OGJ Newsletter

Jan. 2, 2012
International news for oil and gas professionals

GENERAL INTERESTQuick Takes

Chamber petitions EPA to correct GHG estimate

The US Chamber of Commerce petitioned the US Environmental Protection Agency to correct assumptions EPA used to develop greenhouse gas requirements for gas producers since 2010. EPA used a well completion emissions factor of 9,175 Mcf/completion, which the Chamber calls an overestimate.

In a Dec. 19, 2011, filing, the Chamber said EPA's estimate was based on unverified information from a limited number of wells regarding gas captured by green completions and gas emitted from nongreen completions obtained through Natural Gas STAR Program.

"No one had addressed this issue in this way," Ross Eisenberg, the Chamber's environment and energy counsel, told OGJ. "The Information Quality Act requires information developed for regulations to be reasonably correct. We wanted to ask EPA to correct information in this case that was flat-out wrong."

The Chamber cited an IHS CERA report, "Mismeasuring Methane: Estimating Greenhouse Gas Emissions from Upstream Natural Gas Development," and the petition said methodology used by EPA's Climate Change division was flawed.

The petition also said that URS Corp. conducted a survey of seven producers' shale gas well completions and emissions, which provided data on 1,200 wells.

The survey found actual GHG emissions from the wells' completions were more than 1,200% lower than EPA's estimate, that green completions were used on 92% of the wells, and that gas from 55% of the nongreen completion wells was flared instead of vented.

The Chamber's petition sought a correction from EPA within 90 days, or a notice, explanation, and estimated completion date if more time is required.

BLM extends Rough Draw project comment period

The US Bureau of Land Management extended the comment period on Patriot Energy Resources LLC's proposed Rough Draw coalbed methane project 13 miles north of Gillette, Wyo.

BLM's office in Buffalo, Wyo., announced the comment period was extended to Jan. 17. Initially, the comment period was to have ended on Jan. 3 (OGJ Online, Dec. 7, 2011).

BLM's Buffalo, Wyo., office has added a new exhibit, "Analysis of Impacts of Methane Farming on Federal Coal in the Powder River Basin, Wyoming," on its web site along with Patriot's application and supporting documentation.

Patriot is a Gillette-based subsidiary of Luca Technologies, an applied research company based in Golden, Colo. BLM documents show Luca spent $40 million developing a method to farm methane through a biogenic gas generation process.

Luca has acquired operating rights to 589 wells in central Campbell County, Wyo. The coalbed gas development area in Wyoming involves federal, nonfederal, and partial federal mineral ownership.

NETL seeks proposals to manage project impacts

The National Energy Technology Laboratory has issued a request for proposals to study ways to improve environmental performance for unconventional natural gas projects. Proposals will be accepted until Mar. 6.

The proposal is part of an onshore unconventional resources program by NETL's contractor, the Research Partnership to Secure Energy for America.

RPSEA has a specific goal of unlocking substantial domestic shale gas resources while addressing public concerns about potential environmental impacts.

"There is a need to demonstrate that the controls, safeguards, and environmental impact mitigation procedures put in place during drilling and production are commensurate with the associated risks," it said in its program opportunity statement.

Proposals will be accepted in four focus areas: minimizing surface disruption, improving groundwater protection, maximizing hydraulic fracturing efficiency by minimizing total fluid requirements, and improving fluid management approaches.

The request follows one on Dec. 13, 2011, aimed at small oil and gas producers, for which proposals will be accepted until Feb. 27, NETL said.

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