Survey shows 58% of polled companies have no emissions-measuring plan

A recent survey of 143 energy and utility professionals indicates 58% have no system to record carbon emissions. That's a slight improvement from 61% who responded the same way during 2010, reports Enviance Inc., a software provider for management of environmental, health, and safety compliance activities.

Lawrence Goldenhersh, Enviance president and chief executive officer, said his company commissioned the survey for two consecutive years as a way to track changes about how companies handle their environmental and regulatory concerns.

When asked about monitoring the US Environmental Protection Agency, 84% of those polled said they monitor changing EPA rules “as they happen.” Goldenhersh said this demonstrates a clear corporate commitment to stay ahead of EPA changing regulations.

“It will be interesting to see whether the advent of cap and trade in California in 2012...will alter what companies consider necessary to meet the analysis and reporting requirements imposed by the SEC,” Goldenhersh said of the US Securities and Exchange Commission.

California’s AB32 legislation will implement a price on carbon starting in 2012 (OGJ Online, Nov. 3, 2010).

Enviance, a privately owned company n Carlsbad, Calif., reported its survey results during the EUEC conference in Phoenix. EUEC is an annual energy, utility, and environment conference involving environmental business leaders, energy executives, and government policymakers.

Texas agency skips EPA hearing

The most telling news coming out of a US Environmental Protection Agency hearing in Dallas was the absence of the Texas Commission on Environmental Quality (TCEQ). EPA’s Jan. 14 hearing concerned the federal takeover of permits for new or expanding Texas power plants, refineries and other industrial plants.

"The state's position on proposed greenhouse gas regulations has been clearly articulated to the EPA and well documented in several pending court cases,” TCEQ said in an email statement to OGJ.

“Our attempts to reason with EPA and efforts to have constructive discussions on our position and their authority under federal law have been ignored,” TCEQ said. “We look forward to pursuing our position in the court system, and we are confident that science and the law will prevail."

The EPA and Texas state officials disagree about whether EPA legally can regulate GHG emissions such as carbon dioxide, and whether EPA has a right to issue GHG-gas permits in Texas when the state refuses to do so.

Effective this year, permit applications for industrial plant expansions must outline plans to use “best available control technology” to reduce GHGs. That stems from a 2007 US Supreme Court decision saying that the Clean Air Act authorizes limits on GHG emissions.

State agencies in every state but Texas are issuing the permits or putting procedures in place to do so. But Texas refuses to take part, saying the EPA overstepped its authority by regulating GHG emissions.

Meanwhile, the battle continues in federal court. Separately, the EPA is taking written comments until Feb. 14.

Oil and gas companies study drinking water wells in Texas, Pennsylvania

Some oil and gas companies are starting to consider testing water wells before they drill oil and natural gas wells. This stems from the debate about whether hydraulic fracturing threatens the safety of drinking water.

Cabot Oil and Gas Corp. faced water-contamination questions in Pennsylvania while Range Resources Corp. faced similar questions regarding its Barnett shale operations in Texas. The accusations have caused some within the oil and gas industry to question the quality of drinking water before any oil and gas drilling was done.

Meanwhile, Texas Railroad Commissioner Michael L. Williams on Dec. 7 accused the US Environmental Protection Agency of “Washington politics of the worst kind” and of “grandstanding in an effort to interject the federal government into Texas business.”

Williams made his comments after the EPA suggested that gas operations by Range Resources contaminated two water wells in southwest Parker County, Tex., where gas was found in the water. Range Resources issued a Dec. 8 news release saying research indicates its operations did not cause any methane in the water wells.

For months, Range Resources worked with the RRC and others on extensive testing of both its gas wells and the water wells of concern.

Cabot Oil and Gas said in an Oct. 19 release that it has proof that methane gas has been present in water wells around the Dimock Township, Pa., area for generations. Four Dimock-area water wells have methane levels in the water that exceeds levels suggested by the US Department of the Interior.

“We do not believe that our operations caused the Dimock water-quality issues,” a Cabot spokesman said.

All of this is causing oil and gas companies to consider testing the water before they drill.

EPA reportedly delays E15 decision on older vehicles

The US Environmental Protection Agency reportedly has delayed making a decision on the use of gasoline with 15% ethanol in cars and pickup trucks built from 2001 to 2006.

As of Nov. 23, Oil & Gas Journal had received no official statement from EPA regarding the delay as reported by some other media outlets.

The American Petroleum Institute greeted the reported delay as welcomed news while the Renewable Fuels Association expressed disappointment.

RFA Pres. and Chief Executive Officer Bob Dinneen encouraged EPA to extend due diligence to testing for all cars and pickups, regardless of age. RFA is a trade association for the US ethanol industry.

“We believe the fuel testing to date clearly demonstrates the efficacy of E15 as a motor fuel for all light-duty vehicles," Dinneen said.

API Downstream Director Bob Greco said API previously suggested EPA should extend its review 6 months or more to allow scientific testing to be completed on the effects of E15 on the engines of older vehicles.

He noted the US oil and natural gas industry is the biggest consumer of ethanol and other biofuels.

“We support a realistic and workable Renewable Fuel Standard and the responsible introduction of increased biofuels in a manner that protects consumers,” Greco said. “However, rushing to allow more ethanol before we know it is safe could be disastrous for consumers and could jeopardize the future of renewable fuels."

On Oct. 13, EPA partially waived its 10% limit on ethanol, allowing up to 5% more for model year 2007 or newer cars and light trucks. DOE said testing was under way on E15’s use in 2001-06 model year vehicles, and the agency had expected to announce a decision this month. But as of Nov. 19, that decision reportedly has been delayed for up to 30 days.

Devon moves toward carbon offset credits through retrofit

Devon Energy Corp. worked with Verdeo Group Inc. to find a way to reduce methane emissions from wells by retrofitting high-bleed pneumatic controllers with low-bleed options. Devon intends to use the offset credits to mitigate risk from future US climate legislation.

The American Carbon Registry, a private voluntary greenhouse gas offset registry, approved the technology as a carbon offset methodology. Verdeo of Washington, DC, is developing and financing pre-compliance GHG emissions reduction projects.

Oil and gas operators typically use pressurized natural gas in pneumatic controllers to regulate pressure, flow rate, and liquid levels. Pneumatic controllers vent methane emissions.

The US Environmental Protection Agency has said high-bleed controllers are among the industry’s biggest sources of vented methane. Thousands of existing wells use high-bleed pneumatic controllers. New wells typically are equipped with low-bleed technology.

Now, Devon plans to retrofit its high-bleed pneumatic controllers with low-bleed pneumatic controllers.

“Devon has a corporate initiative to reduce GHG emissions and create tradable, bankable offset credits,” said Darren Smith, Devon manager of environmental health and safety. “This methodology allows us to quantify and verify GHG reductions in a credible and transparent manner.”

The Oklahoma City producer also plans to pursue additional offset project development, he said.

Mayors making energy news

As an Oil & Gas Journal writer, I generally don’t report on city politics. However, this week, a couple of mayors deserve mention when it comes to energy-related news—Houston for taking on air emissions and San Diego for its renewable financing initiatives.

Houston Mayor Bill White received a favorable response from the US Environmental Protection Agency regarding his request for EPA to revamp the system that is used to calculate air emissions from petrochemical plants and refineries.

In July 2008, White filed a formal Request for Correction under the EPA’s Information Quality Guidelines. White long has questioned the level of toxic pollutants in Houston’s air, particularly benzene emissions. The EPA recently agreed to develop a comprehensive protocol from emission inventions.

In San Diego, Mayor Jerry Sanders is working to make solar panels more affordable for residents. The San Diego Clean Generation Program was announced in December and becomes effective July 1.

The city of San Diego pays the up-front installation costs for solar panels, and then homeowners and business repay the city over 20 years.

Sanders emphasizes the financing is tied to the property rather than an individual. Residents who install solar panels only pay for it while they own the property. Once they sell the house having these solar panels, the remaining cost passes onto the new owner.

While the general public might not understand most operating logistics of the oil and gas industry, people tend to notice efforts by their local politicians toward achieving cleaner air and providing green-financing initiatives.