EPA Natural Gas STAR Program Accomplishments

Introduction stablished in 1993, the Natural Gas STAR Program is a flexible, voluntary partnership that encourages oil and natural gas companies—both domestically and internationally—to adopt proven, cost-effective technologies and practices that Eimprove operational efficiency and reduce methane emissions. Given that methane is the primary component of natural gas and is a potent greenhouse gas—23 times more powerful than carbon dioxide (CO2) in trapping heat in the atmosphere over a 100-year period—reducing these emissions can result in environmental, economic, and operational benefits. Natural Gas STAR industry partners have operations in all of the major industry sectors—production, gathering and processing, transmission, and distribution—and represent 60 percent of the natural gas industry in the United States, including 19 of the top 25 natural gas production companies. Also, with the launch of Natural Gas STAR International in 2006, the Program expanded to include companies world- wide, significantly increasing opportunities to reduce methane emissions from oil and natural gas operations. Today, the Program has more than 130 partner compa- nies and is endorsed by 20 major industry trade associations. This document highlights the methane emissions reductions Natural Gas STAR partners have achieved to date under this important voluntary partnership program. It also highlights a variety of technologies and practices implemented by partners to reduce methane emissions. The following diagram shows some of the top methane emission reduction opportunities for each sector.

Oil Production • Install VRUs on crude oil storage tanks • Route casinghead gas to VRU or compressor for recovery & use or sale

Producing Wells Gas Transmission Gas Production & Processing • DI&M at compressor stations • Perform reduced emissions • Use fixed/portable compressors completions for pipeline pumpdown • Install plunger lifts • Install vapor recovery units on • Aerial leak detection using laser Gathering Lines Transmission pipeline liquid/condensate tanks and/or infrared technology Processing Plant • Eliminate unnecessary equipment and/or systems Compressor Stations

LNG or Propane/Air Plant

Gas Storage • Convert gas pneumatic controls to Underground instrument air Storage • Replace bi-directional orifice metering City Gate Large Volume with ultrasonic meters (Regulators/Meters) Customer • Reduce methane emissions from Regulator/Meter compressor rod packing systems

Distribution Mains Residential Customers Gas Distribution • DI&M at surface facilities • Identify and replace high-bleed Commercial pneumatic devices Customer • Survey and repair leaks Picture courtesy of American Gas Association. 2007: Continuing Excellence Technology Transfer Activities Now in its 15th year, the Natural Gas STAR Program continues to achieve success through its partnerships with the oil and natural gas industry. Natural Gas STAR methane emission Since 1993, the oil and natural gas industry has eliminated nearly 677 bil- reducing technologies and practices lion cubic feet (Bcf) of domestic methane emissions through the imple- have become widely implemented mentation of more than 120 cost-effective technologies and practices. by partners as a result of technology transfer and sharing partner experi- For calendar year 2007, Natural Gas STAR partners reported domestic ences across the industry. This is emissions reductions of approximately 92.5 Bcf. These emissions reduc- achieved through Natural Gas STAR tions, voluntarily undertaken by Natural Gas STAR partner companies, technical documents, technology have cross-cutting benefits on domestic energy supply, industrial efficien- articles in the quarterly newsletter, cy, revenue generation, and greenhouse gas emissions reductions. and partner sponsored Technology The 2007 voluntary domestic emissions reductions are equivalent to: Transfer Workshops and Webcasts. • The additional revenue of nearly $648 million in natural gas sales (as- In 2008, Natural Gas STAR held five sumes 2007 average natural gas price of $7.00 per thousand cubic feet). domestic Technology Transfer Work- shops and is organizing an interna- • The avoidance of 37.4 million tonnes CO2 equivalent. tional Technology Transfer Workshop • The CO2 emissions from the electricity use of nearly 5 million homes on the topic of flaring and venting per year. planned for December 2008 in Am- • The annual greenhouse gas emissions from approximately 6.8 million sterdam. Additionally, there was one passenger vehicles. Webcast addressing methane emis- sion reduction opportunities from the • The carbon sequestered annually by 8.5 million acres of pine or fir forests. distribution sector on July 16, 2008, Natural Gas STAR Emissions Reductions as of 2007 with a similar Webcast planned for the 676.6 transmission sector in October 2008. 700 600 Domestic workshops covered much 500 of the oil and natural gas produc- 400 ing regions, with events in ,

Bcf Annual 300 Cumulative Louisiana, North Carolina, , and 200 92.5 (Continued on next page) 100 0 2001 2002 2003 2004 2005 2006 2007

2007 Emissions Reductions by Sector (92.5 Bcf)

1% Production 19% Gathering and Processing Transmission Distribution 7%

73% Natural Gas STAR International In addition to the growth experienced under the domestic Program since (Continued from previous page) 1993, international progress is also being made in reducing methane Wyoming. Co-sponsored by industry emissions under Natural Gas STAR International. The Natural Gas STAR partners, these workshops provide an International Program requirements mirror that of the domestic Natural opportunity for participants to engage Gas STAR Program, and membership is open to all oil and natural gas in a peer-based exchange of techni- companies worldwide. This was the first year that international partners cal and economic information related submitted Annual Reports to the Program. For 2007, Natural Gas STAR to cost-effective methane emission International partners reported nearly 6.7 Bcf in emissions reductions reduction technologies and prac- and a total of 14.4 Bcf since the inception of the Natural Gas STAR Inter- tices and other best practices. More national Program. information on these workshops can The 2007 voluntary international emissions reductions are equivalent to: be found on the Natural Gas STAR Web site at epa.gov/gasstar/workshops/ • The additional revenue of nearly $47 million in natural gas sales (as- index.html. sumes 2007 natural gas price of $7.00 per thousand cubic feet). Thanks to our Technology • The avoidance of 2.7 million tones CO equivalent. 2 Transfer Workshop Sponsors: • The CO emissions from the electricity use of nearly 360,000 homes 2 American Gas Association per year. Chevron Corporation • The annual greenhouse gas emissions from nearly 500,000 passenger vehicles. EnCana Oil & Gas • The carbon sequestered annually by 615,000 acres of pine or fir forests. Independent Petroleum Association of Mountain States Marathon Oil Company International Natural Gas STAR Emissions Reductions as of 2007

14.4 Oil & Gas Association 14 12 Petroleum Association of Wyoming 10 Shell Exploration & Production Company Annual

Bcf 8 6.7 6 Cumulative Southern Gas Association 4 Texas Oil & Gas Association 2 0 2004 2005 2006 2007 New Tools and Resources In recent years, Natural Gas STAR has introduced several new tools and resources to further the goals of identifying, analyzing, and promoting methane emission reduction activities in the oil and natural gas industry. The Natural Gas STAR Web Site - All New! In addition to developing new tools and resources, this past year the Natural Gas STAR Program redesigned its entire Web site. As part of this redesign, all of the Gas STAR Web pages have been revised, reformatted, and “refreshed” to include the most up to date information in an informative and user-friendly way. To learn more about the redesigned Web site, please visit epa.gov/gasstar. Nodal Analysis Tool This tool allows policy makers, project developers, project financiers, environmental professionals, and others in the oil and natural gas industry to explore information on all facets of the oil and natural gas production process. Users can learn how aspects of the oil and natural gas industry and their associated processes interrelate, drill down to de- tailed diagrams of the supply chain, and find current best practices, guidance documents, and technologies to reduce methane emissions. Each node includes a built-in glossary of key terminology and control technology information on ways to reduce methane emissions. Users can also upload information about their projects to engage others. To learn more about the Nodal Analysis Tool, please visit www.gastool.methanetomarkets.org/m2mtool/index.html. Partner Challenge Service The goal of the Natural Gas STAR Partner Challenge service is to assist partner companies in identifying and imple- menting new methane emission reduction opportunities by developing estimates of a partner’s methane emissions, identifying key emission sources, and proposing economically and environmentally beneficial mitigation activities. The end product is a detailed report that quantifies methane emissions volumes by source and provides detailed eco- nomic emissions analyses for implementing targeted emission reduction opportunities. To learn more about the Partner Challenge Service, please visit epa.gov/gasstar/tools/partner-challenge.html. STARtracker Software Devon Energy Corporation, in collaboration with COMM Engineering and Louisiana State University, developed STARtracker, a Web-based application for tracking and reporting methane emissions reductions. The application, to be hosted on individual companies’ Web servers, allows users to set up the tool to reflect their operations in order to track and catalog methane emissions reductions across their company. To learn more about the STARtracker Software, please visit epa.gov/gasstar/tools/star-tracker.html. Emissions Reduction Quantification Reference Guide In order to help Natural Gas STAR partners and other stakeholders better quantify emissions reductions achieved through participation in the Program, EPA has developed a new reference guide to provide assistance in quantifying the methane emissions reductions achieved by a particular technology or practice. To learn more about the Emissions Reduction Quantification Reference Guide, please visit epa.gov/gasstar/tools/ index.html#technical. Emissions Reductions by Sector The following section illustrates the major sources of methane emissions from each industry sector and the technolo- gies and practices implemented by partners to reduce methane emissions. The information showing the breakdown of emission sources was taken from the EPA Inventory of U.S. Greenhouse Gas Emissions and Sinks, and the information showing Natural Gas STAR partner activities, was taken from partner reports and Natural Gas STAR historical data. Production Sector Accomplishments

Production Sector Source: EPA Inventory of U.S. Top Emission Sources in 2006 Greenhouse Gas Emissions and Sinks 1990-2006, April 2008 Meters and Storage Tank Pipeline Venting Well Venting Leads 6 Bcf Pneumatic Devices and Flaring 8 Bcf 48 Bcf 8 Bcf Other Sources 8 Bcf

Compressor Fugitives, Venting, and Engine Exhaust 13 Bcf

Dehydrators and Pumps 13 Bcf Offshore Operations 29 Bcf

Production partners reported approximately 67.1 Bcf of methane emissions reductions in 2007—and a total of 416.5 Bcf since 1990. The technologies and practices employed by production sector partners include:

Top Technologies in 2007 Top Technologies Since 1990 Total Sector Reductions in 2007 = 67.1 Bcf Cumulative Sector Reductions = 416.5 Bcf 3% 3% 15% Perform reduced emissions Perform reduced emissions 5% 22% completions completions 3% Artificial lift: install plunger lifts 10% Install vapor recovery units (VRUs) 51% 3% Convert to instrument air systems Artificial lift: install plunger lifts Artificial lift: install smart lift Identify and replace high-bleed 4% automated systems on gas wells pneumatic devices Identify and replace high-bleed Install flares 5% 12% pneumatic devices Artificial lift: install smart lift Use foaming agents to reduce automated systems on gas wells 6% blowdown frequency Convert to instrument air systems Install vapor recovery units (VRUs) 30% Other 13% Other 15% Gathering and Processing Sector Accomplishments

Gathering and Processing Sector Source: EPA Inventory of U.S. Top Emission Sources in 2006 Greenhouse Gas Emissions and Sinks 1990-2006, April 2008 Dehydrators and Other Pumps Plant Sources <1 Bcf Fugitives 1 Bcf Reciprocating 2 Bcf Compressors Blowdowns 16 Bcf 2 Bcf

Centrifugal Compressors 5 Bcf

Gas Engine Exhaust 7 Bcf

Gathering and processing partners reported 6.5 Bcf of methane emissions reductions in 2007—and a total of 34.3 Bcf since 1990. The technologies and practices employed by gathering and processing sector partners include:

Top Technologies in 2007 Top Technologies Since 1990 Total Sector Reductions in 2007 = 6.5 Bcf Cumulative Sector Reductions = 34.3 Bcf

11% DI&M at gas plants and booster DI&M: aerial leak detection using stations 20% laser and/or infrared technology 27% 27% 4% DI&M: aerial leak detection using Install electric compressors laser and/or infrared technology Eliminate unnecessary equipment 6% Install electric compressors and/or systems Redesign blowdown/alter ESD DI&M: leak detection using IR 7% practices camera/optical imaging Pipeline replacement and repair 14% Optimize nitrogen rejection unit to reduce methane in N2 reject stream Eliminate unnecessary equipment 6% 7% and/or systems Redesign blowdown/alter ESD Improve measurement systems to practices 7% 20% track gas loss Pipeline replacement and repair 18% 10% Other 7% 9% Other Transmission Sector Accomplishments Transmission Sector Source: EPA Inventory of U.S. Top Emission Sources in 2006 Greenhouse Gas Emissions and Sinks 1990-2006, April 2008 Other Station Sources Fugitives 4 Bcf 7 Bcf Reciprocating Compressors Pipeline Leaks 39 Bcf 2 Bcf

Station Venting 8 Bcf

Centrifugal Compressors 8 Bcf

Gas Engine Exhaust Pneumatic Devices 10 Bcf 11 Bcf

Transmission partners reported 17.7 Bcf of methane emissions reductions in 2007—and a total of 195.1 Bcf since 1993. The technologies and practices employed by transmission sector partners include:

Top Technologies in 2007 Top Technologies Since 1993 Total Sector Reductions in 2007 = 17.7 Bcf Cumulative Sector Reductions = 195.1 Bcf

15% Use fixed/portable compressors for 15% DI&M at compressor stations 22% 21% pipeline pumpdown Use fixed/portable compressors for Use composite wrap repair pipeline pumpdown 6% 5% Use of turbines at compressor stations Install vapor recovery units on pipeline liquid/condensate tanks Install vapor recovery units on 7% pipeline liquid/condensate tanks 7% Use of turbines at compressor stations Replace wet compressor seals with dry seals Replace wet compressor seals with 16% 17% dry seals Install electric compressors 9% 10% DI&M at surface facilities DI&M at compressor stations Use composite wrap repair 11% 11% 14% Other 14% Other Distribution Sector Accomplishments Distribution Sector Source: EPA Inventory of U.S. Top Emission Sources in 2006 Greenhouse Gas Emissions and Sinks 1990-2006, April 2008 Other Protected Steel Sources Mains/Services 2 Bcf Customer Meter 4 Bcf Leaks M&R Stations 5 Bcf 14 Bcf

Plastic Mains/Services 2 Bcf

Unprotected Steel Cast Iron Mains/Services Mains 12 Bcf 8 Bcf Regulator Stations 9 Bcf

Distribution partners reported 1.5 Bcf of methane emissions reductions in 2007—and a total of approximately 39.8 Bcf since 1993. The technologies and practices employed by distribution sector partners include:

Top Technologies in 2007 Top Technologies Since 1993 Total Sector Reductions in 2007 = 1.5 Bcf 1% Cumulative Sector Reductions = 39.8 Bcf 1% 4% 3% 5% DI&M: survey and repair leaks 2% DI&M at Surface Facilities 4% 6% 42% Identify and rehabilitate leaky Identify and rehabilitate leaky distribution pipe distribution pipe 12% 6% Replace compressor rod packing DI&M: survey and repair leaks systems Identify and replace high-bleed Install excess flow valves 7% pneumatic devices Identify and replace high-bleed Use automated systems to reduce pneumatic devices pressure DI&M at surface facilities DI&M at compressor stations 9% (non-mainline transmission) Use fixed/portable compressors for 21% 55% Inject blowdown gas into low pipeline pumpdown pressure system 22% Other Other Natural Gas STAR Partners and Endorsers Production Colorado Interstate Gas Company (An Columbia Gas of Maryland, Inc. (a Texas Gas Services (a ONEOK Distribu- El Paso Transmission Company) NiSource Distribution Company) tion Company) Anadarko Petroleum Corporation Columbia Gas Transmission Corpora- Columbia Gas of Ohio, Inc. (a NiSource UGI Utilities, Inc. Apache Corporation tion (a NiSource Transmission Distribution Company) Washington Gas BP Company) Columbia Gas of Pennsylvania, Inc. (a Wisconsin Public Service Company Chesapeake Energy Columbia Gulf Transmission Company NiSource Distribution Company) Xcel Energy Chevron Corporation (a NiSource Transmission Company) Columbia Gas of Virginia, Inc. (a ConocoPhillips Alaska Natural Gas Consumers Energy NiSource Distribution Company) International Corporation DTE Energy – MichCon Connecticut Natural Gas Corporation Comgas ConocoPhillips Petroleum Company El Paso Natural Gas Company Consolidated Edison Company of New ConocoPhillips Canada Ltd. Devon Energy Enbridge, Inc. York, Inc. Devon Energy Corporation El Paso E & P Company, L.P. Florida Gas Transmission (a Southern Constellation Energy/Baltimore Gas EnCana Oil & Gas (USA) Inc. Union Gas company) and Electric Company Enbridge, Inc. Energen Resources Granite State Gas Transmission, Inc. (a Consumers Energy ExxonMobil Corporation ExxonMobil Production Company NiSource Transmission Company) Corning Natural Gas Corporation Marathon Oil Corporation Hess Corporation’s Americas Explora- Great Lakes Gas Transmission Company Delmarva Power Occidental Oil and Gas Corporation tion and Production Gulf South Pipeline DTE Energy - MichCon Oil and Natural Gas Corporation Ltd. Hunt Oil Company Iroquois Gas Transmission System Duke Energy Ohio/Kentucky (ONGC) Linn Energy, LLC Kinder Morgan Equitable Gas Co. Transcanada Marathon Oil Company Northern Natural Gas Kansas Gas Services (a ONEOK Distri- Murphy Exploration and Production ONEOK Partners bution Company) Endorsers Company Pacific Gas and Electric Company KeySpan Energy Delivery (a National The Air & Waste Management Associa- Newfield Exploration Company Panhandle Eastern Pipeline (a Southern Grid Company) tion (A&WMA) Noble Energy, Inc. Union Gas company) Kinder Morgan American Exploration & Production Occidental Oil and Gas Corporation Piedmont Natural Gas Kokomo Gas and Fuel Company (a Council Quicksilver Resources Public Service Company of New Mexico NiSource Distribution Company) American Gas Association (AGA) SandRidge Energy Questar Pipeline Company Laclede Gas Co. American Institute of Chemical Shell Exploration & Production Sea Robin Pipeline (a Southern Union Maine Natural Gas Engineers (AIChE) Institute for Company Gas company) National Grid Sustainability Southwestern Energy Company Source Gas LLC New Jersey Natural Gas Company American Petroleum Institute (API) Torch Energy Southern Gas Company New York State Electric & Gas Corpora- Colorado Oil and Gas Association Total E&P USA Southern Natural Gas Company (An El tion (COGA) Venoco Inc. Paso Transmission Company) Nicor Gas Gas Processors Association (GPA) Williams Production RMT Company Spectra Energy Transmission Northern Indiana Fuel & Light Co. (a Gulf Coast Environmental Affairs XTO Energy Tennessee Gas Pipeline Company (An NiSource Distribution Company) Group (GCEAG) El Paso Transmission Company) Northern Indiana Public Service Independent Petroleum Association of Gathering and Processing Transcanada - Gas Transmission Company (a NiSource Distribution America (IPAA) Company) Independent Petroleum Association of BP Northwest Northern Utilities (a NiSource Distribu- Mountain States (IPAMS) Chevron Corporation Trunkline Gas (a Southern Union Gas tion Company) Interstate Natural Gas Association of ConocoPhillips company) Williams Gas Pipeline Oklahoma Natural Gas (a ONEOK America (INGAA) DCP Midstream Distribution Company) Interstate Oil & Gas Compact Commis- Enbridge Energy Partners, L.P. Williston Basin Interstate Pipeline Company Orange and Rockland Utilities, Inc. sion (IOGCC) Enogex LLC Pacific Gas and Electric Company Montana Petroleum Association (MPA) ExxonMobil Production Company Distribution PECO Energy Company Natural Gas Supply Association (NGSA) ONEOK Partners Piedmont Natural Gas New York State Energy Research and AGL Resources Pioneer Natural Resources USA, Inc. PSNC Energy Development Authority (NYSERDA) Alliant Energy ROC Gas Company (a wholly owned Public Service Company of New Mexico Northeast Gas Association (NGA) subsidiary of SandRidge Energy) Aquila Networks Public Service Electric and Gas Petroleum Association of Wyoming Targa Resources, Inc. Atmos Energy Corporation Company (PAW) Western Gas Resources (a wholly owned Bay State Gas Company (a NiSource Puget Sound Energy Petroleum Technology Transfer Council subsidiary of Anadarko Petroleum Distribution Company) Questar Gas Co. Southern Gas Association (SGA) Corporation) Berkshire Gas Rochester Gas & Electric Corporation Texas Alliance of Energy Producers CenterPoint Energy Arkla/Entex Source Gas LLC CenterPoint Energy Minnesota Gas Transmission South Carolina Electric & Gas Company Alliance Pipeline LP Central Hudson Gas & Electric Corpo- (a SCANA Corporation Company) ration ANR Pipeline Company (a TransCanada Southern California Gas Company Citizens Gas and Coke Utility Company) Southern Connecticut Gas Company Columbia Gas of Kentucky, Inc. (a Carolina Gas Transmission (a SCANA Corporation NiSource Distribution Company) Corporation Company) October 2008