-------
Gas STAR  Partner Accomplishments
continued from page I
Partner  Reported
Opportunities
As an integral part of Natural Gas
STAR, PROs offer great potential for
reducing partner company emissions.
PROs help fuel the program's tech-
nology transfer process by providing
information that implementation man-
agers can evaluate, summarize, and
share with other interested partners.

As in prior years, PROs were a key
contributor to the program's emissions
reduction accomplishments in 2000.
Nearly 70 of these technologies and
practices have been identified and
implemented by Natural Gas STAR
partners. PROs were responsible for
84 percent of production sector
reductions and 44 percent of trans-
mission and distribution sector
reductions.
 IN    THIS    ISSUE

  Gas STAR Accomplishments  1
  Workshop Summary        4
  Partners of the Year         7
  New Partners             10
  NGS in the News          11
  Partner List               12
  Tech. Transfer Workshops   14
  Document Request Form   15


The top PROs for 2000, by Mcf of
methane reduced, were:
Production
1. Install Vapor Recovery Units
2. Install Plunger Lifts
3. Install Flares
Transmission
1. Install Vapor Recovery Units
2. Replace Wet Gas Seals with Dry
   Seals
3. Use Pipeline Pumpdown
   Techniques Prior to Performing
   Maintenance
Distribution
1. Install Excess Flow Valves
2. Optimize High-Pressure System
   Operation
3. Use Smart Regulators/Clocking
   Solenoids

Best Management
Practices
The ongoing implementation of core
BMPs supplements the methane
reduction successes of PROs. Producer
partners achieved 13 percent of their
reductions by replacing pneumatics
and 3 percent of their reductions from
installing flash tanks.  BMPs also played
a significant role in the methane
emissions reductions achieved by
transmission and distribution partners:
36 percent of the reductions came
from directed inspection and mainte-
nance programs and 13 percent from
turbine installations.
 Production Reductions - 2000
  Best Management Practices
  PROD BMP I Replace high bleed pneumatic devices
  PROD BMP II install flash tank separators
  PROD BMP III Other - PROs
   T & D Reductions - 2000
Best Management Practices
T&D BMP I  DI&M at gate stations, surface facilities
T&D BMP II  Repair/replacement of distribution pipe
T&D BMP III Dl&M at compressor stations
T&D BMP IV Replace recip. engines w,' turbines
T&D BMP V Replace high bleed pneumatic devices
T&D BMP VI Other-PROs
 Natural Gas STAR Partner Update • January 2002

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Increased Participation
With 11 new partners, Gas STAR increased
participation in all industry sectors. Gas STAR
partners now represent 58 percent of the
domestic gas processing sector with 11 compa-
nies in total, 77 percent of pipeline mileage in
the transmission sector with  19 companies in
total, 51 percent of service connections in the
distribution  sector with  44 companies in total,
and 40 percent of the domestic production
sector with 18 companies in total.
New Gas STAR partners in 2000 included:
Western Gas Resources and Duke Energy
Field Services in the gas processing sector;
North Carolina Natural Gas, Reliant Energy
Arkla/Entex, Cinergy Corporation, Northern
Indiana Fuel and Light Company, and  Kokomo
Gas and Fuel Company in the distribution sec-
tor; and Columbia Natural Resources, Williams
Production RMT Company, and Murphy
Exploration and Production in the production
sector.  Newly consolidated El Paso Energy
Pipeline Group comprises five subsidiaries, all
of which are transmission sector partners.
Program Accomplishments
 New Program  Tools
 Helping partners achieve future emissions reductions continues to be a key focus of the Gas STAR Program. Ten new PROs
 have been added to  the list of reduction opportunities available as PRO fact sheets. These 10 will appear soon in  PDF and
 HTML formats on the Gas STAR Web site. Additionally, the format of the fact sheets has been enhanced. Three new Lessons
 Learned studies  will also be added to the Web site, featuring analyses of desiccant dehydration, directed inspection and
 maintenance at  gas plants and booster stations, and composite sleeve repair. Six partner case studies that feature successful
 program implementation are also available on the Web. Additionally, new online tools under development will help Natural
 Gas STAR partners better evaluate, organize, track, and record data for emissions reduction activities.

 GTI Study Results  Being Published
 Directed inspection and maintenance at gas processing plants is among several BMPs  and PROs recommended by the Gas
 STAR Program for reducing  methane emissions. The Gas Technology Institute (GTI), in cooperation with EPA's Natural Gas
 STAR Program and industry participants, conducted a leak detection and repair study  at four gas processing facilities in late
 2000. The objective  of the study was to demonstrate with field data that a comprehensive leak detection and repair program
 could reduce gas losses while enhancing profits. The selected facilities offered significant opportunities for cost-effective
 reductions of natural gas losses. Results indicate that up to 80 percent of plant  methane emissions may be eliminated cost-
 effectively. For more  information on the study results, see the Summer 2001 Natural Gas STAR Partner Update.

 The final paper on this study is being published by GTI. For more information,  contact Jeff Panek  at 847-768-0884 or via
 e-mail at Jeffrey.panek@gastechnology.org.
                                                                  Natural Gas STAR Partner Update • January 2002

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                                                    FtKSHO  P
           With generous co-sponsorship from the American
           Gas Association, Indaco Air Quality Services, and
           Sealweld Corporation, EPA held the 8th Annual
           Natural Gas STAR Workshop in Houston, Texas, in
           October 2001. More than 60 participants gathered
           to:
           • Discuss emerging technologies and practices
           • Note the accomplishments of the STAR Program
             and program partners
           • Learn what other companies are doing to
             profitably reduce emissions
           • Present new program tools and documents

           The workshop focused on how partners have
           maximized gas savings and efficiency gains, and intro-
           duced partners to the new tools developed over the
           past year. These include implementation tools such
           as Lessons Learned  studies and PRO Fact Sheets, as
           well as new Web-based tools for BMP and PRO
           analysis, data collection  and  management, and elec-
           tronic reporting.

           Keynote Speakers
           Highlights  from the  workshop included two keynote
           presentations. Arthur Smith,  Senior Vice President
           and Environmental  Counsel for NiSource,  Inc.,
           described  environmental initiatives being pursued by
           NiSource.  He emphasized that all eligible  NiSource
           business units are participating in Natural Gas STAR,
           and they have collectively achieved methane emis-
           sions reductions of  over 11 Bcf. Carl Edlund, Division
           Director of the Multimedia Planning and Permitting
           Division of EPA Region 6,  shared information on
           efforts in Texas to reduce ozone and other air pollu-
           tants. He discussed  Houston's 5-year plan to reach
           target emissions reductions by 2007, using enforce-
           able commitments such as the Texas Emissions
           Reduction Plan (TERP).
Awards for Excellence
As always, the awards ceremony was a high point of
the annual workshop. Partner of the Year Awards
were presented  to four companies that have shown
superior performance in the Natural Gas STAR
Program in the areas of emissions reductions, support
of program initiatives and activities, and involvement
in program outreach (see p.  7 for details.) The 2001
winners are:
•  BP, Production Partner of the Year
•  Columbia Gas Transmission  Corp. and Columbia
   Gulf Transmission Co., Transmission Partners of
   the Year
•  PECO Energy Company, Distribution Partner of
   the Year

EPA also presented two new achievement awards:
•  Enron Transportation Services, the Continuing
   Excellence Award
•  James Frederick of Unocal Corporation,
   Implementation Manager of the Year

For the first time, three first-year partners were also
recognized for their strong start in implementing
Natural Gas STAR. These "Rookies of the Year" are:
•  Pioneer Natural Resources (gas processing sector)
•  PG&E National Energy Group (transmission  sector)
•  Ocean Energy, Inc. (production sector)

EPA Administrator Christine Todd Whitman congratu-
lated the award  winners via  a videotaped  statement
shown during the ceremony. She recognized the hard
work and accomplishments of  all Natural Gas STAR
partners, remarking on the Bush Administration's
strong support of voluntary initiatives such as Natural
Gas STAR.
Natural Gas STAR Partner Update • January 2002

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Technology Transfer through  Industry
Experience
Jeff Panek of the Gas Technology Institute
described results from a study of cost-effective
directed inspection and maintenance practices at
gas processing plants. The workshop also includ-
ed presentations from partner companies BR
Dynegy Midstream Services, and Phillips
Petroleum on methane reduction projects and
tips for successful program implementation. The
three presentations are summarized  below.

Partner Presentations
Phillips Petroleum Company. Robert Wirtanen
         presented an overview of the  Natural
         Gas STAR Program at Phillips
         Petroleum Company, which became a
         Gas STAR partner in  1999. Highlighting
the implementation plan for Phillips from 2001
to 2003,  Mr. Wirtanen  discussed the seven man-
agement  practices that Phillips implemented in
2000. These included installing low-bleed con-
trols and  actuators, removing dehydrators from
service, reviewing condensate storage tanks for
vapor recovery, performing directed  inspection
and maintenance, and  installing plunger lifts and
pumping units. He also discussed the emissions
reduction activities implemented at the  San Juan
Basin, which included compressor starters,
plunger lifts, screw compressors, shutting-in
dehydrators, and  pump-jacks on  coal-bed
methane  wells. Phillips 2000 reductions totaled
98,000 Mcf.

Dynegy Midstream Services, LP.
Ananthakrishna Shankar presented Dynegy's
experiences with  the Natural Gas STAR  Program.
                He first discussed Dynegy's
                participation in GTI's  gas plant
                study for  which Dynegy con-
tributed two host testing facilities. The study
results helped direct Dynegy's  implementation of
Gas STAR. Mr. Shankar recommended gathering
emissions reduction information from monthly
field meetings, requesting information through
DYNEGY
                                              e-mail, incorporating the data into an emissions
                                              inventory, and requesting assistance from environ-
                                              mental safety and health advisors. Mr. Shankar
                                              highlighted plans to conduct directed inspection
                                              and maintenance at six upstream compressor sta-
                                              tions.  He also mentioned Dynegy's future plans,
                                              which include four  Natural Gas STAR training
                                              sessions/meetings in 2002 and  increased involve-
                                              ment of management and the media relations
                                              department.

                                              BR Reid Smith gave an overview of the  "Green
                                              Completions" program at BR This program aims
                                                          to reduce  flaring and venting at the
                                                          well site, through
                                                          steps  taken during
                                                          drilling and well
                                              completion. Venting and flaring
                                              are prevented by directing initial
                                              flow to specially designed surface
                                              equipment, and by  using a sand
                                              separator. The sale of recovered
                                              hydrocarbons then offsets the
                                              equipment costs. Mr. Smith high-
                                              lighted a field pilot  in Wyoming's
                                              Green River  Basin. In  the pilot,
                                              green  completion techniques
                                              avoided the release of an estimat-
                                              ed annual 600 Mmcf of natural
                                              gas. The project had an  internal
                                              rate of return of 100 percent. Mr.
                                              Smith  noted  that a key benefit of
                                              implementing green completion
                                              techniques is increased produc-
                                              tion without the expense of
                                              drilling new wells.
                                   "Your voluntary efforts to
                                   reduce methane emissions
                                   while delivering dependable
                                   energy to American homes
                                   show that good stewardship
                                   of the environment can also
                                   mean good business. This
                                   Administration believes
                                   strongly that we can harness
                                   the creativity and innovation
                                   of industry—through
                                   programs such as Natural
                                   Gas STAR—and put it to
                                   work for the environment.
                                   You have shown that this
                                   approach can be very
                                   successful."
                                         Christine Todd Whitman
New Online Program Tools
The Natural Gas STAR team presented three new
Web-based program tools—a BMP/PRO analysis
tool, a data collection and management tool, and
an online reporting tool—all of which will help
facilitate partners' decisions to implement emis-
sions reduction activities and their efforts to track
and record emissions reduction data. Available in
                                                                    Natural Gas STAR Partner Update • January 2002

-------
                   2002, the tools will be accessible with a password
                   via the Natural Gas STAR Web site. Following is a
                   brief description of each tool:

                   • The BMP/PRO Analysis Tool will allow
                     partners to generate estimates of the economic
                     and environmental benefits of methane
                     reduction activities on a site-specific basis. The
                     tool will calculate capital costs and operation
                     and maintenance (O&M) costs; provide default
                     values for critical capital and annual  cost
                     factors, methane emissions reduction factors,
                     and other operating assumptions; and project
                     cash flows during the first 5 years of operation.
                     Users will be prompted to enter site-specific
                     values where available, or use the default
                     values provided. The tool will be ready for
                     beta-testing by partners in spring 2002.

                   • The Data Collection and Management Tool
                     will streamline data collection and the annual
                     reporting process. This tool will help partners
                     collect and manage information about
                     methane emissions reduction  activities
                     occurring at various locations across  their
                     companies by allowing remote users to record
                     site-specific data. Users can enter, save, and
                     view data for all  BMP and PRO activities. The
                     tool performs calculations, generates several
                     printable reports, including the annual Natural
                     Gas STAR Report, and allows partners to
                     export data for expanded use. Implementation
                     managers will control and approve remote
                     user access.

                   • The Online Reporting System is an  option
                     for partners who wish to submit their annual
                     report via the Natural Gas STAR Web site.
                     The online forms mirror the hard copy report
                     forms, allowing partners to enter both current
                     and historical data for all BMPs and PROs
                     within their sectors. Unlike the online data
                     collection tool, a comprehensive data
                     management tool that stores historical
                     emissions reduction data, the online reporting
   system temporarily stores data for the current
   reporting year. The online forms will facilitate
   data entry for partners by performing
   calculations and providing default values.
   Partners can access the forms for the spring
   2002 reporting period at www.epa.gov/gasstar.

New Lessons Learned Studies
Participants reviewed and commented on drafts
of three new Lessons Learned studies covering
(1) composite sleeve repair of pipelines;
(2) directed inspection and maintenance at gas
processing plants and booster compressor sta-
tions; and (3)  replacing glycol  dehydrators with
desiccant dehydration systems. EPA thanks the
many Natural Gas STAR  partners who provided
feedback and contributed data and  other infor-
mation to the development of these documents.
These 3  new Lessons Learned studies will bring
the total available to 1 7.  The new studies will be
posted on the Natural Gas STAR Web site by
mid-2002.

Keeping Up with Emerging
Technologies - the Partner Roundtable
The annual partner roundtable discussion
centered on two presentations. Jeff Panek of
GTI discussed new and emerging leak detection
devices. He queried partners as to their interest
in holding a special hands-on  workshop to
learn more about these technologies. EPA is
collaborating with GTI to sponsor such a
workshop this year.

Sushma Masemore of the Southern  Research
Institute (SRI) described the Environmental
Technology Verification Program (ETV), a joint
initiative by EPA and SRI. ETV provides
independent,  objective performance verification
of commercially ready technologies with strong
environmental benefit, such as technologies
with  the potential  for greenhouse gas emissions
reductions. Currently, Natural  Gas STAR is work-
ing with ETV to sponsor the verification of Comm
Engineering's eductor vapor recovery unit.
Natural Gas STAR Partner Update • January 2002

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                                              IM  EFCS
                                                           FC
Producer Partner of the  Year:  BP
BP received the 2001 Natural Gas STAR Producer Partner of the Year award during ceremonies at
the 8th Annual Implementation Workshop in Houston. The company was honored for achieving a
     Dp   cumulative program reduction of 3.3 Bcf of methane emissions and for outstanding support
           of the goals of the Natural  Gas STAR Program. In its 2000 Annual Report, BP reported
           616 million cubic feet (Mmcf) of new methane emissions reductions and a total of 1.7 Bcf
           of methane emissions reductions (for both new and ongoing projects).

BP produces on average 1.9 million barrels of crude oil and 7.6 Bcf of natural gas daily.  It has 29,000
service stations and production activities in 23 countries.
BP joined the Natural Gas STAR Program in 1998, upon its merger with
Amoco, a charter Gas STAR Partner. Since joining Gas STAR, BP has imple-
mented many PROs. These include the elimination of unnecessary dehydra-
tors, installation of desiccant dehydration systems,  implementation of green
completion procedures, and installation  of pressure regulators on well sites.

As part of an ad hoc working group, BP  helped launch the gas processing pro-
gram for Gas STAR and participated in an EPA-sponsored study of emissions
reduction opportunities at gas processing plants. This Partner of the Year has
supported numerous regional Natural  Gas STAR Producer Technology Transfer
Workshops by providing technical presentations about their ongoing emis-
sions reductions activities. BP has also assisted the  STAR Program in develop-
ing articles for The Oil and Gas Journal and contributed to the
development of Lessons Learned studies and PRO Fact Sheets.
                                                             BP accepts the Production Partner of the Year award.
                                                             From left to right, Paul Gunning, EPA; G. Reid Smith,
                                                             BP; Rhone Resch, Natural Gas Supply Association; and
                                                             Kathleen Meier, Natural Gas STAR Program manager.
         Transmission  Partners of the Year:  Columbia Gas Transmission  and
         Columbia  Gulf Transmission
         Columbia Gas Transmission Corp. and Columbia Gulf Transmission Co., subsidiaries of NiSource, Inc., were named
2001 Transmission Partners of the Year. EPA honored the companies for excellent program
implementation, outreach efforts, and contributions in the area of technology transfer. In
the 2000 Annual Report, Columbia Gas Transmission and Columbia Gulf Transmission
                   reported cumulative program reductions of over 13.2 Bcf of methane. Nearly 3.3 Bcf were
Columbia Gulf
   Transmission      N ,
                   jects) tor the year.
                                                                                           .    .^
                                                                                           Transmission
                            new reductions, contributing to total reductions of 3.5 Bcf  (including new and ongoing pro-
         The companies' transmission facilities consist of 12,750 miles of pipeline and 130 compressor stations. Columbia
         Gas Transmission and Columbia Gulf Transmission deliver on average 1.3 trillion cubic feet of gas per year to 72
         local distribution companies and several hundred end-users in the northeastern, midwestern, and mid-Atlantic states.
                                                                  Natural Gas STAR Partner Update • January 2002

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Columbia Gulf Transmission and Columbia Gas Transmission
accept the Transmission Partners of the Year award. From
left to right, Paul Gunning, EPA; Wayne Crocker, Columbia
Gulf Transmission Co.; Arthur Smith, Jr., NiSource Inc.;
Kathleen Meier,  Natural Gas STAR Program manager;
Warren Bird, NiSource Inc.; and Jason Raker, Columbia Gulf
Transmission Co.
Since joining the Natural Gas STAR Program in 1999, Columbia Gas
Transmission  and Columbia Gulf Transmission  have implemented
numerous Partner Reported Opportunities, such as the installation of
electric motor-driven compressors, installation of compressors with dry
seals instead  of wet seals, use of composite sleeve  repair, installation of
flares at dehydration plants, replacement of bi-directional orifice runs
with ultrasonic meters, redesign of the emergency  shutdown system,
modification  of compressor shutdown to maintain  pressure, relocation
of fire gate valves, replacement of gas starters with electric starters, and
the capturing of releases from pipeline liquid tanks.

Columbia Gas Transmission and Columbia Gulf Transmission are com-
mitted to internal and external communications about Natural Gas STAR
and continue to contribute to the development of  PRO Fact Sheets and
partner case studies.
                    Distribution  Partner  of the Year:  PECO Energy
                    PECO Energy received the 2001 Natural Gas STAR Distribution  Partner of the Year award. Since
                    joining the Natural Gas STAR Program in 1995, the company has reported cumulative reductions of
                    approximately 46 Mmcf of methane. Total reductions in 2000 (including new and ongoing projects)
                    were 9 Mmcf.
                    Located in southeastern Pennsylvania, PECO Energy has 1.5 million electricity customers and
                    430,000 natural gas customers. PECO Energy recently merged with Unicom of Chicago to create
                    Exelon Corporation. With a joint customer base of 5 million, Exelon is also the largest nuclear
                    operator in the United States.

                                           PECO has implemented many Partner Reported Opportunities since
                                          joining the Gas STAR Program. These include optimizing the operation of
                                           high-pressure distribution
                                           systems, minimizing the
                    number of nitrogen compressor starts per year at
                    LNG plants, retightening seals on LNG pumps after
                    cool down in preparation for pumping operations,
                    implementing a random  meter calibration program
                    that covers 1000 meters per year, and testing gate
                    station pressure relief valves with nitrogen instead of
                    methane.
                    After 6 strong years in the program, PECO continues to
                    report detailed, innovative PROs each year. PECO also
                    participates regularly in Natural Gas STAR activities
                    such as the annual implementation workshop.
                        William Nuss (c), PECO Energy Company, accepts the
                        Distribution Partner of the Year award from Paul Gunning
                        (I), EPA, and Kathleen Meier (r), Natural Gas STAR
                        Program manager.
 Natural Gas STAR
 Partner Update • January 2002

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Enron Transportation Services: Continuing Excellence Award	•	
Enron Transportation Services, formerly Enron Gas Pipeline Group, was recognized by the Natural Gas STAR Program in 2001
for continuing excellence in the areas of emissions reductions, program outreach, and significant contributions to technology
transfer. Since joining Natural Gas STAR as a charter partner in  1993, Enron has realized cumulative program reductions of
approximately 9.1 Bcf. Enron reported 844 Mmcf of new methane emissions reductions and 2.6 Bcf of total
reductions (both new and ongoing projects) in its 2000 Annual Report.
Ruth Jensen (c), Enron Corporation, accepts the
Continuing Excellence award from Paul Gunning (I),
EPA, and Kathleen Meier (r), Natural Gas STAR
Program manager.
As an active partner, Enron has implemented Partner Reported
Opportunities such as the installation of yale closure cups;
component testing to eliminate gas loss in ESD testing; lowering of pipeline
pressure prior to maintenance and, whenever feasible, use of portable compres-
sors during maintenance and/or repair; modification of turbine purge and/or
blowdown; installation of electric motors; and replacement of glycol dehydrators
with separators and in-line heaters.

Enron has been a generous supporter of outreach activities, notably as a sponsor
of the annual implementation workshop.  Enron has also furthered the Natural
Gas STAR Program's goals through extensive work with the Hi-Flow™ Sampler.
                  Implementation Manager  of the Year: James Frederick, Unocal
                  James Frederick received the Implementation Manager of the Year Award in 2001 for outstanding
                  performance as implementation manager for Unocal. Unocal joined Natural Gas STAR in 1998 as Spirit
                  Energy '76—Unocal's domestic gas production subsidiary—then broadened its participation by signing
                  on to Gas STAR as Unocal in 2000. Unocal has achieved cumulative program  reductions of 4.1 Bcf of
                  methane. In 2000 alone, Unocal attained total reduc-
                  tions of more than 650 Mmcf (includes new and
                  on-going projects).
                  Mr. Frederick has focused Unocal's methane emissions
                  reduction activities on the installation of instrument air
                  systems and contributed to a Lessons Learned study on
                  instrument air. He has assisted the STAR Program in
                  developing articles for The Oil and Gas Journal,
                  supported numerous regional Technology Transfer
                  Workshops by providing technical presentations on
                  Unocal's activities, and encouraged prospective
                  partners to join the Natural Gas STAR Program.
                            James "Bubbo" Frederick (c), Unocal Corporation,
                             accepts the Implementation Manager of the Year
                             award from from Paul Gunning (I), EPA, and Kathleen
                             Meier (r), Natural Gas STAR Program manager.
                                                                  Natural Gas STAR Partner Update • January 2002

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                                   IM
STAR Welcomes  New Partners
                                                         IM
Cinergy Corporation
Cincinnati-based Cinergy Corporation is a diversified energy
marketer and supplier. The company was created in
October 1994 through the merger of Cincinnati Gas &
 smmm ,__-_,   Electric Company and PSI Energy, Inc.
 H^tfiERGw,
                  It is the largest non-nuclear energy
supplier in the United States, with more than 21,000
megawatts of electrical and combined heat and power plant
generation. The eighth largest electricity trading organization
in the United States, Cinergy has a natural gas trading
capacity of 35 billion cubic feet (Bcf) of natural gas per day.
Through its subsidiaries Cincinnati Gas & Electric Company
and PSI Energy, Cinergy serves 1.5 million electricity cus-
tomers and 500,000 natural gas customers in Ohio, Indiana,
and Kentucky.

Duke  Energy Field Services
Duke Energy Field Services (DEES), headquartered in
Denver, Colorado, is one of the nation' s largest natural gas
gatherers and is the largest nat-
ural gas liquids producer and
marketer. The company was
formed in March 2000 when
Duke Energy and Phillips Petroleum Company combined
their natural gas gathering and  processing businesses.  DEES
produces on average 400,000  barrels of liquid natural gas
and gathers and transports approximately 7.3 Bcf daily, with
operations based in  Denver, Houston, Midland, Tulsa, and
Calgary, Canada.

Kokomo Gas and  Fuel Company
Kokomo Gas and Fuel Company, a NiSource Company, is
                located in Kokomo, Indiana. It serves
                the natural gas needs of over 34,000
                customers in Carroll, Cass, Clinton,
                Howard, Miami, and Tipton counties,
storing up to  12 Mmcf of natural gas. Kokomo Gas and Fuel
Company has received the International Standards Organi-
zation's 14001 Certification for implementing an effective
Duke Energy
Field Services
                                                    . I I-uIt.Sfrvict' Energy
                                                                      JNC
environmental management system. Participation in the
Natural Gas STAR Program was one element of its ISO certi-
fication plan.

Northern Indiana Fuel and Light
Serving over 35,000 customers, Northern Indiana Fuel &
Light Co., Inc., (NIF&L) is a wholly
owned subsidiary of NiSource, Inc.
Headquartered in Auburn, Indiana,     \. Fuel & light Company
NIF&L delivers gas from Panhandle
Eastern Pipeline Co., ANR Pipeline Co., and Crossroads
Pipeline Co. to northeastern Indiana counties through 835
miles of transmission and distribution mains.

Western Gas Resources
Based in Denver, Colorado, Western Gas Resources is a full-
service energy company
operating four principal
business segments: Gas
Gathering and Processing, Production, Marketing,
and Transportation. The company's 18 gas processing
facilities are located in the Rocky Mountain, mid-continent,
southwest, and Gulf Coast regions of the United States.
Western Gas has 9,000 miles of gathering lines and transfers
1.4 Bcf/day of natural gas. Also active in  coalbed methane
development, Western Gas is the largest gatherer, trans-
porter, and producer of coalbed methane gas in  the Powder
River Basin in northeastern Wyoming.

El Paso Energy Corporation
El Paso Energy Corporation  has become  Natural  Gas STAR'S
largest transmission partner. With the recent acquisition of
The Coastal Corporation's holdings, including ANR Pipeline
                 and Colorado Interstate Gas, El Paso's
                 pipeline group holdings now include
                 five subsidiaries, all of which were
Natural Gas STAR partners in their own right prior to being
combined under the El Paso umbrella. In addition to the
Coastal holdings, the subsidiaries include El Paso Natural
                        elpaso
 Natural Gas STAR Partner Update • January 2002

-------
  Gas, Southern Natural Gas, and Tennessee Gas Pipeline. El Paso's inter-
  state transmission system now spans the nation, with 60,000 miles of
  transmission pipeline. Natural Gas STAR is pleased to recognize El Paso's
  pipeline group as a new partner, acknowledging the company's commit-
  ment to developing a unified Natural Gas STAR Program that takes
  advantage of the impressive work already underway at each subsidiary.

  Based in Houston, El Paso Corporation has core businesses in natural
  gas production, gathering and processing, and transmission, as well as in
  international project development, energy financing, power generation,
  liquified natural  gas transport and receiving, and merchant energy ser-
  vices. The company is committed to developing new energy sources
  and technology to supply energy to communities around the world.
  El Paso shows its commitment to the environment through strong
  environmental, health, and safety performance.
                                                               John Cordaway (c), El Paso Corporation, accepts the New
                                                               Partner certificate from Paul Gunning (I), EPA, and Kathleen
                                                               Meier (r), Natural Gas STAR Program manager.
  Natural Gas  STAR in  the News
      From The Oil and Gas Journal
      Gas STAR Claims Methane Emissions Reductions of 34 bcf in 2000
      By the OGJ Online Staff
      Houston, Jan. 11 2000 - The US Environmental Protection Agency said industry participants in its Natural Gas STAR
      Program reduced methane emissions by 34 Bcf in 2000.
         EPA said at $3/Mcf, the savings are worth $102 million. The voluntary STAR program, designed to reduce green-
      house gas emissions, has 90 industry participants across all sectors of the gas industry.
         EPA said since the program began in 1993, it has reduced methane emissions from field operations and equipment
      leaks by 176 Bcf, worth more than $500 million and equivalent to eliminating the emissions from more than 14.2 million
      cars or planting 21 million acres of trees.
\
From The Financial Times

Natural Gas Industry Saves $100 Million
While Reducing Greenhouse Gas Emissions
PR Newswire - USA, Jan 31, 2002
The U.S. Environmental Protection Agency's Natural Gas
STAR Program recently announced that its industry part-
ners saved over $100 million in 2000 by reducing emis-
sions of methane, a potent greenhouse gas that is the prima-
ry component of natural gas.

EPA Admininstrator Christie Todd Whitman praised the
program's partners, saying that their "voluntary efforts to
reduce methane emissions while delivering dependable
energy to American homes show that good stewardship of
the environment can also mean good business."
From GreenBiz.com

Voluntary Methane Reductions Net S100M
WASHINGTON, Jan. 15, 2002 - Industry partners of
the U.S. Environmental Protection Agency's (EPA's)
Natural Gas STAR Program report they saved more
than $100 million in 2000 by reducing methane emis-
sions from unit operations and equipment leaks. EPA
Administrator Christie Todd Whitman praised the pro-
gram's industry partners,  saying that their "voluntary
efforts to reduce methane emissions while delivering
dependable energy to American homes show that good
stewardship of the environment can also mean good
business." The Natural Gas STAR Program is a volun-
tary partnership between EPA and the natural gas
industry, focused on identifying and implementing
                                                                      Natural Gas STAR Partner Update • January 2002

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                                               H I  EVE
Thank  You,
One  and  All
Natural  Gas STAR Partner List

Production Partners
Amerada Hess Corporation, U.S. Exploration and
  Production
Belco Energy Corporation
BP
Burlington Resources, Inc.
ChevronTexaco Corp.
Columbia Natural Resources, Inc.
ExxonMobil  Production Company
Kerr-McGee Corporation
Marathon Oil Company
Murphy Exploration and Production Company
Ocean  Energy, Inc.
Phillips Petroleum Company
Pioneer Natural Resources Company
Shell Exploration and  Production Company
Total FinaElf
Unocal Corporation
Williams Production RMT Company

Gas Processing Partners
BP
ChevronTexaco Corporation
Conoco, Inc.
Duke Energy Field Services
Dynegy Midstream Services L.R
El Paso Field Services
ExxonMobil  Production Company
ONEOK Field Services
Pioneer Natural Resources, Gas Processing
UtiliCorp United, Inc.
Western Gas Resources
                                                                                           J
Trade Association Endorsers
American Gas Association (AGA)
American Petroleum Institute (API)
Domestic Petroleum Council (DPC)
Gas Processors Association (GPA)
Gas Technology Institute (GTI)
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)
Southern Gas Association (SGA)

                               Updated January 2002
 Natural Gas STAR Partner Update • January 2002

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Transmission and Distribution Partners
ANR Pipeline Company
Atlanta Gas Light Company
Atmos Energy Corporation
Baltimore Gas and Electric Company
Bay State Gas Company
Central Hudson Gas & Electric Company
Cinergy Corporation
Citizens Gas & Coke Company
Colorado Interstate Gas Company
Columbia Gas of KY, MD, OH, PA, VA
  (NiSource Companies)
Columbia Gulf Transmission Company
  (a NiSource Company)
Columbia Gas Transmission Corporation
  (a NiSource Company)
Conectiv Power Delivery
Consolidated Edison Company of New York
Consumers Energy
Duke Energy Gas Transmission
El Paso Natural Gas Company
Enron Transportation Services
Equitable Resources, Inc.
Granite State Gas Transmission, Inc.
Great Lakes Gas Transmission Company
Gulf South Pipeline Company
Iroquois Gas Transmission System
Kansas  Pipeline Operating Company
KeySpan Energy  Delivery
KM Interstate Gas Transmission
KM Texas Pipeline
Kokomo Gas and Fuel Co. (a NiSource Company)
Louisville Gas &  Electric Company
Michigan  Consolidated Gas Company
New York State Electric & Gas Corporation
Niagara Mohawk Power Corporation
North Carolina Natural Gas
Northern Indiana Fuel and Light Co.
  (a NiSource Company)
Northern Indiana Public Service Company
  (a NiSource Company)
Northern Utilities, Inc. (a NiSource Company)
NW Natural
Orange and Rockland Utilities, Inc.
Pacific Gas and Electric Company
PECO Energy Company
PG&E National Energy Group
PSNC Energy
Public Service Electric and Gas Company
Questar Pipeline Company
Reliant Energy Arkla/Entex
Reliant Energy Minnegasco
Rochester Gas & Electric Corporation
South Carolina Electric  & Gas Company (a SCANA
  subsidiary)
South Carolina Pipeline Corporation (a SCANA subsidiary)
Southern California Gas Company
Southern Natural  Gas Company
Southwest Gas Corporation
Superior Water, Light and Power Co.
Tennessee Gas Pipeline Company
TXU Lone Star Pipeline
TXU Electric and Gas
UGI Utilities, Inc.
UtiliCorp United, Inc.
Washington Gas
Williams Gas Pipeline - Central
Williams Gas Pipeline - Texas Gas
Williams Gas Pipeline - Transco
Williston  Basin Interstate Pipeline Co.
Wisconsin Public  Service Corporation
                                                                   Natural Gas STAR Partner Update • January 2002

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                         Southwest Gas & Natural Gas STAR
                              Saving Gas and Money
                          (and helping the environment, too)
    Since 1997, Southwest Gas has saved an estimated $3.8 million dollars
    through participation in EPA's Natural Gas STAR Program, Through this
    voluntary partnership, Southwest Gas and nearty 90 other companies -
    including 41) LDCa - utu wurkiny li> maximize u|ieralimal efliuinriLy by
    kbitpmy Ticfe '.jas in our systems. lliruug.li tlieSIAH program, wet are savvy
    gas and money liy doing tilings Hiat make economic sense lor nur
    compnniHS
    But money isn't all we're saving. By reducing gas losses, we are reducing
    the amount of methane that goes to (tie atmosphere. Because methane is a
    ureeiilwuse gas 21 limes stronger than C02. minimizing gas lies is an
 vi] ::-i jf i i 11 _: • i-:  -I- if .l:-| ..I :\--. :•••_
is proud thai we are doing our part te protect the environment.
Ihrough the Natural GasS1AF1 Program, tPfl and partner companies work

•n.-iinn>-inrr r
    . hic-eutiuri arnJ Vjr ie j'ce j.
  arid compressor sta Irons;
+ Repair and rnphnr-rr ^ni nf "irnriuthn pipeline;
* Replacement or retrofit of high-Weed pneumatic devices; and
* Any other acli'iily thai rwJucKi niethaire etMissions.
At Southwest Gas, WE haw; had great SIJHKSR with Ihe pmrtire nf
inspnction and maintnnancc, sgving ovnr $6flD,OfXl worth of pas in ?00f)
alone simply ty rrpi "inn r.ik:- irlnnrifinri rtirough regular survey.
             southwest Gas Corporation
          Cumulative Reduced Gas Losses -1997-2000
                                   Musi importantly, our lauilitias ntut^ers jnJ anlire atalf Irdw beanne knnrily
                                   aware nl the importance at minimizing gas toss through both liaditranial and

                                   Southwest Gas to increase our company's competitive edge.
In October, 2001, Southwest Gas and
EPA teamed up at the American Gas
Association Operations Conference to
promote the Natural Gas STAR Program
to AGA's membership. EPA developed
the card on the left, which was distrib-
uted by Jim Wunderlin, VP of Operations
at Southwest Gas.
Technology  Transfer Workshops  Continue  To  Provide Value to  Producers
Over the past year, the Natural Gas STAR Program held four
successful Producer Technology Transfer Workshops in
Hobbs, New Mexico; Denver, Colorado; Gaylord, Michigan;
and  New Orleans, Louisiana. These free workshops offer  in-
depth information on relevant technologies and a forum to
discuss emerging technologies or issues of regional impor-
tance. To ensure regional applicability, technical presenta-
tions are selected based on  input from local operators.
Topics to choose from include improving dehydrator effi-
ciency, installing vapor recovery units, using plunger lifts in
gas wells, replacing high-bleed  pneumatics, and reducing
compressor emissions. A new interactive component allows
participants to walk through a cost-benefit analysis for a
selected project, using company-specific information.

In 2002, Gas STAR will again hold producer workshops;
sites being considered include Wyoming, Texas, and
Louisiana. In addition, EPA plans to expand the program
in 2002 to offer a technology transfer workshop for gas
processors. All of the workshops  are free and open to both
current and prospective partners.
                             Please visit the Natural Gas STAR Web site, or call your STAR
                             Service Representative for  more information on upcoming
                             workshops. If you are interested in co-hosting a workshop in
                             your area, please contact the Natural Gas STAR Program
                             manager at (202) 564-2318.

                             The Natural Gas STAR Program would like to thank the
                             organizations and partner companies that helped make the
                             four technology transfer workshops held in 2001 a success.
                             Thank you,
                                Barrett Resources
                                BP
                                Gulf Coast Environmental Affairs Group
                                Independent Petroleum Association  of the Mountain States
                                Michigan Oil and Gas Association
                                New Mexico Oil and Gas Association
                                Ocean Energy
                                Unocal Corporation
 Natural Gas STAR Partner Update • January 2002

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DOCUMENT
REQUEST    FORM
 Name & Title: _
 Organization: 	
 E-Mail Address:_
 Telephone #:	
 Date Requested:
FAX#:
 Date Info Needed:
 FedEx/UPS # (if info needed asap):
                                                                             EPA  POLLUTION PREVENTER
Please fax to your STAR
Service Representative at
703-841 -1440 or directly to
the Natural Gas STAR
Program  at 202-565-2134,
or e-mail to
henderson.carolyn@epa.gov
PLEASE   I N  D I C AT E   W MICH
MATERIALS  YOU  WOULD
LIKE  TO   RECEIVE:
      LESSONS  LEARNED
        	  1. Directed Inspection and Maintenance at Compressor Stations
        	  2. Directed Inspection and Maintenance at Gate Stations and Surface Facilities
        	  3. Options for Reducing Methane Emissions from Pneumatic Devices in the Natural Gas Industry
                  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
                  13. Convert Gas Pneumatic Controls to Instrument Air
                  14. Using Hot Taps for In Service Repair
                  15. Using Desiccant Dehydration Instead of Glycol Dehydration (mid-2002)
                  16. Using Composite Sleeve Repair Techniques (mid-2002)
                  1 7. Directed Inspection and Maintenance at Gas Plants and Booster Stations (mid-2002)
      STAR  IMPLEMENTATION TOOLS

        	  Video-Production
        	  Video-Transmission/Distribution
        	  Case Study-El Paso Natural Gas
        	  Case Study-Brooklyn Union/Keyspan Energy
        	  Case Study-Texaco Exploration and
                     Production, Inc.
        	  Case Study-Columbia Gas and Columbia
                     Gulf Transmission
        	  Case Study-Kerr-McGee Corporation
        	  Case Study-Unocal Gulf Region  USA
             OUTREACH  MATERIALS
                         Natural Gas STAR Program Brochure
                         Natural Gas STAR Marketing Package
                         Natural Gas STAR Communications
                           Toolkit
                         STAR Partner Update, Summer 1998
                         STAR Partner Update, Spring 1999
                         STAR Partner Update, Winter 1999
                         STAR Partner Update, Fall 2000
                         STAR Partner Update, Winter 2001
                         STAR Partner Update, Winter 2002
      Most of these materials are available on the Internet at www.epa.gov/gasstar
                                                                 Natural Gas STAR Partner Update • January 2002

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