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338 Lawrence K. Wang et al.

Table 5
Example Case Capital Costs
Cost item Factor Cost ($)
Direct Costs
Purchased Equipment Costs
Flare (FC) and auxiliary equipment, EC As required $396,000
Instrumentation 0.10 EC 39,600
Sales tax 0.03 EC 11,900
Freight 0.05 EC 19,800
Purchased equipment cost, (PEC) PEC = 1.18 EC $467,000
Direct Installation Costs
Foundation and supports 0.12 PEC $56,000
Handling and erection 0.40 PEC 187,000
Electrical 0.01 PEC 4,670
Piping 0.01 PEC 4,670
Insulation for ductwork 0.01 PEC 4,670
Painting 0.01 PEC 4,670
Direct installation cost 0.56 PEC $262,000

Site preparation As required, SP
Buildings As required, Bldg.
Total direct costs (DC) 1.56 PEC+SP $467,000+$262,000
+Bldg +SP+Bldg.
Indirect Costs (Installation)
Engineering 0.10 PEC $46,700
Construction and field expenses 0.10 PEC 46,700
Contractor fee 0.10 PEC 46,700
Start-up 0.01 PEC 4,670
Performance test 0.01 PEC 4,670
Contingencies 0.03 PEC 14,000
Total indirect cost (IC) 0.35 PEC $163,000
Total capital costs = DC+IC 1.91 PEC+SP+Bldg. $892,000+SP+Bldg.

4.3.3. Flare Annual Costs
The total annual cost (TAC) of a flare is the sum of the direct and indirect annual
costs, which are discussed in more detail here. Table 5 contains the appropriate factors
necessary to estimate the TAC.
The direct annual cost (DAC) includes the cost of fuel, electricity, pilot gas, steam,
operating and supervisory labor, and maintenance labor and materials. Fuel usage (in
scfm) is calculated in Section 2.1. Once this value (Q ) is calculated, multiply it by 60
f
to obtain the fuel usage (in scfh), and multiply this by the annual operating hours to
obtain the annual fuel usage. Then, multiply the annual fuel usage by the cost of fuel
provided in Table 6 to obtain the annual fuel usage. Then, multiply the annual fuel usage
by the cost of fuel provided in Table 6 to obtain annual fuel costs. The steam requirement