ŁEPA
United States
Environmental Protection
Agency
Air and Radiation
6202J
EPA-430-N-99-007
Spring 1999
rsi
LJ
STAR
Early Credit Legislation
What's in it for Gas STAR Partners?
"Early credit" has been a topic of lively
debate ever since companies began
making voluntary emission reductions
in the early 1990s. The issue came to
the fore recently, when Senate legisla-
tion was introduced in November
1998. The bill proposed establishing a
framework for granting credit to com-
panies that reduce emissions of six
greenhouse gases (GHGs) in advance
of any future regulation that may be
imposed.
The idea behind early credit is to
ensure that companies that voluntarily
reduce their emissions of GHGs are
recognized for their accomplishments.
And, in the event of future govern-
ment regulation of these gases, com-
panies that reduced their emissions
prior to the onset of regulations should
be credited for those early reductions
by adding to their allowable emission
baselines—eliminating what would
UU
C/5
In the Spotlight 2
Natural Gas STAR News 4
STAR Profiles 6
Program Tools and Activities 10
Workshop Summary 12
Gas STAR Achievements 14
Document Request Form 15
'The Credit for Voluntary
Reductions Act of 7999
protects those
companies who have
decided on their own
to make voluntary
contributions to the
general goal of climate
mitigation."
Senator John Chafee (R-RI),
Bill Sponsor
otherwise amount to a penalty for
their proactive reductions.
Supporters of the concept of early
credit believe that removing any
disincentive for emission reductions is
critical. Private-sector innovation and
initiative are key factors if market-
based solutions are to be effective in
lowering total US emissions of GHGs.
Visit the Gas STAR
web site at
WWW. E PA.GOV/GASSTAR
-------
I IM
LI G H
continued from page I
Early Credit
Legislation . . .
What's in it
for Natural Gas
STAR Partners?
Sponsors of the Credit for Voluntary
Reductions Act of 1999
Sen. John H. Chafee, R-RI
Sen. Connie Mack, R-FL
Sen. Joseph I. Lieberman, D-CT
Sen. John W. Warner, R-VA
Sen. Harry M. Reid, D-NV
Sen. Ron Wyden, D-OR
Sen. Susan M. Collins, R-ME
Sen. George V. Voinovich, R-OH
Sen. Daniel Patrick Moynihan, D-NY
Sen. James M. Jeffords, R-VT
Sen. Joseph R. Biden, Jr., D-DE
Sen. Max Baucus, D-MT
STAR Partners can find further
information and follow the progress
of the Early Credit Act by visiting
the following web sites:
http://www.senate.gov/~epw/ (links to the
bill and hearing statements)
http://www.pewclimate.org/reportT .html
(the Pew Center report on early credit)
http://www.weathervane.rff.org/features/
feature060.html (Resources for the Future's
views on early credit)
http://www.eia.doe.gov/oiaf/1605/frntvrgg.
html (Energy Policy Act 1605(b) program
homepage)
http://www.senate.gov/~mack/99releases/
fact sheet.htm (information on S.547)
Further steps were taken toward
instituting the idea of early credit in the
form of the bill introduced in the 105th
Congress in late 1998.
On March 4, 1999, Senator John H.
Chafee (R-RI), Chair of the Committee
on Environment and Public Works,
and a bipartisan group of 11 Senators
introduced a new version of the bill,
the Credit for Voluntary Reductions
Act of 1999 (S.547). The new bill
authorizes the President to enter
into binding agreements with US
businesses "to provide regulatory credit
for voluntary early action to mitigate
potential environmental impacts from
greenhouse gas emissions." Unlike the
proposed 1998 "Credit for Early Action
Act," the current legislation is a stand-
alone bill that does not amend the
Clean Air Act. Solid bipartisan support
for S.547, combined with President
Clinton's clear commitment to the idea
of early credit expressed in his January
1999 State of the Union Address,
indicate that early credit is likely to
become one of the top environmental
issues of 1999.
Commenting on the bill's introduction,
Sen. Chafee said, "Companies that
have taken, or are interested in taking,
voluntary steps to reduce or sequester
greenhouse gases have asked us to pro-
vide legal assurance that such actions
would count 5, 10, or 15 years from
now in the event that the United States
decides to establish a regulatory pro-
gram to combat global climate
change."
What does S.547 Propose?
The Credit for Voluntary Reductions
Act of 1999 was developed during
months of dialog among lawmakers,
industry, and environmental groups.
Under the proposed legislation, com-
panies taking actions before 2008 that
reduce methane, CO2, or other GHGs
would be eligible for early credits.
Firms could save the credits and use
them to meet future emission limits
that may be set, or sell them to others
for use under a future emissions trading
system.
Of particular interest to Natural Gas
STAR Partners, the Senate bill includes
a provision for retroactive credit. Under
this provision, credits would be granted
for emission reductions achieved since
1990 and reported under the federal
voluntary programs of the Climate
Change Action Plan—such as Natural
Gas STAR—or reported under the
Energy Policy Act's 1605(b) program.
According to the bill, these reductions
must represent actual reductions in
GHG emissions or actual increases
in net carbon sequestration. The
reductions must be verifiable, reported
accurately, and not double-counted.
Natural Gas STAR Partner Update • Spring 1999
-------
Participants in an early credit program
would agree to permit a qualified
independent third party to annually
measure, track, and publicly report
GHG emissions.
How Can STAR Partners
Prepare for an Early
Credit Program?
/ Ensure that all emission reduction
actions taken by your company are
included in your annual Natural
Gas STAR report.
/ Make annual reports as complete
and clear as possible. Include calcu-
lations, default values, and any
assumptions used in calculating
your reported reductions. If you
have taken direct measurements,
use those instead of program
default values.
/ Identify and report historical
methane emission reductions—
regardless of when you joined the
Natural Gas STAR Program—
because retroactive credits could be
granted for reductions achieved
since 1990.
/ Review the Best Management
Practices and Partner Reported
Opportunities to determine
whether you have made, or could
undertake, additional emission
reductions to earn credit.
/ Keep records of any equipment
purchases, retrofits, or other
activities that may help verify your
emission reductions later.
/ Share information about successful
methane reduction measures with
EPA and STAR Partners.
The Coming Debate
Supporters and Critics
As with any environmental legislation,
the Credit for Voluntary Reductions
Act of 1999 has sparked extensive
debate. All factions are concerned
about ensuring accurate and verifiable
emission reductions. Nevertheless,
endorsements from the bipartisan
group of co-sponsoring Senators,
environmental groups such as the
Environmental Defense Fund, and
industry groups such as the Inter-
national Climate Change Partnership
indicate the strong support that exists
for early credit legislation.
In a January 3rd New York Times
article about the anticipated early
credit bill, Eileen Claussen, Executive
Director of the Pew Center on Global
Climate Change, stated, "This is a
potential winner. It helps get the
United States moving. It is voluntary.
It is supported by industry. It seems to
me there should be a way to get
legislation like that through Congress."
Through the Pew Center, major
companies and other organizations
are working together to educate the
public on the risks and challenges of
climate change and potential cost-
effective solutions. Shell International,
Enron Corporation, and BP Amoco are
among the members of the Business
Environmental Leadership Council,
which spearheads the Center's efforts.
Shell, Enron, and BP Amoco are also
Natural Gas STAR Partners.
Industry is not, however, unanimous in
supporting early credit legislation.
Some industry representatives worry
that passage of any early credit bill
would generate more support for the
Kyoto Protocol, which the Senate has
not ratified. In their view, supporting
early credit would be seen as general
acceptance that a regulatory limit on
greenhouse gases is necessary. Senator
Connie Mack (R-FL), a critic of the
Kyoto Protocol but a sponsor of early
credit legislation, disagrees. In his view,
"S.547 is the best approach until we
know more about the exact causes of
global warming and how greenhouse
gas emissions will be regulated."
'The least our government
can do is protect those
companies that make
voluntary contributions to
the general goal of climate
mitigation."
Sen. John H. Chafee
Follow the Debate
Lobbying for alterations to the Credit
for Voluntary Reductions Act of 1999
has already begun. Senator Chafee's
Committee on Environment and Public
Works began hearings on the Act on
March 24. Through this Update and
other periodic bulletins, the Natural
Gas STAR team will keep STAR
Partners informed of the continuing
developments with S.547 or other
domestic legislation that affects
whether and how they receive credit
for voluntary reductions in methane
emissions.
Natural Gas STAR Partner Update • Spring 1999
-------
GPM Gas Corporation Joins STAR as Charter Gas Processing Sector Partner
GPM Gas Corporation recently announced its decision to join the Natural Gas STAR Program. As the first gas
gathering and processing company to join STAR, GPM is leading the way for the gas processing sector to realize
the economic and environmental rewards that STAR offers. GPM believes that as a distinct industry sector, gas
gatherers and processors will benefit from the STAR Program's profitable methane emission reduction opportunities
recommended for both the production sector and the transmission and distribution sectors.
"We share EPA's concern for and commitment to reducing methane emissions," says GPM
Safety & Environmental Manager Les McMillan. "We look forward to leading the gas
gathering and processing industry in this new sector of membership."
3AS CORPORATION
Houston-based GPM has one of the largest gas gathering infrastructures in the industry. With four operating regions
in New Mexico, Oklahoma, the Texas-Panhandle, and West Texas, GPM owns, operates, or has an interest in 16
processing plants and more than 28,000 miles of gathering lines. GPM processes approximately 1.8 billion cubic
feet per day of raw natural gas and markets one billion cubic feet per day of natural gas to local distribution
companies, utilities, industrial consumers, and marketers. GPM is also one of the largest domestic producers of
natural gas liquids, producing 170,000 gross barrels per day. GPM is a subsidiary of Phillips Petroleum Company.
GPM Gas Corporation's mission is ". . . to be recognized as the best natural gas gatherer, processor, and marketer
in the industry." We are proud to welcome this spirit of leadership and enthusiasm to the Natural Gas STAR
Program!
STAR Welcomes Two New
Transmission Partners
Koch Gateway Pipeline Company
Koch Gateway operates the largest gas transmission
system in the south Gulf with over 10,000 miles of
interstate pipeline and more than 1 20 interconnects.
The Koch facilities are located in the most productive
natural gas fields in the continental United States, facili-
tating collection, transportation, and storage services to
cities, utilities, and major industries throughout the
Gulf states and points north.
Williams.
in tne 1930s, Koch has
INDUSTRIES INC its headquarters in Houston,
Texas. Operating 33 compressor stations, the company
is connected with major interstate pipelines serving the
northeast, midwest, and southeast.
Williams Gas Pipeline Central
With more than 27,000 miles of pipeline, Williams is
the nation's largest volume transporter of natural gas.
The company has five natural gas pipelines stretching
from coast-to-coast, transporting 16 percent of all
natural gas in the United States. Founded in 1908,
Williams has its headquarters in Tulsa, Oklahoma.
Williams Central is the third of the company's five
pipelines to become a STAR Partner. The company
joins Transco, a 10,500-mile transport system serving
markets in the east and southeast, and Texas Gas
Transmission, serving the southeast and midwest with
6,100 miles of pipeline. Central's system of over 6,000
miles provides gas from Kansas, Oklahoma, Texas,
Wyoming, and Colorado to markets in the
mid-continental United States.
Natural Gas STAR Partner Update • Spring 1999
-------
The American Petroleum
Institute (API) is the major national
trade association representing the
entire petroleum industry: explo-
ration and production, transporta-
tion, refining, and marketing. With
headquarters in Washington, DC,
and petroleum councils in 33 states,
API is a forum for all parts of the oil
and natural gas industry to pursue
priority public policy objectives and
to advance the interests of the
industry.
API has been an active endorser of
the Natural Gas STAR Program
since 1996. To recognize STAR
Producer Partners and promote
their program achievements, API
generously sponsored a full-page,
full-color public service announce-
ment (PSA) in the November 9,
1998 issue of the 0/7 and Gas Journal.
OIL&GAS
JOURNAL
^ IMTEflNATIDNfl!. PETROLEUM NEWS JWC TrtrMj.'XiY
We have a
for the environment...
In our vision of Ihe future, environmental performance and business Innovation
go hand In hand. But that's not a far-off dream. In the natural gas Industry,
16 companies ore already making the dream a reality. We know that, when it comes
to the environment, we can't afford to wnil for someone else lo take the initiative.
As forward-thinking production companies, we ore making our operations cleaner
and more efficient, going the extra mile In Ihe name of environmental responsibility.
And, by minimizing gns leaks, we have realized significant cost savings.
How have we done it? By Implementing voluntary, cost-effective measures to control
emissions of methane—a greenhouse gas. Under Ihe Natural Gas STAR Program,
Ihe US. Environmental Protection Agency (EPA) provides partner companies with
information on innovative technologies and methods. EPA olso offers assistance
In addressing regulatory barriers that inhibit the implementation of methane
emission reduction technologies and management practices.
To learn more aboul how your company can master the winning combination
of environmental performance and business innovation, visit the program Web
site at www.epa.gov/gasstor. You can also contact Ihe program
manager by e-mail ol Gunnlng.Paul@epa.gov.
And were
making it
a reality.
Chevron
• miUwWll.
Sisu M©bil
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E:KON
API endorses EPA i
Natural Gas STAR Program.
Staff Changes in the Natural Gas STAR Program
Rhone Resch, Natural Gas STAR Program Manager, left EPA in late 1998 to take a position as Director of Utility Regulation
and Environmental Affairs for the Natural Gas Supply Association. We wish him well! Recently joining the STAR team is
Carolyn Henderson. Ms. Henderson and Program Manager Paul Gunning will continue to make the STAR Program an
effective partnership between EPA and the natural gas industry.
Natural Gas STAR Partner Update • Spring 1999
-------
PROFI LES
Brooklyn Union: Special Achievement Award
On January 22, 1999, EPA presented Bob Preusser, retired Vice President and Chief Engineer of
Brooklyn Union Gas, with a Special Achievement Award in honor of his strong support of the
Natural Gas STAR Program. Kimberly Denbow of the American Gas Association was present
with EPA staff to congratulate Mr. Preusser.
Bob Preusser was a vital supporter of EPA in developing the Natural Gas STAR Program as an
innovative industry/government partnership. He worked hard to gain industry buy-
in for the program's goals and secure active participation. When EPA Administrator
Carol Browner launched Natural Gas STAR in 1993, Bob was present at the cere-
mony along with several other industry representatives. His leadership over the
years motivated Brooklyn Union and other natural gas distributors to embrace the
environmental, economic, and safety opportunities offered by Gas STAR'S Best
Management Practices.
Bob Preusser (r) receives Special Achievement
Award from STAR Program Managers, Paul
Gunning (c) and Carolyn Henderson (I).
In response to his surprise award, Bob noted the STAR Program's achievements, in
particular its success in demonstrating that voluntary efforts can result in significant
emission reductions. He further stressed the importance of maintaining the spirit of
partnership between EPA and the natural gas industry.
"The most important
message of the Natural
Gas STAR Program is that
regulators and industry
can work together
effectively to solve
problems.
The real enticement of
the program is that it
emphasizes cost-effective
solutions as opposed to
solutions at any cost."
Robert Preusser,
VP and Chief Engineer
Brooklyn Union Gas
1997
The New York State Energy
Research and Development
Authority (NYSERDA), Natural Gas
STAR'S newest endorser, is a public benefit
corporation providing technical and financial
assistance to businesses, municipalities, and
residents of New York to help them meet
ii,
their energy and environmental needs.
Through its research and developm
program, NYSERDA seeks to:
• Promote energy efficiency and the devel-
opment of new energy and environmental
technologies to encourage economic
growth in New York;
• Reduce or mitigate adverse environmental
effects associated with energy production
and use; and
• Expand the use of the state's indigenous
and renewable energy resources.
In 1998, NYSERDA was awarded a grant
from EPA to develop a well efficiency pro-
gram focused on the natural gas production
sector. Working with Advanced Resources
International, a petroleum exploration
and engineering services firm, NYSERDA is
developing a prototype system of well
^improvements that increases overall efficiency
nd reduces methane emissions. The proto-
type system will be applied at test sites in four
gas-producing regions of the United States,
focusing on small and mid-size independent
producers. By selecting test sites in distinct
regions, NYSERDA hopes to capture regional
differences in operations that may be a factor
in optimizing well efficiency and emission
reductions.
Natural Gas STAR Partner Update • Spring 1999
-------
Enron
Transmission Partner of the Year
Enron was honored as the 1997
Natural Gas STAR Transmission
Partner of the Year during an
awards ceremony at the 5th Annual
Implementation Workshop in October
1998. For the second year in a row, Enron
was recognized for outstanding contribu-
tions to the STAR Program in the areas of
technology development, outreach, and
program implementation. From 1993 to
1997, Enron reduced methane emissions
by over 1.8 Bcf, worth more than $3.7
million.
Building on earlier initiatives, Enron
expanded its participation in the EPA/GRI/
PRC Leak Detection and Repair Program
during 1997. More than 100 stations in
Enron's Environmental Transportation &
Storage Division and 52 stations in its Gulf
Coast Operations were surveyed using the
Hi-Flow™ Sampler to take direct volumet-
ric leak measurements. In 1997, Enron
realized emission reductions of 303 MMcf
and a net profit of $265,000 through its
leak repair program.
In addition to leak
I detection and repair
work, Enron has
actively implemented
Best Management
Practices, resulting in
1997 reductions of
887 MMcf, nearly
double the annual
reductions for 1996.
Michael Terraso (I), VP Environment, Health, and
Safety, Enron Gas Pipeline Group, and Mark
Phillips (r), Manager, Enron Gas Pipeline Group,
accept the Transmission Partner of the Year award
from Natural Gas STAR Program Manager Paul
Gunning (c).
Topping its exemplary 1997 performance,
Enron recently submitted its 1998
report to STAR. The report shows
1998 annual methane emission
reductions of 2.4 Bcf, bringing
Enron's total program reductions
to 4.3 Bcf.
Enron has been instrumental in identi-
fying several new Partner Reported
Opportunities (PROs) for emission reduc-
tions. These include (1) installing 3-phase
separators on dehydrator reboilers,
(2) replacing engine gas starters with air
starters, and (3) lowering pipeline pressure
prior to maintenance. Enron helped EPA
expand the third PRO into a Lessons
Learned Summary by providing critical
data to the engineering assessment and
serving as a technical reviewer of the
draft.
To assist with STAR Program outreach,
Enron has given presentations at industry
conferences, such as the Southern Gas
Association Environmental Conference,
and at EPA workshops. The firm has
actively encouraged technology transfer by
organizing facility site visits. In October,
participants at the Houston workshop
toured Enron's Bammel Storage Field and
worked hands-on with the Hi-Flow™
Sampler to measure leak rates from
various components.
Enron's gas pipeline group operates
32,000 miles of high-pressure pipeline in
six companies across the United
States—Northern Natural, Transwestern,
Florida Gas, Louisiana Resources,
Northern Border, and Houston Pipeline.
Natural Gas STAR Partner Update • Spring 1999
-------
Brooklyn Union: Distribution Partner of the Year
Brooklyn
Union
Bill Ireland (cl), Business Manager, Brooklyn
Union, and Joe D'Emidio (cr), EDS
Coordinator, Brooklyn Union, accept the
Distribution Partner of the Year award from
Natural Gas STAR Program Manager Paul
Gunning (r) and former STAR Program
Manager, Rhone Resch (I).
Brooklyn Union, a Charter
Partner of the Natural Gas
STAR Program, was named
Distribution Partner of the Year at the
5th Annual Implementation Workshop
in Houston, Texas. Brooklyn Union
was honored for superior program
implementation, and for outstanding
contributions in the areas of outreach
and promotion of the STAR Program's
economic, safety, and environmental
benefits.
Since joining in 1993, Brooklyn Union
has continued to achieve
impressive results through
implementing the Natural Gas
STAR Program. The company's
1997 annual methane reduc-
tions show an increase of 33
percent over 1996 reductions,
bringing Brooklyn Union's total
program reductions to date to
72,000 Mcf, valued at almost
$150,000.
Brooklyn Union has consistently
implemented the core Best
Management Practices (BMPs) of
directed inspection and maintenance
at gate stations and surface facilities,
repair and replacement of leaky pipe,
and replacement of high-bleed pneu-
matics with low- and no-bleed vari-
eties. In addition, Brooklyn Union has
identified several Partner Reported
Opportunities (PROs). These include
(1) reducing venting from liquid
receiver tanks, (2) installing over-
pressurization protection systems on
aboveground gate stations, and
(3) flaring instead of venting when
retiring low pressure gas holders. In
1998, Brooklyn Union continued to
achieve additional emission reductions
by implementing STAR BMPs.
Brooklyn Union's Gas STAR achieve-
ments extend beyond impressive gas
savings. Through numerous outreach
activities, the company has helped
spread the word about the economic
and environmental benefits of becom-
ing a STAR Partner. Brooklyn Union
has worked with EPA to develop out-
reach materials and journal articles,
has spoken about the program to
industry peers, and features its
participation in the STAR Program
prominently on the company web site.
As a member of the American Gas
Association's Environmental
Committee, Brooklyn Union has
helped shape the Natural Gas STAR
Program since its inception. According
to Brooklyn Union's Chief Environ-
mental Officer, participating in the
program has demonstrated that
"voluntary arrangements can be just as
effective as regulation, and achieved at
a fraction of the cost."
In 1998, Brooklyn Union joined forces
with Long Island Lighting Co. and re-
organized under the umbrella Keyspan
Energy. The company provides natural
gas services to 1.57 million customers
in the New York City boroughs of
Brooklyn, Queens, and Staten Island,
and in Nassau and Suffolk Counties on
Long Island.
Natural Gas STAR Partner Update • Spring 1999
-------
Mobil Exploration and Producing US:
Producer Partner of the Year
M bil
Bill Fishback (I), Air
Compliance Consultant,
Mobil Business Resources,
Inc., accepts the Producer
Partner of the Year award for
Mobil from the Natural Gas
STAR Program Manager
Paul Gunning (r).
EPA recognized Mobil Exploration
& Producing U.S., a division of
Mobil Corporation, as the 1997
Natural Gas STAR Producer Partner of
the Year. The company was honored
for significant methane emission reduc-
tions, for furthering industry knowledge
in emission-reducing technologies, and
for major outreach contributions to the
STAR Program.
Mobil has been an active participant in
the Natural Gas STAR Producer
Program since becoming a Charter
Partner in 1995. The firm reported
approximately 946 MMcf in reductions
in 1997, bringing Mobil's cumulative
reported methane emission reductions
from 1990 to 1997 to 2.5 Bcf. With
recently reported 1998 reductions,
Mobil's cumulative total jumps to over
3 Bcf.
Mobil has exceeded its partnership
obligations to consider and implement
core BMPs by investigating and report-
ing on several Partner Reported
Opportunities (PROs).
These include (1) installing
vapor recovery units on
storage tanks, (2) convert-
ing to or installing instru-
ment air systems, and
(3) installing plunger lifts
in gas wells. Mobil has
installed plunger lifts in
19 gas wells as a pilot
project in the company's Wyoming Big
Piney field. The plunger lift systems
have annualized gas savings of over
12,000 Mcf, with a value increase of
$1,280 per well prior to including
incremental gas production benefit.
Based on these experiences, Mobil
assisted with the development of a
new Lessons Learned Summary, to be
published by EPA later this year.
Mobil continued its innovative
methane emission reduction practices
in 1998. The company installed flares
to burn tank and blowdown vapors,
installed instrument air compressors,
added a vapor recovery unit, and
implemented diverse measures to
reduce or eliminate flaring without
increasing emissions.
Mobil's commitment to the Natural
Gas STAR Program has also included
active involvement in many outreach
and technology transfer activities. Bill
Fishback, Mobil's Implementation
Manager for the STAR Program, show-
cased Mobil's implementation activities
at the Regional Producer Technology
Transfer Workshop in Denver in 1998
and at the Houston Implementation
Workshop. Mobil has also assisted
EPA in developing Natural Gas STAR
outreach materials, Lessons Learned
Summaries, and journal articles, and in
communicating the benefits of the
program to non-partner companies.
Natural Gas STAR Partner Update • Spring 1999
-------
AIM D
HOT OFF
THE PRESS
Lessons Learned
Summaries
EPA will develop three new Lessons
Learned Summaries in 1999, based on
the most promising and widely rele-
vant Partner Reported Opportunities
(PROs). EPA will solicit partners' input
on the choice and development of the
three studies, asking you to complete a
survey to help select the PROs that
offer the most cost-effective emission
reduction opportunities applicable to
your operations. These new studies
will add to the bank of Lessons
Learned already developed for most of
STAR'S core BMPs and for several
PROs.
The following Lessons Learned
Summaries will soon be available to
interested partners:
Replacing Gas-Assisted Glycol
Pumps with Electric Pumps
Installing Plunger Lift Systems in
Gas Wells
Using Pipeline Pump-Down
Techniques To Lower Pipeline
Pressure Before Maintenance
Use the Order Form on Page 15 to
receive your copies.
Benchmarking
Recently, the Natural Gas STAR
Program launched a performance
benchmarking project. Company-
specific benchmarking reports will
allow STAR Partners to easily review
their program accomplishments and
to compare their emission reduction
efforts to those of the leading compa-
nies in their respective sectors. EPA's
benchmarking process will provide
partner companies with the following:
• Data for comparing their methane
reduction performance with that of
leading partners and with the
industry average.
• Information on the BMPs that are
producing the best reductions.
• EPA emission reduction records for
verification against company
records.
• A succinct summary of accomplish-
ments to use in communicating
their success.
If you or your company would like to
be involved in advising the bench-
marking process, please contact STAR
Program Manager Paul Gunning at
202/564-9736 or by e-mail at
gunning.paul@epa.gov.
Videos
Be on the lookout for Natural Gas
STAR Program camera crews in 1999.
EPA is developing two short videos to
facilitate partners' implementation
efforts. One video will focus on the
production sector, the other on the
transmission and distribution sectors.
To be produced in collaboration with
STAR Partners on site, these videos will
be another tool for implementation
managers to use as they educate
employees and encourage implemen-
tation of STAR Best Management
Practices. The videos will be released
in the fall.
Superior Implementation
Case Studies
To supplement the technical informa-
tion that EPA provides STAR Partners,
the STAR Program is now developing
Implementation Case Studies. These
studies will highlight the methods used
by successful partner companies to
promote and implement Natural Gas
STAR. In particular, the 4-page case
studies will explain how successful
partners have addressed and overcome
administrative and organizational
barriers to joining STAR, to implement-
ing its Best Management Practices,
and to motivating employees. The case
studies will provide valuable informa-
tion—based on actual company expe-
rience—to current program partners
and prospective partners alike.
Natural Gas STAR Partner Update • Spring 1999
-------
Partner Reported Opportunities
Partner Reported Opportunities (PROs) are emission-reducing technologies and
practices that can be implemented and reported in addition to the core Best
Management Practices (BMPs) recommended by the program. They may be new
or ongoing initiatives, which STAR Partners identify in their operations and then
briefly describe with resulting emission reductions in their annual reports to STAR.
Voluntary reductions from PROs are significant, now accounting for 64 percent of
reductions reported by production partners and 44 percent of reductions reported
by transmission and distribution partners.
In 1998, EPA described 45 PROs in fact sheets featuring operational, economic,
and emission reduction data. Each PRO Fact Sheet:
• describes the technology or practice,
• discusses its emission reduction potential,
• presents frequency of application,
• suggests benefits and drawbacks, and
• provides sources of information, and lists ranges for cost,
methane reductions, and years to payout.
You can use the new fact sheets to determine whether these PROs could apply to
your operations. EPA encourages all STAR Partners to identify and implement
PROs in their operations, and to include these additional emission reductions in
their annual reports.
EPA will soon put the series
of PRO Fact Sheets on line.
The reports will be part of a
searchable database easily
accessible from the Natural
Gas STAR web site at
www.epa.gov/gasstar.
Sample PROs:
Install Instrument Air System
Install Downhole Separator
Pumps
Use a Recycle Line To Recover
Gas During Condensate
Loading
Use Smart Regulators
Modify Station and Compressor
Shutdowns
Producer Technology
Transfer Workshops
EPA will continue to co-sponsor
technology transfer workshops in
1999. Four workshops will be held in
major oil and gas production areas,
in cooperation with state or regional
oil and gas associations. Workshop
participants will receive up-to-date
information on methane reduction
technologies and practices, as well as
information on the STAR Program.
Technical and cost issues associated
with various Best Management
Practices and Partner Reported
Opportunities will be discussed.
This year, we are planning to hold four
workshops in the following regions:
• Bakersfield, California
• New Orleans/Lafayette, Louisiana
• Midland, Texas
• Casper, Wyoming
Watch for dates and registration
information in the next edition of the
partner Update, or check the STAR
web site for more information.
STAR Web Site
The Natural Gas STAR web site is an
on-line source for STAR Program
information, implementation tools,
emission reduction reports, and more.
From the site, you can easily view or
download valuable tools such as the
Lessons Learned Summaries, Decision
Support Software, and, soon, fact
sheets on over 45 Partner Reported
Opportunities. The site also has links
to the web sites of STAR Partners and
Endorsers. For up-to-date information,
visit the STAR web site frequently at
http://www.epa.gov/gasstar
Natural Gas STAR Partner Update • Spring 1999
-------
The 5th Annual
Natural Gas STAR
Implementation
Workshop
In summary, Texaco's
GHG reduction
efforts are "simply
driven by good
business sense,
recovering product,
saving money,
enhancing value
through innovative
technology, and
managing emissions
while Texaco provides
the energy that the
world needs."
Arthur Lee
Environmental Technical
Coordinator, Texaco
International Production
With generous co-sponsorship
from endorsers—the
\merican Gas Association,
the American Petroleum Institute, and
the Interstate Natural Gas Pipeline
Association of America—EPA held the
5th Annual Natural Gas STAR
Implementation Workshop in Houston,
Texas. Seventy participants representing
23 STAR Partner companies, five
endorsing organizations, and eight
prospective partners participated in the
October 1998 workshop.
The workshop focused on how partners
can maximize efficiency gains, gas sav-
ings, and economic and environmental
benefits through the STAR Program. It
provided a forum to:
• highlight the accomplishments of
the STAR Program and program
partners,
• present new tools for program
implementation,
• network with peers, and
• discuss new technologies and
practices.
The 1998 workshop showcased the gas
industry's experiences in implementing
the STAR Program. In sector-specific
breakout sessions, partners and STAR
Program Managers discussed specific
information on how to improve the
implementation of Best Management
Practices (BMPs). EPA presented new
implementation tools that are useful for
new STAR Partners and long-time
partners alike.
Technology Transfer
Through Industry
Experience
Sharing companies' experiences with
specific emission reduction techniques
and practices is critical to the tech-
nology transfer goals of the STAR
Program. At the workshop, partners
led interactive sector-specific discus-
sions on program implementation.
Texaco and Mobil led the
session for production
partners. Michael Milliet of Texaco
described Texaco's Gulf Coast emis-
sion reduction program that concen-
trates on pneumatic devices and use
of flash tanks in glycol dehydrators.
With the flash tanks alone, Texaco has
saved 300 MMcf of methane, worth
about $600,000. Texaco now plans to
expand the STAR Program to all
domestic operations.
Vernon Schievelbein then presented
the Guidance Document for Texaco's
Greenhouse Gas (GHG) Emission
Inventory, outlining the methodology
Texaco business units use to compile
accurate GHG emissions data. The
inventory effort is an important com-
ponent of Texaco's three-point stance
on climate change, which includes
developing new market opportunities
for clean, efficient energy; assessing
company-wide emissions; and
Natural Gas STAR Partner Update • Spring 1999
-------
participating in the global dialog on climate change. Arthur
Lee, co-author of the Texaco document, summed up
Texaco's efforts as "simply driven by good business sense,
recovering product, saving money, enhancing value through
innovative technology, and managing emissions while Texaco
provides the energy that the world needs." Mr. Lee is
Environmental Technical Coordinator for Texaco
International Production.
Bill Fishback of Mobil Oil's Exploration and Producing
Division U.S. summarized Mobil's emission reduction pro-
jects undertaken with the STAR Program. Implementing core
BMPs as well as PROs, such as installing plunger lifts in 19
wells in a Wyoming gas field, Mobil has realized impressive
annual methane reductions of 1.3 Bcf and total program
reductions of over 3 Bcf.
Enron and Brooklyn Union led the session for
transmission and distribution partners. Enron's
Marc Phillips highlighted Enron's progress in implementing
the STAR Program, including participation in Indaco Air
Quality's Hi-Flow™ Sampler program. This program uses a
volumetric measurement device that allows operations
personnel to accurately measure leak volumes and prioritize
leak repair.
Bill Ireland and Joseph D'Emidio of Brooklyn Union reported
on their efforts to reduce gas released from aboveground
gate stations in coordination with a station instrumentation
replacement program. In this pilot project, Brooklyn Union
redesigned five flow control stations and a pressure control
station, eliminating the venting of 3.8 MMcf of methane
annually.
Workshop Highlights
Getting Involved in the Climate Change Debate
Michael Terraso of Enron Gas Pipeline Group delivered the
workshop's keynote address, providing an industry perspec-
tive on climate change. Mr. Terraso presented Enron's pro-
active stance on the issue, which includes participation on
the Pew Business Environmental Leadership Council and
participation in the STAR Program. Mr. Terraso also dis-
cussed the role the natural gas industry may play in helping
the United States meet its climate change goals. This posi-
tion emphasizes expanding natural gas markets, promoting
an early credit system, participating in emissions trading,
and expanding the Interstate Natural Gas Association of
America (INCAA) member company reduction programs.
Sarah Wade of the Environmental Defense Fund echoed
this theme in a second keynote address, which focused on
the importance of early emission reductions as a critical
ingredient to cost-effective climate policy.
Verification and Annual Reporting Study
To help partners ensure that emission reductions reported to
STAR are credible and fully verifiable, EPA has undertaken a
study of reporting accuracy. The assessment of sources of
uncertainty in partners' 1996 and 1997 annual reports
showed that mathematical and data transfer errors were
insignificant. The greatest source of uncertainty was insuffi-
cient documentation. In 60 percent of the reports reviewed,
partners elected to use default methodologies, and method-
ology application errors were less than 10 percent. Examples
of reporting errors and recommendations for improving
reporting were discussed.
Bammel Storage Field Site Visit
The workshop culminated in a field trip to Enron's Bammel
Field Storage Facility. The 1000-acre facility features 15 gas-
driven compressors, 45 injection and withdrawal wells, four
dehydration stations, and gathering lines. Partners were
given the opportunity to observe and get hands-on practice
using the Hi-Flow™ Sampler, developed under the
EPA/GRI/PRC Leak Mitigation Program, to measure leak
rates from various aboveground components at the facility.
Lessons Learned Summaries
Draft Lessons Learned Summaries based on three PROs
were presented and discussed. They were (1) Improvements
to the Use of Gas-Assisted Glycol Pumps, (2) Installing
Plunger Lifts in Gas Wells, and (3) Using Pipeline Pump-
Down Techniques To Lower Gas Line Pressure Before
Maintenance. We thank all of the partners who provided
feedback and contributed to the development of these
documents. The finished reports will be released soon.
The 6th Annual STAR Implementation
Workshop will be held in
Houston, October 6-9, / 999.
Call STAR for more information
at 202/564-9736 or 202/564-2318.
Natural Gas STAR Partner Update • Spring 1999
-------
Ft
EM EN
Thank You,
One and All
Transmission & Distribution Partners
ANR Pipeline Company + Atlanta Gas
Light Company + Baltimore Gas and
Electric Company + Bay State Gas
Company + Brooklyn Union + Central
Hudson Gas & Electric Corporation +
Citizens Gas & Coke Utility 4
Colorado Interstate Gas Company +
Columbia Energy Group Distribution
Companies (5) (Columbia Gas of KY
MD, OH, PA, VA, Inc.) * Consolidated
Edison Company of New York, Inc. +
Consumers Energy + Conectiv Power
Delivery + El Paso Natural Gas
Company + Enron Corporation +
Equitable Resources, Inc. + Granite
State Gas Transmission, Inc. + Great
Lakes Gas Transmission Company +
Iroquois Gas Transmission System +
Kansas Operating Pipeline Company +
Koch Gateway Pipeline Company +
Louisville Gas & Electric Company +
Michigan Consolidated Gas Company +
MidCon Texas Pipeline Corporation +
Minnegasco + Natural Gas Pipeline Co.
of America + New York State Electric
& Gas Corporation + Niagara Mohawk
Power Corporation + Northern
Indiana Public Service Company +
Northern Utilities, Inc. + Northwest
Natural + Orange and Rockland
Utilities, Inc. + Pacific Gas and Electric
Company + PECO Energy Company +
Public Service Company of North
Carolina, Inc. + Public Service Electric
and Gas Company + Rochester Gas &
Electric Corporation + South Carolina
Electric & Gas Company + Southern
California Gas Company + Southern
Natural Gas Company + Southwest
Gas Corporation + Superior Water,
Light and Power Company +
Tennessee Gas Pipeline + Texas
Gas Transmission Corporation +
UGI Utilities, Inc. * Washington Gas
+ Williams Gas-Central + Williams-
Transco + Wisconsin Public Service
Corporation
Production Partners
Amerada Hess Corporation, U.S.
Exploration and Production +
BP Amoco + Burlington Resources +
Chevron U.S.A. Production Company +
Exxon Company, U.S.A. + FINA Oil and
Chemical Company + Kerr-McGee
Corporation + Marathon Oil Company
+ Mitchell Energy and Development
Corp. + Mobil Exploration and
Producing U.S. Inc. + Pennzoil
Exploration and Production Company +
Shell Exploration and Production
Company + Spirit Energy 76, A Business
Unit of Unocal + Texaco + The
Stranded Gas Association, Inc. + Union
Pacific Resources
for
and environme
a'
' uie eco-
°f the STAR
Processing Partner
GPM Gas Corporation
Endorsers
American Gas Association (AGA) +
American Petroleum Institute (API) +
Gas Research Institute (GRI) +
International Centre for Gas Technology
Information (ICGTI) + Interstate Natural
Gas Association of America (INGAA) +
National Association of Regulatory Utility
Commissioners (NARUC) + Natural
Gas Supply Association (NCSA) + New
York State Energy Research and
Development Authority (NYSERDA) 4
Southern Gas Association (SGA)
Natural Gas Star Partner Update • Spring 1999
-------
DOCUMENT
REQUEST FOR/V1
1—vi?
NaturalGasfu
FPA PHI I IITiniU PRFUFMTFR 1^
Name & Title: _
Organization:
Street Address: _
City, State, Zip: _
E-Mail Address: _
Telephone #:
Date Requested:
FAX#:
Date Info Needed:
FedEx/UPS # (if info needed asap):
Please fax to
your STAR Service
Representative
or directly to the
Natural Gas
STAR Program at
202-565-2077.
PLEASE INDICATE WHICH
MATERIALS YOU WOULD
LIKE TO RECEIVE:
LESSONS LEARNED
Directed Inspection and Maintenance at Compressor Stations
Directed Inspection and Maintenance at Gate Stations and Surface Facilities
Options for Reducing Methane Emissions from Pneumatic Devices in the Natural Gas Industry
1.
2
3.
4. Installation of Flash Tank Separators
5. Reducing Methane Emissions from Compressor Rod Packing Systems
6. Reducing Emissions When Taking Compressors Off-line
7. Installing Vapor Recovery Units on Crude Oil Storage Tanks
8. Replacing Wet Seals with Dry Seals in Centrifugal Compressors
9. Reducing the Glycol Circulation Rates in Dehydrators
10. Replacing Gas-Assisted Glycol Pumps with Electric Pumps
11. Installing Plunger Lift Systems in Gas Wells
12. Using Pipeline Pump-Down Techniques To Lower Pipeline Pressure Before Maintenance
STAR IMPLEMENTATION TOOLS
Decision Support Software
Decision Support Software Manual
OUTREACH MATERIALS
Natural Gas STAR Program Brochure
Natural Gas STAR Marketing Package
Natural Gas STAR Promotional Toolkit
STAR Partner Update, Summer 1998
-------
vvEPA
United States
Environmental Protection Agency
Air and Radiation (6202J)
Washington, DC 20460-0001
Official Business
Penalty for Private Use
$300
"> Recycled/Recyclable
Printed on paper that contains @ least 50% recycled fiber.
First Class Mail
Postage and Fees Paid
EPA
G-35
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