Underground Construction - October 2022 - 11
ane fee will generate gross revenue of approximately $1.1 billion
in fi scal year 2026, peaking at approximately $1.9 billion in
fi scal year 2028. Th at is total fees for the entire petroleum and
natural gas category, which includes:
* Off shore petroleum and natural gas production
* Onshore petroleum and natural gas production
* Onshore natural gas processing
* Onshore natural gas transmission compression
* Underground natural gas storage
* Liquefi ed natural gas storage
* Liquefi ed natural gas import and export equipment
* Onshore petroleum and natural gas gathering and
boosting, and
* Onshore natural gas transmission pipelines.
Th e biggest methane emission culprits are onshore producing,
and gathering and boosting. Based on 2020 fi gures,
both emit 90 million metric tons a year. Th e two pipeline categories
total 33 MMT/year, or 10 percent of the 316 MMTs
for all 11 subcategories.
How big a fee a pipeline pays won't be determined exclusively
based on a facility's total emissions. For natural gas transmission
facilities, the fee applies to methane emissions that exceed 0.11
percent of the natural gas sent for sale from or through the facility.
In addition, facilities will be exempt from the fee if they are
in compliance with a forthcoming EPA regulation on methane
emission controls; and if those fi nal regulations now being
considered by the EPA are in eff ect in all states and would " result
in equivalent or greater emissions reductions as would be
achieved " by the November 2021 proposed rule.
Th e pipeline industry strongly opposes that proposed
rule. Some of its provisions are considered unworkable, chief
among them a 95-percent VOC and methane reduction requirement
from centrifugal wet seals to all existing sources, as
of Nov. 15, 2021.
In a Jan. 21, 2022, lett er to the EPA, Michael Pitt a, vice
president of EHS at Kinder Morgan, told the EPA: " ...the
95-percent reduction standard is unworkable and untethered
from real-world application of such controls, which have not
been demonstrated. "
With regard to the impact of the 0.11 percent exceedance
fl oor, no one seems to know how that will aff ect the fee.
Katherine Hill, a spokeswoman for Kinder Morgan, says her
company is waiting for guidance on that question.
A spokeswoman for the Interstate Natural Gas Association
of America (INGAA) says, " It is premature to speculate on the
specifi cs of how the methane fee will work because EPA has a
few outstanding rulemakings which might impact the calculation
of the methane fee. "
Th e EPA could not provide any details on how the methane
fee will work, either. Shayla Powell, an agency spokeswoman,
said, " EPA is currently reviewing the new law and determining
next steps. " UC
UCONonline.com | OCTOBER 2022
11
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Underground Construction - October 2022
Table of Contents for the Digital Edition of Underground Construction - October 2022
Contents
Underground Construction - October 2022 - Cover1
Underground Construction - October 2022 - Cover2
Underground Construction - October 2022 - Contents
Underground Construction - October 2022 - 4
Underground Construction - October 2022 - 5
Underground Construction - October 2022 - 6
Underground Construction - October 2022 - 7
Underground Construction - October 2022 - 8
Underground Construction - October 2022 - 9
Underground Construction - October 2022 - 10
Underground Construction - October 2022 - 11
Underground Construction - October 2022 - 12
Underground Construction - October 2022 - 13
Underground Construction - October 2022 - 14
Underground Construction - October 2022 - 15
Underground Construction - October 2022 - 16
Underground Construction - October 2022 - 17
Underground Construction - October 2022 - 18
Underground Construction - October 2022 - 19
Underground Construction - October 2022 - 20
Underground Construction - October 2022 - 21
Underground Construction - October 2022 - 22
Underground Construction - October 2022 - 23
Underground Construction - October 2022 - 24
Underground Construction - October 2022 - 25
Underground Construction - October 2022 - 26
Underground Construction - October 2022 - 27
Underground Construction - October 2022 - 28
Underground Construction - October 2022 - 29
Underground Construction - October 2022 - 30
Underground Construction - October 2022 - 31
Underground Construction - October 2022 - 32
Underground Construction - October 2022 - 33
Underground Construction - October 2022 - 34
Underground Construction - October 2022 - 35
Underground Construction - October 2022 - 36
Underground Construction - October 2022 - 37
Underground Construction - October 2022 - 38
Underground Construction - October 2022 - 39
Underground Construction - October 2022 - 40
Underground Construction - October 2022 - 41
Underground Construction - October 2022 - 42
Underground Construction - October 2022 - Cover3
Underground Construction - October 2022 - Cover4
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