&EPA
United States
Environmental Protection
Agency
Air and Radiation
6202J
EPA-430-N-300I
Spring 2003
       ATURAL    GAS      STAR
i   i

r
API  Commits  to  100%  Gas STAR  Participation
 Last month Natural Gas STAR endorser the American Petroleum Institute (API) announced that it is
 aiming for 100 percent participation in EPA's Natural Gas STAR Program and in federal Combined
 Heat and Power (CHP) Programs. The announcement was made in conjunction with the President's
 "Climate VISION"—a voluntary partnership to pursue cost-effective initiatives that will reduce the
 projected growth in America's greenhouse gas emissions. API is also committed to increasing
 aggregate energy efficiency of members'
 U.S. refinery operations by 1 0 percent from
 2002 to 201 2. API members will develop
 greenhouse gas management plans to
 identify and pursue opportunities to further
 reduce emissions. Similar announcements
 were made by other associations
 representing the energy,  manufacturing,
 transportation and forest sectors.
                                                                  American
                                                                  Petroleum
                                                                  Institute
 On February 14, 2002, President Bush
 announced a new strategy to address the
 long-term challenge of global climate
 change. He committed  to reducing
 America's greenhouse gas intensity—the
 ratio of emissions to economic output—
 by 18 percent in the next decade and
 challenged American businesses and
 industries to undertake  broader efforts to
 help meet that goal.

 "The President has the  right idea on
 climate change," said Red Cavaney, the
 CEO and President of API. "We are
 committed to using our new technologies
 to help him meet his goals for reducing
 greenhouse gas intensity."

 The Natural Gas STAR Program will be
 working closely with API in the coming
 months to help API meet its goal of 100
 percent Gas STAR participation. In addition
                                                                to encouraging additional API members to
                                                                join Gas STAR, the program will explore
                                                                opportunities for current Gas STAR partners
                                                                who are API members to increase their methane
                                                                emissions reduction activities.

                                                                For more information, go to
                                                                http://www.energy.gov/HQPress/releases03/
                                                                   febpr/ClimateFactSheet.pdf and
                                                                http://api-ec.api.org/media/index.cfm.

                                                                 IN   THIS    ISSUE
     Feature Article
     Workshop Summary
     Partners of the Year
     Gas STAR News
     Partner Technical Abstract
     New Partner
     Program Tools
       1
       2
       5
      11
      13
      14
      15

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9th Annual Natural Gas  STAR  Implementation Workshop
With generous co-sponsorship from the American Gas
Association, Heath/Indaco Professional Services, and
Sealweld Corporation, EPA held its 9th Annual Natural
Gas STAR Implementation Workshop in Houston, Texas,
in October 2002. More than 70 participants gathered to:

• Discuss emerging technologies and practices

• Note the accomplishments of the Natural Gas STAR
  Program and its partners

• Learn what companies are doing to profitably reduce
  methane emissions

• Present new program tools and documents

The workshop focused on how partners have maximized
gas savings and efficiency gains, as well as introducing
partners to the tools developed over the past year.

Keynote Speakers
Two keynote addresses were highlights of the workshop:
one by George Walker of Unocal  and the other by Kedin
Kilgore of Natsource. Mr. Walker spoke about Unocal's
global climate change goals and how various business
units in the company are achieving greenhouse gas
                        (GHG) emissions reductions
                        through responsible, energy-
                        efficient, and cost-effective
                        programs. He also described
                        how  Unocal employees
                        share information about Gas
                        STAR by hosting global
                        climate change meetings
                        and workshops, making
                        information available on
                        Unocal's Web site, and
George Walker, Unocal
Corporation
publishing an internal
newsletter.
In the second keynote address, Mr. Kilgore provided an
update on international climate policy, U.S. measures to
reduce GHG emissions, and a GHG emissions market
analysis. He explained how the past 12 months
have been the most active to date for the GHG
emissions trading market with the development
of various new compliance tools, including
Verified Emission Reductions, the Clean
Development Mechanism, and Joint Implemen-
tation. He also noted  that addressing GHG
emissions is becoming an increasingly
important factor in a company's overall risk
management strategy.

Technology Transfer  Through
Industry  Experience

Pioneer Natural Resources USA
James Meier described Pioneer's active
participation in the Natural Gas STAR Program
since the company joined  in 2000. One of
Pioneer's first steps was to identify cost-
                        effective options
                        for reducing
                        methane
                        emissions, such
                        as replacing gas
                        pneumatics with
                        instrument air
                        systems, installing
                        flash tank
                        separators, and
                        conducting
                        directed inspection
                        and maintenance
                        (DI&M)atgas
plants and booster stations. Pioneer then
implemented several  Best Management
Practices (BMPs) and  Partner Reported
Opportunities (PROs) companywide, which
reduced total methane emissions by more than
342 million cubic feet (Mmcf) and saved over
$900,000.
                                James Meier, Pioneer Natural
                                Resources
Natural Gas STAR Partner Update • March 2003

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Workshop  Summary
continued from page 2
ChevronTexaco
Robert Martin described what
ChevronTexaco is doing to support
the Natural Gas STAR Program. His
company's Energy Conservation
Initiative includes the development
of the REMVue  Engine Control
Technology, a computer-based data
management system. The company
tested it in the Gulf of Mexico Shelf
REMVue Pilot, in which complete
systems were installed on  three
engines. Resulting benefits included  an
18-24 percent reduction in fuel use,
improved runtime, and  a 28 percent
average reduction in CO2 emissions.
Then, by installing 25 automated
air/fuel ration controls on selected
engines in the Gulf of Mexico,
ChevronTexaco reduced methane
emissions by more than 473 Mmcf,
worth over $1.1 million per year.

El Paso Corporation
John Cordaway described how El Paso
organizes and coordinates its Gas
STAR partnership activities across the
corporation. El Paso  regularly holds
organizational meetings to discuss
ongoing leak reduction  efforts and
evaluations of vendor products and to
estimate corporate payback. El Paso
pipeline STAR representatives are
chosen based on their operations
background, field experience, and
ability to appeal to management.
Because they are well positioned to
understand the  internal processes of
their particular business units,
representatives then decide which
projects they will propose to their
management. Mr. Cordaway listed
some of the benefits of El Paso's
approach to organizing its Gas STAR
program, including improved
coordination,  reduced redundancy,
and increased ease in attaining
management approval by using
documented results from other
El Paso business units.  Finally,
Mr. Cordaway provided an example
of a compressor station rod packing
upgrade that illustrated how
coordination among El Paso  business
units has resulted in improved
operations efficiency and decreased
methane emissions.

Research  Update
Two presentations focused on current
emissions reduction research projects.
In the first, Kirby Chapman of Kansas
State University highlighted the
findings of a recently completed Gas
Research Institute (now the Gas
Technology Institute) study on
emissions sources at gas processing
plants.  He also discussed a new study,
led by the university's  National Gas
Machinery Lab that is further
investigating the cost effectiveness of
DI&M programs at  gas processing and
production facilities. In the second
presentation, Kevin Tingley, Gas STAR
Program Manager, gave an update on
Kirby Chapman, Kansas State
University

the Environmental Technology
Verification (ETV) program and its
recent report on the Environmental
Vapor Recovery Unit (EVRU).
The report shows that the EVRU
technology decreased the amount
of downtime for maintenance and
saved 32.1 Mmcf per year (worth
over $349,000) compared to a site
that currently vents its gas to the
atmosphere. Brian Boyer of COMM
Engineering, the company that
developed the EVRU, elaborated
on the operating principles and
capabilities of the technology. (See
related stories on both  of these
research studies in the  Fall 2002
Natural Gas STAR Partner Update.)

To obtain a copy of the report, see
http://www.epa.gov/etv/verifications/
vcenter3-10.html.
                                                                      Natural Gas STAR Partner Update • March 2003

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Workshop Summary
continued from page 3


New Tools
The Gas STAR team unveiled three new online
implementation tools  in a hands-on demonstration. Now
accessible on the Natural Gas STAR Web site, the tools are:

•  BMP/PRO Analysis Tool: Provides the means for partners
   to estimate the economic and environmental benefits
   of methane emissions reduction activities on a site-
   specific basis.

•  Data Collection and Management Tool: Helps partners
   collect and manage information on methane emissions
   reduction activities occurring at various locations across
   their companies by allowing remote users to record site-
   specific data via the Internet.

•  Online Reporting Tool: Enables partners to submit their
   annual reports through the Natural Gas STAR Web site
   instead of traditional paper forms.

Don Robinson of ICF  Consulting presented the newest
additions to two of Gas STAR'S most popular publications:
the PRO Fact Sheets and the Lessons Learned studies. The
Natural Gas STAR Program produced six new PRO Fact
Sheets in  2002, encompassing all natural gas industry
sectors. The new PRO Fact Sheets are:
•  Green  Completions
•  Lower Purge Pressure for Shutdown
•  Reduce Frequency of Replacing Modules in Turbine
   Meters
•  Replace Bi-Directional Orifice with Ultrasonic Meters
•  Replace Burst Plates with Secondary Relief Valves
•  Use of Improved Protective Coating at Pipeline Canal
   Crossings

Gas STAR also began  updating 11 of the existing  Lessons
Learned studies and will soon release three new ones—
Composite Wraps, DI&M at Gas Processing Plants, and
Desiccant Dehydrators.

For copies of Gas STAR publications, see
h ttp ://www. e pa. go v/gassta r/tec h. h tm.
Partner Roundtable Discussions
Workshop attendees split into two groups to discuss general
program issues and sector-specific topics: the production
and processing roundtable session and the transmission and
distribution roundtable session. Production and processing
session attendees discussed upcoming technology transfer
workshops, BMP default values and sunset periods,
development of PRO Fact Sheets, and inclusion of PROs
in annual reports. Topics discussed in the transmission
and distribution session  included default value analysis,
technology transfer workshops, and Gas STAR
implementation techniques.

Both groups concluded that default value analysis is one of
the most important and  complex issues facing Gas STAR.
The purpose of default values is to allow partners to report
amounts of methane emissions reduced from various
activities even when they have incomplete project
information. Although the Gas STAR default values are
derived from extensive studies (such as the 1996 fifteen-
volume "Methane Emissions from the Natural Gas Industry"
by GRI [now GTI]), new data and new industry practices
suggest that it may be time to reconsider some of the
values. Several attendees agreed  to participate in
discussions on this subject later in the year.
EPA thanks all of the participants for making this year's
workshop one of the most well attended and successful
held to date. Next year's implementation workshop will
again take place in Houston in October. Please feel free
to send suggestions for discussion topics to Kevin Tingley
or Roger Fernandez.
Natural Gas STAR Partner Update • March 2003

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                    ISI EFCS    OF
Awards  and Acknowledgments
EPA announced the recipients of the 2002 Partner of the Year Awards at a
special luncheon ceremony held during the 9th Annual  Natural Gas STAR
Implementation Workshop. The annual awards are presented to companies
that have displayed excellence in their pursuit of methane emissions reductions
and in their continuing support of the Natural  Gas STAR Program. The 2002
Partners of the Year are:
   Phillips Petroleum Company—Production Sector
   Duke Energy Gas Transmission—Transmission Sector
   Southwest Gas Corporation—Distribution Sector
   Pioneer Natural Resources—Processing Sector

EPA also presented Continuing Excellence Awards to two partners for their
ongoing program support and  enduring commitment to  finding and imple-
menting new emissions reduction opportunities:
   BP—Production Sector
   Columbia  Gas and Columbia Gulf Transmission—Transmission Sector

Rookie of the Year Awards  for outstanding implementation of the Natural Gas
STAR Program during the first year of participation were presented to Murphy
Exploration and Production in the Production Sector and North Carolina  Natural
Gas Company in the Distribution Sector.

EPA recognized John Cordaway of El Paso Energy Corporation as  the
Implementation Manager of the Year for his outstanding leadership in outreach
and technology transfer of  Natural Gas STAR Program goals.

EPA also welcomed four new partners to the Natural Gas STAR Program:
Dominion Exploration and  Production and three transmission companies—
Houston  Pipeline Company LP and Louisiana Intrastate  Gas (American Electric
Power companies) and South Carolina Pipeline (a SCANA company).
                                         Natural Gas STAR Partner Update • March 2003

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Production  Partner of the Year
Phillips Petroleum Company
Phillips Petroleum Company joined the Natural Gas STAR Program in May 1999 and one year later submitted
an exemplary implementation plan. The company followed up on its commitment by implementing numerous
BMPs and PROs, including identifying and replacing high-bleed pneumatic devices, installing low-bleed
controls and actuators, installing vapor recovery units on condensate storage tanks, performing directed
inspection and maintenance, installing flash tank separators, installing plunger lift systems, and implementing
green completions.

The implementation of these BMPs and PROs has produced impressive results to date. The company reported
approximately 235 Mmcf in methane emissions reductions for 2001, bringing its cummulative total to just over
1 billion cubic feet (Bcf).
Phillips demonstrates its commitment to the program through active
communications and outreach efforts.  Robert Wirtanen, Senior
Environmental, Regulatory, and Safety  Specialist, presented an overview of
the Phillips Natural Gas STAR Program at the 2001 Natural Gas STAR
Annual Workshop. The company's success in reducing methane emissions
and saving money was featured in the September 2001 PhilNews, an
internal company  newsletter. Phillips also created a Natural Gas  STAR
Program Engineering Design Criteria document to facilitate installation of
methane emissions reduction equipment at new facilities both domestically
and internationally.
                                                                     Phillips Petroleum Company accepts the Production
                                                                     Partner of the Year Award. From left to right, Roger
                                                                     Fernandez, Natural Gas STAR Program Manager; Ryan
                                                                     Lance, Phillips Petroleum Company; and Kevin Tingley,
                                                                     Natural Gas STAR Program Manager.
                    Transmission Partner of the Year
                    Duke Energy Gas Transmission
                    Duke Energy Gas Transmission (DECT) has been an extremely active partner since joining the Natural
                                                  Gas STAR Program in September 2000. The company's first annual
                                                  report to the program was impressive, documenting historical
                                                  reductions of 4.0 Bcf from 1 993 to 2001  and new reductions of
                                                  535 Mmcf for 2001.  Reductions are attributed to the company's
                                                  implementation of numerous PROs, including pipeline pulldowns,
                                                  sleeve repairs, hot taps, emergency shutdown practices, and
                                                  installation of dry compressor seals.
                                                  DECT is a strong supporter of Natural Gas STAR Program outreach
                                                  activities. The Manager of Environmental Compliance, David Felcman,
                                                  presented a paper on DEGT's Natural Gas STAR activities at the
                                                  Canadian Energy Pipeline Association's Climate Change Workshop in
                                                  Calgary, Alberta, in September 2002.
Duke Energy Gas Transmission accepts the Transmission
Partner of the Year Award. From left to right, Roger
Fernandez,  Natural Gas STAR Program Manager; Diana
Phelps, Duke Energy Gas Transmission; and Kevin Tingley,
Natural Gas STAR Program Manager.
Natural Gas STAR Partner Update • March 2003

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                   DECT regularly participates in activities to strengthen its involvement in the program. At a recent
                   meeting with EPA Gas STAR representatives, company officials provided insightful feedback on their
                   experiences in  implementing the program and on EPA's new online reporting and economic analysis
                   tools. DECT staff regularly attend Natural Gas STAR meetings and other GHG-related workshops.
                   Distribution Partner of the Year
                   Southwest Gas Corporation
                   Since joining the Natural Gas STAR Program in 1997, Southwest Gas Corporation has consistently
                   reported significant emissions reductions. The company's reported reductions for 2001—nearly
                   445 Mmcf—were considerably higher than those reported by any other distribution partner. Cumulative
                   program reductions total 1.7 Bcf. Southwest Gas achieved these impressive emissions reductions by
                   implementing just three key BMPs: replacing pipe, implementing directed inspection and maintenance
                   (DI&M), and replacing high-bleed pneumatic devices.

                   Southwest Gas proved its commitment to the Natural Gas STAR Program by enthusiastically spreading
                   the word about program benefits. The company recently  provided a testimonial at the American Gas
                   Association's annual conference acknowledging the benefits of participating in Gas STAR and
                   contributed to a Natural  Gas STAR article for the American Gas Journal.
                   Processing Partner of the Year
                   Pioneer Natural Resources
                   Pioneer Natural Resources joined the Natural Gas STAR Program as a charter processing partner in
                   September 2000. The company's sound implementation of the Natural Gas STAR Program has
                                            produced significant emissions reductions and natural gas savings.
                                            Reported  reductions in methane emissions for 2001 topped the list for
                                            processing partners at 7.3 Mmcf, and historical reductions totaled nearly
                                            1.5 Bcf. These reductions were largely achieved through the identification
                                            and implementation of four PROs: modifying compressor shutdown logic,
                                            installing a larger wet stabilizer reboiler, installing vapor recovery on a
                                            three-phase separator, and installing BTEX (benzene, toluene,
                                            ethylbenzene, and xylene) removal units.
                                             Pioneer shared its formula for success at this year's annual workshop in an
                                             overview of its implementation of the Natural Gas STAR Program.
Henry Gaplan (c). Pioneer Natural Resources, accepts
the Processing Partner of the Year Award from Roger
Fernandez and Kevin Tingley, Natural Gas STAR
Program Managers.
                                                                     Natural Gas STAR Partner Update • March 2003

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 Continuing Excellence
 BP
 BP is one of two recipients of the 2001 Continuing Excellence Awards for their continued success in
 implementing the Natural  Gas STAR Program. Since joining as a charter production partner (as Amoco) in
 1 995, BP has exhibited leadership as a Gas STAR partner by consistently achieving significant emissions
 reductions, and engaging in outreach and technology transfer activities. BP's cumulative program reductions
 have reached  nearly 5.6 Bcf. The 2001 reported methane emissions reductions were among the highest
 reported for production partners—508.3 Mmcf.
 BP continues to find and implement new emissions reduction
 opportunities and to generously support Natural Gas STAR Program
 outreach activities and technology transfer. BP staff made presentations
 on the company's Gas STAR activities at the 2001 Natural Gas STAR
 Annual Workshop and this year's processors' workshop. They actively
 assist in the development of journal articles, Lessons Learned studies, and
 PRO Fact Sheets.

 BP has supported numerous regional Natural Gas STAR producer
 technology transfer workshops with excellent technical presentations.
 The company played an integral role in launching the processing program
 for Natural Gas STAR and participated  in the recently finalized EPA-
 sponsored study of emissions reduction opportunities at gas processing
 plants. (To obtain a copy of the report, see http://www.gri.org/webroot/
 app/xn/xd.aspx?xd = 1 OAbstractPageYl 3198.xml.)
                       Reid Smith (c), B>P, accepts the Continuing Excellence
                       Award from Roger Fernandez and Kevin Tingley, Natural
                       Gas STAR Program Managers.
                Continuing Excellence
                Columbia Gas Transmission and Columbia Gulf Transmission
                This year's second Gas STAR Continuing Excellence Award winners are Columbia Gas Transmission and
                Columbia Gulf Transmission, the Transmission Partners of the Year in 2000 and 2001. Columbia Gas and
                Columbia Gulf have shown outstanding implementation of the Natural Gas STAR Program during their first
                                               3 years of participation. Their nearly 5 Bcf of new reductions reported
                                               this year were the highest methane emissions reductions achieved
                                               among transmission partners, and their cumulative program reductions
                                               total  more than 18 Bcf. The companies have implemented many PROs
                                               since joining the program and continue to find and implement new
                                               emissions reduction opportunities. They are actively working with other
                                               companies and business units within the parent company NiSource to
                                               educate them on the value of GHG reductions.
 Columbia Gas Transmission and Columbia Gulf
 Transmission accept the Continuing Excellence Award.
 From left to right, Roger Fernandez, Natural Gas STAR
 Program Manager; Wayne Crocker, Columbia Gas
 Transmission and Columbia Gulf Transmission; and Kevin
 Tingley, Natural Gas STAR Program Manager.
Their program technology transfer efforts continue to be noteworthy—
developing a PRO Fact Sheet, writing an implementation case study, and
providing the keynote speaker at the 2001 Natural Gas STAR Annual
Workshop (Arthur Smith, NiSource Senior Vice President of
Environment, Health and Safety.)
Natural Gas STAR Partner Update • March 2003

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                    Rookie of the  Year
                    Murphy Exploration and Production
                    Murphy Exploration and Production joined Natural Gas STAR in November 2000. The company has
                    exhibited outstanding implementation of the Natural Gas STAR Program during its first year of
                    participation, mounting an extensive effort to collect, quantify, and submit data on  past emissions
                                                reductions. The combined implementation plan and annual report for
                                                2001 contained detailed information on the company's emissions
                                                reduction accomplishments to date, totalling an impressive 1.1 Bcf.
                                                Murphy achieved these reductions by using glycol flash tank separators,
                                                lowering heater-treater temperatures, installing instrument air systems,
                                                and optimizing triethylene glycol (TEG)  circulation rates.
                                                Murphy plans to incorporate Natural Gas STAR practices into several
                                                new production projects planned for the upcoming year and to review
                                                and report methane emissions reduction activities back to  1990. The
                                                company recently completed a corporate-wide GHG emissions
                                                inventory, which included operations in the United  States, Canada,
                                                England, and Malaysia. Murphy has joined the American Petroleum
                                                Institute's GHG Emissions  Workgroup and is a sponsor of the Michigan
                                                Institute of Technology's Global Change Program.
Chuck Bedell (c), Murphy Exploration and Production,
accepts the Rookie of the Year Award from Roger Fernandez
and Kevin Tingley, Natural Gas STAR Program Managers.
Rookie of the Year
North Carolina Natural Gas Company
Having joined as a distribution partner in June 2001,  North Carolina Natural Gas Company has
exhibited outstanding implementation of the Natural  Gas STAR Program during its first year. The
company's sound implementation plan, submitted in  February 2002, included implementation of
DI&M at gate and compressor stations as well as turbine installations. Since the full rollout of its Gas
STAR Program began during the second quarter of 2002, approximately 60 gate stations and all
compressor stations have undergone detailed  leak inspections.
North Carolina Natural Gas is currently working to collect and quantify
past emissions reductions at the Bladenboro, North Carolina,
compressor station. The company has assigned Corporate Gas STAR
Champions to oversee the implementation of BMP 1  (Directed
Inspection and Maintenance at Gate Stations and Surface Facilities) and
BMP 3 (Directed Inspection and Maintenance at Compressor Stations).
                                                                     Gil Venzani (c), North Carolina Natural Gas Company,
                                                                     accepts the Rookie of the Year Award from Roger Fernandez
                                                                     and Kevin Tingley, Natural Gas STAR Program Managers.
                                                                      Natural Gas STAR Partner Update • March 2003

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Implementation  Manager of the Year

John Cordaway, El Paso Energy Corporation
For his strong leadership supporting Natural Gas STAR goals through
outreach and technology transfer, John Cordaway of El Paso Energy
Corporation earned the Implementation Manager of the Year Award. John's
leadership in gathering and submitting methane emissions reduction data
from all five El Paso subsidiary companies—El Paso Natural Gas, Tennessee
Gas Pipeline,  Southern Natural Gas, ANR Pipeline, and Colorado Interstate
Gas—is only one example of his enthusiastic program support. He willingly
shares El Paso's experience in emissions reduction activities, providing
extensive technical information to peers and  Natural Gas STAR program.
              John Cordaway (c). El Paso Energy Corporation,
              accepts the Implementation Manager of the Year
              Award from Roger Fernandez and Kevin Tingley,
              Natural Gas STAR Program Managers.
Throughout the year, John reviewed every methane emissions reduction project implemented at each subsidiary and ensured
that the activities and results of all projects implemented were reported in detail to the program. Projects completed to date
include: DI&M at compressor stations, installation of vapor recovery units, clockspring repair, pipeline pumpdown, turbine
starter replacement, and reciprocating compressor packing removal due to horsepower replacement.

In 2001, El Paso reported just under 2.8 Bcf of methane emissions reductions—more than 1 5 percent of all Natural Gas STAR
reported transmission sector reductions.
   ress Release
From ChevronTexaco.com
Gas STAR Partner ChevronTexaco Releases Greenhouse Gas
Management System to Industry
SAN RAMON, Calif., Feb. 10, 2003 —
ChevronTexaco is making its proprietary system for estimating
and managing greenhouse gas emissions available free to
anyone in the energy industry. The company is doing this to
promote standardization in gathering of greenhouse gas
inventory information. The SANGEA™ Energy and Emissions
Estimating System 2.0 is an automated data management
information system designed to assemble greenhouse gas
emissions and energy usage data from all sectors of the energy
industry.
"Making our greenhouse gas emissions estimating system
available publicly demonstrates our commitment to addressing
the important issue of global climate change," said
ChevronTexaco Chairman and CEO Dave O'Reilly. "We
believe it is essential to have the ability to measure and
calculate industry data consistently on a global basis."

SANGEA™ is a trademark of ChevronTexaco Corporation.
For more information,  go to http://www.chevrontexaco.com/
news/press/2003/2003-02-10.asp. To obtain a 90-day license to
review the software, please contact Michele Andreetta of
ChevronTexaco at mchn@mssite01.ion.chevron.com.
Natural Gas STAR Partner Update • March 2003

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                                                 IM  EWS
Call  for  Papers
3rd International Methane
and Nitrous Oxide Mitigation
Conference
Beijing, China
September 14-19,2003
The Methane and Nitrous Oxide Conference is the only
major international conference series focusing on the
mitigation of methane. The first two conferences in the
series were  held in Kiev, Ukraine, in 1 997 and
Novosibirsk, Russia, in 2000. More than 200 participants
from 30 nations attended the Novosibirsk meeting.

The 3rd International Methane and Nitrous Oxide
Mitigation Conference in Beijing offers many educational
and professional opportunities. Participants will:
•  Learn firsthand about possibilities for implementing
   joint projects to promote natural gas savings.
•  Network with  natural gas industry experts and
   members of government from many countries,
   including China, Japan, and Russia, and gain an
   international perspective on the potential for reducing
   methane and other GHG emissions.
•  Find out about the potential for transferring GHG
   emissions credits to help developed countries meet
   emissions reduction targets.
•  Learn techniques and processes for methane emissions
   reductions from others in the natural gas industry and,
   in turn, showcase their methane reduction successes.
Finally, the conference provides a rare opportunity to visit
natural gas projects in China.  Natural Gas STAR partners
alone have  reduced their methane emissions by more
than 220 Bcf since 1994, and have much to share with
an international audience.

The Natural Gas STAR Program, a sponsor of the
conference, strongly encourages partners, natural gas
         MlbpAn
C D  U  F E H  E  »  C E
                                                                   emssons
INTERNATIONAL
virtkin,*                   industry contractors,
                         equipment manufacturers,
                         educators, and other
                        interested parties to submit
                     technical papers on topics
                 related to the reduction of methane
                 —from wellhead to burner tip. Past
papers have covered measurement approaches,
mitigation technologies, venting and flaring methods,
fugitive emissions mitigation techniques, case studies,
and project opportunities.

Those who wish to present a paper at the conference are
asked to submit an abstract to EPA not exceeding one
page in length. The abstract may include up to  two
diagrams or figures as an attachment but must include
the following:
• Title of the paper
•  Names of all authors with the principal author
   listed first
•  General subject area
•  Organization and address of the corresponding author
•  Telephone, fax, and e-mail address of the
   corresponding author
•  Summary of the topic to be presented

Please submit abstracts in MS Word in either English or
Chinese no later than March 31, 2003, to Roger
Fernandez of the Natural Gas STAR Program by e-mail to
fernandez.roger@epa.gov. Call Roger at 202-564-5235
for further information.

Please pass this call for papers to other interested parties
within your organization. A copy of the conference
brochure is available at http://www.ergweb.com/
methane china.
                                                                   Natural Gas STAR Partner Update • March 2003

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Natural  Gas STAR Partners Join Emissions Trading Program
American Electric Power (AEP), the parent company
of Gas STAR partners Houston Pipeline Company
                 LP and Louisiana Intrastate Gas,
                 has announced its founding
                 membership in the Chicago
                 Climate Exchange (CCX®).
                 CCX is a voluntary cap-and-
                 trade program for reducing and
trading greenhouse gas emissions in  North America.
AEP and the other 1 3 founding members have
made legally binding commitments to reduce their
greenhouse gas emissions by 4 percent of their
average 1 998 - 2001 baselines by 2006.

"AEP has considerable experience with existing
sulfur dioxide and  nitrogen oxide emissions credit
markets," said Dale Heydlauff, AEP's Senior Vice
President, Governmental and Environmental Affairs.
"Our participation  in  CCX is a natural next step,
since it takes the market-based approaches that
lowered the costs of emissions reductions for the
other gases and applies them to greenhouse gas
emissions. Through CCX, we hope to demonstrate
the viability of a multi-sector greenhouse gas trading
program. CCX also serves as a mechanism for the
company to participate in the Bush Administration's
voluntary climate change program."

For more information, see the official press release
at http://www.chicagoclimatex.com/pdf/
CCXPressReleaseO11603.pdf.
                  Call for Technical Papers in  Future Gas STAR  Partner Updates
                  To provide a new forum for partners and other natural gas service providers to exchange information,
                  the Natural Gas STAR Program now welcomes the submission of technical abstracts for publication in
                  future editions of the Partner Update.

                  To be considered for publication, each abstract must strictly adhere to the following rules:

                  •  The technology or information presented must relate directly to the reduction of methane emissions
                     from the natural gas  system.

                  •  If the article is about a particular technology, the abstract must refer to the results of a study or an in
                     situ demonstration. This study/demonstration must be performed by an independent party, such as a
                     university or a natural gas company.

                  •  The abstract must be 300 words or less.

                  When space in the Update permits, the author(s) may include one graph, table, or photo to accompany
                  the abstract. Gas STAR will publish  the abstract in the Update and, if provided by the writer, a Web link
                  to the complete technical paper. There is no size limit for the actual technical paper.

                  Gas STAR partners and  natural gas system service providers are encouraged  to submit abstracts to Roger
                  Fernandez by e-mail (fernandez.roger@epa.gov) or call him at  202-564-5235 to discuss this
                  opportunity.

                  See page 1 3 for an abstract EPA recently received.
Natural Gas STAR Partner Update • March 2003

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 PARTNER  TECHNICAL  ABSTRACT:
 Innovative Methane Emissions Reduction Tool
Ophir Corporation of Littleton, Colorado,
has developed and demonstrated an
optical remote sensing product—
cfuoT/iane®—for detecting and potentially
reducing the emissions of methane from
fossil fuel sources such as natural gas and
oil processing, production, and
transmission operations. Independently
and simultaneously, duoT/iane® detects
methane and ethane, the primary
constituents of natural gas. Ethane
emissions also provide an excellent
means of detecting and locating leaks in
crude oil pipelines. The system has
sufficient speed and  sensitivity to enable
cost-effective stationary surveys over gas
and liquid pipelines. At a fence line
monitoring distance  of 600 meters, the
cfuoT/iane® detection sensitivity is 50
parts-per-billion (ppb) for methane and
33 ppb for ethane. The duoT/iane® sensor
employs the optical technique of Active
Gas Correlation Radiometry, which uses
an active infrared source and an optical,
spectral correlation detection method.
The benefits of duoT/iane® are threefold:
reduced methane emissions, improved
pipeline safety, and reduced gas and
liquid industry pipeline operating costs.
Under an EPA contract, a duoT/iane®
system demonstration on an operational
natural gas transmission pipeline operated
by Williston Basin Interstate Pipeline Co.,
Inc., in Glendive, Montana, was recently
conducted to illustrate the ability of the
sensor to independently detect and
quantify methane and  ethane in Class 1,
2, and 3 leaks. Additional ground-based
demonstrations are slated for early this
year for  El Paso Pipeline Group and for
the Department of Energy (DOE) on a
carbon sequestration site in Hobbs, New
Mexico.  An Alaskan liquid pipeline
services company is also interested in a
field demonstration for the ground-based
detection of ethane over a crude oil
pipeline. Through a DOE grant, an
airborne duoT/iane® system is being
evaluated for remote sensing of natural
gas pipeline leaks.

For more information,  contact Lisa Spaeth
and Martin O'Brien, Ophir Corporation,
at 303-933-2200 or go to
http://www.ophir.com/publications.htm.
                                                                     Natural Gas STAR Partner Update • March 2003

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Gas  STAR Welcomes New  Partner
Dominion Exploration & Production
Dominion Exploration & Production, Inc., is the natural gas exploration and production subsidiary of
Dominion. With offices in New Orleans and Houston, Dominion E&P is one of the largest independent
natural gas and oil operators and one of the top five Large Cap E&P companies for North American
reserves and production.

After absorbing two acquisitions in the past 5 years, the company's reserve base has been increased by
more than 4,000 Bcf equivalent and annual production by more than 250 Bcf equivalent. Reserves
span the continent, onshore and off: central Alberta, northeastern
British Columbia, basins in the Rockies, the Mid-Continent, the Gulf
Coast, the Appalachians, and the Gulf of Mexico.

Parent company Dominion has more than 950 Bcf in storage
capacity and 5,100 Bcf of natural gas reserves. With the nation's
largest underground natural gas storage system, Dominion serves its
customers in the Midwest, Mid-Atlantic, and the Northeast through
7,600 miles of transmission pipeline.
                                                               Joan Elterman(c), Dominion Exploration & Production, Inc.,
                                                                accepts the New Partner Plaque from Roger Fernandez and
                                                                Kevin Tingley, Natural Gas STAR Program Managers.
                                      Welcome  Roger Fernandez
                                      Program Manager
                                      Natural Gas STAR Program

                                      An 8-year EPA veteran, Roger  Fernandez joined EPA's Natural Gas STAR Program
                                      in September 2002 as a Program Manager. Roger is responsible for marketing the
                                      program to the natural gas industry and providing ongoing support for half of our
                                      current partners. Other responsibilities include developing new and updated
                                      technology transfer and communication tools such as case studies, publishing the
                                      Partner Update, and organizing technology transfer conferences.
 Natural Gas STAR Partner Update • March 2003

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2003 Natural Gas STAR Reporting Season  Quickly Approaching
We look forward to hearing about
your 2002 accomplishments!  This
year, Gas STAR partners can expect
the reporting package in the mail by
early April and should anticipate
submitting their reports to EPA 6 to
8 weeks later.

The annual reporting package will
include:

•  Options for submitting emissions
   reductions—online or by e-mail,
   fax, or standard mail

•  Contact information for questions
   and assistance

If you would  like to get a jump on
the 2003 reporting season, feel free
to use last year's forms, available on
the Natural Gas STAR Web site as
downloadable MS Word files  or
Adobe PDF files.

Last year, nearly 50 percent of the
emissions reduction reports were
submitted using EPA's online system!
If you did not try the  online method
last year, why not try  it in 2003?
Natural Gas STAR encourages all partners
to take advantage of this streamlined
reporting method. The annual  reporting
package will include instructions and your
passwords for accessing the Online
Reporting System.

The 2003 reporting season marks the first
year that partners may also report annual
emissions reductions using the online
Data Collection and Management Tool.
Information on using this tool for annual
reporting will also be included in the
package.

The conventional forms and the online
tools are designed to help Natural Gas
STAR partners easily communicate the
success of their methane emissions
reduction efforts; their use, however, is
optional. EPA will accept emissions
reduction data in whatever form is most
convenient for partners, including data
tables, worksheets, or text documents.

If you have any questions about the
annual reporting process, please contact
Roger Fernandez, Kevin Tingley, or your
STAR Service Representative.
STAR Program Managers:
Kevin Tingley
202-564-0374
tingley.kevin@epa.gov

Roger Fernandez
202-564-5235
fernandez.roger@epa.gov
STAR Service
Representatives:
Heather Wright
703.841.0547
heather.wright@erg.com

Rebecca Ferro
703.841.1705
rebecca.ferro@erg.com

David Frank
703.841.0588
david.frank@erg.com

Darcie Honabarger
703.841.0506
darcie.honabarger@erg.com

Justin Jacinto
703.841.0528
justin.jacinto@erg.com
                                                                  Natural Gas STAR Partner Update • March 2003

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