Partner Update
Winter 2009
2009 Natural Gas STAR Award Winners
The Natural Gas STAR Program recognized the following companies at this year's annual
implementation workshop. Awards were based on reported methane emission reductions
achieved, range of different methods to reduce methane emissions, and general involvement in
the Program, as well as other innovative company initiatives to address methane emissions.
Production Partner of the Year
Chesapeake Energy
Chesapeake Energy joined Natural Gas
STAR in 2007 and quickly integrated the
Program throughout its operations. Soon
after joining, the company formed a cross-
functional implementation team consisting
of an engineer from each operating
district, as well as representatives from its
purchasing and environment, health, and
safety departments. These efforts resulted
in a number of successful emission
reduction projects, including an expansive
leak inspection and repair program and
development of lean burn gas
dehydrators, both of which contributed to
impressive methane emission reduction Chesapeake Energy's Jeff Fisher (center) with EPA
totals for 2008. In addition, Chesapeake Natural Gas STAR Program Representatives
Energy has been extremely active in the
Natural Gas STAR Program, co-sponsoring and hosting the May 2009 production technology
transfer workshop at its headquarters, contributing to the Partner Update, as well as providing
the keynote address and leading several technical sessions at the 2009 annual implementation
workshop.
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Gathering and Processing Partner of the Year
Western Gas Resources
Western Gas Resources (a subsidiary of
Anadarko Petroleum Corporation) joined
Natural Gas STAR in 2001. In 2008, the
company implemented 12 different
technologies and practices, which
resulted in significant methane emissions
reductions. Such activities include
consolidating and optimizing
compressors; using hot taps for pipeline
tie-ins; and converting gas-driven pumps
to solar pumps. The company also has
taken advantage of the tools and
resources that Natural Gas STAR	.
provides and has worked with EPA to Anadarko Petroleum Cor poration s Edward
share information with peer companies Schmults (center) with EPA Natural Gas S AR
through technology transfer workshops, in Pr°9ram Representatives
addition to supporting Natural Gas STAR activities, Western Gas Resources also developed an
internal environment, health, and safety recognition program.
Transmission Partner of the Year
Spectra Energy
Spectra Energy joined Natural Gas STAR
in 2000 as Duke Energy Gas
Transmission. Since joining Natural Gas
STAR, the company has continuously
explored various options for reducing
methane emissions from its operations.
For 2008, Spectra Energy reported
implementing four methane emission
reduction technologies and practices and
recorded its highest level of methane
emissions reductions to date. Activities
implemented included using composite
wrap repair, using fixed/portable
compressors for pipeline pumpdown,
using hot taps, and using YALE closures
for ESD testing. In addition, Spectra
Energy has developed outreach materials,
natural gas as a clean energy source.
Spectra Energy's Victoria Wagner (center) with
EPA Natural Gas STAR Program Representatives
including a YouTube video, promoting the use of
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Distribution Partner of the Year
Southwest Gas Corporation
Southwest Gas Corporation joined Natural
Gas STAR in 1997. By continuously
evaluating technologies and practices,
Southwest Gas Corporation is able to
implement new processes where
applicable. Over the years, the company
has implemented nearly 10 different
methane emission reduction technologies
and practices which include directed
inspection and maintenance at gas
stations and surface facilities, installation
of excess flow valves, testing and repair
pressure safety valves, testing of gate
station pressure release valves with
nitrogen, and use hot taps for in-service
pipeline connections.
Southwest Gas Corporation's Jose Esparza
(center) with EPA Natural Gas STAR Program
Representatives
International Partner of the Year
Enbridge, Inc.
Enbridge, Inc. joined Natural Gas STAR
International in 2006 and has
demonstrated its commitment to the
Program and continuous environmental
improvements. Enbridge's Canadian
operations are active in the Program and
have implemented complementary
internal programs with oversight boards.
Enbridge has set an internal goal to
reduce absolute direct greenhouse gas
emissions to 20 percent below 1990
levels by 2010. To meet this goal,
Enbridge is exploring and implementing a
variety of projects. The company has
implemented directed inspection and
maintenance programs, replaced aged
heaters with new efficient gas-fired heaters,
Enbridge's David McQuade (center) with EPA
Natural Gas STAR Program Representatives
and replaced compressor rod packing systems
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Rookie of the Year
Comgas
Comgas joined Natural Gas STAR International in 2008. Aligned with its environmental and
sustainability policy, Comgas implements activities to reduce methane emissions from its
operations, as well as to enhance network safety and operational integrity. This includes
continuous monitoring of the distribution network and focusing on the replacement of its cast-
iron pipeline network. Comgas has taken extra steps to understand methane emissions from its
cast iron distribution network by collecting more than 900 measurements from leaking pipes
prior to insertion of plastic liners. Comgas shared this information with the Program in a Winter
2008 Partner Update article. The company also worked with the Natural Gas STAR Program to
publish results of its measurement studies in an article in the September 2009 issue of the
Pipeline and Gas Journal.
Implementation Manager of the Year
Andrew McCalmont, Chesapeake Energy
Since Chesapeake Energy joined Natural
Gas STAR in 2007, Andrew McCalmont
has provided extensive support and
leadership in implementing its
participation in the Program. Under his
leadership, Chesapeake Energy has
closely integrated its Natural Gas STAR
participation with its core business
activities, resulting in significant efficiency
improvements and methane emissions
reductions. Andrew led the company's
Natural Gas STAR implementation team
in a massive undertaking to identify
methane reduction activities being
performed by the company dating back to
2001 by using the STARtracker software.
Andrew also has been a champion of
Natural Gas STAR'S overall technology transfer efforts by facilitating information exchange.
Earlier this year, he was influential in coordinating and hosting a technology transfer workshop
at Chesapeake Energy's headquarters in Oklahoma City. In addition, he worked with EPA to
detail Chesapeake Energy's efforts in implementing a successful Natural Gas STAR Program
for the Summer 2009 Partner Update.
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Winter 2009
Chesapeake Energy's Andrew McCalmont (center)
with EPA Natural Gas STAR Program
Representatives.

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[Continuing Excellence, 5 years
Enbridge
Jim Tangeman (center) with EPA Natural Gas
STAR Program Representatives
David Nickel (center) with EPA Natural Gas STAR
Program Representatives
Thomas Bach (center left) and Bradley Stevener
(center right) with EPA Natural Gas STAR Program
Representatives
Williams Production RMT Company
Energy Partners, L.P
¦
M
Trey Moeller (center left) and David McQuade
(center right) with EPA Natural Gas STAR Program
Representatives
Gulf South Pipeline
Paul Brewer (center) with EPA Natural Gas STAR
Program Representatives
Occidental Oil and Gas Corporation
Wesley Scott (center left) and Krish Ravishankar
(center right) with EPA Natural Gas STAR Program
Representatives
Photos not available for Alliant Energy, Energen Resources
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NaturalGas
Continuing Excellence, 7 years
Leanrie Meyer (center) with EPA Natural Gas
STAR Program Representatives
DTE Energy- MichCon
Lawrence Dorr (center) with EPA Natural Gas
STAR Program Representatives
Northern Natural Gas
ExxonMobil Production Company
Bill Grygar (center left) and Edward Schrnults
(center right) with EPA Natural Gas STAR Program
Representatives
Neil Ryan (center) with EPA Natural Gas STAR
Program Representatives
Western Gas Resources
[Continuing Excellence, 10 years
CenterPoint Energy Minnesota Gas
ConocoPhillips Petroleum Company
Alena Jonas (center left) and Prasad Tamminayana
(center right) with EPA Natural Gas STAR Program
Representatives
Jeff Bonham (center) with EPA Natural Gas STAR
Program Representatives
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Continuing Excellence, 12 years
Southwest Gas Corporation
Jose Esparza (center) with EPA Natural Gas STAR
Program Representatives
Photo riot available for Consumers Energy
Continuing Excellence, 15 years
AGL Resources
Gregory Jones (center) with EPA Natural Gas STAR
Program Representatives
Annual implementation workshop proceedings with further information are available online at
www.epa.qov/qasstar/workshops/annuaiimplementation/2009.html.
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Partner Profile:
Enbridge's Efficiency
Approaches to Reducing Methane
Emissions
ENBRIDGE
Through its participation in Natural Gas STAR, Enbridge continues to find new ways to reduce
methane emissions and increase the efficiency of its distribution system. A Program Partner
since 2006, Enbridge's operating arms across North America include Liquids Pipelines, Gas
Pipelines, Sponsored Investments, and Gas Distribution and Services. Throughout its
operations, Enbridge is identifying and pursuing measures to avoid methane emissions and
benefit from the resulting increases in efficiency and gas throughput.
Cast iron main leak measurement
Fugitive emissions from underground pipelines are often one of the largest sources of losses
from distribution systems. The frequency and size of leaks vary depending on pipeline use
(mains vs. services), material, and age. Cast iron was the material of choice for low pressure
distribution mains up until the 1950s and is still in place in Enbridge's Toronto, Ontario network.
The cast iron pipe began to be replaced with steel and polyethylene in Enbridge's system in the
1970s; however the formal cast iron replacement program was not introduced until 1980. At
that time the company had 1,850 kilometers (km) of cast iron pipe in service; by 2008
approximately 1,477 km of pipe had been replaced, and the remaining 373 km of pipe is due to
be replaced by 2012.
Enbridge's cast iron lines are not welded but are characterized by 12-foot sections connected by
bell and spigot joints which are sealed by jute packing plus cement or molten lead. The cast
iron system generally operates at about % pounds / square inch gauge (psig). Leaks in these
cast iron pipes develop in the packing over time due to heavy overhead traffic, freeze-thaw
cycles, or naturally shifting soil. Leaks have also increased due to a shift towards lower
moisture content (i.e., dryer) natural gas which reduces the effectiveness of the joint packing.
Apart from enhancing safety and helping to reduce operating costs, the replacement program
also eliminates this source of fugitive emissions. Approximately 30 percent of the company's
fugitive emissions from pipeline leaks can be attributed to this source, and yet the remaining
cast iron is only about 0.001 percent of the total distribution system network.
To help track the fugitive emissions reduction success of the cast iron replacements, Enbridge
quantified methane emissions reductions using emission factors. Enbridge recognized that the
commonly used emission factors available to industry for cast iron may not be representative of
its own system. Consequently, Enbridge designed a company-specific measurement
methodology designed to be implemented with the cast iron pipe replacement program. This
resulted in one field measurement being successfully concluded to provide additional context for
the emission factors currently being used. Enbridge's measurement method was based on the
one followed by the 1996 GRI/EPA study, Methane Emissions from the Natural Gas Industry.
Exhibit 1 summarizes Enbridge's implementation of this methodology.
NaturalGasfS
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Leak Measurement Method for Distribution Pipe
Enbridge based its cast iron leak rate measurements on a
method used by the 1996 GRI/EPA study and in co-
operation with the planned pipe replacement program.
First, the cast iron segment to be measured was selected
based on the pipe replacement program and the proximity
to a pressure regulator to ensure a steady pressure required
for the leak measurement as shown. At least 10 feet
downstream and upstream of the leak is excavated and this
is the segment that is isolated. The isolated segment is
then connected to receive sufficient gas passing through a
meter to sustain its normal operating pressure. The
measured gas flow rate needed to maintain the normal
operating pressure in the isolated segment is the leak rate.
Exhibit 1: Diaphragm meter deployed to
measure leak rate of an isolated length
of Enbridge's cast iron pipe.		
The measurement was performed over a 5,872.7 meter segment, of which 5,071.3 meters was
cast iron with 1,387 cast iron joints. The other pipe material type along this segment was plastic
and steel and based on the above-ground leak detection was assumed to have zero leaks.
From this sample Enbridge has calculated a cast iron leak emission factor is 546,959 cubic feet
(cf) methane/mile/year before accounting for soil oxidation. The results are shown below in
Exhibit 2 and compared with widely used factors. Although not statistically valid, this result
shows that the fugitive emissions from cast iron may be under-reported.
Study
Methane leak factor for cast iron distribution pipe
(cubic feet methane / mile / year)
Enbridge Measured Value
536,020
Handbook for Estimating Methane
Emissions from Canadian Natural Gas
Systems. GR1 Canada May 25, 1998.
430,151
Methane Emissions from the Natural
Gas Industry. GRI/EPA. 1996.
399,867
Exhibit 2: Enbridge's measurement and common cast iron leak emission factors.
The value of the gas lost in the segment measured by Enbridge was determined to be about
$12,000 annually. The experiences gained in performing the measurement led Enbridge to
contribute to ongoing fugitive emission factor development for other sources, as well as the
development of a fugitive emissions best management practices manual for the Canadian
natural gas industry, being conducted in association with the Canadian Energy Partnership for
Environmental Innovation. Given that this was just one site, the result did not provide sufficient
statistical rationale to change the emissions factors being used. However, consideration is
being given to accelerate the replacement program in part due to this measurement outcome.
Reciprocating compressor rod packing replacement
Enbridge also recognized compressor rod packing emissions as an efficiency opportunity at its
Enbridge Gas Storage business unit. All rod packing leaks under normal conditions, the amount
depending on cylinder pressure, fitting and alignment of the packing parts, and wear. For
Enbridge, the focus on rod packing began as a result of a leak detection and quantification
study at its Tecumseh gas storage facility, in Sarnia, Ontario. The leak survey allowed Enbridge
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to determine that valves and compressor rod packing were key methane emissions sources.
Leaking valves were either repaired or replaced within a short time period after the survey was
completed, and Enbridge then targeted rod packing for a sustained emissions reductions
project. The survey was conducted in 2007 and found that on one of the compressors tested,
where high performance seals had been installed, that there was a 60% reduction in fugitive
emissions, representing a volume reduction from 168 103 m3/yr to about 68 1 03 m3/yr. At a
value of $7.00 /GJ this represented a saving of about $26,000/yr.
Enbridge's gas storage compressors are driven by natural gas reciprocating engines and range
in age from 14 to 45 years, with an average age of 36 years. Compressors range from 2,500 to
4,200 horsepower, have four cylinders each, and operate between 1000 and 1440 psig.
Enbridge investigated the options for reducing rod packing emissions from its compression fleet
through discussions with vendors and decided to standardize their replacement on new low
emission packing for all compressors. As the original packing becomes worn and the
compressor is due for an overhaul, the packing is replaced with a new copper - lead
combination material which is softer, provides and improved sealing over its lifetime, but that
has the potential to wear quicker.
For rod packing retrofits, Enbridge targeted all eight of its Dresser Rand KVR compressor units,
with other units of a different model in consideration for rod packing material upgrades in the
future. The first two units were retrofitted in the summer of 2007, and since then two units have
been retrofitted each year. By 2010 all 8 KVR units will have had this retrofit completed on
them. Enbridge does not expect significant additional costs from using the new packing type as
part of its normal maintenance and is tracking wear over time. Initial indications are that the
new packing is performing well and emitting significantly less methane to the atmosphere.
Hybrid fuel cell and turbine power generation
Enbridge is also pursuing projects that increase energy efficiency. Direct reduction of fugitive
emissions will reduce greenhouse gases; however, a related opportunity to reduce greenhouse
gases, and other air pollutants, is to harvest a waste energy stream and generate useful work
from this otherwise wasted resource.
Enbridge partnered with FuelCell Energy, of Danbury, Connecticut, to develop a hybrid fuel cell
specifically for natural gas utilities. For all gas utilities, natural gas pressure reduction is a
normal part of business in the day to day delivery of gas from high pressure systems to lower
pressure gas pipelines. Normally this is done using a pressure reduction valve. The utility
obtains controlled expansion of the gas; but no other useful work occurs. Ironically, gas
expansion during pressure reduction causes the gas to cool, and the utilities typically add more
energy at these pressure reduction stations through line-heaters or gas-fired boilers.
The hybrid fuel cell is designed specifically for utility pressure reduction stations. Instead of
expanding gas across a valve, Enbridge has installed a turbo expander at a Toronto gate station
which harvests energy during the pressure reduction. As depicted in Exhibit 3, gas at 375 psig
enters the turbine at an average rate of 2 million cf / hour and exits at 175 psig, using the
pressure drop for electric power generation which is provided to the local electricity utility like a
wind turbine would. The turboexpander provides 1 megawatt of electricity, and the project
incorporates a 1.2 megawatt Direct FuelCell® that operates off low-pressure natural gas that is
part of the turboexpander's seal leakage. Additional natural gas, as required, is supplied from
the pipeline, and the fuel cell electrochemically converts the hydrogen in natural gas to
electricity. This electrochemical process, similar to a battery, starts with what is known as
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internal reforming of the fuel to obtain the hydrogen. No external hydrogen supply is required.
Fuel is combined with oxygen from air to produce Ultra-Clean electrical power, in the form of
direct current (DC), and heat. The DC electricity is then converted to AC power to match the
electrical grid requirements.
The fuel cell does two things. First, it more than doubles the amount of electricity delivered to
the grid compared to a stand-alone turboexpander. This provides a number of economic
benefits. Secondly, the high-quality heat from the fuel cell is used to preheat the natural gas
eliminating the air contaminants that would otherwise be produced by the boilers or line heaters
used in the pressure reduction process. The fuel cell operates without burning the natural gas
so its clean air benefits are unmatched. Compared to Ontario's typical electricity mix of coal,
natural gas, nuclear and hydroelectric the hybrid fuel cell offers significant reductions in GHG,
NOx, SOx, particulate, and unburned hydrocarbons. The utility is now generating a second
revenue stream from its day to day pressure reduction process. The hybrid fuel cell project has
been operating since November, 2008, and has produced a cumulative 3 gigawatt hours of
electricity from January through May of 2009.
Quick closing
valve
Flex pipe
Gas inlet
375 psig
Expander
Casing
And turbine
wheel \
Generator
Coupling
Strainer
NPS8
Gearbox
Gas outlet
175 psig
Concrete block
wall
Gas hydraulic
Outlet valve
Skid and lube oil containment
Exhibit 3: Turboexpander schematic
The project costs about $10 million including first-time engineering costs. Enbridge has
identified a number of cost reduction opportunities, and it is planning future projects if the
technology is awarded electricity price premiums similar to biomass and biogas electricity rates
which are 12 to 14.5 cents Cdn. / kilowatt hour in Ontario, Canada. Besides electricity
generation and elimination of the gas-fired boiler, advantages include a small footprint suitable
for urban facilities, low noise, proximity to electric power consumers, and power generation with
reduced air emissions.
Environmental legislation pertaining to the regulation of air emissions, including greenhouse
gases should take a holistic view rather than the current sectoral approach. This technology
admirably demonstrates that implementation in one sector (in this case gas distribution) can
have cumulative benefits in another sector in this case electric generation. Often, cross-
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sectoral, or co-industrial benefits are not so recognized making it difficult to link any financial
benefit for reduced emissions to the investment in these emerging technologies.
Conclusion
Throughout its infrastructure, Enbridge is pinpointing areas of methane loss and energy loss.
With new technology and processes, the Company is finding new ways to quantify methane
emissions reduction opportunities and new project ideas to increase pipeline delivery efficiency.
Enbridge plans to continue its cast iron pipeline replacement program through 2012. It also
plans to have eight reciprocating compressors, in its gas storage operations, retrofitted to the
new rod packing type by 2010. As supportive energy policies embrace technologies like fuel
cells the Company will promote the expanded use of the hybrid fuel cell technology as a proven
solution to Ultra-Clean power generation.
Climate Policy Update:
Clean Development Mechanism (CDM)
Executive Board approves revision of methodology
At the fiftieth meeting of the Executive Board on October 13 to 16, 2009, a proposed revision to
Approved Methodology (AM) 0023 was accepted. The revision allows for two additional
methane emissions measurement methods, calibrated bagging and ultrasonic flow metering, in
addition to the previously specified methods.
AM0023 is a CDM methodology to reduce methane leaks from surface facilities along natural
gas pipelines, such as compressor stations and gate stations. The methodology is applicable to
pipeline operations where measures are not in place to systematically identify and repair leaks,
where the leaks can be identified and accurately measured, and where continual monitoring
takes place after leak repair.
The previous version of AM0023 allows for several methods to quantify methane leaks:
¦	Bagging technique (constructing an enclosure around a leak and directing an inert gas at
a known flow rate through the bag to allow for sampling and determination of the
methane leak rate).
¦	Hi volume sampler.
¦	Rotameter.
This most recent version of AM0023 adds calibrated bagging (using anti-static bags of known
volume to completely capture the leak source and recording time to full bag inflation) and
ultrasonic metering as permitted measurement options.
The Executive Board meeting archives are available at cdm.unfccc.int/EB/archives/index.html.
The list of approved methodologies is available at
cdm.unfccc.int/methodologies/PAmethodologies/approved.html.
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New Partners
Natural Gas STAR welcomes two new companies
Naftogaz
The Unites States Environmental Protection
Agency (EPA) is very pleased to welcome	KAU'OHAtlbHA AKUIOMEPMA KOMflAMIH A	NATIONAL JOINT-STOCK COMPANY
Naftogaz as an official partner in the Natural Gas	y'	jl'V N \
STAR International Program. Naftogaz joins 12
other oil and natural gas companies in this
Program, which aims to identify and implement cost-effective methane emission reduction
projects in the oil and natural gas sector. By working through the Natural Gas STAR Program,
EPA and the oil and gas industry are preventing methane losses and delivering more natural
gas to markets around the world. For more information on the Natural Gas STAR International
Program, visit http://www.epa.gov/qasstar/international/index.html.
Naftogaz of Ukraine engages in the full range of upstream, midstream and downstream
operations in the oil and gas sectors. This includes oil and gas exploration, gas and condensate
processing, operation of pipelines and other shipping installations, and retail sales of oil and gas
products to Ukrainian customers. Naftogaz and its subsidiaries provide 91 percent of all
domestically produced natural gas in Ukraine. Naftogaz is the largest company in Ukraine.
SC Ukrtransgaz, a subsidiary, operates Ukraine's natural gas transmission system, which
transits over 80% of the gas traveling from Russia to Western Europe. It consists of 38,200
kilometers of pipelines, 73 compressor stations, and 13 underground gas storage facilities.
Naftogaz has five plants that process gas and gas condensate as well as a network of natural
gas vehicle refueling stations. The network consists of 91 stations capable of filling 75,000
vehicles with compressed natural gas daily. Naftogaz develops and maintains gas distribution
systems within Ukraine. Throughout its infrastructure, Naftogaz plans to implement energy-
saving measures such as replacing old compressors, installing co-generation units at
compressor stations, and building power plants at oil and gas production sites.
Plains Exploration & Production Company
The Unites States Environmental Protection Agency (EPA) is very
pleased to welcome Plains Exploration & Production Company
(PXP) as an official partner in the Natural Gas STAR Program. PXP
is an independent oil and gas company primarily engaged in
acquiring, developing, exploring, and producing oil and gas
properties. PXP's principal focus areas include mature properties as well as newer properties.
PXP produced 33.5 million barrels of oil equivalent (BOE) in 2008 and reported year-end proved
reserves of 292 million BOE. PXP was founded in December 2002 as a result of a spin-off from
Plains Resources Inc. and is headquartered in Houston, Texas with core operations located in
Los Angeles and San Joaquin Basins onshore California; offshore California; Gulf of Mexico;
Gulf Coast region; and Texas.
PXP
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Technology Spotlight

Update on Membrane Dehydration
The previous Partner Update examined U.S. Department of Energy
work to compare membrane dehydration with the more conventional
glycol dehydration, where membrane dehydration has the potential
for reduced methane emissions. This article provides additional
examples.
About 15 years ago, a technical article1 was published detailing the
use of a membrane process in the United States as a substitute for
an amine/glycol sweetening and dehydration system. Twelve years
later, a follow up article2 presented an analysis of the successful
operation of a three-train membrane system processing 45 million
standard cubic feet per day (MMcfd) of natural gas at 1000 pounds
per square inch to a specification of less than 2 moles carbon
dioxide and less than 7 pounds/MMcfd water.
From these implementations, a list of advantages and disadvantages
of membranes for dehydration can be explored.
•	Advantages
o Simple design
o Simple one step process: ideal for unmanned
operations
o Energy efficient
o Zero emissions are possible when permeate is utilized
o Lower construction and operating costs
•	Disadvantages
o Dependent on membrane separation quality
o Dependent on feed gas composition
¦	Fouling
¦	Water saturation negates permeability process
o Requires a use or sink for permeate gas
Membranes may play an increasing role in gas processing with
evolution of efficient and durable membranes. Natural Gas STAR will
continue to follow the evolution of this technology.
hydrocarbon Processing , April 1995
2Hydrocarbon Engineering, May 2007
Partner Update
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14

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In the News
Below is a summary of several recent Natural Gas STAR arid Methane to Markets pieces
featured in publications and conferences.
9/30TO 12.47.23PM
New York Times Article Highlights Methane Emissions Reduction
A recent article published in the "New York Times" emphasizes methane emissions reductions
as being a profitable and effective way of curbing greenhouse gas emissions. Key topics
covered by the article were:
¦	Natural Gas STAR
Partner EnCana is
using infrared cameras
for leak detection and
repair
¦	Natural Gas STAR
Partner BP is reducing
wellhead methane
emissions.
¦	Methane has a much
shorter atmospheric	Methane Leaks from stora9e Tanks
lifetime than carbon dioxide, and therefore methane emissions reductions can have a more
immediate impact and benefit on climate change.
The full article can be found here.
Methane to Markets Submission Awarded "Best Paper" at World Gas Conference
A Methane to Markets report highlighting the efforts of participants in the Partnership was
awarded "Best Paper" at the 24th World Gas Conference (WGC), which took place in Buenos
Aires, Argentina on October 5 to 9, 2009. The paper, Methane's Role in Promoting Sustainable
Development in the Oil and Natural Gas Industry, discusses projects undertaken by PEMEX,
Pluspetrol, Gazprom, and EnCana to reduce methane emissions cost-effectively. The "Best
Paper" award is a longstanding tradition of the IGU, with a two-step selection process involving
the IGU Technical Committees and a jury established especially for the final selection stage.
The paper was selected from 240 papers accepted to the conference.
The projects examined by the paper were implemented in Mexico, Argentina, Russia, and the
United States. These case studies illustrate how the methane emissions source, geography,
energy market, and costs can vary, but a common result is reduced emissions and positive net
cash flow.

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Pipeline & Gas Journal Article Shares Efforts to Quantify Cast Iron Main
Emissions
A recent article published in the "Pipeline & Gas Journal" on Comgas, the distribution company
of Sao Paulo, Brazil and Natural Gas STAR International Partner, provides data on methane
leaks from cast iron distribution mains.
Since 2005, Comgas, the largest natural gas distribution company in Brazil by distribution
volume, has measured leak rates from 912 segments of cast iron pipelines. The article outlines
Comgas's measurement methods and results, and it compares them to the EPA/GRI study
Methane Emissions from the Natural Gas Industry, which is used as the basis for the U.S.
Inventory and Natural Gas STAR presentations. The analysis shows that the average volume
of natural gas lost from cast iron distribution networks can vary and points to the need for further
study of loss rates globally. For example, the Comgas study yielded average leak rates of
almost double that in the U.S. Inventory.
In 1993 Comgas converted from town gas to natural gas, with the dryer natural gas causing cast
iron joints to dry and gas leakage to increase. This in part motivated Comgas to undertake the
measurement study and emissions reduction measures. During the first five years of this effort,
Comgas spent $82 million to rehabilitate 250 kilometers (155 miles) by inserting polyethylene
pipes into the existing cast iron network—eliminating the equivalent of 125 MMcf per year of gas
losses.
A copy of the article will be posted on the Natural Gas STAR website.
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[j Ideal Distribution Facility: Gate
Stations and Surface Facilities
Prospective Projects Spotligh
Since the inception of Natural Gas STAR, distribution Partners have reported many cost-
effective technologies and techniques to reduce methane emissions, with projects applicable to
virtually every part of the distribution process. Considering these projects together provides a
new approach to reducing emissions, creating an ideal low methane emissions facility.
Natural Gas STAR Partners around the globe face a diverse set of conditions and markets in
which to operate, and the ideal facility concept can help structure a strategy for finding and
implementing the most cost-effective projects for a specific setting. For Partners expanding into
new construction, the ideal facility approach can provide an up-front focus on the value of
reduced methane emissions and incorporate it into facility design. For Partners scheduling
significant facility or system overhauls, the ideal facility approach can identify efficiency
improvements at the most convenient time for their implementation. The ideal facility approach
also treats methane capture and use projects as a system-wide investment which can viably
compete for funding with other project types on a financial basis. The approach is implemented
below using a sample distribution system. The system's process flow is defined, paths to the
atmosphere are identified, mitigation projects for each source are considered, and financial
performance of the projects is considered.
Background: Gas Distribution Methane Emissions
Below is process flow diagram for natural gas distribution. Natural gas from a high pressure
transmission line is routed to a distribution gate station where the pressure is stepped down and
the gas is metered and odorized. Gas leaves the gate station and enters the distribution
network which includes high and low pressure mains, meter and regulating vaults, low pressure
service lines, and customer meters. Major methane emissions sources along this route are also
identified in the diagram and include equipment leaks, line leaks, and pressure regulator vents.
Exhibit 1:
Distribution process flow, typical annual methane emissions, and potential savings
Meters and Services
232 Mcf and 493 Mcf
CISBOT
Flexible Liners
fc-

r-'
Reduce Peak Pressure
Legend


Gas Flow Stream

Methane Emissions

Source

Project Opportunity
Blowdowns and
PRV releases
88 Mcf
Pneumatic Device Vents
631 Mcf
Downstream
Regulating
Customers
Scrubber
Meter and Regulating Leaks
944 Mcf
Gas Transmission Pipelint
Gate Station
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This process flow depiction of methane emissions identifies key paths to the atmosphere and
the affected parts of the system. Diagramming distribution systems allows all identified
emissions sources to be paired with cost-effective project options. Below is a list of projects that
can be considered in a system-wide review of methane emissions.
Emission Reduction Opportunities: Achieving the Ideal Natural Gas STAR Facility
Below is a list of key Partner-reported projects that can form the basis of an ideal Natural Gas
STAR distribution facility.
Directed Inspection and Maintenance (DI&M has proven to be a
cost-effective way to detect, measure, prioritize, and repair
equipment leaks to reduce methane emissions. A DI&M program
begins with a baseline survey to identify and quantify leaks. Repairs
that are cost-effective are then made to the leaking components.
Subsequent surveys are based on data from previous surveys,
allowing operators to concentrate on the components that are most
likely to leak and are profitable to repair.
Cast Iron Joint Sealing Robot (CISBOT)is a miniature robotic
system developed with funding from Con Ed and Enbridge
Consumers Gas that seals leaking joints with an anaerobic sealant,
without service disruption and with minimal excavation. In addition to
sealing leaks, the anaerobic sealant injections act as a packing within
the joint and help reduce future leaks.
Insert Gas Main Flexible Liners has been reported by Partners where
replacement of lines with plastic piping is not feasible or permitted (e.g., bridge
crossings). Thin-walled plastic liners can be pulled through long lengths of
buried piping and bonded at joints to minimize gas leaks.
Composite Wrap is a permanent, cost-effective pipeline repair technology,
suitable for non-leaking defects such as pits, dents, gouges, and external
corrosion that restores the pressure-containing capability of the pipe
without service disruption. Use of composite wrap as an alternative to
pipeline replacement can reduce safety risks, decrease pipeline downtime,
and avoid methane emissions from pipe blowdowns.
Excess Flow Valves automatically shut off ruptured gas service lines, preventing
catastrophic accidents and methane emissions to the atmosphere. Excess flow
valves used by Partners respond to the high-pressure differential created when a
line is severed by snapping shut to stop the flow of gas.
Lower Distribution System Pressure minimizes leak rates. Peak demand
pressures are set for extended periods of time to meet customer demand but are
necessary only for fraction of the time. Higher than necessary pressure
intensifies leak rates and increases maintenance costs. Natural Gas STAR
Partners have reported adjusting distribution system pressures for shorter
intervals to better match current demand, reducing methane emissions and
maintenance costs while increasing gas savings.
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Converting high-bleed pneumatic devices to low-bleed has resulted in
significant methane emissions reductions for Natural Gas STAR Partners. The
retrofit or complete replacement of worn units can provide better system-wide
performance and reliability and improve monitoring of parameters such as gas flow
and pressure.
Management practices to reduce methane emissions such as developing greenhouse
gas inventories to track methane emissions, encouraging all levels of personnel to develop new
project ideas, monitoring ongoing projects, and viewing such projects as business opportunities
can help create a corporate culture to further optimize operations and emissions reductions.
Partners have implemented these as standalone methane emissions reduction projects and
found them to be cost-effective. Considering these project types together allows for further
economic advantages, such as finding capital and operating cost savings when implementing
leak identification and repair both at surface facilities and along distribution lines.
Other Partner reported emission reduction technologies include testing gate station pressure
relief valves with nitrogen gas, using hot taps for in service pipeline connections, and pipeline
damage prevention.
Implementation and Economics: Ideal Distribution Facility Example
Exhibit 2 illustrates potential emissions reductions that can be obtained by targeting methane
emissions within the system with the most cost-effective reduction projects. The total methane
emission from the sample system is estimated to be 3,321 Mcf per year. The potential
emissions savings from projects with low investment and positive cash flow is 1,801 Mcf per
year, resulting in gas savings of $12,600 at a gas value $7 per Mcf.
Exhibit 2:
Potential emissions before and after implementing projects
600
E
111
Leak
Survey
II
Composite
Wrap
~	Emissions before Projects
~	Emissions After Projects
Replace
with Low
Bleed
Leak
Survey
Leak
Survey
Excess
Flow
Valves
Station "fugitives Mains fugitives
High Bleed Deuces Services "fugitives
Emission Sources
Meter lugitives
The investment to cover the implementation of the methane emissions reduction technologies
and practices illustrated by Exhibit 2 includes the capital cost of the leak detection and
measurement equipment, composite wrap, and excess flow valves. Using data provided by
manufacturers and operators and assuming that multiple facilities share capital equipment, the
capital cost required is $6,400 or $3.57 per Mcf gas saved in the first year. Operating and
maintenance costs include labor costs for conducting surveys and repairs, which is estimated to
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be $10,700 per year or $5.96 per Mcf gas saved per year. Savings are in the form of reduced
emissions and increased throughput and depend on gas price. Example project economics are
shown in Exhibit 3.
Exhibit 3:
Project summary for ideal distribution facility example
CAPITAL & INSTALLATION
COSTS
$6,400
ANNUAL LABOR &
MAINTENANCE COSTS
$10,700

Gas Price per Mcf
$3
$7
$10
Annual Value of Gas Saved
$5,400
$16,600
$18,000
Payback Period in Years
none
3.4
0.9
Conclusion
The ideal distribution facility concept can offer companies a positive cash flow business
opportunity with additional climate change benefits. As highlighted in this example, addressing
methane emissions at the facility level has the advantages of considering multiple emissions
sources to capture, considering multiple methods to capture them, and moving forward with the
most profitable methods. This type of coordinated effort to reduce methane emissions facility
wide can result in additional efficiencies such as carrying implementation successes to other
locations or identifying additional methane emissions reduction projects. The ideal distribution
facility concept may vary from location to location, but viewing methane emissions as an
unrealized revenue stream is the first step towards achieving it.
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Upcoming Event
New Delhi, India
March 2 to 5, 2010
Methane to Markets Partnership Expo
The Methane to Markets Partnership Expo is the premier international forum for promoting
methane recovery and use project opportunities and technologies. The second Partnership
Expo will be held in India and will cover methane capture-and-use projects in agriculture, coal
mines, landfills, and oil and gas. The Expo's program will feature:
¦	Four sector-specific conference tracks. Key methane capture and use technologies
and policy issues as well as barriers to project development and how to overcome them.
¦	Methane Marketplace. Methane recovery and use projects for immediate financing or
implementation and technology providers showcasing the latest products and services.
¦	Partnership working meetings. Government and industry discussions on how Methane
to Markets can effectively promote methane capture and use projects and activities
around the world.
For more information, see www.methanetomarkets.org/expo/index.htm.
Natural Gas STAR Contacts
Program Managers
Jerome Blackman (blackman.jerome@epa.gov)
Phone:(202) 343-9630
Carev Bvlin (bylin.carey@epa.gov)
(202) 343-9669
Roger Fernandez (fernandez.roger@epa.gov)
(202) 343-9386
Suzie Waltzer (waltzer.suzanne@epa.gov)
(202) 343-9544
Natural Gas STAR Program
U.S. Environmental Protection Agency
1200 Pennsylvania Ave., NW (6207J)
Washington, DC 20460
For additional information on topics in this Update, please
contact Jerome Blackman.
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