Oil

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Oil Natural Gas Partnership
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Problem

• We are having problems meeting NAAQS and regional
  haze standards in the West
• Our existing programs are sometimes difficult to
  implement
• Collaborate now to get ahead of problem to avoid
  a more difficult implementation in the future

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• From DOEs Office of Fossil Energy, concern
  about air emissions from exploration and
  production activities is focused on five or six
  areas in the United States where operations are
  ongoing.

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Visibility Yellowstone NP
Spectrum SeriesRegional Haze Spectrum 2 of
1590000 AMRepresentativedv1 
Spectrum SeriesRegional Haze Spectrum 12 of
1590000 AMRepresentativedv15  8/98 RM/NGP
Report - Poor
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(No Transcript)
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Air Quality Trends in Western National Parks,
1994-2003
FY2004 Annual Performance Report For NPS
Government Performance and Results Act (GPRA) Air
Quality Goal Ia3
Colored boxes indicate the existence of air
quality trends during 1994-2003. Dark green and
red boxes indicate statistically significant
improving or degrading trends at the .05
significance level while the light green and
yellow boxes represent similar trends but not
statistically significant with probabilities (p
values) between 0.05 and 0.15. These last two
symbols are included to indicate which parks had
trends that would have been considered
statistically significant under the procedures
used in past years. A significance level of .05
means there is a 5 chance of concluding there
was a trend when in fact the change was due to
chance.
02/04/2005
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Rural Ozone
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Future OG Development

• Over 50 of CBM production in USA from Rocky Mtn
  region - Powder River, Raton, San Juan, and Uinta
  basins (DOE estimates reserves 143 Tcf)
• Future development in Piceance, Denver, and
  Greater Green River basins (DOE estimates
  reserves 415 Tcf)
• 50-80 of estimated recoverable CBM in the US
  will be from the Rocky Mtn region

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Future OG Development

• Rocky Mountain Region contains more natural gas
  than any other onshore region in the lower 48
  states
• Twice the amount of annual product by 2025
• 3.3 Trillion cubic feet in 2002
• 4.6 TCF by 2010
• 6.3 TCF by 2025

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Current Challenges

• Court ordered deadline to decide on whether
  current federal standards are adequate to protect
  Western parks from nitrogen pollution
• Regional Haze SIPs due at the end of 2007
• PSD permit requirements
• Increment analyses to include all sources
• Denver ozone SIP
• MACT regulations

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Current Challenges

• ED Powder River Basin CBM EIS and other citizen
  lawsuits
• EISs
• Traditional enforcement

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A Message from the President
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Partnership for Sustainable Development

• Collaborative, non-traditional approach to
  develop in a sustainable manner
• Seeking Industry partnership

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Vision

• Get ahead of looming air quality impacts
• Create room for continued growth
• Support oil gas development
• Achieve emission reductions
• Minimize venting and flaring
• WIN-WIN solutions

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Goals/Potential Benefits

• Provide head room for continued growth
• Create certainty with flexibility
• Lessen past and future enforcement and regulatory
  liabilities
• Streamline permitting
• Increase gas to market through reduced gas loss
• Increase profits
• Protect the environment
• Improve public perception

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Solution

• Develop and implement a productive and efficient
  program to decrease environmental impacts while
  maintaining pace of development by
• Building consensus with State Partners on
  overarching goals of a program
• Identifying options to achieve these goals
• Collaborating with Industry on developing
  potential options

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Elements of Partnership
RESOLVE PAST COMPLIANCE ISSUES
DEVELOP TECHNICAL SPECIFICATIONS FOR EXISTING
SOURCES
DEVELOP TECHNICAL SPECIFICATIONS FOR FUTURE
DEVELOPMENT
DEVELOP TECHNICAL SPECIFICATIONS FOR AMBIENT
MONITORING PROGRAMS
STREAMLINE AGENCY INDUSTRY INTERACTION
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Element Characteristics
DEVELOP TECHNICAL SPECIFICATIONS FOR EXISTING
SOURCES
DEVELOP TECHNICAL SPECIFICATIONS FOR FUTURE
DEVELOPMENT
DEVELOP TECHNICAL SPECIFICATIONS FOR AMBIENT
MONITORING PROGRAMS
STREAMLINE AGENCY INDUSTRY INTERACTION
RESOLVE PAST COMPLIANCE ISSUES

• Flexibility but with certainty
• Timeliness
• Regional consistency
• Less administrative burden

• Reduce emissions from
• Well completions
• Drilling rigs
• Production processes (flares, dehyds, tanks,
  engines, transportation systems, instrumentation,
  pigging)
• Fugitive dust from roads

• Multiple stakeholder support for capital
  investment and ongoing operational expenses
• Agencies to determine network design
• Supports modeling efforts for quantifying
  cumulative impacts

• Reduce existing emission inventory
• Reduce existing impacts
• Improve operational efficiency
• Accommodate future growth

• If, industry invests in emission reduction
  technologies, monitoring, operational
  optimization, etc
• Then, no look back

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Solution

• States and EPA have evaluated options for
  discussion with Industry to address
• NOx
• VOCs
• PM
• ambient monitoring