United States
           Environmental Protection
           Agency
                              Air and Radiation
                              6202J
                                                                         EPA-430-N-98-005
                                                                         Summer 1998
                                                      NaturalGas\
                                                      EPA POLLUTION PREVENTER
The  STAR  Partner  Update  Returns
ft
  UU
  c/i
           fter a short break, we are
     f-\   pleased to send you the
           Summer 1 998 edition of the
    Natural Gas STAR Partner Update. This
    latest edition has been revised and
    given a new format in our efforts to
    continue to improve the quality of
    information that we provide.

    To best communicate your successes,
    this issue features profiles of the 1 997
    Partners of the Year and a summary of
    the 1997 program-wide emissions
    reductions. Details on our award-win-
    ning Partner's implementation experi-
    ences and a breakdown of our record
    emission reductions by BMP are
    included in this issue.

    The STAR Program continues  to work
    hard to provide information on the
    current events  affecting Partners and to
    improve our technical and  communi-
    cations support. In this issue we high-
    light the Kyoto Protocol and present
    many of the new tools and programs

In the Spot Light                      2
Gas STAR Achievements                 4
International Partners                  5
Partner Profiles                        6
Program Tools                         9
New Partners                          9
Program Activities                     10
Workshop Summary                   12
Natural Gas STAR Partners              14
Document Request Form               15
                                              we are developing to facilitate and
                                              enhance your implementation experi-
                                              ence. One of the newest tools, the
                                              STAR Decision Support Software,
                                              enables you to evaluate emission
                                              reduction opportunities for your oper-
                                              ations. Details about this software and
                                              other new programs and implementa-
                                              tion tools can be found inside.

                                              Finally, this issue includes a summary
                                              of the 1997 Natural Gas STAR
                                              Workshop and some preliminary infor-
                                              mation on this year's workshop sched-
                                              uled for October 7-9 in Houston,
                                              Texas. Please remember this publica-
                                              tion is designed for your benefit. We
                                              encourage you to guide the direction
                                              of future issues by sending us any
                                              feedback, suggestions, and insights that
                                              you may have.

                                              Enjoy and keep an eye out for the
                                              next STAR Partner Update!

                                                       The Natural Gas STAR Team
                                                               Visit the new Gas STAR
                                                                      Web Site at
                                                              WWW.EPA.GOV/GASSTAR

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          Market-Based
             Approaches
       Promise to Play
           Large Role in
Addressing  Climate
    Change Concerns
         Flexible, market-based policy
         solutions have historically
         been a major component of
efforts to address concerns over global
climate change. Beginning in October
1993, President Clinton and Vice
President Gore announced the
Climate Change Action Plan (CCAP) as
a means to fulfill voluntary greenhouse
gas reduction commitments  made
under the 1992 United Nations
Framework Convention on Climate
Change. As part of this plan  several
programs, including Natural  Gas STAR,
were created in an effort to stimulate
actions that are  both profitable for
individual private-sector participants as
well as beneficial to the environment.
These actions were designed to be
flexible, practical, and cost-effective.

As debate over future international and
domestic efforts to address climate
change intensify, policy solutions that
are market-based, flexible, and  rely
upon private-sector innovation and ini-
tiative promise to continue to play a
significant role. The recently negotiated
Kyoto Protocol and the Administration's
proposal for domestic climate change
initiatives rely heavily on market-based
policies that seek to achieve both eco-
nomic and environmental goals.
Kyoto Protocol and
Market-Based
Mechanisms
The reliance  upon market-based
approaches is a major component of
the Kyoto Protocol agreement reached
last December in Japan. Under the
Protocol, the Parties to the United
Nations Framework Convention on
Climate Change (UNFCCC) agreed to
reductions in the emissions of all six
major greenhouse gases including car-
bon dioxide, methane, nitrous oxide,
hydrofluorocarbons, perfluorocarbons,
and sulfur hexaflouride.  While the spe-
cific reductions vary from country to
country, the targets for key industrial
nations are similar — 8% below 1 990
levels for the European Union, 7% for
the U.S., and 6% for Japan and
Canada.

Rather than rely upon a strict, com-
mand and control method for achiev-
ing these emissions reductions, the
U.S. successfully pushed for a system
of international tradable emissions
allowances that would allow for the
most flexibility and achieve the most
cost-effective solution. Under the
international trading system, which
would be implemented during a five
year budget period from 2008-201 2,
countries or companies would be
allowed to sell their allowances or use
them to cover future emissions. Rules
 Natural Gas Star Partner Update • Summer 1998

-------
and guidelines — in particular for
verification, reporting, and account-
ability — are to be discussed at the
next meeting of the Parties in Buenos
Aires in November 1 998.

Other key points agreed  upon in Kyoto
include the involvement of developing
countries and the use of other flexible
mechanisms for achieving targeted
reductions. Specifically, the Protocol
includes a Clean Development
Mechanism (COM) which embraces
the concept of "joint implementation
with  credit." As part of the COM, com-
panies  in developed nations could
enter into cooperative projects to
reduce emissions in the developing
world.  Companies would be able to
reduce emissions at lower costs and
developing countries would gain
access to environmentally sustainable
technologies. In addition, the treaty
supports the implementation of carbon
absorbing activities, such  as planting
trees, as a low-cost opportunity for the
private sector to reduce emissions and
offset established targets.

While binding emissions  reductions
were not established for developing
nations, this issue will be at the center
of the debate to come. The Clinton
Administration is currently working to
gain  meaningful participation from key
developing countries  before submitting
the treaty to the Senate for ratification.
To enter into force, the Protocol  must
be ratified by at least 55  countries,
accounting for at least 55% of the total
1 990 carbon dioxide emissions of
developed countries.
The Administration's
Call for Action
While the Kyoto Protocol promises to
incorporate market based mechanisms
into international efforts to address cli-
mate change, the Clinton
Administration has encouraged a simi-
lar philosophy domestically. In October
of 1 997, the President announced a
proposal to provide flexible market-
based and cost-effective ways to
achieve meaningful reductions here in
America.  In his announcement, the
President emphasized that, "here at
home, we must move forward by
unleashing the full power of free  mar-
kets and technological innovations to
meet the  challenge of climate change."

The Administration's proposal for
domestic action calls for a three stage
approach. The first stage encourages  a
series of near-term actions designed to
provide incentives and remove barri-
ers to help companies and citizens
find new  and creative ways of reduc-
ing greenhouse gas emissions. Some of
the major elements include:

• A $6.3  billion Climate Change
  Technology Initiative that calls for
  tax cuts coupled with research and
  development to support cost-
  effective, practical actions.
• Developing a system that would  be
  designed to reward proactive busi-
  nesses that act in the  near-term to
  reduce greenhouse gas emissions.
• Consultations with key industry sec-
  tors to encourage the development
  of their own voluntary greenhouse
  gas  reduction plans.
The remaining stages of the
Administration's plan focus on the
development and implementation of a
domestic, market-based permit trading
system for carbon emissions. The sec-
ond stage would involve a review and
evaluation of actions initiated as part
of stage one. In addition, the details of
the permit system would be outlined
and possibly tested.  Stage three would
involve the implementation and
review of the permit trading system
and would not be initiated  until the
completion of a complete economic
review and evaluation of all stage one
and two actions by Congress and the
Administration.

Attaining Environmental
and Economic Goals
While the successful implementation
of the President's proposal  will  require
Congressional support and  the Kyoto
Protocol  is still  considered a work in
progress, future efforts to address cli-
mate change will undoubtedly rely
upon flexible, market-based strategies.
Such market-based approaches are
important components in ensuring the
achievement of both economic and
environmental  goals. As Stuart
Eizenstat, Under Secretary of State for
Economic, Business and Agricultural
Affairs and the U.S.'s chief  negotiator
at Kyoto, stated "The Kyoto Protocol
enshrines a centerpiece of the U.S.
market-based approach — the oppor-
tunity for companies and countries to
trade emissions permits... This is not
only economically sensible, but envi-
ronmentally sound."
                                                                       Natural Gas Star Partner Update • Summer 1998

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       STAR  Program
                  Achieves
    Record  Emission
 Reductions, Again
                                                   H  I
Ft
MEN
                                                Natural Gas STAR Partners
                                                achieved their highest emis-
                                                sions reductions in the fifth
                                       year of the program (1 997).
                                       Production and Transmission and
                                       Distribution (T&D) Partners reported
                                       savings of 14.8 billion cubic feet (Bcf)
                                       in 1 997, compared to 11.7 Bcf in
                                       1 996, 1 0.3 Bcf in  1 995, 7.9 Bcf in
                                       1 994, and 4.8 Bcf in 1 993. Total pro-
                                       gram savings since 1993 reached 52.8
                                       Bcf, worth $105.6 million.

                                       The  majority of Program savings were
                                       achieved through  the implementation
                                       of additional cost-effective methane
    reduction activities identified by
    Partners — Partner Reported
    Opportunities (PROs). This industry
    innovation has been a large factor in
    making the Natural Gas STAR program
    successful. Since the beginning of the
    T&D program in 1993, T&D Partners
    reduced  1 7.4 Bcf - 42% from T&D
    BMP 6 (PROs). The Producer program,
    since its inception in 1995, has
    reduced  35.4 Bcf - 64% from
    Producer BMP 3 (PROs).

    A breakdown of the BMPs and their
    corresponding reductions  is illustrated
    below:
   Best Management Practices (BMPs)
     Implemented by STAR Partners.

   BMP   Transmission and Distribution (T8D)
    I    Directed inspection and maintenance at gate
        stations and surface facilities
    2    Identify and rehabilitate leaking distribution pipe
    3    Directed inspection and maintenance at compressor
        stations
    4    Greater use of turbines in place of reciprocating
        engines
    5    Identify and replace high-bleed pneumatic devices
    6    Partner Reported Opportunities

    I    Identify and replace high-bleed pneumatic devices
    2    Install flash tank separators at glycol dehydrators
    3    Partner Reported Opportunities
Natural Gas Star Partner Update • Summer 1998

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                                 I  IM
EFtlSI
      IM  E
                                                     IOIMAL
         RAO
Gazprom
 Moves to
    Reduce
 Methane
Emissions
         Russia's RAO Gazprom, the world's largest
         natural gas producer and transporter, has
         adopted a first ever company-wide
methane emissions reduction program. Modeled
after EPA's Natural Gas STAR Program, Gazprom's
effort follows a successful four-year technical
exchange with EPA and the  Department of Energy
through the  US/Gazprom Working Group.

The Gazprom  program calls for a 30% reduction
in natural gas losses and internal gas use by 2005.
The program will improve system operating effi-
ciencies and reduce soil, groundwater and air pol-
lution as well.

"We are extremely pleased with the environmen-
tal leadership demonstrated by  RAO Gazprom,"
said Mary D. Nichols, EPA's Former Assistant
Administrator for Air and Radiation. "Adoption of
this methane emissions reduction program is a
giant leap forward in  the global  effort to protect
the environment and improve energy efficiency."

The program consists of four major elements:
improving monitoring and measurement of losses,
identifying specific remediation needs, implement-
ing projects  to  reduce emissions, and increased
cooperation with international organizations.

Areas where Gazprom will  work to reduce emis-
sions include losses in production of associated
gas, fugitive emissions during pipeline repair,
emissions from compressor stations, and storage
and refining "unaccounted  for"  gas estimates.
                   Gazprom has identified over 20 specific projects
                   where investment in new gas plants and equip-
                   ment would reduce losses and emissions. Many
                   of these could qualify as "joint implementation"
                   projects, where a U.S. company could receive
                   greenhouse gas emission reduction "credits" for
                   their efforts. Some of the projects include:

                     • Initiating the use of the compressor "Gazlift-04"
                      to transmit low-pressure associated gas to main
                      pipelines.
                     • Developing and using progressive technologies
                      to collect and utilize natural gas emitted into
                      the atmosphere during compressor starts and
                      stops, scrubbers, separators, and other devices.
                     • Designing and using newly constructed blow-
                      down vents, which can  operate in special con-
                      ditions (high gradients of pressure, high gas
                      velocity, abrasive wear-and-tear, etc.).
                     • Designing new effective gate valves and devel-
                      oping methods for  monitoring the drops in gas
                      pressure in order to control hermetic sealing
                      of gas pipelines.

                   In 1996, Russia produced 21.2 Tcf of natural gas
                   and exported 4.4 Tcf to Western Europe. Gazprom
                   accounts for 95% of the production and all of the
                   transportation and exports. Gazprom operates
                   370,000 km of pipeline, 250 compressor stations
                   and 31  storage fields. Total losses from transmis-
                   sion and distribution are estimated at 1.4 percent.
                                                                     Natural Gas Star Partner Update • Summer 1998

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                                                           IM EFt
                                                           I LES
           Marathon  Oil
    John Weust and
      Tom Breninger
        accept the
  Producer Partner of
   the Year award for
  Marathon from the
   Natural Gas STAR
   Program managers
       Rhone Resch
      (far right) and
      Paul Gunning.
Producer  Partner  of the Year
                                               Marathon Oil Company, a sub-
                                               sidiary of USX Corporation,
                                               was named Producer Partner
                                       of the Year at the 1 997 Natural Gas
                                       STAR Workshop. Marathon was
                                       praised for significant contributions in
                                       three areas. Marathon has led in
                                       achieving large reductions in methane
                                       emissions — 7.8 Bcf and $16 million
                                       in savings since 1 990. Marathon per-
                                       sonnel have provided EPA with valu-
                                       able advice and ongoing support for
                                       the Natural Gas STAR Program. Finally,
                                       Marathon has conducted valuable
                                       research  that has led to improvements
                                       in the industry's knowledge of effective
                                       strategies to reduce methane losses.
                                     Since 1990, Marathon has aggressively
                                     pursued methane emissions reductions
                                     in all facets of its operations. Marathon
                                     has identified and implemented 21
                                     operational practices for reducing
                                     methane emissions. Some of these
                                     methane reduction practices include
                                     installing vapor recovery units, replacing
                                     pneumatic devices with instrument air
                                     systems, using lower heater treater tem-
                                     peratures, utilizing down-hole plunger
                                     lifts in wells, eliminating and consolidat-
                                     ing excess dehydrators, and inspecting
                                     and replacing tank vent seals.

                                     Marathon has made major contribu-
                                     tions to the Natural Gas STAR Program
                                     in helping to promote the program
                                     and improve the quality of available
                                     information. Marathon has published
                                     papers and made presentations on
                                     Natural Gas STAR Best Management
                                     Practices (BMPs) and has helped EPA
                                     to better understand the technological
                                     and economic issues of these BMPs.
                                     Through the work done and shared by
                                     Marathon, the STAR Program has
                                     developed solid information on better
                                     ways to reduce methane emissions
                                     profitably.
Natural Gas Star Partner Update • Summer 1998

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Atlanta Gas  Light
Distribution  Partner of the Year
                                              Atlanta Gas Light Company
                                              (ACL), the largest natural gas
                                              distribution company in the
                                     southeastern United States, was named
                                     the 1996 Natural Gas STAR
                                     Distribution Partner of the Year. As a
                                     model STAR Partner, ACL has aggres-
                                     sively implemented Natural Gas STAR
                                     Best Management Practices (BMPs) and
                                     has achieved significant gas savings. In
                                     addition, they have helped EPA better
                                     understand emissions at surface facili-
                                     ties through the testing and application
                                     of cutting-edge technologies.
           Atlanta Gas  Light  Company
Terry Ryland of Atlanta Gas Light accepts the
Distribution Partner of the Year award from
the Natural Gas STAR Program managers
Rhone Resch (r) and Paul Gunning (I).
              Atlanta Gas Light is
              effectively reducing its
              natural gas emissions
              through active imple-
              mentation of STAR
              BMPs. Directed
              inspection and mainte-
              nance (DI&M) pro-
              grams at surface facili-
              ties have helped ACL
              effectively lower costs
              and reduce leaks by
              prioritizing leaking sta-
              tions and components
              for survey and repair.
              In 1994, 1995, and
              1996 ACL surveyed a
total of 58, 81, and 83 surface facili-
ties respectively, repairing a total of
659 leaks at a savings of 1 37,025 Mcf
worth approximately $275,000.
In addition, ACL is effectively imple-
menting an identification and rehabili-
tation program for leaky distribution
pipe. From 1994 to 1996, ACL has
replaced a total of 763 miles of distrib-
ution pipe and repaired a total of
38,829 leaks for an estimated emis-
sions reduction of 111,329 Mcf, worth
approximately $223,000.

Atlanta Gas Light has also  been instru-
mental in testing the Hi-Flow Sampler.
Unlike conventional testing, the Hi-
Flow Sampler draws in air surrounding
a leaking component, capturing virtu-
ally all the escaping gas and eliminat-
ing the need  to enclose the compo-
nent in a bag. The concentration of
methane in the sample air stream is
then measured using an internal flame
ionization device. The resulting con-
centration  measurement can then be
used to calculate component leak
rates. At one of their  meter stations
ACL was able to reduce total leak
rates by nearly 83% in one year.

ACL has demonstrated its commitment
to energy efficiency and environmental
protection  through its participation in
EPA's Natural Gas STAR Program.  ACL,
which also operates under the trade
name Chattanooga Natural Gas, serves
over 1.4 million residential, commer-
cial, and industrial customers.
                                                                     Natural Gas Star Partner Update • Summer 1998

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       Enron
Transmission Partner of the Year
                            At the 1 997 Natural Gas STAR
                            Annual  Implementation
                            Workshop, EPA recognized
                     Enron as the 1996 Transmission Partner
                     of the Year for their significant contri-
                     butions to the Natural Gas STAR
                     Program. Enron has actively participat-
                     ed in EPA-sponsored research on leaks
                     from natural gas compressor stations,
                     helping test the  accuracy of Hi-Flow
                     Sampler leak measurements. In addi-
                     tion, Enron has  successfully implement-
                     ed the Program's core management
                     practices and has  helped EPA and
                     other Partner companies better under-
                     stand some of the other cost-effective
                     technologies that are available.

                     In 1996, Enron  worked closely with
                     the Natural Gas STAR Program to
                     develop information about leaks from
                     pipeline facilities. As part of this
                     effort, Enron sponsored quarterly
                     measurements at compressor stations
                     and surface facilities and compared its
                     traditional  methods for leak detection
                     and measurement—involving con-
                     centration  readings and conversion
                     factors — with  direct measurements
                     taken with the  Hi-Flow Sampler.
                                      In addition to their work with leak
                                      detection and measurement, Enron
                                      actively implemented several STAR
                                      BMPs to achieve significant
                                      methane savings. Enron's
                                      largest emissions reductions,
                                      however, came from Partner
                                      Reported Opportunities (BMP VI),
                                      which resulted in estimated savings
                                      of over 100,000 Mcf. Enron attribut-
                                      es the reductions to the following
                                      activities:

                                      • Installed 1 7,000 HP electric motors
                                      • Blocked-in ESD test (11  locations)
                                      • Installed 3-phase separators on
                                        dehydrator reboilers
                                      • Replaced engine  gas starter with
                                        air starter
                                      • Repaired large pipeline valve leak
                                      • Lowered pipeline pressure prior to
                                        maintenance (1 0 locations)

                                      In naming  Enron as Transmission
                                      Partner of the Year, the Natural Gas
                                      STAR Program recognizes Enron's
                                      efforts to reduce emissions and pro-
                                      vide  leadership in the  Program.
                                      Enron's pipeline group operates
                                      31,000 miles of high-pressure pipeline
                                      in six companies — Northern Natural,
                                      Transwestern, Florida Gas,  Louisiana
                                      Resources, Northern Border and
                                      Houston Pipeline. Much of the work
                                      Enron has sponsored has been on its
                                      Northern Natural system.
                                                       Enron's Marc Phillips accepts the Transmission
                                                       Partner of the Year award from the Natural Gas
                                                       STAR Program managers Rhone Resch (r) and
                                                       Paul Gunning (I).
Natural Gas Star Partner Update • Summer 1998

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                            PROG RAM
     STAR Decision
Support Software
      o streamline program admin-
      istration, the Natural Gas
      STAR team at EPA is develop-
ing the STAR Decision Support
Software (DSS). This new implementa-
tion tool is an easy-to-use software pro-
gram that allows Partners to evaluate
the Best Management Practices (BMPs)
by estimating the quantity of methane
emission reductions and the costs and
benefits of implementation.  In addi-
tion, the software facilitates the record-
ing and reporting of the results of BMP
implementation, including the volume
and value of annual methane savings.
                                                        While this new tool is currently being
                                                        improved and updated, Partners are
                                                        encouraged to test the beta version of
                                                        the software and provide suggestions
                                                        and comments. A copy of the STAR
                                                        DSS and user manual is included in
                                                        the STAR Implementation Road Map
                                                        or can be ordered using the form pro-
                                                        vided in this newsletter. The software
                                                        can also be downloaded from the
                                                        Natural Gas STAR homepage at
                                                        www.epa.gov/gasstar. Any suggestions
                                                        or technical questions should be
                                                        emailed directly to the EPA Program
                                                        Managers at resch.rhone@epa.gov or
                                                        gunning.paul@epa.gov.
STAR Partners
               Kansas Operating Pipeline Corporation
               Minnegasco
BURLINGTON    SPIRIT
RESOURCES       ENERGY
                                                  Union Pacific Resources
                SOUTHWEST CHS CORPORHTIOtl
    41
  uimnegasco    KPOC
                                                   Natural Gas Star Partner Update • Summer 1998

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                                        P  ROCS  RAM
                                                  Tl VrITI  E
  Natural Gas STAR
  in the News
       Look for a feature article on the
       Natural Gas STAR Program in
  the March 1 998 issue of the
  American Oil & Gas Reporter. This
  article focuses on the STAR Producer
  Program and  highlights Partner
  impressions and the successes of this
  unique  industry — government part-
  nership. EPA would like to thank the
  following STAR Partners for their
  important contributions to the article:

  Brooklyn Union Gas
  Chevron U.S.A. Production Company
  Marathon Oil Company
  Mitchell Energy & Development
  Corporation
  Mobil Oil Corporation, Exploration &
  Producing Division
  Natural  Gas Pipeline Company of
  America
The Natural Gas STAR
Brochure
      In our efforts to provide Partners
      with public recognition for their
achievements, the STAR Program has
created a new program brochure.  The
new  brochure includes an overview of
the Program's mission, information on
how  EPA specifically teams up with
industry to effectively tackle challenges
facing businesses today, STAR Partner
success stories, and a list of active pro-
gram participants.

The Natural Gas STAR Program  is
intended to provide you with a  vehi-
cle to communicate, both internally
and externally, your organization's vol-
untary commitment to a successful,
cost-effective, and innovative partner-
ship.  The new brochure is available
to all Partners and anyone else you
think would benefit from receiving this
information. Feel free to use excerpts
from this brochure in your corporate
communications.

Contact us directly, fill out the
attached order form, or call the  toll-
free Hotline at 1 -888-STAR-YES
(1-888-782-7937) to request copies of
the brochure.
  EPA Launches
  STAR Service Program
        This spring the STAR Service
        Program  was launched as a new
  benefit for Partner companies. The
  STAR Service Program is intended to
  improve Partner access to STAR infor-
  mation, provide a higher level of
  implementation assistance, and
  enhance the overall participation
  experience.

  As part of this new program, STAR
  Service Representatives have  been
  assigned to each Partner company.
  These representatives are trained to
  answer all program-related questions,
  assist in preparing and submitting
  implementation plans and annual
  reports, provide information on new
  program and technological develop-
  ments, and help publicize and pro-
  mote Partner participation and
  achievements.

  Rhone Resch and  Paul Gunning, EPA
  Natural Gas STAR  Program Managers,
1  will be working closely with the service
  representatives and will continue to be
  accessible to all Partners. Natural Gas
  STAR is excited  about this new service
1  and looks forward to greater interaction
  with Partner companies.


  The 1998 Natural Gas
  STAR Implementation
  Workshop will be held
I October  7-9, 1998 in
I Houston, Texas.
Natural Gas Star Partner Update • Summer 1998

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Natural Gas  STAR Plans Emission  Reduction Verification Effort

      n response to Partner requests at
      the 1997 STAR Implementation
Workshop, the Natural Gas STAR
Program is developing a process for
ensuring the accurate accounting of
partner savings and accomplishments.
The first step, a verification effort, is
being initiated as a means of identify-
ing information and materials that
could be provided as part of the annu-
al reporting process to support STAR
Partner reductions.
The EPA Gas STAR Program Managers
will be working with Partners throughout
the year to develop a list of supporting
materials. In addition, all Partners will be
given the opportunity to discuss their
ideas and insights regarding verification
at the October 7 - 9,1998, STAR
Implementation Workshop in Houston,
Texas. In the meantime, EPA has asked
Gas STAR Partners for suggestions on the
type of materials and information that
are  readily available and could be easily
provided with minimal administrative
burden. Examples of supporting materi-
als might include:

• Site information, equipment mod-
  els, dates, and names of contractors
  or foremen overseeing equipment
  installation for equipment BMPs.
• Name and signature of the managers
  or inspectors implementing the BMP;
  and the sites and dates where the
  BMPs were implemented.
•  Methodology used to calculate
   emission reductions (e.g., EPA
   defaults, engineering judgement,
   test data, or other sources of emis-
   sion factors).
•  Descriptions of your calculation
   procedures for calculation methods
   other than the default EPA methods.
•  Purchase Orders from the vendors
   describing the equipment.

Please contact  the EPA Gas STAR
Program Managers with your sugges-
tions for the verification effort.
Lessons Learned
      One of the primary goals of the
      Natural Gas STAR Program is to
facilitate technology transfer on cost-
effective methods of reducing methane
emissions. The Lesson Learned Studies,
produced by EPA in collaboration with
STAR Partners, are good examples of
the STAR Program's success in this
area. The Lessons Learned Studies help
companies implement Best
Management  Practices (BMPs) and
avoid pitfalls by providing detailed eco-
nomic and technical information
obtained directly from Partners' imple-
mentation experiences. The Lessons
Learned focus on both core BMPs and
Partner Reported Opportunities
(PROs). PROs are additional cost-effec-
tive technologies and practices that
STAR Partners have identified to further
reduce emissions of methane.
Currently, the  Natural Gas STAR
Program is researching about 50 PROs,
several of which will be written about
in upcoming Lessons Learned Studies.

The nine Lessons Learned studies cur-
rently available are designed specifical-
ly to discuss implementation strategies
and tips, technological background,
and economic data, and additional
tools that can assist in the  decision
making and implementation processes.

Lessons Learned are available on:
Core Best Management Practices:
• Directed Inspection and
  Maintenance at Compressor Stations
• Directed Inspection and
  Maintenance at Gate Stations  and
  Surface Facilities
• Options for Reducing Methane
  Emissions from Pneumatic Devices
  in the Natural Gas Industry
• Installation of Flash Tank Separators
Partner Reported Opportunities
•  Reducing Methane Emissions From
   Compressor Rod Packing Systems
•  Reducing Emissions when Taking
   Compressors Off-Line
•  Installing Vapor Recovery Units on
   Crude Oil Storage Tanks
•  Replacing Wet Seals with Dry Seals
   in Centrifugal Compressors
•  Reducing the Glycol Circulation
   Rates in De hydra tors

To order Lessons Learned studies, use
the order form provided in this
newsletter or feel free to contact the
EPA Program Managers or your Service
Representative for more information.
                                                                        Natural Gas Star Partner Update • Summer 1998

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                                                                       HO  R
   The  Natural Gas
             STAR  1997
               Workshop
                Highlights
  Steve Seidel, of the White House Climate
  Change Task Force, delivers the Keynote
  Address at the 1997 STAR Workshop. On the
  right is Dina Kruger, Chief of EPAs Methane
  and Utilities Branch.
     SUM  MA

Partners Discuss Program
Implementation at 1997
Natural Gas STAR
Workshop
On October 28 and 29,1997, EPA,
along with the American Gas
Association (AGA), Interstate Natural
Gas Association of America  (INGAA),
and the American Petroleum Institute
(API) co-sponsored the Fourth Annual
Natural Gas STAR Implementation
           Workshop in Washington,
           DC.  Over 75 people from
           oil and natural  gas compa-
           nies and equipment ven-
           dors  attended the two-day
           event. The 1997 Workshop
           highlighted the accomplish-
           ments of the Natural Gas
           STAR Program, Partners'
           implementation successes,
           and new Program imple-
           mentation tools. Most
           importantly, the Workshop
provided a forum for Partners to share
their implementation experiences.

Program Implementation
— Technology Transfer
Breakout Sessions
Partners identified the technology
transfer breakout sessions as the most
rewarding aspect of the 1 997 work-
shop. These sessions were effective in
engaging Partners in discussions about
barriers to  program implementation
and technology transfer, ways to
improve and enhance technology
transfer, and ways in which EPA can
assist in the process. Some of the  bar-
riers identified by Partner companies
included communication, time con-
straints, and low acceptance of new
technology. Potential solutions to over-
coming these barriers focused on
direct interaction with facility engi-
neers, rewarding innovation and tech-
nology transfer with incentive  pro-
grams, and more neutral third party
testing of new technology. The chart
on the next page provides more detail
on the top five barriers to implementa-
tion and potential remedies, as identi-
fied by  Partner companies.

Workshop  Highlights
In addition to the breakout sessions,
the Workshop provided a wealth of
technical information and the  oppor-
tunities to discuss climate change
issues with key policy makers. The fol-
lowing are highlights from the general
Workshop sessions:

• Steve Seidel, of the White House
  Climate Change Task Force, deliv-
  ered the Keynote Address, which
  outlined the U.S. position on climate
  change and the Administration's
  three-stage plan for meeting the
  emissions reduction targets in the
  Kyoto Protocol. Dr. Rosina Bierbaum
  of the White House Office of
  Science and Technology summarized
  the science of climate change. These
  presentations offered a rare  opportu-
  nity to hear from Administration pol-
  icy makers. EPA's Paul Stolpman,
  Director of Atmospheric Programs
  spoke on the EPA's commitment to
  voluntary programs. He acknowl-
  edged the successes of the STAR
Natural Gas Star Partner Update • Summer 1998

-------
   Program, while recognizing that wider industry participa-
   tion is important.

   A special session was held on pneumatic devices, the
   largest source of emissions from the natural gas sector
   and one of the more challenging for finding solutions.
   Presentations on the mechanics of pneumatic devices, on
   the Lessons Learned Study of pneumatics,  a summary of
   a pneumatic device survey at Marathon Oil facilities, and
   by vendors provided a good review of the  issues and
   questions on pneumatic device management.

   John Weust of Marathon Oil and Mark Phillips of Enron
   presented their companies' experiences with the Natural
   Gas STAR Program. Mr. Weust spoke about Marathon's
   most effective emissions reduction practices — the instal-
   lation of vapor recovery units and high-efficiency com-
   bustion chamber flares. Mr. Phillips presented Enron's
   testing of the High-Flow Sampler.  Both Partners gave
                                examples of how being STAR Partner helped them cost-
                                effectively reduce methane emissions.

                                The Natural Gas STAR Program introduced several new
                                implementation tools at the workshop. The  Natural Gas
                                STAR website was unveiled, as well as the Decision
                                Support Software, designed to help Partners identify
                                which Best Management Practices are cost-effective for
                                their companies. The STAR Program also presented 9
                                new Lessons Learned studies. Lessons Learned Studies
                                serve as effective guides for implementing Best
                                Management Practices and include real cost data from
                                Partner companies.

                                EPA is looking forward to the  5th Annual Natural Gas
                                STAR Implementation Workshop which will convene in
                                Houston, Texas, on October 7-9, 1 998. All Partners are
                                encouraged to participate in the Workshop.
Partner-Identified  Barriers  to  STAR  Program
Implementation  and  Suggested   Solutions
Issue
Communication
Time constraints
 Corporate  culture
Low acceptance of
new technology
Examples / Explanation
Communication within a com-
pany can be difficult given
diverse regions and organiza-
tional autonomy
Downsizing of companies has
reduced personnel and created
heavy workloads
Current corporate climate of
cost-cutting, downsizing, re-
structuring can make STAR a
low priority

Resistance to change, uncom-
fortable with new technology
and methods
Potential Solution
• Make personal visits to regional offices
• Get senior buy-in and directive
• Use trade association knowledge and  resources
• Deal with facility/plant engineers directly, not through embedded
 Environmental Health and Safety personnel
• Publicize failures so others do not repeat mistakes

•Make environmental performance an  evaluation criterion for
 operational personnel
• Assign STAR Program manager regional assistants to create a network
• Reward technology transfer with an incentive program

• Show management how STAR participation can promote efficien-
 cy and affect their bottom line
• Possible government allocation of emission reduction credits (i.e.,
 tax credits) can generate revenue

• Have management encourage technology by awarding innovation
• Neutral third-party testing of technology
• Provide regulatory or tax incentives for companies who imple-
 ment STAR
Training and education
Lack of training to use new
technology, lack of knowledge
about who and how
• Encourage operations discussion with and field visits to other
 companies which have implemented cost-effective change
• Hire a consultant to evaluate system and develop an implementa-
 tion plan
                                                                         Natural Gas Star Partner Update • Summer 1998

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  Transmission & Distribution Partners
Production Partners
  ANR Pipeline Company + Atlanta Gas Light Company +
  Baltimore Gas and Electric Company + Bay State Gas
  Company + Brooklyn Union + Central Hudson Gas & Electric
  Corporation + Citizens Gas & Coke Utility + Colorado
  Interstate Gas Company + Columbia Energy Group
  Distribution Companies (5) (Columbia Gas of KY,  MD, OH, PA,
  VA, Inc.) + Consolidated Edison Company of New York, Inc. +
  Consumers Energy + Conective +  El Paso Natural Gas
  Company + Enron Corporation + Equitable Resources, Inc. +
  Granite State Gas Transmission, Inc. + Great Lakes Gas
  Transmission Company + Iroquois Gas Transmission System +
  Kansas Operating Pipeline Company + Long Island Lighting
  Company + Louisville Gas & Electric Company + Michigan
  Consolidated Gas Company + MidCon Texas Pipeline
  Corporation + Minnegasco + Natural Gas Pipeline Co. of
  America + New York State Electric & Gas Corporation +
  Niagara Mohawk Power Corporation + Northern Indiana
  Public Service Company + Northern Utilities, Inc. +
  Northwest Natural Gas Company + Orange and Rockland
  Utilities, Inc. + Pacific Gas and Electric Company + PECO
  Energy Company + Public Service Company of North Carolina
  + Public Service Electric  and Gas Company + Rochester Gas &
  Electric Corporation + South Carolina Electric & Gas Company
  + Southern California Gas Company + Southern  Natural Gas
  Company + Southwest Gas Corporation + Superior Water,
  Light and Power Company + Tennessee Gas Pipeline + Texas
  Gas Transmission Corporation + Transcontinental Gas Pipe Line
  Corporation + UGI Utilities, Inc. + Washington Gas Light Co.
  + Wisconsin  Public Service Corporation
Amerada Hess Corporation, U.S. Exploration and Production +
Amoco Corporation + Burlington Resources + Chevron U.S.A.
Production Company + Exxon Company, U.S.A. + FINA Oil
and Chemical Company + Kerr-McGee Corporation +
Marathon Oil Company + Mitchell Energy and Development
Corp. + Mobil Oil Corporation Exploration and Producing
Division + Pennzoil Exploration and Production Company +
SCANA Petroleum Resources, Inc. + Shell Exploration and
Production Company + Spirit Energy 76, A Business Unit of
Unocal + Texaco + The Stranded Gas Association, Inc. +
Union Pacific Resources

Endorsers
American Gas Association (AGA) + American Petroleum
Institute (API) * Gas Research Institute (GRI) * International
Centre for gas Technology Information (ICGTI) + Interstate
Natural Gas Association of America (INGAA) + National
Association of Regulatory Utility Commissioners (NARUC) +
Natural Gas Supply Association (NCSA) + New York State
Energy Research and  Development Authority (NYSERDA) +
Southern Gas Association (SGA)
Natural Gas Star Partner Update • Summer 1998

-------
DOCUMENT
REQUEST    FORWl
 Name & Title:	
 Organization: 	
 Street Address:	
 City, State, Zip:	
 E-Mail Address:	
 Telephone #:	
 Date  Requested:_
 Date  Info Needed:
FAX#:
 FedEx/UPS # (if info needed asap):
                               NaturalGas
                               EPA POLLUTION PREVENTER
Please fax to
your STAR Service
Representative
or directly to the
Natural Gas
STAR Program at
202-565-2077.
PLEASE  INDICATE  WHICH
MATERIALS  YOU  WOULD
LIKE   TO  RECEIVE:
      LESSONS LEARNED
                 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
      STAR IMPLEMENTATION TOOLS
       	   Decision Support Software
       	   Decision Support Software Manual
      OUTREACH MATERIALS
                  Natural Gas STAR Program Brochure
                  Natural Gas STAR Marketing Package

-------
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