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

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                                       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

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           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

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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
                                                                                                 -».-
                                                                                                             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

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                                                     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

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     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

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 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

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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

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                                      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

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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

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      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

-------
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United States
Environmental Protection Agency
Air and Radiation (6202J)
Washington, DC 20460-0001

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Penalty for Private Use
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