1. 1 California Air Resources Board New Mexico Environment Department The Climate Registry Western Regional Air Partnership Santa Fe, New Mexico February 12-13, 2009 First Technical Working Group Meeting Oil and Gas E&P Natural Gas G&P

2. 2 Inform and guide the development of a mandatory California GHG reporting methodology for this sector as part of WCI Inform and guide the development of a mandatory California GHG reporting methodology for this sector as part of WCI CARB Objectives Work with stakeholders to develop a workable GHG reporting methodology that accurately captures GHG emissions and informs on-going and future GHG accounting and mitigation efforts Work with stakeholders to develop a workable GHG reporting methodology that accurately captures GHG emissions and informs on-going and future GHG accounting and mitigation efforts

3. 3 We expect that an effective GHG accounting will incorporate periodic measurement, engineering, and emission factor GHG accounting techniques We expect that an effective GHG accounting will incorporate periodic measurement, engineering, and emission factor GHG accounting techniques Some additional thoughts We see this sector as one where significant GHG reductions are possible and realize that an accurate GHG accounting is central and critical to realizing this potential We see this sector as one where significant GHG reductions are possible and realize that an accurate GHG accounting is central and critical to realizing this potential

4. 4 CARB concurrently working on other fugitive methane regulatory measures CARB concurrently working on other fugitive methane regulatory measures CARB soon to release oil and natural gas statewide equipment surveys. Surveys will cover oil operations from extraction through distribution. CARB soon to release oil and natural gas statewide equipment surveys. Surveys will cover oil operations from extraction through distribution. Some additional thoughts CARB also developing a fugitive methane emissions source test program to be conducted throughout 2009. CARB also developing a fugitive methane emissions source test program to be conducted throughout 2009.

5. 5 ARB links for more information Mandatory Greenhouse Gas Emissions Reporting http://www.arb.ca.gov/cc/reporting/ghg- rep/ghg-rep.htm http://www.arb.ca.gov/cc/reporting/ghg- rep/ghg-rep.htm Oil and Natural Gas Production and Storage http://www.arb.ca.gov/cc/oil-gas/oil-gas.htm Natural Gas Transmission and Distribution http://www.arb.ca.gov/cc/gas-trans/gas- trans.htm http://www.arb.ca.gov/cc/gas-trans/gas- trans.htm