VERTICAL SCREENING DISTANCES FOR ETHYLENE DIBROMIDE (EDB) AND 1,2 DICHLOROETHANE (1,2 DCA) AT PETROLEUM UNDERGROUND STORAGE TANK (UST) SITES

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1 VERTICAL SCREENING DISTANCES FOR ETHYLENE DIBROMIDE (EDB) AND 1,2 DICHLOROETHANE (1,2 DCA) AT PETROLEUM UNDERGROUND STORAGE TANK (UST) SITES 25th National Tanks Conference and Expo September 14 16, 2015 Phoenix, Arizona Matthew Lahvis Shell Global Solutions (US), Inc. June Lu SNC Lavalin, Inc. Janice Paslawski SNC Lavalin, Inc. 1

2 DEFINITIONS AND CAUTIONARY NOTE Reserves: Our use of the term reserves in this presentation means SEC proved oil and gas reserves. Resources: Our use of the term resources in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves. Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions. Organic: Our use of the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing impact. Resources plays: Our use of the term resources plays refers to tight, shale and coal bed methane oil and gas acreage. The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation Shell, Shell group and Royal Dutch Shell are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words we, us and our are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. Subsidiaries, Shell subsidiaries and Shell companies as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control. Companies over which Shell has joint control are generally referred to as joint ventures and companies over which Shell has significant influence but neither control nor joint control are referred to as associates. The term Shell interest is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as anticipate, believe, could, estimate, expect, intend, may, plan, objectives, outlook, probably, project, will, seek, target, risks, goals, should and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell s 20-F for the year ended 31 December, 2015 (available at and ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 14 September, Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all. We use certain terms in this presentation, such as discovery potential, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No , available on the SEC website You can also obtain this form from the SEC by calling SEC

3 BACKGROUND use EDB = lead additive; soil fumigant 1,2 DCA = lead additive; commercial chemical/solvent, paints, etc. chemical properties Compound Henry s Law Constant 25 o C Effective Solubility Gasoline b (µg/l) Vapor Pressure (mm Hg) 25 o C Effective Air-Phase Saturation (µg/l) EDB , ,2 DCA , benzene , EDB Br Br 1,2 DCA a VISL calculator - Calculator.xlsm b Falta, Ethylene Dibromide and 1,2-Dichloroethane Contamination from Leaded Gasoline Releases, Ground Water Management - Petroleum Hydrocarbons and Organic Chemicals in Ground Water: Prevention, Assessment, and Remediation Conference,, pp

4 BACKGROUND: BIODEGRADATION persistence aerobic biodegradation EDB: t 1/2 = days weeks 1,2 DCA: t 1/2 = days > several months anaerobic: EDB: t 1/2 = months 1,2 DCA: t 1/2 = months years; sulfate, methanogenic conditions only co-metabolic biodegradation demonstrated (methane), yet biodegradation may be slowed in the field by the presence of other hydrocarbons EDB Br Br 1,2 DCA KEY EDB and 1,2 DCA biodegrade aerobically biodegradation rates less well understood than BTEX 4

5 BACKGROUND: ANALYTICAL METHODS Method EDB 1,2 DCA GROUNDWATER (µg/l) 8260B SOIL GAS (µg/m 3 ) 8260B TO TO-15 (sim) Screening Level* EDB 1,2 DCA * VISL calculator - KEY separate analytical methods required for groundwater analytical detection limits (DLs) and reporting limits (RLs) in soil gas are generally above risk-based screening levels 5

6 BACKGROUND: OCCURRENCE (EDB) From Wilson and Adair, 2008 KEY EDB concentrations in GW > DLs are a relatively common occurrence in South Carolina and other states 6

7 BACKGROUND: RISK (EDB) EDB risk greater Modified from Wilson and Adair, 2008 KEY EDB represented a greater risk than benzene in groundwater at 25% of sites investigated Natural Attenuation of the Lead Scavengers 1,2 Dibromoethane (EDB) and 1,2 Dichloroethane August 2015 (1,2-DCA) at Motor Fuel Release Sites and Implications for Risk Management (EPA/600/R-08/107) 7

8 BACKGROUND: REGULATORY 2010 US EPA OUST Memo: begin/continue to monitor: - used pre-1986, continued to be stored - threat to DW resources analyze using appropriate methods (Method 8011 EDB) remediate if threat exists share KEY information EPA/Falta studies prompt US EPA OUST to recommend additional risk assessment for EDB and 1,2 DCA 8

9 BACKGROUND: OCCURRENCE # of states monitoring for lead scavengers # of states w/ % s based on estimates or hard data KEY ASTSWMO, Lead Scavengers Survey Report: Prepared by LUST Task Force, August EDB and 1,2 DCA in ground water is a common occurrence, yet states generally do not have hard data to support risk assessment

10 BACKGROUND/MOTIVATION new methodology developed for PVI site screening based on use of vertical screening distances approach recommended in ITRC, US EPA OUST, and California Low Threat Tank Closure Policy historical leaded gasoline releases defined as precluding factor in US EPA OUST & ITRC guidance potential re-opener for sites closed by California Low- Threat Tank Closure Policy Early use of ITRC PVI document (3/26/15) From ITRC PVI Classroom Training (Sept, 2015) Incorporating ITRC doc or referring to directly Staff using, by not formally endorsed 10

11 OBJECTIVES assess PVI risk develop risk-based exclusion distance criteria for use in PVI assessments at petroleumhydrocarbon release sites based on sound science 11

12 DATABASE UST SITES WESTERN CANADA SNC-Lavalin 139 UST sites Western Canada Sites % of database Pb scavengers in groundwater (analyzed) Pb scavengers > DLs in groundwater EDB = 0.5 µg/l;1,2-dca = 0.5 µg/l 7 5 * KEY few sites in Western Canada with EDB and 1,2 DCA > DLs/RLs in groundwater 12

13 DATABASE UST SITES CALIFORNIA (GEOTRACKER) GW # Sites w/ Pb Scavengers Analyzed Detections Soil Gas Detections GW and Soil Gas Paired points County # Total Site (extracted) EDB 1,2 DCA EDB 1,2 DCA Alameda Butte Contra Costa Orange Riverside San Luis Obispo Fresno Salano Santa Cruz Shasta 40 41% GW 32 data, 28% soil-gas 4 data Sutter Tuolumne Kings Lake KEY more common (46%) Los Angeles Mariposa Merced 150 DCA (15% 150 of sites) Napa Sacramento San Bernardino San Diego Santa Barbara Sonoma Ventura Total (%) EDB rarely detected at GW locations where analyzed (3%); 1,2 DCA EDB rarely detected in soil gas (1% of sites) as compared to 1,2 very few (0.1%) sites with groundwater detections for EDB and 1,2 DCA and complementary soil gas data (41%) 95 (3%) 1688 (46%) 733 (8%) 8 (1%) 107 (15%) 423 (11%) March (.1%) 13

14 DATABASE DEVELOPMENT GENERAL ELEMENTS: groundwater and soil gas concentrations soil gas sampling method (vapor probe, monitoring well head space) soil type (presence of fractured rock) surface cover (asphalt, open, building) source type (LNAPL, dissolved) water-table elevation facility type (UST, industrial) sampling dates presence of fractured rock (excluded) vertical separation distances lateral offset (source, monitoring well) analytical method (detection and reporting limits) site operational history (release pre-1986, operating pre-1986) remediation history QA/QC (including leak testing, no on-going remediation, GW wells screened across water table) 14

15 1,2 DCA ALL DATA DISTRIBUTION OF GROUNDWATER CONCENTRATIONS 10 ft from waste oil tank MW Headspace - LNAPL 5 ft from waste oil tank source soil (railroad siding) KEY vast majority of concentrations of 1,2 DCA in soil-gas are ND at source separation distances > ~6 ft, even for relatively significant concentrations in groundwater (i.e., > 100 µg/l) data indicate that PVI risk (screening) at UST sites is likely bounded by benzene (vertical screening distance = 15 ft) March

16 1,2 DCA PAIRED DATA PAIRED DATA < 30 days between sample events < 30 ft between sample locations vapor probe only > 10 ft from source areas (waste-oil tanks) DISTRIBUTION OF GROUNDWATER CONCENTRATIONS KEY empirical data insufficient for derivation of vertical screening distances for 1,2 DCA 16

17 1,2 DCA PAIRED DATA within 3 feet of source KEY soil-gas concentrations orders of magnitude less than predicted by equilibrium partitioning likely an indicator of 1,2 DCA biodegradation in the vadose zone 17

18 EDB WESTERN CANADA SITES W/ HISTORICAL USE OF LEADED GASOLINE KEY NDs in soil gas indicate that PVI is likely not an issue; however, lower soil-gas screening levels are necessary to confirm 18

19 EDB PAIRED DATA KEY again, soil-gas concentrations orders of magnitude below those in equilibrium w/ groundwater are a potential indicator of EDB biodegradation in the vadose zone 19

20 CONCLUSIONS inability to assess screening distances lots of ND data (method DLs and RLs above soil-gas screening levels, especially for EDB) few sites w/detections in groundwater and complementary soil-gas data (i.e., data pairs) empirical data (to date) indicate limited PVI risk biodegradation likely contributing to lack of detections for EDB and1,2 DCA consistent with previous empirical studies showing that the PVI risk is limited above low-concentration (dissolved or weathered LNAPL) sources 20

21 PATH FORWARD research opportunities further data collection at sites with known impacts modeling of soil-gas profiles laboratory column studies new API project (Golder Associates, Scissortail Environmental Solutions, LLC) lit review empirical database evaluation (request for data) 21

22

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