[Federal Register Volume 75, Number 249 (Wednesday, December 29, 2010)]
[Proposed Rules]
[Pages 81950-81952]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-32674]
[[Page 81950]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management, Regulation and Enforcement
30 CFR Part 250
[Docket ID: BOEM-2010-0042]
Flaring Versus Venting To Reduce Greenhouse Gas Emissions in the
Outer Continental Shelf; Public Workshop
AGENCY: Bureau of Ocean Energy Management, Regulation and Enforcement
(BOEMRE), Interior.
ACTION: Public workshop.
-----------------------------------------------------------------------
SUMMARY: Bureau of Ocean Energy Management, Regulation and Enforcement
is announcing a workshop to discuss possible new requirements on
flaring versus venting of natural gas in the Outer Continental Shelf
(OCS), when such atmospheric release of natural gas is necessary and in
compliance with regulations. The main focus of this workshop will be
aimed at the potential reduction of Greenhouse Gas (GHG) emissions.
DATES: The workshop will be held on Wednesday, March 30, 2011, from 9
a.m. to 12 p.m.
ADDRESSES: The workshop will be held at 1201 Elmwood Park Blvd., New
Orleans, Louisiana.
FOR FURTHER INFORMATION CONTACT: Ms. Robin Vaughn at (504) 736-2675 or
[email protected].
SUPPLEMENTARY INFORMATION:
Subpart K Rulemaking
On March 6, 2007, the U.S. Department of the Interior (Department)
published a Notice of Proposed Rulemaking (NPR) in the Federal Register
(72 FR 9884). This NPR requested comments on proposed revisions to 30
CFR part 250, subpart K, Oil and Gas Production Requirements. The
Department conducted analyses to assess the costs and benefits of
requiring flare/vent meters and of requiring flaring instead of
venting.
The first analysis supported the recommendation to require
meters, provided that the facilities process more than 2,000 barrels of
oil per day (BOPD). This requirement was included in the final rule,
published on April 19, 2010, in the Federal Register (75 FR 20271), Oil
and Gas Production Requirements, at 30 CFR part 250, subpart K.
The second analysis indicated that a regulatory change to
require flaring instead of venting may be appropriate. However, the
cost of implementing this requirement could be significant, and input
from potentially affected parties is necessary. We requested comments
on this issue in the proposed rule.
Commenters pointed out that converting existing facilities
that are equipped to vent natural gas to be able to flare natural gas
may require significant redesign for safety.
They also pointed out that there are many factors in
determining whether to flare natural gas or vent natural gas when
designing a facility. These factors include the operating philosophy,
nature and type of reservoir, facility design limitations or
capabilities, operating practices, safety, and economics.
Industry comments also recommended that, in addition to
considering requiring flaring instead of venting, BOEMRE should work
with them to find ways to reduce overall natural gas emissions.
Industry representatives also stated that a requirement
for flaring instead of venting should be only for new facilities.
Request for a Workshop
Commenters requested that BOEMRE hold a workshop to discuss the
issue. BOEMRE plans to work directly with interested parties to study
the costs and benefits (especially GHG benefits) of requiring that
companies flare the natural gas, whenever possible, when flaring or
venting is necessary.
Therefore, we are holding a workshop to discuss the issue of
flaring instead of venting. This workshop and additional cost-benefit
analysis will consider GHG issues associated with flaring and venting.
The workshop will assist BOEMRE to determine how to best implement a
General Accounting Office (GAO) recommendation (see GAO Report below).
Proposed Rulemaking
BOEMRE will decide how to move forward with rulemaking on flaring
natural gas after we hold the workshop. Our next step would likely be a
proposed rule.
GAO Report
In July 2004, the GAO issued a report on world-wide emissions from
vented and flared natural gas titled, Natural Gas Flaring and Venting--
Opportunities to Improve Data and Reduce Emissions (GAO-04-809). This
report is available on the GAO Web site at: http://www.gao.gov/new.items/d04809.pdf. This report reviewed the flaring and venting data
available, the extent of flaring and venting, their contributions to
GHG emissions, and opportunities for the Federal Government to reduce
flaring and venting.
The report concluded that more accurate records were needed on
flaring and venting to determine the amount of the resource that is
lost and the volume of GHG emissions these practices contribute to the
atmosphere each year. The report also stated that the impact of methane
(a naturally occurring gas released during venting) on the earth's
atmosphere is about 23 times greater than that of carbon dioxide (a
byproduct of flaring). The GAO made two recommendations to the
Secretary of the Interior: (1) consider the cost and benefit of
requiring that companies flare the natural gas, whenever possible, when
flaring or venting is necessary; and (2) consider the cost and benefit
of requiring that companies use flaring and venting meters to improve
oversight. In addition, there was a recommendation to the Secretary of
Energy to consider consulting with the Environmental Protection Agency
(EPA), BOEMRE, and Bureau of Land Management, on how to best collect
separate statistics on flaring and venting. In 2005, BOEMRE performed a
cost-benefit analysis on the possible requirement to flare instead of
vent. The agency determined that it was not appropriate to mandate
flaring at that time, but noted that this topic would be pursued
further. In light of developments since 2005, BOEMRE has determined
that a workshop to hear public concerns is appropriate and a new cost-
benefit analysis is needed. Note also that the other two GAO
recommendations (to consider a requirement to install flare/vent meters
and to consider a requirement to report flare volumes separately from
vent volumes) were implemented via the April 19, 2010, publication of
regulations at 30 CFR Part 250, subpart K (75 FR 20271).
Oil and Gas Industry Contributions to GHG Emissions in the Federal OCS
Most natural gas production involves extracting natural gas from
wells drilled into underground gas reservoirs; however, some natural
gas is generated as a by-product of oil production. During oil and
natural gas production, it may become necessary to burn or release
natural gas for a number of operational reasons, including safety.
These operations may be associated with unloading or cleaning of a
well, production testing, or relieving system pressure during equipment
failure. The controlled burning of natural gas is called flaring, while
the controlled release of unburned gases directly into the atmosphere
is called venting. Most flaring and venting occurs at the end of
[[Page 81951]]
a flare stack or boom which ensures that natural gas can be safely
disposed of in emergency and shutdown situations. It is virtually
impossible to produce oil and natural gas without any flaring or
venting, and it would be impractical to shut in production every time
an upset occurs. It is estimated that operators in the Gulf of Mexico
OCS flare and vent less than 0.5 percent of the gas produced, making
this area a world leader in the conservation of natural gas resources.
BOEMRE regulates air emissions as mandated by the OCS Lands Act.
Under the 1990 Clean Air Act Amendments, BOEMRE has jurisdiction over
Gulf of Mexico OCS emission sources westward of 87[deg]30' W longitude,
and the EPA has jurisdiction over those eastward of 87[deg]30' W
longitude. The EPA also has jurisdiction over emissions in the OCS of
Alaska, the Atlantic, and the Pacific. BOEMRE regulates OCS emissions
to assure compliance with the National Ambient Air Quality Standards
and to prevent significant air quality deterioration in onshore areas.
BOEMRE regulates activities that have the potential to affect air
quality at the onshore areas.
Both flaring and venting on the OCS are highly regulated by BOEMRE.
Federal regulations at 30 CFR 250, subpart K specify the limited
circumstances under which offshore oil and gas operators may flare or
vent natural gas. In the Federal OCS, BOEMRE requires operators to
continuously record these volumes and report them each month. These
regulations strictly limit the amount of time operators may flare or
vent. In some cases, operators request additional time in order to
complete equipment repairs. BOEMRE evaluates each of these requests on
a case-by-case basis, primarily focusing on environmental, safety, and
conservation aspects. BOEMRE also performs onshore air quality impacts
analyses to prevent significant onshore air quality deterioration from
OCS activities.
BOEMRE continuously strives to improve its oversight of OCS flaring
and venting. New regulations, published in April 2010, require
operators to install flare/vent meters on large platforms and also to
report gas flared separately from gas vented. These regulatory changes
will provide more accurate measurements of GHG emissions.
Given the existing restrictions on OCS flaring and venting, there
is minimal opportunity to further reduce the overall volume of gas
flared and vented. However, the global warming potential of GHG
emissions could be reduced if BOEMRE were to require operators to flare
instead of vent (when the release of natural gas is necessary). Such a
requirement would reduce the global warming potential of GHG emissions
by converting most methane to carbon dioxide as it is released. The
workshop will address this topic.
It is difficult to estimate the impact that flaring instead of
venting would have on GHG emissions until BOEMRE gathers the more
accurate data required by new regulations (which require the
installation of flare/vent meters and the separate reporting of flare
and vent volumes). Furthermore, it is impractical, if not impossible,
to eliminate all venting. Even if 100 percent of the released OCS gas
could be flared instead of vented, the impact on total U.S. GHG
emissions would be very small.
In 2008, U.S. GHG emissions totaled 7.668 x 10\9\ tons of carbon
dioxide equivalent (CO2e). Of that total, only 30.9 x 10\6\
tons of CO2e, or 0.40 percent, were related to OCS oil and
gas production (including platform and non-platform sources), and
flaring and venting activities represent only a fraction of that
amount.
Based on several assumptions, estimates, and existing analyses,
BOEMRE roughly approximated the impact that might occur if it were to
mandate flaring over venting. These estimates indicate that such a
requirement would reduce total U.S. GHG emissions by less than 0.05
percent. However, the accuracy of these estimates will improve over the
next few years now that regulations at 30 CFR part 250, subpart K have
been implemented. Reported OCS flare and vent volumes could increase or
decrease based solely on improved reporting accuracy. In any event,
further analysis may shed light on whether flaring rather than venting
natural gas is cost effective from a GHG perspective, even if the total
amount of GHGs is small.
Workshop Presentations
In order to assist BOEMRE, assess the need for regulations on this
topic, and ascertain the framework for any such regulations, interested
parties are encouraged to register for the workshop and present their
recommendations on the following topics:
The impact of flaring versus venting on GHG emissions;
If BOEMRE requires flaring instead of venting, whether
this mandate should apply to all (new and existing) facilities, apply
only to facilities emitting above a certain threshold, and what
acceptable threshold levels should be;
Technical and/or economical feasibility of retrofitting
some or all existing facilities with flare tips;
Flare tip technology and/or combustion efficiency;
Emissions reduction;
Existing worldwide best practices that could reduce GHG
emissions from flaring and venting;
Safety issues associated with requiring flaring instead of
venting on OCS facilities;
Variables and/or methods that should be used to evaluate
the cost versus benefit of flaring instead of venting; and
Equipment (specific components) that have to emit natural
gas locally instead of the gas being routed to a flare tip due to
safety, practical, or other reasons, as well as acceptable/or
recommended volumes of natural gas emissions that would be associated
with this equipment.
Note that the primary focus of this workshop will be to receive
feedback from all interested and potentially affected parties in
advance of any rulemaking. BOEMRE anticipates that the agenda of the
workshop will be predominantly presentations by those interested
parties in order for BOEMRE to receive their input. In order to present
at and/or attend this workshop, you must register in advance.
Registration: There is no registration fee for this workshop.
However, to assess the number of participants, BOEMRE requests
participants to register with Ms. Robin Vaughn by phone at (504) 736-
2675, or by e-mail at [email protected], prior to the meeting.
The deadline to register is February 28, 2011. Seating is limited and
the number of attendees from each organization may have to be
restricted.
BOEMRE encourages you to submit your presentations and/or
attend the workshop.
We will also consider any questions submitted in advance
so that the workshop can focus on key topics.
Please submit the above to Ms. Robin Vaughn
([email protected]) by February 28, 2011. You may also submit
written comments for BOEMRE's consideration up to 30 days after the
conclusion of this workshop. Written comments should be submitted to
http://www.regulations.gov. In the entry entitled ``Enter Keyword or
ID,'' enter Docket ID BOEM-2010-0042 then click search. Follow the
instructions to submit public comments and view supporting and related
materials available for this notice. BOEMRE will post all comments.
[[Page 81952]]
Paperwork Reduction Act of 1995 (PRA) Statement
This Federal Register Notice does not refer to or impose any
information collection subject to the PRA.
Dated: November 9, 2010.
L. Renee Orr,
Acting Associate Director for Offshore Energy and Minerals Management.
[FR Doc. 2010-32674 Filed 12-28-10; 8:45 am]
BILLING CODE 4310-MR-P