IOGCC following CCS initiatives, rulemaking

Nov. 24, 2008
The IOGCC is closely monitoring carbon capture and storage initiatives by governments, research institutions, and the oil and gas industry.

Paula Dittrick
Senior Staff Writer

HOUSTON, Nov. 24 -- The Interstate Oil & Gas Compact Commission is closely monitoring carbon capture and storage (CCS) initiatives by governments, research institutions, and the oil and gas industry.

Various speakers at the IOGCC's annual meeting Nov. 16-18 in Santa Fe, NM, addressed the status of CCS development efforts by federal, state, and provincial governments in the US and Canada.

CCS potentially offers one way to reduce carbon dioxide emissions into the atmosphere.

Separate from the IOGCC conference, US President-elect Barack Obama said he wants to set stringent limits on greenhouse gas emissions. His comments came in videotaped comments to the Governor's Global Climate Summit in Los Angeles on Nov. 18.

CCS has yet to be implemented on a large-scale, commercial basis anywhere in the world. In the US and Canada, existing federal, provincial, or state legislation covers some aspects of CCS, but various CO2 storage issues yet to be addressed.

Alberta's CCS projects
At the IOGCC conference, a speaker for the Alberta government said the province is getting closer to selecting CCS projects in which it plans to invest $2 billion total.

Len Webber, Alberta's parliamentary assistant to the Minister of Energy, said Alberta plans to invest in three to five large-scale CCS projects.

Previously, Alberta asked companies interested in CCS projects to submit proposals under what the province called an expression of interest, or EOI phase. Webber said 50 submissions were made under the EOI phase.

A short list of 20 companies was selected, Webber said, adding that the EOI phase identified the proposals having the greatest chance of being built quickly and providing the best opportunities to significantly reduce GHG emissions.

The next step requires the 20 successful EOI applicant companies to each submit a full project proposal by April 2009, Webber said. The full proposals are to outline details for capture, transportation, and storage of CO2.

"We do develop our resources responsibly. We will continue to take a responsible and resourceful approach," Webber said referring to criticism from some groups that oil sand production results in high [GHG] emissions.

Webber said oil sands are responsible for 0.1% of GHG emissions.

The Canadian federal government and Alberta officials believe CCS has potential to mitigate GHG emissions from oil sands production and electric power generation from fossil fuel-fired power plants.

In April 2007, the Canadian federal government released a "Turning the Corner" plan for reducing GHG emissions from all industrial sectors. More details were released in March, calling for implementation of CCS technology by 2018.

Canada's federal government is seeking proposals under a $125 million fund to encourage CCS technology development. Separately, Alberta is one of various provincial governments offering initiatives seeking to advance CCS projects.

IOGCC tracks states' CO2 lawmaking
Lawrence Bengal, chairman of IOGCC's taskforce on carbon capture and geologic storage, believes that 5-15 states will have legal and regulatory systems for regulating CO2 sequestration and storage by 2010. Bengal directs the Arkansas Oil & Gas Commission.

The taskforce, whose efforts were financed by the US Department of Energy and its National Energy Technology Laboratory, has proposed a state-administered CCS regulatory framework under the authorities of states wishing to participate (OGJ, Oct. 1, 2007, p. 30).

Earlier this year the US Environmental Protection Agency released proposed regulations for a category of injection wells for long-term underground CO2 storage, and Congress is contemplating CCS technology. EPA is accepting public comment on its advance notice of proposed rulemaking (OGJ, July 21, 2008, p. 30).

Bengal believes IOGCC's model regulatory framework and the EPA framework "fit like hand in glove." He added, "This is largely because of the role that states play in the administration of UIC programs under EPA primacy authority."

Bengal said, "I would also anticipate that in this same general timeframe that the EPA will likewise have in place regulations governing geologic storage of CO under the Safe Drinking Water [SDW] Act and the implementing Underground Injection Control [UIC] program," Bengal said.

The EPA's proposed sequestration regulations fall under the SDW Act. Bengal said states already play an integral role in administering the UIC program and under future rules governing geologic storage, are likely to do so again.

Having participated with the EPA regulatory development process, Bengal said EPA's involvement of representatives from states "helps insure compatibility between the state and federal components of geologic storage regulatory oversight."

Contact Paula Dittrick at [email protected].