1. WESTAR Oil & Gas Workshop
Oil & Gas Exploration & Production and Natural Gas Gathering & Processing Greenhouse Gas Accounting Protocol Development
WESTAR Oil & Gas Workshop
October 22, 2008

2. What is a Protocol?
Framework document that informs consistent, comparable, transparent, accurate GHG inventory methodology
– Describes how to do voluntary reporting with verification method
Definitions
Scope & boundary requirements
Calculations (emission factors, methodologies)
Adoption by TCR provides consistent and transparent accounting method for all users – industry, governments, non-governmental organizations

3. Regulatory Reporting Support Products
Technical background and scoping paper
Overview of GHG sources and available estimation methods for O&G field operations
Include E&P activities, gas processing plants, and the operation of collection systems delivering oil and gas products to processing and refining facilities.
Proposed outlines for the products that follow (regulatory & protocol)
Prioritize sources in terms of their known or projected contributions to GHG emissions, both:
Within the partner jurisdictions of the Western Climate Initiative
Within North America
Address emissions sources from all six Kyoto gases within this sector.

4. Regulatory Reporting Support Products, continued
Technical review document of emissions quantification methods for high-priority sources identified in the background and scoping paper, designed to inform and guide development of mandatory reporting requirements by partner jurisdictions in the Western Climate Initiative

5. All O&G source activities upstream of:
Scope of the Technical Review of emissions quantification methods for high-priority sources & the Protocol
North America
All O&G source activities upstream of:
Oil refineries (covered by CCAR protocol)
Gas sale pipeline transfer points (also CCAR protocol)
Minimum effort: Conventional O&G E&P
“Old” oil fields – including methods to increase & sustain O&G production, also old & new gas production
Coalbed Methane fields
Offshore
Expanded effort: “Unconventional” O&G E&P
Oil sands
Oil shale

6. Why Oil and Gas?
Source: American Petroleum Institute: Toward a Consistent Methodology for Estimating Greenhouse Gas Emissions from Oil and Natural Gas Industry Operations. Page 4.

7. Deliverables for this project
Background & scoping paper
Technical paper defining high-priority, high-accuracy source activities:
Supports mandatory Greenhouse Gas Reporting rulemakings for NM & CA – for Western Climate Initiative
Underpins preparation of voluntary GHG protocol
Reporting & verification protocol, to align with TCR’s existing General Reporting Protocol & General Verification Protocol
Protocol drafts and final approval by The Climate Registry

8. Technical Review Paper & Protocol Development Process
Conduct literature review
Scoping paper, followed by technical review paper
Multi-stakeholder workgroup reviews scoping and technical review paper, then reviews protocol drafts
Broad expert review of protocol drafts, with off-ramp at this point for regulatory process
Protocol public review & comment
Adoption/implementation of protocol

9. What Resources are available for Protocol Development?
GHG Protocol
CA Registry and TCR Registry GRP
API Compendium
IEPCA Guidelines
CEC Evaluation
GHG Protocol
Framework:
Direct emissions (Scope 1)
Indirect emissions (Scope 2,3)
Organizational boundaries
Operational boundaries
GRPs: Geographic boundaries
Materiality threshold
Calculations/emission factors:
Stationary combustion
Mobile combustion
Indirect emissions
API Compendium
Identify sources
Identify emission factors
Sample calculation methodologies
IPIECA Guidelines
Builds on GHG Protocol
guidance specific to petroleum industry
Inform boundaries
Examples of equity share/operational control
Identify & classify sources
Table 6.1 – Upstream Petroleum Operations
Emissions Calcs
Outlines tiered approach
CEC Evaluation
Gap analysis of API Compendium & IPIECA
Compares w/CCAR GRP
IDs potential users
Some outdated emission factors
IPIECA provides framework, but not program-specific applicability
Conclusion: most work needed for CH4 emissions

10. Technical Paper & Protocol Development Schedule
September 08 - Finalize project plan, Issue Technical Support Contractor RFP
October - Review bids, Interviews, Issue contract
November - Begin regular Technical Workgroup calls & meetings, Draft technical paper
Dec.– Feb TWG meetings, additional work products
March - Begin protocol drafting with TWG and Protocol Advisory Group
May - Review of draft final protocol
June - Public comment period for TCR
July - Protocol action & approval by TCR!

11. Budget ~$300K to complete – funding primarily from NMED and CARB
$100K project management & facilitation
up to $200K Technical support contract
Donations greatly appreciated!
BP & Chevron have seeded with $10k

12. Questions? For More Information: Project webpage:
Tom Moore:
Lee Gribovicz: