{"id":6213,"date":"2014-02-23T01:31:51","date_gmt":"2014-02-23T01:31:51","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=6213"},"modified":"2014-02-23T02:10:33","modified_gmt":"2014-02-23T02:10:33","slug":"critical-decision-expected-tomorrow-in-colorado-on-clean-air-rule","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2014\/02\/23\/critical-decision-expected-tomorrow-in-colorado-on-clean-air-rule\/","title":{"rendered":"Critical Decision Expected Tomorrow in Colorado on Clean Air Rule"},"content":{"rendered":"

\"\"<\/p>\n

Day 4 of the ongoing hearings<\/a> on a groundbreaking proposal<\/a> to reduce air and climate pollution from oil and gas operations in Colorado saw Team EDF pushing back<\/a> on claims opposition groups have made to try to weaken the proposal.<\/p>\n

Leading companies Noble, Anadarko, Encana and DCP also put on strong cases, using their own operational data to show the proposal is cost effective. They should be lauded for their leadership, as should local governments and conservation groups that brought strong analytics to the hearings.<\/p>\n

If the proposal is adopted without being weakened, it will eliminate more than 90,000 tons of smog-forming VOCs annually (the same amount produced by all the cars and trucks in Colorado) and more than 100,000 tons of methane<\/a>, a highly potent greenhouse gas.<\/p>\n

EDF worked with the state\u2019s leading oil and gas companies, regulators and others to help develop the proposal. Those multi-stakeholder discussions produced a proposal that\u2019s both tough and reasonable \u2013 one that is right-sized to place the toughest requirements on operations with the greatest pollution potential, while making sure smaller operators can keep running a profitable business.<\/p>\n

Governor Hickenlooper endorsed the proposal last fall, and editorial boards<\/a> around the state have been calling for adopting the rule without clawbacks.\u00a0 But that hasn\u2019t stopped an industry opposition group from trying to weaken the rule.<\/p>\n

The opposition group put forward some alarming numbers over the last couple of days, telling members of the Air Quality Control Commission that the proposal would surely result in thousands of wells being closed down. The problem is their analysis is replete with flaws.<\/p>\n

Industry Claim<\/b>:\u00a0 Smaller \u201cdry gas\u201d wells without valuable oil or natural gas liquids, such as Coal Bed Methane wells, are economically marginal and can\u2019t support the cost of a host of new requirements.<\/p>\n

The Facts<\/b>:\u00a0 Most of the requirements in the proposal wouldn\u2019t apply to these wells, since they\u2019re geared toward equipment these wells don\u2019t have.\u00a0 And the leak detection and repair (LDAR) requirements for catching and fixing fugitive emissions are relaxed for these small wells \u2013 typically involving a one-time cost of a few hundred dollars, and then just regular checks when operators are already on-site.<\/p>\n

Industry Claim<\/b>:\u00a0 Thousands of wells producing two barrels of oil per-day or less will have to be shut down under this program.<\/p>\n

The Facts<\/b>:\u00a0 The economic analysis put forward to support this claim is flawed on multiple counts. It ignores the revenue that comes from natural gas produced by these same wells. It has double-counting problems. It misapplies basic economic principles like Net Present Value in a way that grossly distorts the results. And it uses cost assumptions that are way out of line with actual cost data coming from industry itself.\u00a0 In fact, if the opposition group\u2019s analysis were accurate, it would mean almost 60 percent of these wells would already be shut down today.<\/p>\n

\"\"<\/a>
Source: Linda Mirro<\/figcaption><\/figure>\n

Industry Claim<\/b>:\u00a0 After you find and fix equipment leaks initially, you don\u2019t really see many new leaks, so operators should be allowed to decrease the frequency of LDAR inspections designed to locate and repair leaks.<\/p>\n

The Facts<\/b>: It\u2019s true that the highest number of leaks is found at first; however, they keep happening over time as equipment is stressed by weather, operational conditions and the second law of thermodynamics \u2013 which tells us that stuff falls apart. Study data presented to the Commission showed that leak rates remain low over time precisely because of requirements to do regular, frequent inspections.\u00a0 And data Encana Corporation presented based on their own operations showed that maintaining a frequent inspection schedule is exactly how they\u2019ve been able to keep leaks down at their well sites.<\/p>\n

The Air Quality Control Commission has now heard four long days of testimony.\u00a0 Tomorrow they\u2019ll deliberate and, we expect, will make their decisions.\u00a0 We hope they won\u2019t be swayed by the opposition\u2019s analysis.\u00a0 It just doesn\u2019t hold water.The proposal before them is supported by the state\u2019s leading oil and gas operators \u2013 companies that are committed to being responsible partners in Colorado\u2019s future.\u00a0 It\u2019s supported by environmental groups, local governments, citizen groups and businesses that rely on a clean environment for their success.\u00a0 It\u2019s supported by the state regulators who are charged with making sure environmental protection measures are cost effective. And it\u2019s wholeheartedly supported by Governor Hickenlooper.<\/p>\n

Moments like these \u2013when a broad group of stakeholders can come together and agree on difficult, complex questions \u2013 are rare. Now is the time to honor all the hard work and cooperation that went into developing this proposal and adopt it in whole, without changes that will weaken it.<\/p>\n","protected":false},"excerpt":{"rendered":"

Day 4 of the ongoing hearings on a groundbreaking proposal to reduce air and climate pollution from oil and gas operations in Colorado saw Team EDF pushing back on claims opposition groups have made to try to weaken the proposal. Leading companies Noble, Anadarko, Encana and DCP also put on strong cases, using their own …<\/p>\n","protected":false},"author":9151,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8015,439,34795,1,55717,693],"tags":[84845,152,84855,75,17768,34915,84848],"coauthors":[],"class_list":["post-6213","post","type-post","status-publish","format-standard","hentry","category-air-quality","category-climate","category-colorado","category-uncategorized","category-methane-2","category-natural-gas","tag-climate","tag-climate-change","tag-colorado","tag-environment","tag-fracking","tag-methane","tag-natural-gas"],"acf":[],"yoast_head":"\nCritical Decision Expected Tomorrow in Colorado on Clean Air Rule - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2014\/02\/23\/critical-decision-expected-tomorrow-in-colorado-on-clean-air-rule\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Critical Decision Expected Tomorrow in Colorado on Clean Air Rule - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"Day 4 of the ongoing hearings on a groundbreaking proposal to reduce air and climate pollution from oil and gas operations in Colorado saw Team EDF pushing back on claims opposition groups have made to try to weaken the proposal. 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