Thoughts on Oil & Gas Protocol Development February 12th 2009

General Observations Project Plan may not have clearly defined the expected deliverables: Scoping Paper (Difficult flow between mandatory and voluntary elements: Maybe should have been two documents?) Technical review and evaluation of calculation methods for mandatory rule purposes Voluntary reporting protocol that is as consistent as possible with the mandatory rule recommendations There will be likely be confusion between mandatory and voluntary reporting requirements – project produces two different, but related deliverables 2

The Climate Registry Overview Mission: To set consistent and transparent standards to calculate, verify and publicly report GHG emissions into a single, unified North American registry TCR supports both voluntary and mandatory reporting Governance: 41 US States 12 Canadian Provinces & Territories 6 Mexican States 4 Native Sovereign Nations 320 Members

TCR’s Voluntary Registry Voluntary reporting requirements: Entity-level reporting of 6 GHGs in North America Reporting at the facility level Reporting all Scope 1 and Scope 2 emissions Annual third party verification Reporting Tools General Reporting Protocol General Verification Protocol Guidance on Accreditation Climate Registry Information System (CRIS) Forthcoming: Industry specific protocols (Oil & Gas, etc.)

TCR’s Support of Mandatory GHG Reporting Programs TCR does not have its own mandatory program TCR provides tools to jurisdictions to help them implement their own mandatory programs TCR: Provides technical support options for data collection (via CRIS) Advocates centralized data input & data transfer between programs Promotes consistency across programs Calculation methodologies/reporting protocols Accreditation and verification programs TCR and WCI Developing WCI Regional Emissions Database

TCR’s Objectives in WRAP Process Become knowledgeable about the E & P industry Identify existing GHG calculation methodologies necessary for assembling an entity level inventory Understand the accuracy associated with calculation methods Understand future mandatory reporting requirements for the E & P industry Develop a voluntary reporting protocol for the E & P industry that is as consistent with mandatory reporting programs as possible (and reasonable) Want a seamless transition to existing/forthcoming downstream protocols Want to facilitate and encourage E&P participation in the voluntary registry 6