using the scenarios within, but current user estimates of a payout on the Enviro Vault® consistently come in at between one and two years, easily. That being the case, over the course of the tanks life, not only is the Enviro Vault® paid for, the entire tank has been paid for.  

Enviro Vaults can be used in almost all aboveground tank applications.  You have the ability to have the vaults installed in your new tanks or retrofit them into your existing tanks. It is up to the end user what Enviro Vault® size they want, or what equipment they want installed inside (valves, sample taps, electronic level controls, etc).   Operator safety, heated valves, accurate samples year round, contained mess, easy clean out, no insulating, all in a lockable area preventing theft and vandalism are a part of that tank for its lifetime. The Enviro Vault® is flush mounted and doesn’t affect tank cradle positioning.

If you have any questions, concerns or additional input, please call (403) 263-4433 or visit our website at envirovault.com                 
 
Enviro Vault® and ThermoVault® are registered Trademarks.
 

Please Contact Us for more details on any of our cost savings scenarios.

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