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Monday, 19 November 2012

Fracking Water Recycling

Posted on 17:49 by Unknown
Companies Are Recycling Hydraulic Fracturing Water

Energy companies are also struggling with how to get rid of the tainted water that comes out of fractured wells; the fluid, which contains a mix of chemicals and salts, must be taken to a licensed disposal facility.

Energy industry giants Hallibrton Corporation and Schlumberger Ltd. to smaller outfits such as Ecologix Environmental Systems LLC, companies are pursing technologies to reuse the "frack water" that comes out of wells after hydraulic fracturing, or "fracking"—the process of using highly pressured water and chemicals to coax oil and gas out of shale-rock formations. The interest in water recycling is also creating opportunities for small companies such as Select Energy Services LLC. Ecologix, an Alpharetta, Ga., recycling company, claims its service can cost as much as 80% less than injecting wastewater into a disposal well.

The recycled water can be cleaned of chemicals and rock debris and reused to frack additional wells, which could sharply cut the costs that energy companies face securing and disposing of water. Some companies are finding it is still cheaper in many parts of the U.S. to inject the wastewater deep underground instead of cleaning it, which has slowed adoption of recycling technology.

It takes between 70 billion to 140 billion gallons of water to frack 35,000 wells a year, the industry's current pace, according to a 2011 report by the Environmental Protection Agency. That is about the same amount consumed every year by Chicago or Houston—and the price tag for securing that much water can be substantial.

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Companies are researching moving away from using water entirely to fracture rock, with efforts aimed at using propane gel and even compressed air. Moving away from liquids entirely, however, is still several years away—if early laboratory work can be successfully applied in the field.

While the cost of getting rid of the millions of gallons varies from state to state, it can be substantial. There are less than 10 working injection wells in Pennsylvania, so most of its wastewater is carried by trucks into Ohio.  These injection wells are controversial after being linked by some scientists and state officials to minor earthquakes. The injected liquids are essentially thought to lubricate faults and accelerate movement that causes tremors. Ohio only recently began issuing permits for new injection wells, after imposing rules to prevent tremors.

In the Northeast, oil companies have to pay up to $8 per 42-gallon barrel to contractors to haul wastewater for disposal elsewhere. Operators have reported recycling—which eliminates the cost of disposal and the cost of acquiring fresh water for fracking—can cut costs by as much as $2 per barrel in some areas when done on site, which could equate to a $200,000 savings over the lifetime of a typical well.

Chesapeake Energy Corporation has begun recycling 100% of the water it retrieves from wells in northern Pennsylvania. In addition to cutting the company's costs, recycling reduces the number of trucks on the road ferrying clean water to drilling sites, a sore point for local residents.

After a well is fracked, contractors typically clean the water that flows back out of the well by filtering it or adding a chemical that attracts small solid particles, making it easier to remove these contaminants. Some companies treat water at the well, while others bring it to a facility built nearby.
Fourteen percent of water used to frack a well in central Pennsylvania is now recycled, up from less than 1% two years ago, according to the Susquehanna River Basin Commission, which monitors water usage. (WSJ, 1/18/2012)      
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EPA Expected To Issue New & Revised Air Rules

Posted on 16:01 by Unknown
EPA will be pursuing new and revised air pollution control regulations in President Obama's second term.

EPA

Revised Boiler MACT Rule

EPA is expected to release revisions to its control standards for hazardous air emissions from industrial boilers and process heaters. This rule was adopted in 2011 under requirements of the 1990 amendments to the Clean Air Act. It directs EPA to collect information on the best performing sources in each category and to determine the “maximum achievable control technology” (MACT) for each category’s new and existing sources. It set an aggressive schedule for these new rules, requiring EPA to adopt emissions standards for all of the source categories on the initial list within 10 years.

In March 2011, EPA adopted a MACT standard for new and existing large industrial boilers and process heaters, setting limits on emissions of mercury, dioxin, particulate matter, hydrogen chloride and carbon monoxide, applicable to boilers burning coal, fuel oil, natural gas, or biomass. Across the country, the rule applies to about 14,000 boilers and heaters at refineries, pulp and lumber mills, smelters, chemical manufacturers, auto and machine parts makers, glass makers, and other industrial operations, as well as large institutional facilities, like universities and hospitals. The rule also set limits on mercury and carbon dioxide emissions from smaller boilers, but only if they burn coal. The March 2011 version of Boiler MACT was just the latest attempt by EPA to set standards for emissions of hazardous air pollutants from industrial boilers and process heaters. EPA adopted a MACT standard for this source category in 2004, which was struck down by the courts in 2007.
The 2011 version of Boiler MACT proved just as controversial, and EPA responded to that controversy immediately. In the same Federal Register issue in which the final version of the rule was published, EPA also announced that it intended to reconsider fourteen specific issues related to the rule, and to take additional comment on those issues.[8]EPA received dozens of petitions to reconsider various aspects of the rule, and it was challenged in court. EPA’s reconsideration of the rule is now drawing to a close, and the Agency is expected to issue its final revisions to the rule before the end of the year. Further legal challenges almost certainly will follow.
In December 2011, EPA issued proposed changes to the Boiler MACT rule and invited comment on whether it should further revise a number of provisions of the rule, including whether several emission limits should be changed based on newly-provided data, whether EPA should draw additional distinctions between different types of boilers, whether to change certain tune up and work practice requirements, and whether to revise monitoring requirements. After considering further comments, EPA sent its final rule revisions to the White House for review last May. Clearance to issue the final rule is expected before the end of the year.

New Source Performance Standards for Power Plants and Refineries

EPA will also continue to develop two new rules addressing greenhouse gas emissions from power plants and petroleum refineries under the Clean Air Act’s New Source Performance Standards (NSPS) program. Under the NSPS program, EPA is required to establish performance standards for various categories of new and modified stationary sources.

The proposed rule would require coal- and natural gas-fired power plants to emit no more than 1,000 pounds per megawatt-hour of carbon dioxide – a standard that would effectively prohibit the construction of new coat-fired power plants unless they deploy carbon capture and sequestration (CCS) technology.

The Clean Air Act defines a “new source” as a source that has not yet begun construction by the date of a proposed NSPS rule, which in the case of the power plant NSPS is April 13, 2012.
The timing on the NSPS rules for refineries is less certain. Refineries will likely be subject to new greenhouse gas requirements by the end of President Obama’s second term.

Mercury and Air Toxics Standards for Power Plants
In December 2011, EPA finalized a controversial new rule – referred to as the Mercury and Air Toxics Rule (MATS) or Utility MACT – designed to reduce the emission of mercury and other toxic air pollutants from coal- and oil-fired power plants. EPA, however, subsequently agreed to reconsider the rule. Like Boiler MACT, this rule arises under section 112 of the Clean Air Act. The reconsideration process should be completed by March 2013.

EPA’s Utility MACT standard set aggressive numeric emissions limits for mercury, filterable particulate matter (as a surrogate for toxic metals), and hydrogen chloride (as a surrogate for acid gases). Coal-fired plants subject to the new rules generate about 45 percent of the nation’s electric power, and make up a higher percentage in some regions. The rules also apply to oil-fired plants, which generate about 1 percent of the nation’s electricity. EPA claims the new rules will reduce mercury emissions by 90 percent, acid gas emissions by 88 percent, and cut SO2 another 41 percent beyond reductions expected under the Cross State Air Pollution Rule.

Cross State Air Pollution Rule

EPA’s efforts to regulate the interstate transport of air pollution from power plants also remain in flux. In August 2012, the D.C. Circuit rejected EPA’s Cross State Air Pollution Rule (CSAPR or Transport Rule), which restricted air emissions from power plants in “upwind” states that resulted in air quality exceedances in “downwind” states. See D.C. Circuit Strikes Down EPA Cross-State Air Pollution Rules (Again), Marten Law Environmental News (Sept. 25, 2012). The Transport Rule was drafted to fix deficiencies in a 2005 rule (the Clean Air Interstate Rule or CAIR) that was struck down by the same court in 2008. The court found that the Transport Rule contained flaws similar to those in CAIR – namely, that the rule would, based on cost considerations, require certain upwind states to reduce in-state emissions by more than the amount of their actual contribution to air quality exceedances in downwind states. The court also rejected EPA’s decision to impose federal compliance plans (federal implementation plans or FIPS) on the states without first providing the states with an opportunity to develop state-level compliance plans (state implementation plans or SIPs).
The court vacated the Transport Rule and remanded the matter back to EPA. In the meantime, the court instructed EPA to continue implementing CAIR while the agency develops a replacement rule. The time period for seeking Supreme Court review will not begin to run until the court resolves EPA’s request for reconsideration.

Updating Ambient Standards for Particulates
Diesel engines and other combustion sources (which power not only motor vehicles, industrial facilities and electric power plants, but also wood stoves) are the main sources of soot and other fine particles in the ambient air. EPA classifies these pollutants as fine particulate matter, commonly referred to as PM-2.5, meaning particulate matter smaller than 2.5 microns.
On June 29, 2012, EPA proposed lowering the annual ambient air quality standard for PM-2.5 to a level between 12 and 13 micrograms per cubic meter (ug/m3). The current annual standard of 15 ug/m3 has been in place since 1997. EPA proposed to leave the existing 24-hour standard of 35 ug/m3 unchanged. EPA also invited comment on whether annual standard should be lowered further, to 11 ug/m3. The Agency is under a court-ordered deadline to finalize the PM-2.5 standards by December 14, 2012 (the Clean Air Act requires EPA to review ambient standards at least every five years).
Updating Ambient Standards for Ozone
In September, 2011, EPA submitted a proposed rule to OMB that would make the ambient air quality standard for ozone more stringent. After fairly intense lobbying from the business community, President Obama sent the standard back to EPA and told the Agency to update its review of the relevant science and come back to him with an updated proposal in two years.[18] See S. Brandt-Erichsen, Obama Administration Withdraws Proposed Ozone Standard, Marten Law News (Sept. 6, 2011). EPA has since been conducting its science review, and is expected to begin moving forward with an update to the ozone ambient standard in 2013, although final adoption may not occur until 2014.
Ozone is the primary constituent of smog. Sunlight and hot weather cause ozone to form in the lower atmosphere through a chemical reaction between nitrogen oxides and volatile organic compounds. The burning of hydrocarbons – as fuel for cars, power plants, and industrial facilities – is the most significant source of these precursors to ozone. (Marten Law)
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RGGI Investments Avoid 12 Tons of CO2

Posted on 10:15 by Unknown
Generates $1.3 Billion in Lifetime Energy Bill SavingThe Regional Greenhouse Gas Initiative (RGGI) states today released a report summarizing the consumer, economic, and environmental impact of investments made using proceeds from RGGI’s CO2 allowance auctions. The report analyzed the lifetime impact of RGGI investments made from 2009 to 2011 in the nine RGGI states – Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont.
 
The report, Regional Investment of RGGI CO2 Allowance Proceeds, 2011 [Full Report and Executive Summary] estimates that RGGI investments will offset the need for more than 27 million megawatt hours of electricity generation and 26.7 million British Thermal Units (BTUs) of energy generation. This savings will help avoid the emission of 12 million short tons of carbon dioxide pollution, an amount equivalent to taking 2 million passenger vehicles off the road for one year.
 
In addition to their environmental impact, RGGI investments have also had a positive impact on consumer energy bills and the regional clean energy economy. The report found that, from 2009 to 2011, RGGI investments:

  • Directly benefited 2.9 million households and 7,400 businesses.
  • Generated an estimated $1.3 billion in lifetime energy bill savings for utility customers.
  • Channeled over $617 million into the region’s clean energy economy.
  • Returned $69 million in bill credits to an estimated 84,000 low-income families.
  • Helped an estimated 2,400 workers secure training in clean energy job skills.
Making an Impact
 
The report analyzes $617 million in RGGI investments from 2009 to 2011 across four main categories: energy efficiency, clean and renewable energy, direct energy bill assistance, and greenhouse gas abatement and climate change adaptation. Key findings include:
  • States in the region directed 66% of their RGGI investments to energy efficiency, 5% to clean and renewable energy, 17% to direct energy bill assistance, and 6% to greenhouse gas abatement and climate change adaptation programs.
  • RGGI investments in energy efficiency have already offset the need for over 1.6 million MWhs of electricity generation and are expected to offset the lifetime need for a total of almost 22 million MWhs of electricity generation.
  • RGGI investments in renewable energy have helped avoid the need for over 178,000 MWhs of electricity generation to date, and are expected to help avoid the need for over 2.9 million MWhs of electricity over their lifetime.
  • RGGI investments have reduced energy costs for 2.9 million households and businesses, realized through ratepayer savings of $204 million to date and $1.3 in savings estimated over the programs’ lifetime.
The Full Report and Executive Summary are now available.
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Saturday, 17 November 2012

National Fish and Wildlife Foundation

Posted on 08:58 by Unknown
The National Fish and Wildlife Foundation operated on a modest budget  for nearly three decades. Over the next five years, BP will give the foundation nearly $2.4 billion as part of the the $4 billion settlement with the Justice Department announced Thursday stemming from BP’s disastrous 2010 Gulf of Mexico oil spill.

The foundation — created in 1984 by Senate Republicans seeking new ways to muster conservation funding in the face of Reagan administration budget cuts — is not an environmental advocacy organization. It receives an annual appropriation of about $15 million from the government, along with other federal grants totaling as much as $45 million, and solicits donations of about $16 million a year from private donors and corporations including Wal-Mart, Shell, Southern Co. and the American Petroleum Institute. In its 28-year history, it has been responsible for $2.1 billion in conservation projects around the country, from acoustic monitoring of marine mammals in the Arctic to restoring fish habitat in the Ozarks. The next five years will more than double that figure.

The foundation oversees environmental grants and contracts totaling $75 million to $100 million a year, working with state and federal agencies as well as scientists, environmental groups and landowners to address threats to fish, wildlife and the habitat on which these animals depend.

The money BP will hand over in the course of five years has strings: The Justice Department, which made the decision to put the foundation in charge of the money, included language in the settlement agreement regarding how it will be spent. Half will go to restoring Louisiana’s barrier islands and coastal habitat; the other half will be divided among Alabama, Florida, Mississippi and Texas, with the first three states getting equal shares and Texas 16 percent. (Wash Post, 11/16/2012)
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BP Criminal & Civil Penalties

Posted on 08:40 by Unknown
Criminal Penalties

With BP's agreement on Thursday to plead guilty to 14 criminal charges and pay $4.5 billion in fines and other payments in connection with its 2010  in the Gulf of Mexico, Gulf Coast politicians are now eyeing a much bigger potential windfall from the company: $20 billion or more in civil pollution penalties for the spill. But the negotiations over those penalties — including which states get the money, how quickly, and what it can be used for — could be more contentious than the talks that led to the criminal settlement.

Under the criminal settlement, $2.4 billion paid by BP will go to environmental restoration, overseen by the National Fish and Wildlife Foundation, a nonprofit organization created by Congress. Projects in Louisiana will get half the money, and the rest will be split among the other gulf states — Florida, Alabama, Mississippi and Texas.

Civil Penalties

 There are two significant varieties of civil remedies to come from the spill:

1) penalties under the Clean Water Act and

2) claims under the Natural Resources Damage Assessment.

Under the Natural Resources Damage Assessment process, which arose out of the Oil Pollution Act of 1990, state and federal agencies total the environmental harm caused by the spill and send the responsible party a bill. All the money is administered by federal agencies and must be spent on environmental recovery. And the penalties, which could run in the tens of billions of dollars in the BP case, are tax-deductible for the polluter.

Payments under this process are directly tied to environmental damages, so a related BP settlement would benefit Louisiana the most, since that state experienced and continues to experience the worst of the spill. For this reason, Under N.R.D.A., 100 percent of the money goes to the gulf for recovery. The drawback is that the assessment can take years, and must be arrived at through findings by different scientists, which can vary widely. The Clean Water Act calls for a penalty based on the number of barrels spilled, with much higher damages to be awarded if the polluter is found to have been grossly negligent in causing the spill. In the past, the money from these penalties, which in the BP case could add up to $21 billion, would go to the United States Treasury.

But in June, Congress passed a law, called the Restore Act, which directed that four-fifths of the penalty money in the BP spill be divided up among the gulf states, to be spent mostly outside federal control.
The passage of the Restore Act required quite a bit of horse trading, particularly in a Congress not known for demonstrations of bipartisanship.

Of the money that goes to the gulf states, 35 percent would be divided evenly among them. About 30 percent of the funds would be divided based on the extent of damage, and another 30 percent would go to creating and carrying out a comprehensive master plan covering the entire Gulf Coast. The other compromise involved what the money could be spent on. (NYT, 11/16/2012)
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Thursday, 15 November 2012

Calif Air Board Accepts Federal Vehicle CO2 Standard

Posted on 14:31 by Unknown
The California Air Resources Board today approved an amendment allowing compliance with national greenhouse gas emissions regulations for passenger vehicles to qualify for compliance under the California's clean car rules.  It is the final step in establishing a single national program to reduce greenhouse gas emissions by increasing vehicle efficiency.

The approved amendment, known as a "deem to comply" measure, acknowledges that the federal vehicle standard satisfies California's requirements.  Approval of the amendment marks the fulfillment of a commitment California made in the summer of 2011 to auto manufacturers and the Obama administration to accept the proposed federal standards as equivalent to its own.

The greenhouse gas standards under the California Low Emission Vehicle (LEV III) standard, like the federal program, will be in effect for the 2017 through 2025 model years and are designed to reduce greenhouse gas emissions by 35 percent over that period.

Many of the technologies that reduce climate change and tailpipe emissions also significantly improve fuel economy, which will result in these cleaner cars costing less to operate than today's cars.

The full package of California regulations, including tailpipe standards for smog-causing pollution and a mandate for specific numbers of zero emission vehicles will save California drivers $5 billion dollars in operating costs in 2025, and $10 billion dollars by 2030 when more advanced cars are on the road.

In addition, in 2025, average consumers will see nearly $6,000 in fuel cost savings over the life of the car. Based on typical financing for a new vehicle, savings accrue the minute the car drives off the lot. (CARB)
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BP Pleads Guilty To 14 Criminal Counts & $4 Billion Fine

Posted on 12:58 by Unknown
BP has agreed to plead guilty to 14 criminal counts, including manslaughter, and will pay $4 billion over five years in a settlement with the Justice Department over the 2010 oil spill in the Gulf of Mexico, the company and Justice Department announced Thursday.  In addition, the London-based oil giant will pay $525 million over three years to settle claims with the Securities and Exchange Commission, which said the company concealed information from investors.  This marks both the single largest criminal fine in the history of the United States.

Attorney General Eric Holder also announced a separate 23-count criminal indictment — including charges of seaman’s and involuntary manslaughter — against the two top-ranking BP supervisors on the Deepwater Horizon drilling rig where a blowout occurred April 20, 2010, sinking the rig and killing 11 workers. Holder also announced an indictment against David Rainey, a BP vice president, for hiding information from Congress and lying to law enforcement officials about the rate at which oil was gushing into the Gulf of Mexico.

BP said it would increase its existing $38.1 billion charge against earnings for the spill by $3.85 billion.

 
The criminal settlement does not cover federal civil claims, including Clean Water Act claims, federal and state claims of damages to natural resources or private civil claims. Settling those would probably cost BP billions of dollars more, and the company said it is “prepared to vigorously defend itself against remaining civil claims.

The settlement resolves a variety of criminal charges. BP agreed to plead guilty to 11 felony counts of misconduct or neglect of ships’ officers relating to the loss of 11 lives on the drilling rig that caught fire and sank; one misdemeanor count under the Clean Water Act; one misdemeanor count under the Migratory Bird Treaty Act; and one felony count of obstruction of Congress. BP said that the last of those is related to misreporting to a member of Congress the rate at which oil was gushing into the gulf.

So far BP has spent $14 billion responding to and cleaning up the spill. It has also paid out $9 billion mostly to individuals and businesses. Additional private civil claims are being pursued in a separate lawsuit in a New Orleans federal court, where a settlement that BP estimates will cost $7.8 billion is being finalized.

The BP settlement with the Justice Department is not expected to cover other companies involved in the April 20, 2010 accident, including rig owner and operator TransOcean and cement contractor Halliburton. (Wash Post, 11/15/2012
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