1. New Mexico and the Oil and Gas GHG Accounting Protocol Development February 12, 2009 Santa Fe, NM

2. Why is this protocol development important to New Mexico? Year 2000 emissions inventory estimates

3. New Mexico Mandatory Reporting for Greenhouse Gas Emissions All Title V sources report 2008 direct emissions of CO2. All Title V sources report 2009 CO2 and methane emissions. Oil and gas facilities report 2010 CO2 and methane emissions.

4. What are we looking for? Comprehensive list and means of estimating O&G GHG emission sources. High tier emission quantification methods to support reporting of O&G GHG emissions. O&G reporting boundary options and discussion to inform state rulemaking, and development of a WCI model rule. Voluntary GHG reporting protocol for O&G sources.

5. Organizational Boundary Considerations NMED recognizes there are differences between voluntary, permit related, and mandatory cap and trade reporting requirements. NMED source definition for permits focuses on physical structure or equipment having same owner and SIC, and adjacent and contiguous. O&G organizational boundaries for cap and trade will be defined in WCI model rule and NMED’s rule making. NMED’s Reporting requirements will be amended through rule making later this year.