2010-2011-2012 GHGRP Industrial Profile

Natural Gas and Natural Gas Liquids Supply

Natural Gas and Natural Gas Liquids
Suppliers Sector

Highlights

•	The reported GHG quantity associated with Natural Gas
Liquids (NGL) supply has increased from 206 to 242
million metric tons (MMT) of CO2 from 2010 to 2012.

This increase was primarily a result of increased
domestic NGL production.

•	The reported GHG quantity associated with natural gas supplied by local distribution
companies (LDCs) decreased from 716 to 705 MMT of CO2 from 2010 to 2012.

•	While the volume of natural gas supplied to the industrial and electricity generating sectors
over that time period has increased, this was more than offset by decreased supply to the
residential and commercial sectors.

About this Sector

This sector comprises natural gas liquids (NGL) fractionators
companies (LDCs).

•	NGL fractionators are defined by the regulation as
installations that receive bulk natural gas or natural
gas liquids from producers and then fractionated at
least some of these raw inputs into individual liquid
products (ethane, propane, normal butane,
isobutane, or pentanes plus) and supplied those
products into the economy during the reporting
year.

•	LDCs are generally the same companies to which
you pay your gas bill every month. They receive natural gas from a transmission pipeline
company and physically deliver the gas to end users.

Some facilities in the Natural Gas and Natural Gas Liquids Supply sector also submit GHG reports
for their direct emissions (i.e. emissions from fuel combustion, process vents, and equipment leaks).
Direct emissions data reported by these facilities are available in the industrial profiles for
Petroleum and Natural Gas Systems and Petroleum Refineries. Greenhouse gas information
associated with imports and exports of natural gas liquids is reported by suppliers of petroleum
products.

All emissions presented here
are as of 8/18/2014 and
exclude biogenic C02. All
GHG emissions data
displayed in units of carbon
dioxide equivalent (C02e)
reflect the global warming
potential (GWP) values from
TPCC AR4.

and local natural gas distribution

Natural gas and NGL suppliers do
not report actual emissions from a
facility. Suppliers report the
quantity of product placed into the
economy and the emissions that
would result if the products were
completely combusted, oxidized,
or released when used.

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2010-2011-2012 GHGRP Industrial Profile

Natural Gas and Natural Gas Liquids Supply

The diagram below shows the natural gas and natural gas liquid supply chain and highlights the
information reported by LDCs and NGL fractionators.

Figure 1: Flows of Natural Gas and Natural Gas Liquids3

Natural Gas Well

Ethane
Propane
Butane
Isobutane
Pentanes Plus

Delivered
Directly to
End-Users

(Not Reported
Under Subpart NN)

Electricity
Generation
End Users

Local
Production

Quantities marked with green arrows are reported to EPA by NGL Fractionators or Local Distribution Companies under
Subpart NN.

Although most natural gas consumers receive their natural gas from LDCs, some natural gas is
delivered directly to end-users by other distributers, including transmission pipeline companies,
producers, gatherers, and storage companies. These companies mostly supply large-volume end
users, such as large industrial and electric power generation customers. The natural gas delivered
directly to end users is not reported to the GHGRP by transportation pipeline companies or LDCs.
Based on information from the U.S. GHG Inventory for 2012, roughly 54% of C02 associated with
natural gas combustion is being reported to EPA by LDCs (see Table l).1 However, most of the CO2
associated with the combustion of gas that is not reported by LDCs is combusted at large
installations that are themselves required to report their GHG emissions to EPA. Therefore, the
GHGRP covers the vast majority of emissions associated with natural gas use in reporting by either
the supplier or the end-user.

1 Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2012. U.S. Environmental Protection Agency.
April 15, 2014. EPA 430-R-14-003. Available at:

http: //www.epa.gov/climatechange/ghgemissions / usinventorvreport.

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2010-2011-2012 GHGRP Industrial Profile

Natural Gas and Natural Gas Liquids Supply

Table 1: Natural Gas Supplied to End-Users in 2012

End-Use Sector

Total C02 associated
with gas supply
reported to the GHGRP
by LDCsa (MMT)

Total C02 associated
with U.S. natural gas
consumption (MMT)b

Percentage of natural
gas consumption
reported by LDCs

Residential

224.3

224.8

99.8%

Commercial

153.4

156.9

97.8%

Industrial

189.0

434.7

43.5%

Electricity Generation

132.9

492.2

27.0%

All sectors

699.6C

1,308.6

53.5%

a Estimated by multiplying total reported gas deliveries by 0.000000055, the average CO2 emissions from combustion of

1 Mscf of natural gas, measured in MMT CO2.
b Inventoiy of U.S. Greenhouse Gas Emissions and Sinks: 1990-2012. U.S. Environmental Protection Agency. April 15,2014.

EPA430-R-14-003. Available at: http://www.epa.gov/climatechange/ghgemissions/usinventorvreport.
c The CO2 quantity for all sectors shown in this table differs from that presented in Table 5. The value in this table is
calculated using the default CO2 emissions per unit of natural gas, whereas the value provided in Table 5 is calculated
using supplier specific values for CO2 per unit of natural gas delivered, where reported.

Who Reports?

In 2012, 484 suppliers in the Natural Gas and Natural Gas Liquids Sector submitted a GHG report
51.7% of all suppliers reporting to the GHGRP are in the Natural Gas and Natural Gas Liquids
Supply Sector.

Table 2: Natural Gas and Natural Gas Liquids Supply Sector Reporting Schedule

Subpart

Source Category

Applicability

First Reporting
Year

NN

Local Distribution
Companies

LDCs that deliver ^.460,000 Mscf of natural gas
annually.

2010

NN

NGL Fractionators

All NGL Fractionators are required to report.

2010

Table 3: Natural Gas and Natural Gas Liquids Supply Sector - Number of Reporters (2010-
2012)

Sector

Number of Reporters

2010

2011

2012

Total Natural Gas and Natural Gas Liquids Sector

480

483

484

Local Distribution Companies

372

370

365

NGL Fractionators

108

113

119

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2010-2011-2012 GHGRP Industrial Profile

Natural Gas and Natural Gas Liquids Supply

Table 4: Natural Gas and Natural Gas Liquids Supply Sector - GHGRP Coverage

Subsector

GHGRP Applicability

Estimated Percent of
Suppliers Covered
by GHGRP

Estimated Percent of C02
Associated with products
Covered by GHGRP

Local Distribution
Companies

LDCs that deliver > 460,000
Mscf of natural gas annually.

28.2%a

99.92%a

NGL Fractionators

All Fractionators

100%b

100%b

a Estimate of size of industry and estimate of total CO2 coverage are based on reports submitted by LDCs to EIAvia form
176. All operating LDCs are required to submit this form regardless of the size of their operations. The form contains
the quantity of gas delivered by the LDC to end-users. The estimated total CO2 covered by the GHGRP was calculated by
taking the total deliveries reported to EIA and subtracting the fraction of natural gas supplied by LDCs below the
GHGRP reporting threshold.
b All natural gas liquids fractionators are required to report to the GHGRP.

Reported Greenhouse Gas Information

The total quantity of C02 reported by Natural Gas and Natural Gas Liquids Suppliers was 946.6
MMT in 2012. This excludes the quantity reported by 18 NGL fractionators that supply only one
product, because their production quantities are considered to be confidential business information
and are not published by EPA. The total CO2 quantity reported by these 18 fractionators is relatively
small, totaling less than one million metric tons.

Because C02 emissions associated with these products do not occur until the product is combusted
or otherwise used, not all of the total reported 946.6 MMT CO2 was necessarily emitted to the
atmosphere in 2012. Some of the products may be in storage for use in future years. Additionally,
some natural gas and about 58% of NGLs2 are used for non-energy purposes such as for use as a
feedstock for petrochemical production (Table 6). Some carbon emissions from these products will
be released at downstream chemical plants, and the remaining carbon emissions do not occur until
the petrochemical product (e.g., plastic) decomposes or is combusted, such as in a landfill or a
waste incinerator.

Some CO2 associated with natural gas supplied by LDCs is also reported to EPA by end-users of the
gas. To quantify the amount of CO2 that is reported twice to EPA, LDCs are required to report the
quantity of gas delivered to large end-users, defined as those who receive greater than 460 million
cf of gas per year. This threshold was selected as it is roughly equivalent to 25,000 metric tons CO2;
facilities that emit above this level are required to report their direct GHG emissions to the EPA.

2 From API: "2000-2007 Sales of Natural Gas Liquids and Liquefied Refineiy Gases."

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2010-2011-2012 GHGRP Industrial Profile

Natural Gas and Natural Gas Liquids Supply

Table 5: Natural Gas and Natural Gas Liquids Supply Sector C02 Quantity (2010-2012)

Natural Gas and Natural Gas Liquids
Supply Sector

C02 Quantity (MMT)

2010

2011

2012

Total Natural Gas and Natural Gas Liquids
Supply Sector3

921.8

936.9

946.6

NGL Fractionators3

206.2

218.5

242.1

Estimated C02 from NGLs used for fuelsb

85.9

91.0

102.8

Estimated CO2 associated with NGLs used for non-
fuel purposes15

120.3

127.5

139.3

Local Distribution Companies

715.6

718.4

704.5

CO2 associated with deliveries to large end-users

203.7

205.8

241.8

a Excludes CO2 reported by 18 NGL Fractionators whose reported quantities are classified as confidential business
information (CBI].

b Based on information from API: "2000-2007 Sales of Natural Gas Liquids and Liquefied Refinery Gases." (Table 6]

Table 6: Percentage of NGL Used for Fuel and Non-Fuel Purposes (2007)a

Natural Gas Liquid

Percent Used for Fuel
Purposes

Percent Used for
Non-Fuel Purposes

Ethane

8.9%

91.1%

Propane

54.3%

45.7%

Butane/Isobutane

84.3%

15.8%

Pentanes Plus

60.8%

39.2%

a From API: "2000-2007 Sales of Natural Gas Liquids and Liquefied Refineiy Gases." Reported sales to

Residential/Commercial, Internal Combustion Fuel, Gasoline Blending, Industrial, Agricultural are considered Fuel
purposes while sales to Chemical and Other are considered Non-Fuel.

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2010-2011-2012 GHGRP Industrial Profile

Natural Gas and Natural Gas Liquids Supply

Figure 2: Location and Reported C02 Quantity (metric tons) for Each LDC in the Natural Gas
and Natural Gas Liquids Supply Sector (as of 9/1/13)

Natural Gas Suppliers

Local Distribution Companies
Quantity Supplied (metric tons C02e)

J 0-1,000,000

J 1,000,000 - 3,000,000

3,000,000 - 5,000,000

5,000,000 - 10,000,000

10,000,000 - 20,000,000

=• 20,000,000

Data Source: 2012 Greenhouse Gas Reporting Program
As of: 09/01/2013

This map shows the locations of LDCs that reported to the GHGRP, their service areas (if available),
and the CO2 associated with natural gas supplied. The color of the shading corresponds to the
quantity of CO2 reported by that LDC. There are also LDCs reporting C02 associated with natural gas
supplied located in Alaska and Hawaii.

Readers can view maps and identify the LDCs reporting the largest CO? quantity by visiting the
Facility Level Information on Greenhouse Gases (FLIGHT) website (http://ghgdata.epa.gov).

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2010-2011-2012 GHGRP Industrial Profile

Natural Gas and Natural Gas Liquids Supply

Figure 3: Natural Gas and Natural Gas Liquids Supply Sector
- LDC Reported C02 Quantity by State (2012)

REPORTED C02 QUANTITY BY STATE FROM LOCAL
DISTRIBUTION COMPANIES

2012 Reported CO Quantity (million metric tons)

20

40

60

80

100

120

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Guam
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
NewYork
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Puerto Rico
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virgin Islands
Virginia
Washington
West Virginia
Wisconsin
Wyoming

¦I Commercial Consumers
H Electricity Generating Facilities
~ Industrial Consumers
I 1 Residential Consumers

Represents total CO2 quantity associated with natural gas supply reported to the GHGRP by LDCs. Additional CO2
supply occurs from LDCs that have not reported, for example those below the 460,000 Mscf reporting threshold.

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2010-2011-2012 GHGRP Industrial Profile

Natural Gas and Natural Gas Liquids Supply

Figure 4: Location of NGL Fractionators in the Natural Gas and Natural Gas Liquids Supply

Sector (as of 9/1/13)

\ * •





•

•



•

• •.

•

In r*



••

*•
•• i

•

•

•	i

m a / I3±j

•





/ * — *

•t



¦ )r

•

•
•• #



•

i :



•

•

~



•

••



GHGRP, 2012





Natural Gas Liquids Fractionators





• Facility Location





Data Source: 2012 Greenhouse Gas Reporting Program
As of: 09/01/2013





This map shows the locations of NGL fractionators that reported. The reported CCMs not emitted at
these locations. These products are supplied into the economy and are either combusted or used as
a chemical feedstock by down-stream users. Readers can identify the NGL fractionators reporting
the largest CO? quantity by visiting the Facility Level Information on Greenhouse Gases (FLIGHT]
website fhttp: //ghgdata.epa.govl.

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2010-2011-2012 GHGRP Industrial Profile

Natural Gas and Natural Gas Liquids Supply

Figure 5: Natural Gas and Natural Gas Liquids Supply Sector
- NGL Fractionator Reported C02 Quantity by State (2012)

REPORTED C02 QUANTITY BY STATE FROM NATURAL GAS
LIQUIDS FRACTIONATORS

2012 Reported C07 Quantity (million metric tons)

20

40

60

80

100

120

140

Alabama





Alaska





Arizona





Arkansas





California

1



Colorado





Connecticut





Delaware





District of Columbia





Florida





Georgia





Guam





Hawaii





Idaho





Illinois





Indiana





Iowa





Kansas





Kentucky

1

Louisiana



Maine





Maryland





Massachusetts





Michigan





Minnesota





Mississippi





Missouri





Montana





Nebraska





Nevada





New Hampshire





New Jersey





New Mexico

1



New York





North Carolina





North Dakota

¦



Ohio





Oklahoma





Oregon





Pennsylvania

1



Puerto Rico





Rhode Island





South Carolina





South Dakota





Tennessee





Texas





Utah

¦



Vermont





Virgin Islands





Virginia





Washington





West Virginia

1



Wisconsin





Wyoming





Note that use of these compounds does not necessarily occur within the state where the NGL fractionator operates.
This information is provided to give a general idea of the areas of the countiy in which most NGL production occurs.
* Does not include CO2 reported by NGL Fractionators whose total is CBI.

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2010-2011-2012 GHGRP Industrial Profile

Natural Gas and Natural Gas Liquids Supply

Natural Gas and Natural Gas Liquids Supply Sector Trend in Total Reported GHG
Quantity 2010 to 2011

The quantity of CO2 associated with natural gas liquids supply increased by nearly six percent from
2010 to 2011. The quantity of NGLs produced is tied to the amount of natural gas and NGLs being
produced domestically and the demand for NGL products. In 2011, natural gas prices hit lows not
seen since the early 2000s.3 Atthe same time, crude oil prices continued to climb.4 NGL prices are
linked to oil prices as they can be used as a substitute to petroleum products in some cases.5 The
higher oil prices have resulted in higher prices for some NGLs and incentivized production of these
compounds. The widening spreads between U.S. domestic wellhead gas prices and NGL product
prices have incentivized producers, particularly those working in shale basins, to shift activity to
those sections of the shale resources known to produce liquids-rich gas. This trend is seen in the
EIA rig counts for the Eagle Ford, Marcellus, Bakken, and Utica shale plays, which produce liquids-
rich gas.6 All of these regions saw rising rig counts in 2011, particularly throughout the second half
of the year. Meanwhile, shale plays that produce "dry" natural gas saw decreasing rig counts during
2011.

The quantity of CO2 associated with natural gas supply (i.e. LDCs) decreased by less than one
percent from 2010 to 2011. Natural gas is primarily consumed by end-users in the residential,
commercial, industrial, and electricity generating sectors. Weather is the most important driver of
gas consumption in the residential sector because of its extensive use as a heating fuel. Throughout
2011, the Northeast, West and Midwest regions experienced slightly colder weather than they did
in 2010. However, the South experienced much warmer weather during 2011. Overall, total
heating degree days in the United States fell by 3.5% from 2010 to 2011, leading to decreased
demand from the residential sector. Within the electricity generating sector, demand for fuel over
short-time scales is often impacted by weather, and the amount of natural gas used to meet that
demand is primarily based on the relative price of natural gas compared to coal. Since the
deployment of hydraulic fracturing technology to recover gas from shale formations in the United
States, the level of gas available has reached unprecedented levels. With plentiful gas supplies,
natural gas prices have reached historic lows. The current price environment for natural gas has
encouraged coal-to-gas switching in the power sector, increasing the quantity of gas delivered by
LDCs to this sector which off-set the decrease in demand from residential sources in 2010 (Table 8).

Natural Gas and Natural Gas Liquids Supply Sector Trend in Total Reported GHG
Quantity 2011 to 2012

From 2011 to 2012, the trends that were observed from 2010 to 2011 continued and intensified.
High NGL prices in previous years likely led oil and gas producers to focus on areas with wet
natural gas (i.e. natural gas high in NGL content) reserves, thereby increasing NGL well production.

3	U.S. Department of Energy, Energy Information Administration,
http: II www.eia.gov/ to davinener gv / detail. cfm?id=5910.

4	U.S. Department of Energy, Energy Information Administration,
http://www.eia.gov/todayinenergy/detail.cfm?id=9530

5	U.S. Department of Energy, Energy Information Administration, Today in Energy,
www.eia.gov/todayinenergy/detail.cfm?id=5930.

6	See U.S. Department of Energy, Energy Information Administration, Drilling Productivity Report for Key
Tight Oil and Shale Gas Regions, November 2014, http://www.eia.gov/petroleum/drilling/pdf/dpr-full.pdf.

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2010-2011-2012 GHGRP Industrial Profile

Natural Gas and Natural Gas Liquids Supply

Most NGL prices remained high relative to natural gas in 2012, and increased well production led to
increased production of finished products at fractionation facilities. The increased throughput at
these facilities led to an increase in the reported CO2 quantity. Weather conditions in 2012 were
even warmer than those experienced in 2011, which led to a continued decline in demand for
natural gas from the residential sector.

The number of heating degree days throughout the country dropped by 14.4% in 2012, which
decreased demand for natural gas; total natural gas consumption in the residential and commercial
sectors dropped by over ten percent (Table 7). The primary driver of the increase in consumption
by the electric power sector was the historically low price of natural gas relative to other fuels such
as coal.

Table 7: Weather Data and Associated Impacts on Natural Gas Supply

Year

Heating
Degree Daysa

Residential and

Commercial
Sectors (MMcf)b

Cooling
Degree Daysa

Electric Power
Sector (MMcf)b

2010

4,471

7,885,005

1,445

7,250,236

2011

4,321

7,869,096

1,457

7,835,473

2012

3,778

7,044,328

1,480

9,466,343

Percent change(2010-2011)

-3.5%

-0.2%

0.82%

7.5%

Percent change(2011-2012)

-14.4%

-10.5%

1.6%

20.8%

a U.S. Department of Commerce, National Oceanic and Atmospheric Administration, National Environmental Satellite,

Data, and Information Service, http://www.ncdc.noaa.gov/oa/documentlibrarv/hcs/hcs.html.
b U.S. Department of Energy, Energy Information Administration, total natural gas consumption by sector. These
numbers differ from Table 8 because they represent all gas consumption, based on EIA data, which includes gas not
delivered by an LDC: http: //www.eia.gov/cfapps/ngqs/ngqs.cfm7f report=RPl.

Table 8: Natural Gas Deliveries Reported to GHGRP by LDCs

Point in the Supply Chain

2010

2011

2012

Total Reported Deliveries (Mscf)

12,773,016,503

12,768,837,601

12,738,553,240

Residential Customers (Mscf)

4,681,611,446

4,631,261,922

4,078,702,157

Commercial Customers (Mscf)

2,929,714,709

3,033,644,755

2,792,796,677

Industrial Customers (Mscf)

3,382,614,478

3,245,078,743

3,450,910,172

Electricity Generating Facilities (Mscf)

1,779,075,869

1,858,852,181

2,416,144,234

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2010-2011-2012 GHGRP Industrial Profile

Natural Gas and Natural Gas Liquids Supply

Figure 6: Trend in C02 Quantity Reported by LDCs and NGL Fractionators (2010-2012)

ANNUAL COz QUANTITY REPORTED BY LOCAL DISTRIBUTION
COMPANIES AND NGL FRACTIONATORS

800

700

600

500

.2 400

>¦ 300

200

100

Local Distribution
Companies

NGL Fractionators

2010

2011

2012

** Does not include CO2 reported by NGL Fractionators whose total is CBI.

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2010-2011-2012 GHGRP Industrial Profile

Natural Gas and Natural Gas Liquids Supply

Figure 7: Natural Gas and NGL Supply - Average C02 Quantity per Reporter

©AVERAGE GHG QUANTITY PER REPORTER FOR THE NATURAL
GAS AND NGL SUPPLY SECTOR

2012 GHG Quantity (thousand metric tons C02)

0	500	1,000	1,500	2,000	2,500

Local Distribution
Companies

NGL Fractionators

** Does not include CO2 reported by NGL Fractionators whose total is CBI.

Calculation Methods Used

Suppliers in the Natural Gas and Natural Gas Liquids Suppliers sector can choose one of two
different methodologies for calculating the CO2 quantity associated with the combustion or
oxidation of the quantities of natural gas and natural gas liquids supplied.

•	Calculation Methodology 1 - Multiply the volume of product supplied by the higher
heating value (HHV] and a CO2 emission factor (EF). Use either measured or default fuel
HHVs and CO2 emission factors.

•	Calculation Methodology 2 - Multiply the volume of product supplied by a CO2 emission
factor. Use either measured or default C02 emission factors.

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2010-2011-2012 GHGRP Industrial Profile

Natural Gas and Natural Gas Liquids Supply

Table 9: Local Distribution Company Calculation Methodologies

Type of C02

Methodology

Portion of Reported C02 Monitored by
Method (by Type)

2010

2011

2012

C02 associated with
natural gas supplied

Measured Higher Heating Value
(HHV] & Measured Emission Factor
(EF)a

0.2%

1.5%

1.6%

Measured HHV & Default EFb

22.7%

21.7%

24.2%

Default HHV & Default EFC

77.1%

76.8%

74.2%

a Includes LDCs that used Calculation Methodology 1 with both a measured CO2 emission factor and HHV and those who

used Methodology 2 with a measured CO2 emission factor.
b Includes LDCs that used Calculation Methodology 1 with a measured HHV and default CO2 emission factor.
c Includes LDCs that used Calculation Methodology 1 with a default HHV and CO2 emission factor and those that used
Methodology 2 with a default CO2 emission factor.

Table 10: NGL Fractionator Calculation Methodologies

Type of C02

Methodology

Portion of Reported C02 Monitored by
Method (by Type)

2010

2011

2012

CO2 associated with
natural gas liquids
supplied

Measured Higher Heating Value
(HHV) & Measured Emission Factor
(EF>

4.4%

0.3%

0.3%

Measured HHV & Default EFb

0.1%

0.1%

1.8%

Default HHV & Measured EFC

3.5%

0.2%

**

Default HHV & Default EFd

92.0%

99.4%

97.9%

a Includes NGL Fractionators that used Calculation Methodology 1 with both a measured CO2 emission factor and HHV

and those who used Methodology 2 with a measured CO2 emission factor.
b Includes NGL Fractionators that used Calculation Methodology 1 with a measured HHV and default CO2 emission factor.
c Includes NGL Fractionators that used Calculation Methodology 1 with a default HHV and measured CO2 emission factor.
d Includes NGL Fractionators that used Calculation Methodology 1 with a default HHV and CO2 emission factor and those

that used Methodology 2 with a default CO2 emission factor.

** Value is between 0 and 0.05%.

Data Verification and Analysis

As a part of the reporting and verification process, EPA evaluates annual GHG reports with
electronic verification checks. EPA contacts facilities regarding potential reporting issues.
Additional information on EPA's verification process is available here.

Some of the information reported by LDCs and NGL fractionators is similar to data reported to the
Energy Information Administration (EIA). EPA and EIA have collaborated to use some of this data
to help verify that information submitted to each agency is correct

All LDCs are required to submit both monthly and annual reports on deliveries and transfers to
consumers under the Federal Energy Administration Act of 1974. The reporting forms EIA 176 and
EIA 857 are used for this process. On form EIA 176, LDCs report the total quantity of gas received
and the total quantity of gas delivered to six end-use consumer categories: residential, commercial,
industrial, electric power, vehicle fuel and other. The GHGRP also collects the total quantity of gas
received and the volumes delivered to residential, commercial, industrial, and the electric power
sector from LDCs. During EPA's verification process, reported quantities of gas delivered to the four
end-use sectors for which EPA collects data are compared to the values reported to EIA. When

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2010-2011-2012 GHGRP Industrial Profile

Natural Gas and Natural Gas Liquids Supply

discrepancies are identified, the reporter is made aware of the inconsistency, and the reporter will
often re-submit their data to the agency to which they made a reporting error.

All natural gas processing plants are required to report on EIA Form 816. Fractionators that hold
NGL stocks are also required to report. This form is used to collect information on inputs, stocks,
receipts, production, and shipment of products.

Other Information

While EPA could have used the reported EIA data to estimate CO2 quantities supplied, the GHGRP
collects similar data for several reasons. First, EIA data are subject to different legal authorities for
handling confidential business information. These authorities are more restrictive than the Clean
Air Act regarding what data can be released to the public. Second, EPA seeks some data that is
beyond what EIA collects, such as quality assurance information, verification data, and information
on odorized propane. Lastly, the GHGRP allows facilities the option to use site-specific emission
factors to report more accurate CO2 estimates than if EPA applied default emissions factors to
reported EIA gas volumes to make the estimate.

The GHGRP also collects data regarding the quantity of gas delivered to all large end-users (i.e.
those customers that receive 460,000 Mscf natural gas or greater per year) from LDCs. Large end-
users are themselves required to report emissions from the natural gas they consume under other
Part 98 subparts. By requiring LDCs to report the quantity of all deliveries and the gas consumed by
all large end-users, EPA is able to determine the total CO2 emissions associated with natural gas
combustion, including emissions by small facilities that are not required to report their direct
emissions to the GHGRP.

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2010-2011-2012 GHGRP Industrial Profile

Natural Gas and Natural Gas Liquids Supply

GLOSSARY

CBI means confidential business information.

Direct emitters are facilities that combust fuels or otherwise put greenhouse gases into the
atmosphere directly from their facility. Alternatively Suppliers are entities that supply certain
fossil fuels or fluorinated gases into the economy that—when combusted, released or oxidized—
emit greenhouse gases into the atmosphere.

EIA means the U.S. Energy Information Administration, which is an independent agency within the
U.S. Department of Energy that develops surveys, collects energy data, and analyzes and models
energy issues.

GHGRP means the Greenhouse Gas Reporting Program under 40 CFR part 98.

HHV means high heating value of a fuel.

IPCC AR4 refers to the Fourth Assessment Report by the Intergovernmental Panel on Climate
Change. Climate Change 2007: The Physical Science Basis. Contribution of Working Group I to the
Fourth Assessment Report of the Intergovernmental Panel on Climate Change [Core Writing Team,
Pachauri, R.K. and Reisinger, A. (eds)]. IPCC\ Geneva, Switzerland2007. The AR4 values also can be
found in the current version of Table A-l in Subpart A of 40 CFR part 98.

LDC means a local distribution company for natural gas.

MMT means million metric tons.

Mscf means thousand standard cubic feet

MMcf means million standard cubic feet

NGL means natural gas liquid (ethane, propane, butane, isobutene, and pentanes plus).

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