Companies Make Strides Toward Enforcing Oil Spill Prevention Plans

In recent years, the Environmental Protection Agency (EPA) has become much more vigilant about oil spill regulation—regardless of the spills origin. After a series of inspections over the past two years, the EPA announced seven New England companies who have all created or updated their spill prevention plans to be in compliance with federal oil pollution prevention laws.

The companies, who all store or distribute oil, agreed to pay fines under an expedited settlement program, their penalties ranging from $3,000 to $9,500. This expedited program allows companies to pay reduced penalties if they quickly correct violations against the Oil Pollution Prevention regulations. These companies also were required to have a certain minimum storage capacity with no accompanying spill in order to qualify for these reduced fines.

The EPA’s Spill Prevention, Control and Countermeasure (SPCC) rules designate certain requirements for oil spill prevention, preparedness, and response to prevent oil discharges into navigable waters and adjoining shorelines. These rules call for facilities to adhere to guidelines pertaining to their ability to prepare, amend and implement SPCC Plans.

For many companies, complying with these regulations created by the EPA requires an additional focus on detailed actions in SPCC procedures.  Often times tracking and reporting spills if and when they occur—along with the root causes and inspection findings—can be a significant challenge without the appropriate management tools. However, when properly prepared, abiding by these necessary SPCC rules will ensure that organizations stay within compliance, thus avoiding fines and penalties and any harsh effects on our environment.

Obama Administration Unveils Plan to Cut Power Plant Emissions

The Obama Administration has announced what is arguably the most significant environmental regulation of the president’s term: a proposal to curb power plant emissions that will mandate a 30 percent cut in carbon emissions at fossil fuel-burning power plants by 2030.

The proposal was unveiled by the U.S. Environmental Protection Agency (EPA), and is expected to set targets for state-by-state reduction of power plant-produced carbon emissions; the largest source of carbon pollution in the U.S. According to the proposal, states could have until 2017 to submit a plan to cut power plant pollution, or 2018 if they join together with other states to address the issue.

In 2010 the EPA announced it intended to regulate coal-fired power plants and oil refineries, but this effort was not followed through. However, due to factors such as improvement in the economy and the natural gas boom, the White House and advocates feel that the time is right.

According to a poll conducted by the Yale Project on Climate Change Communication in April, two-thirds of Americans support increased regulation on power plant emissions, even if the cost of electricity rises.

The success of the carbon emission-cutting rule will depend on pending details, such as exactly how strict the targets are and how the federal government holds states to them. Although U.S. emissions have been declining recently due to increased use of natural gas to generate electricity, the country is still second to China in terms of annual emissions.

Along with this proposal comes the importance of accurately and efficiently collecting, aggregating and reporting emission sources data. An essential piece to the puzzle of addressing climate change and abiding by new rules and regulations is properly measuring and managing information.

Exxon Mobil to Report on Asset Risks Due to Evolving Climate Policy

Exxon Mobil just became the first oil and gas company to agree to publish information about the risks that stricter limits on carbon emissions would place on their business. According to the New York Times, this decision stems from increasing pressure from shareholder activists to warn investors of the possible consequences. The energy giant has agreed to publish this information by the end of the month.

The agreement comes from an effort by Ceres, a coalition of investors and environmentalists interested in making companies more environmentally responsive. The Ceres campaign started with a letter that was sent to ask 45 of the top fossil fuel companies if they were addressing the risks posed by the changing climate policy. What gave this letter such influence is the fact that it was sent by shareholders representing $3 trillion in assets to these companies.

These risks come from a growing realization that the changing policies on global warming and the value of fossil fuel assets may not by synced with one another. For instance, if carbon emissions are reduced by 80 percent, a goal stated by President Obama, then extracting oil reserves in certain areas where it is more expensive will become uneconomical. The concept that the two goals of extracting reserves and reducing carbon emissions are in direct conflict is undoubtedly coming to light.

Exxon Mobil has also agreed to project how further carbon emission restrictions would affect its future projects, and explain why new fossil fuel reserves that it invests in are not at risk of decreasing in value. Overall Exxon Mobil’s reporting agreement should provide for a better stewardship of sustainability and will help other companies come forward with their reporting.

Accounting for carbon emissions will put more focus on environmental software companies that can scale and provide solid platforms for an integrated approach to not only carbon management but all of their other environmental and sustainability risk management activities such as water quality and air emissions.

The Governor of California Signs Fracking Regulation Bill

Governor Jerry Brown signed legislation this past Friday that marks California’s first regulation for hydraulic fracturing.

The bill, which is most likely the toughest regulation yet for fracking, requires oil drillers to disclose the chemicals used and acquire permits before engaging in fracking. Other provisions of the legislation, which will take effect in January, call for oil companies to test groundwater, notify neighboring landowners before drilling, and to conduct a study about fracking’s impact on the environment by January 2015.

Although the bill was originally met with support from environmental groups, some of these groups have revoked their endorsements and now argue the regulation is not enough; whereas oil companies oppose it, claiming the bill will make it much harder to take full advantage of the oil from California’s southern San Joaquin Valley.

Gov. Brown has said the bill “establishes strong environmental protections and transparency requirements.” However, he also plans to explore further changes next year to clarify the new requirements.

Before this legislation, SB4, California did not have regulations for fracking. The new bill will undoubtedly require a great deal more reporting and permitting for the oil and gas industry. For companies engaging in hydraulic fracturing in California, the time is now to prepare for this new bill by organizing their information and automating reporting to ensure that regulations are met while their operational costs are lowered.

Latest version of proposed regulation changes on hydrofracking expected this week

It’s no secret that hydraulic fracturing, or hydrofracking, has been a popular topic for debate in recent years. Another occurrence revolving around this that has garnered support from some, and opposition from others, is Texas’ oil and gas regulatory agency, the Railroad Commission, updating its rules to address all aspects of the drilling process.

The latest version of the proposed rule changes is expected this week, and will be the largest revamping of Texas well construction regulations since the 1970s. These rules are important to ensure that toxic, fracking-related fluids do not leak into aquifers due to poor construction of oil and gas wells. These regulations will require examinations of things such as the quality of the protective cement placed between layers of pipe in a well, and a pressure test for the pipes themselves.

Keeping with the controversial theme around hydrofracking, some say the rule changes are too restrictive, and others say they aren’t enough. But most agree that hydrofracking does have the potential to contaminate groundwater if not performed correctly.

The contamination of groundwater can occur from faulty drilling or well completion. For the natural gas industry to ensure this doesn’t happen and to stay in compliance with these new regulations, it must keep up with an ongoing monitoring of site conditions and air emissions, management of production water, and the remediation of adverse environmental impacts: all of which involve the collection and analysis of large quantities of complex data.

Owners of hydrofracking sites and drilling companies need to take advantage of existing software tools to better organize their hydrofracking waste and water quality data. By using SaaS based software like Locus’ EIM to organize, manage, validate, visualize, store, and report this information, they can effectively demonstrate that this drilling can be done safely and transparently.

Locus Verifiers Accredited Under New California GHG Reporting Rule

Locus among the first to be accredited by California Air Resources Board

SAN FRANCISCO 19 April 2012 — Locus Technologies (Locus), the industry leader in web-based environmental compliance and information management software, has been accredited by the California Air Resources Board (CARB) to provide greenhouse gas (GHG) emissions verification services. Locus is one of a select few companies to obtain this accreditation.

Locus has provided verification services since 2010 for dozens of reporting entities. Recent amendments to the CARB regulation have prompted the regulators to retest and recertify all verifiers to ensure thorough understanding of the new regulations. Locus verifiers passed the first round of re-certification, in which less than half of previously certified verifiers were re-certified. Locus verifiers were also re-approved to complete verifications under all three specialty sectors, including transactions, oil and gas, and process emissions. Locus is approved to begin the verification process immediately for the 2011 reporting year. Verification of that data is due 1 September 2012.

The GHG verification services cover facilities in California that are regulated by the California Air Resources Board. Locus is accredited as a verification body through CARB and has lead verifiers certified in all reporting sectors. While verification is a requirement this year through AB 32, companies are also using third-party verification to promote their brands and the accuracy of their emissions information.

“We are very pleased to receive this confirmation that our verification staff are among the top experts in the field of greenhouse gases. Locus continues to expand its carbon practice at a rapid pace. Coupled with our carbon software services and domain expertise in all three key AB 32 reporting sectors in California, Locus is becoming a partner of choice for all companies wishing to be credible in their carbon reporting practices,” said Neno Duplan, President and CEO of Locus.

EPA Makes Public Fracking Rules, Delays Compliance Until 2015–New Rules Deal With Emissions, Not Drinking Water

Companies using hydraulic fracturing technique will have until 2015 to comply with new rules designed to reduce air pollution. The Environmental Protection Agency released today long-awaited rules on hydraulic fracturing, in one of its first efforts to regulate the widely used technique of extracting oil and natural gas. There was no mention about groundwater protection.

The rules, first proposed in July 2011, would require drillers to capture the emissions resulting from drilling the wells. The oil and gas industry representatives last week told the EPA that controls on wells that have low amounts of volatile organic compounds (VOCs) from drilling-related emissions won’t be cost-effective. American Petroleum Institute (API) opposed the rule and suggested that it should only apply only to wells whose gas stream is at least 10-percent volatile organic compounds.

“By ensuring the capture of gases that were previously released to pollute our air and threaten our climate, these updated standards will not only protect our health, but also lead to more product for fuel suppliers to bring to market,” EPA Administrator Lisa Jackson said in a statement.

Managing Hydrofracking Data in Cloud

There is little dispute in both scientific and business communities that groundwater protection and water usage in general at hydrofracking sites provide the biggest challenges for this young and promising industry.

Read full article here.

Fracking Under Fire

The Securities and Exchange Commission is asking oil and gas companies in the US to provide it with detailed information—including chemicals used and efforts to minimize environmental impact—about their use of hydrofracking.

The federal government’s investor-and-markets watchdog is stepping into the heated environmental debate surrounding hydraulic fracturing, or “fracking,” according to government and industry officials, even as state and federal environmental officials have begun to bring greater pressure on the industry. The process, which involves pumping water, chemicals and sand underground to free difficult-to-reach natural gas in shale basins, has come the center stage of political and environmental discussions.

At the same time the New Jersey Gov. Chris Christie is recommending a one-year moratorium on the hydraulic fracturing, after conditionally vetoing legislation that would have permanently banned the practice.

“Fracking” as it is often known, has provoked a fierce battle between environmentalists, who see it as a threat to public health, particularly drinking water, and natural-gas companies, which argue it is safe, and an economic windfall to …

A Major Oil and Natural Gas Company Selects Locus’ Energy and Environmental SaaS Software

Independent Exploration and Production Company to manage and report environmental, compliance, and sustainability information in Locus Cloud

SAN FRANCISCO, California, May 23, 2011  — Locus Technologies (Locus), the industry leader in Web-based water, energy and environmental software, announced today that it has been awarded a contract to manage corporate environmental compliance and sustainability at a publically traded, independent E&P company focused exclusively on oil and natural gas development in California.

Locus ePortal will be configured to ensure that the E&P company can track and manage environmental compliance at all company locations, including offshore platforms, in a single unified system. Locus ePortal compliance applications replace a variety of site-specific tracking tools that are non-uniform, difficult to keep up to date, and do not provide business continuity in the event of staff attrition. It will also support the increased number of inspections that occur in various jurisdictions where the company explores for natural gas and oil, and will provide key compliance metrics at the site and regional levels.

“The California E&P company is concerned about the environment as the company operates in areas with extensive environmental regulations, including offshore platforms in and around the Santa Barbara Channel as well as exploration and production rigs in prime agricultural areas, such as the Sacramento Basin. Locus ePortal is a perfect fit for the company to ensure that the company stays on top of all reporting requirements and organizes all of its compliance information in a single database with a single online sign-on,” said Neno Duplan, President and CEO of Locus.

“For the natural gas industry to stay in compliance with ever-stricter laws to protect drinking water supplies and air emissions, drilling companies need better ways to organize hydrofracking waste data in order to demonstrate to the public and regulators that hydrofracking activities are not endangering natural resources. They also need to prove that any dangerous waste from the wells is handled in compliance with state and federal laws. We are very pleased that the software tools that Locus has developed for this new industry are well received in the marketplace,” added Duplan.