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Oil & Natural Gas Partnership. 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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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
From DOE’s 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.”
OLYMPIC N. CASCADES GLACIER MT RAINIER T. ROOSEVELT LITTLE BIGHORN CRATER LAKE YELLOWSTONE CRATERS OF THE MOON BADLANDS REDWOOD LASSEN VOLCANIC ROCKY MOUNTAIN POINT REYES GREAT BASIN YOSEMITE CANYONLANDS BRYCE CANYON GREAT SAND DUNES Improving (p<=0.05) PINNACLES SEQUOIA DEATH VALLEY MESA VERDE Improving (0.05<p<=0.15) GRAND CANYON CAPULIN VOLCANO Degrading (0.05<p<=0.15) PETRIFIED FOREST JOSHUA TREE BANDELIER CHANNEL ISLANDS TONTO Degrading (p<=0.05) GILA CLIFFS ORGAN PIPE No Trend SAGUARO CHIRICAHUA GUADALUPE MTS No Data / Insufficient Data CHAMIZAL BIG BEND DENALI Sulfate in Precipitation Nitrate in Precipitation Ammonium in Precipitation Visibility-Clear Days Visibility-Hazy Days Ozone 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
Future O&G Development • Over 50% of CBM production in USA from Rocky Mtn region - Powder River, Raton, San Juan, and Uinta basins (DOE estimatesreserves = 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
Future O&G 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
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
Current Challenges • ED Powder River Basin CBM EIS and other citizen lawsuits • EISs • Traditional enforcement
Partnership for Sustainable Development • Collaborative, non-traditional approach to develop in a sustainable manner • Seeking Industry partnership
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
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
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