DOE Proposes Rulemaking to Eliminate Fossil Fuel Usage
BPN Staff—Jan 6, 2011
The U.S. Department of Energy (DOE) is proposing rulemaking
consistent with the Energy Independence Security Act to reduce energy generated
from fossil fuel consumption in new federal buildings and renovated federal
buildings, reports the National Propane Gas Association (NPGA).
The association notes that DOE is required by statute to
reduce fossil fuel energy consumption by 65% by 2015. In addition, total fossil
fuel dependency is required to be eliminated by 2030. The recent proposed
rulemaking does allow long-term energy contracts that promise to use renewable
energy sources as a way to meet further reductions for years 2015 through 2030.
NPGA submitted comments requesting that DOE re-issue its
rulemaking as an Advance Notice of Rulemaking, “allowing many unanswered
questions to be addressed and industry a second opportunity to provide public
comments.” For additional information, contact Robert Elliott, NPGA director of
regulatory affairs, at relliott@npga.org.
EQT Sells Processing Complex To MarkWest Energy Partners
BPN Staff—Jan 6, 2011
EQT Corp. (Pittsburgh) is
selling its natural gas processing complex in Langley,
Ky. and an associated NGL pipeline to MarkWest
Energy Partners LP (Denver)
for $230 million. The transaction is expected to close during the first quarter
of this year.
The Langley processing complex includes a 100-MMcfd
cryogenic processing plant, a 75-MMcfd refrigeration processing plant, and
about 28,000 hp of compression. Immediately following the closing of the
acquisition, MarkWest will commence the installation of a new 60-MMcfd
cryogenic processing plant to expand the Langley cryogenic processing capacity.
In conjunction with the closing of the sale of the Langley plant, EQT will execute a long-term agreement
with MarkWest to provide processing services for its Kentucky Huron/Berea shale
gas and extend its existing agreement with MarkWest for NGL transportation,
fractionation, and marketing services until 2022.
MarkWest will also complete the Ranger NGL pipeline, which
is currently under construction, to allow NGLs recovered at Langley
to be delivered to its Siloam fractionation, storage, and marketing complex in South Shore, Ky.
In 2008, MarkWest significantly expanded the Siloam fractionator to a capacity
of 24,000 bbld, in part to support the continued growth of EQT’s Huron/Berea
shale development in Kentucky and West Virginia.
EPA Completes Framework For GHG Permitting Programs
BPN Staff—Jan 6, 2011
The U.S. Environmental Protection Agency (EPA) is issuing
the final series of actions that will ensure the largest industrial facilities
get Clean Air Act permits that cover greenhouse gas (GHG) emissions beginning
in January 2011. The actions are part of EPA’s approach to GHG permitting
outlined in its 2010 tailoring rule.
The first set of actions will give EPA the authority to
permit GHGs in seven states—Arizona, Arkansas, Florida, Idaho, Kansas, Oregon, and Wyoming—until
the state or local agencies can revise their permitting regulations to cover
GHG emissions. In addition, EPA is taking additional steps to disapprove part
of Texas’ Clean Air Act permitting program, and will be taking over authority
to issue GHG permits in the Lone Star State. The agency notes that by seizing
authority from states, it will “ensure that large industrial facilities will be
able to receive permits for greenhouse gas emissions regardless of where they
are located.”
In the second set of actions, EPA has issued final rules
that will ensure there are no federal laws in place that require any state to
issue a permit for GHG emissions below levels outlined in the tailoring rule.
EPA notes that states are best suited to issue permits to sources of GHG
emissions, and have experience working with industrial facilities. The agency
will continue to work with states to help develop, submit, and obtain approval
of necessary revisions to enable states to issue air permits to GHG-emitting
sources.
Beginning in January 2011, industries that are large
emitters of GHGs, and are planning to build new facilities or make major
modifications to existing operations, must obtain air permits and implement
energy efficiency measures or, where available, cost-effective technology to
reduce their GHG emissions. This includes the largest GHG emitters, as
identified by EPA, such as power plants, refineries, and cement production
facilities. Emissions from small sources, such as farms and restaurants, are
not covered by the GHG permitting requirements for now.
As part of its campaign to end distracted driving, the U.S.
Department of Transportation has issued a proposed safety regulation that would
specifically prohibit interstate commercial truck and bus drivers from using
hand-held cell phones while operating a commercial motor vehicle.
The proposed Federal Motor Carrier Safety Administration
(FMCSA) rule would prohibit commercial drivers from reaching for, holding, or
dialing a cell phone while operating a commercial motor vehicle. Drivers who
violate the restrictions would face federal civil penalties of up to $2750 for
each offense and disqualification of their commercial drivers’ license for
multiple offenses. In addition, states would suspend a driver’s CDL after two
or more violations of any state law on hand-held cell phone use.
Motor carriers that allow their drivers to use hand-held
cell phones would face a maximum penalty of $11,000. About four million
interstate commercial drivers would be affected by the proposal. “We are
committed to using every resource at our disposal to ensure commercial drivers
and vehicles are operating safely at all times,” said FMCSA administrator Anne
S. Ferro. “Implementation of this proposal would help make our roads safer and
target a leading cause of distracted driving.”
FMCSA research purports to show that using a hand-held cell
phone while driving requires a commercial driver to take several risky steps.
In particular, commercial drivers reaching for an object, such as a cell phone,
while driving are three times more likely to be involved in a crash or other
safety-critical event. Drivers dialing a hand-held cell phone while driving
increase their risk by six times. The agency notes that many of the largest
carriers already have company policies in place banning their drivers from
using hand-held phones. In September 2010, FMCSA issued a regulation banning
text messaging while operating a commercial vehicle.
Increased access to domestic oil and natural gas—rather than
increased taxes on the U.S. oil and gas industry—is the best strategy for increasing
government revenue, jobs, and energy production, a new study by the energy,
mining, and metals consultancy Wood Mackenzie concludes.
Increased access could, by 2025, create 530,000 jobs, deliver
$150 billion more in tax, royalty, and other revenue to the government, and
boost domestic production by 4 MMbbld of oil equivalent, according to the
study, “Energy Policy at a Crossroads: An Assessment of the Impacts of
Increased Access Versus Higher Taxes on U.S. Oil and Natural Gas Production,
Government Revenue and Employment.”
Raising taxes on the industry with no increase in access
could reduce domestic production by 700,000 bbld of oil equivalent by 2020,
sacrifice as many as 170,000 jobs by 2014, and reduce revenue to the government
by billions of dollars annually, the report surmises. An additional 1.7 MMbbld
of oil equivalent in potential production that is currently of marginal
economic feasibility would be at greater risk of not being developed under the
modeled tax increase.
The study assumes the eastern Gulf of Mexico, portions of
the Rocky Mountains, the Arctic National Wildlife Refuge, and the Atlantic and Pacific
Outer Continental Shelf would be opened to development, and it assumes a
$5-billion increase in annual taxes on the industry, which is less than the
amount considered last year by the U.S. Congress and administration.
“U.S. oil and natural gas companies are a major force in our
economy and, with the right policies in place, could drive even greater
economic benefits,” said American Petroleum Institute president and CEO Jack
Gerard during a “State of American Energy” address in Washington, D.C. Dec. 4.
“These companies produce most of the nation’s energy, put millions of people to
work, and deliver billions in taxes and royalties to our government. The study
shows increased access to areas currently off-limits would create jobs, grow
the economy, and dramatically increase revenues to the Treasury, at a time when
the U.S. deficit is of
national concern.”
The
National Propane Gas Association (NPGA) is proposing an increase in Certified
Employee Training Program (CETP) fees as part of its proposed budget for fiscal
year 2012. The fees associated with certification exams and proctor
registration will be considered for final approval at the association’s winter
board meeting in San Francisco Feb. 1.
Fees for certification exams are proposed to increase to $85
and, unlike past years, the new fee will be the same for both written and
online exams. This proposal was reached after NPGA’s Executive Committee
reviewed the certification fees of several comparable industries and noted that
the current CETP exam fees were comparatively modest.
The committee also observed that, historically,
certification revenue has been used to develop and update exams and for exam
administration services and record keeping. Revenue has also been used to keep
membership dues relatively low compared to similar industry associations. The
committee concluded that comparables should be the principal driver in
determining CETP exam fees, and approved the new fees.
The Executive Committee also agreed to increase the fees for
proctor registration to $50 per year and determined that the fee would apply to
all proctors, whether they are new registrants or renewing their existing
proctor registration. The committee used a similar rationale for the proctor
fee increase, noting the need for extensive updates to programming services for
proctor training modules and maintenance of the modules. The committee also deemed
it appropriate to place an added value to the proctor registration given the
importance of the role of proctors in the overall certification exam
administration process.
…The National Propane Gas Association reports that the Washington, D.C.
rumor mill has U.S. Department of Transportation Secretary Ray LaHood leaving
the Obama administration early this year. LaHood, a former Republican member of
Congress from Illinois,
has been transportation secretary since Jan. 23, 2009…
DCP Midstream Partners LP (Denver) has acquired all the ownership
interests of Marysville Hydrocarbon Holdings LLC for $95 million in cash. The
transaction includes propane and butane storages in Marysville,
Mich. with rail, truck, and pipeline
connections providing a supply point for refiners and wholesale propane
distributors in the Midwest, Sarnia,
and Northeast markets.
The Marysville purchase brings to DCP Midstream’s portfolio nine
underground salt caverns with 285 MMgal. of storage capacity. The 620-acre site
includes 300 undeveloped acres, which DCP said has expansion potential through
development of two additional underground salt caverns.
“This immediately accretive acquisition, with the majority
of its margins being fee-based tied to storage capacity, expands our existing
wholesale propane business,” said Mark Borer, president and CEO of DCP
Midstream. “The addition of this Michigan
storage asset builds on our supply and logistics capabilities, while providing
future expansion potential and new business opportunities. The acquisition also
provides additional business and geographic diversification to our asset
portfolio.”
While consumers across the nation are experiencing higher
petroleum product prices due, in part, to rising crude oil prices, propane
consumers in the Northeast have seen regional supply issues add to overall
price pressures, notes the Energy Information Administration (EIA) in its Jan.
5 “This Week in Petroleum” report.
Residential propane in New England has risen to $3.28/gal.,
while Central Atlantic prices, at $3.37/gal.,
are the highest in the Northeast. Prices in the region have risen more than 45
cents/gal. since the start of this heating season, compared with a 29-cent
increase in Midwest prices where the
residential propane heating market is much larger, according to EIA. Prices in
New York State, where the supply disruption is centered, have increased 56
cents over the heating season.
As previously reported, propane supply into New York State
and the Central Atlantic and New England regions was disrupted due to an outage
on the Enterprise TE Products Pipeline (TEPPCO) that brings propane into the
Northeast through New York State. The pipeline failure occurred downstream of
the Watkins Glen, N.Y. terminal, which was able to remain operational, but
pipeline flows to the Harford Mills, Oneonta, and Selkirk, N.Y. terminals were
curtailed.
Rail and truck shipments from outside the region, as well as
waterborne imports into Providence, R.I. and Newington,
N.H., have sustained propane
stocks in the Northeast. In fact, propane stocks in New
England fell to just 39,000 bbl in mid-October, prompting
companies to use truck and rail shipments from outside the region much earlier
than typical to rebuild supply. The ongoing supply chain issues warrant
monitoring, as there is potential for supply difficulties as the nation moves
deeper into winter, cautions EIA.
Cold weather in the Northeast during December resulted in five
consecutive stock draws in the Central Atlantic, while New England stocks
fluctuated during the month. New England propane inventories were at 0.7 MMbbl
on Dec. 31, 72% above the five-year average, while Central Atlantic
inventories, at 1.6 MMbbl, were 20% below the five-year average. Central Atlantic stocks are nearly 34% higher than levels
seen two years ago when inventories in that region stood at historically low
levels. EIA reiterates that, currently, product transportation issues in the
Northeast are more pressing than relative stock levels.
AccuWeather Forecaster Calls For Frigid Cold in January
BPN Staff—Jan 6, 2011
AccuWeather reports that on the heels of a record-cold
December, frigid weather will continue seizing areas from coast to coast
through mid- to late January. Based on this forecast, AccuWeather chief
long-range forecaster Joe Bastardi says this month could turn out to be the
coldest January for the nation as a whole since 1985.
While there has been outstanding regionalized cold in
January in recent years, Bastardi points out that the U.S. has not
experienced this type of coast-to-coast cold since the 1980s. Record-smashing
cold has already been gripping a large portion of the West since Jan. 1, with
snow even falling in Las Vegas.
Bitter arctic air has also made a return to the Northern Plains, while the East
and South experienced a dramatic cool-down.
More waves of arctic air will invade the country and continue
through the next weeks, Bastardi forecasts. The period from Jan. 10-20 is when
he expects the core of the cold to be in place, with the Northern Plains in the
heart of it. He says Chicago and Omaha
could have one or two days with high temperatures below zero during this time.
New York City residents may be looking at one day with highs in the teens,
while temperatures may potentially fail to rise out of the 20s in Dallas and
Jackson, Miss. for one or two days.
Bastardi also highlights the potential for rare snow in Seattle and Portland,
Ore. with the upcoming weather
pattern.
Texas Challenges EPA’s ‘Unlawful’ Takeover of State Air Agency
BPN Staff—Jan 6, 2011
On Dec. 30, the state of Texas filed a legal action
challenging the federal government’s attempt to take over the its air
permitting program. Court documents filed by the state explain that the U.S.
Environmental Protection Agency’s (EPA) improper overreach violates the Clean
Air Act, which mandates a cooperative relationship between the federal
government and the states.
By unilaterally asserting federal control over Texas’ air
permitting program, the Obama administration violated the Clean Air Act, EPA’s
own regulations, and important legal protections that foster transparency and
openness in government—such as the requirement that new federal rules be
subject to a public notice and comment period, the state maintains.
“Once again the federal government is overreaching and
improperly intruding upon the State of Texas
and its legal rights,” said Texas
attorney general Greg Abbott. “With today’s new regulations, EPA is both unlawfully
commandeering Texas’ environmental enforcement program and violating federal
laws that give the state and its residents the opportunity to fully participate
in the regulatory process.”
The state’s legal action involves EPA’s unprecedented effort
to regulate so-called greenhouse gas emissions under the Clean Air Act. Like
many other states, Texas
law does not currently deem greenhouse gases like carbon dioxide to be
pollutants, which EPA asserts. And unlike other states, Texas—and
only Texas—was
singled out by the agency, which took over the state’s air permitting program
effective Jan. 2. Texas’ petition for review and request for emergency stay
were filed with the U.S. Court of Appeals for the D.C. Circuit, and ask the
federal court to immediately halt EPA’s “improper attempt to commandeer Texas’
air permitting program.”
Autogas Advocates Push For Inclusion in Energy Bill
BPN Staff—Jul 30, 2010
With Senate Majority Leader Harry Reid (D-Nev.) on track to
release the details of his new, pared-down energy plan, minus any cap and trade
provisions, the legislation was expected to provide tax breaks for natural gas
vehicles and infrastructure. And advocates of propane autogas were pushing the
Senate to include their fuel, along with natural gas, in the vehicle and
infrastructure incentive provisions.
The National Propane Gas Association (NPGA) July 23 launched
a grass-roots letter-writing campaign to ensure propane is included in any
energy bill introduced in the U.S. Senate. “The majority of propane autogas is
derived from the refining of natural gas,” noted Stuart Weidie, director of the
industry coalition Autogas for America.
“Autogas has similar environmental benefits to natural gas and about 90% of it
is produced here in America.
There’s no logical reason this bill should exclude propane autogas but include
natural gas.”
NPGA and Autogas for America requested that their
industry flood Senate offices with letters petitioning that autogas be included
in Sen. Reid’s plan. “Propane autogas is comparable to natural gas when it
comes to reducing harmful emissions and, at the same time, it’s vastly less
expensive to implement,” said Rick Roldan, president and CEO of NPGA. “Sen. Reid
is moving this along so quickly that we’re afraid they may not include autogas.
It would be a tremendous oversight by the Senate, because they’d be failing to
support an alternative fuel that they’re already investing in.”
Roldan was referencing a number of Department of
Energy-administered Recovery Act programs that will be implementing thousands
of propane autogas vehicles and hundreds of autogas fueling stations over the
next several years. Together, these programs represent about $50 million of
investment on behalf of the federal government.
NPGA notes that the New Alternative Transportation to Give
Americans Solutions (NATGAS) Act (S. 1408) is included in Reid’s Senate package,
and that the bill is the result of T. Boone Pickens’ lobbying activities. While
the NATGAS Act includes a variety of natural gas-only tax credits to promote
natural gas, it does not include propane. Rather, the association is supporting
the Fueling America Act, S. 1350, sponsored by Sens. Mark Pryor (D-Ark.) and
Jim Inhofe (R-Okla.), which provides incentives for both propane and natural
gas.
To facilitate letter writing, the association has prepared
written examples of the issue that companies can incorporate in the letter they
draft on their company letterhead, as well as a sample letter. The examples,
and U.S. Senate fax numbers, are posted at
www.npga.org/EnergyBillGrassroots. To receive assistance in creating a letter,
contact Brian Caudill at bcaudill@npga.org
or 202/355-1326. NPGA is strongly encouraging all member companies, and all
employees, to get involved in the grass-roots effort. Also requested is that
participants fax a copy of letters to TaraFalls
at 202/466-7205. State propane associations are also involved in the campaign,
and questions may be directed to association representatives.
Marketer Training Program To Extend Through October
BPN Staff—Jul 29, 2010
Marketer training covering the business potential of three
products that can help stimulate propane demand—commercial lawn mowers,
tankless water heaters, and irrigation engines—will extend through October
across the country. Each full-day training session features two of the three
products. The training is designed to enhance marketers’ understanding of
applications that can offset seasonal propane demand.
Upcoming sessions are scheduled in Raleigh, N.C. July 29; Boxborough,
Mass. Aug. 10; Richmond, Va.
Aug. 12; Prattville, Ala.
Aug. 19; Pasadena, Calif.
Aug. 26; Monterey, Calif.
Sept. 23; Frankfort, Ky.
Sept. 29; St. Augustine, Fla.
Oct. 4; and Flintstone,
Md. Oct. 26.
The program debuted in Wisconsin in May, and evaluations of the
program have been positive. The training covers basic installation, energy
efficiency and environmental impact, consumer benefits, and implementation obstacles.
“To grow, the industry must learn all we can about propane-fueled products that
can create new demand and share information about their benefits with potential
users,” said Propane Education & Research Council (PERC) president Roy
Willis. “That’s where the PERC Marketer Technology Training program comes in.
It gives marketers the information to confidently talk with consumers about
propane products that can stimulate propane demand.”
“This program targets markets that are counter-seasonal,
which will level annual loads, allowing us to better utilize our equipment and
fuel infrastructure,” notes Joe Cordill of Cordill Propane Service (Winnsboro, La.),
2009 chairman of the National Propane Gas Association. “It emphasizes
advantages propane has in addition to economic benefits. The mower market is an
emerging market for us, and we’ll definitely be able to use this program in our
company.”
For additional information, contact Maryann Malesardi at maryann.malesardi@propanecouncil.org or
202/452-8975.
Texas Railroad Commissioner Elizabeth Ames Jones is
confident that the geology in Texas,
combined with safeguards required by the Railroad Commission in the drilling of
gas wells, do not support the notion that water used in hydraulic fracturing
will migrate to the water table. “With many thousands of fracs taking place in Texas, commission
records do not indicate a single documented water contamination case associated
with hydraulic fracturing in our state,” she comments.
The U.S. Environmental Protection Agency (EPA) was in Fort Worth early this
month to conduct a public meeting on a study it is proposing to determine if
there are links between hydraulic fracturing and its potential impact on
drinking water contamination (Newsletter,
June 28, p. 3). EPA is soliciting public comments on the draft study plan.
The Railroad Commission of Texas has provided the regulatory
framework for virtually all of the oil and gas production activity in the
state, including more than 50 years of hydraulic fracturing. “This agency does
not allow the permitting of a well where hydraulic fracturing will be used without
certification from the Texas Commission on Environmental Quality (TCEQ) that
identifies the depth that groundwater must be protected by cement and steel,”
notes Ms. Jones. “Water tables, that yield water for human consumption, can
extend to a depth of 1000 feet in some areas of the Barnett Shale gas and oil
production. The horizontal lateral pipes are placed an average depth of 7500
feet—more than a mile and a half below the earth’s surface.”
She adds that area well logs around any proposed well are evaluated
by geologists and hydrologists at TCEQ and the depth of the surface casing to
protect fresh water formations in every new well is determined by TCEQ. Those
determinations are then submitted to the Railroad Commission for consideration
before drilling permits are issued.
“The study the EPA is conducting, like other studies
in the past, will show the positive benefits of this homegrown technology that
has increased our supply of clean-burning natural gas that makes America more
energy secure,” Ms. Jones maintains. “With the oversight of the Railroad
Commission, Texas’s natural gas, produced
using innovative technology, will contribute mightily and responsibly to the
nation’s energy mix at a time when we sorely need it.”
ComStar International (College Point,
N.Y.) and A.S. Trust & Holding (Kaneohe, Hawaii)
have signed an agreement to manufacture, market, and distribute the hydrocarbon
refrigerant HCR188C1, a patented blend of ethane, propane, butane, and other
pure hydrocarbons.
The partners note the refrigerant displays a zero
ozone-depleting rating and is the first hydrocarbon refrigerant approved by the
Environmental Protection Agency (EPA) for sale in the U.S., with the
public comment process having been completed July 9. The American Society of
Heating, Refrigeration and Air-Conditioning Engineers (ASHRAE) has rated
HCR188C1 to be non-toxic. In addition, the coolant is now a listed refrigerant
with independent testing, inspection, and certification partner Intertek
Testing Services.
HCR188C1, designed to replace chlorofluorocarbons,
hydrochlorofluorocarbons, and hydrofluorocarbons, will soon be in the public
comment stage as solicited by ASHRAE. Results are expected by October for a
final EPA SNAP ruling to list the coolant as an approved alternative
refrigerant for use in household refrigerators and stand-along freezers. SNAP
refers to the EPA’s Significant New Alternatives Policy initiative, a part of
the Clean Air Act.
The new refrigerant is said to operate effectively as a
direct replacement in appliances and air-conditioning systems designed for
traditional coolants. Though flammable, the product partners note, HCR188C1 is
used in small amounts, presenting a negligible risk. To mitigate risk, A.S.
Trust & Holding holds a patent on a refrigerant safety service port valve
that can be used on larger systems. The valve operates by shutting down the
system when there is a drop in operating pressure.
Ford Motor Co. has informed its North American fleet
customers it will begin offering an alternative fuels prep package for its
6.8-liter F-450 and F-550 Super Duty chassis. The F-450 and F-550 are Ford’s
latest vehicles to get the alternative fuel conversion option.
Since introducing the option to E-Series and other
commercial fleet vehicles last fall, Ford notes it has shipped about 3000
E-Series vans with 5.4-liter and 6.8-liter engines prepped for LPG/CNG to fleet
operators such as Verizon and Schwan’s. Ford provides calibration guidance to
LPG and CNG upfitters for E-Series, F-Series, and Transit Connect. By following
Ford recommendations, the converted vehicle maintains its factory warranty.
Ford offers the alternative fuel package on its Transit Connect,
including its new taxi offering with a 2.0-liter, four-cylinder engine. This
fall, Ford says it will also add LPG/CNG capability to the F-53 motor home
chassis and its new F-59 commercial chassis. Ford’s 6.8-liter, V-10 engine with
the prep package includes hardened exhaust valves and valve seats for improved
wear resistance and durability for gaseous fuel systems.
“Compressed natural gas and propane offer more than
sufficient power for vehicles because they are high-energy fuels,” said Rob
Stevens, Ford’s commercial vehicle chief engineer. “Other natural benefits for
these fuels are overall lower emissions of greenhouse gases compared to
gasoline and lower fuel and operating costs for their fleet.”
…The Propane Marketers of Kansas’ (PMAK) Beth Johnson
Scholarship Foundation has donated $75,000 to the National Propane Gas
Foundation Scholarship Fund, becoming the fund’s newest Platinum Plus Donor.
Through the donation, PMAK’s Beth Johnson Memorial scholarships will now be
administered by the National Propane Gas Foundation, which will award two $2000
scholarships annually to dependents of National Propane Gas Association members
who reside in Kansas…
…The National Propane Gas Association (NPGA) has been
notified it will be receiving the 2010 Corporate Award of Merit at the upcoming
meeting of the CSA Standards committees in Orlando, Fla.
in September. NPGA is being recognized by CSA Standards for “outstanding
achievement and for a high level of involvement in the development and
advancement of standards, both nationally and internationally.” NPGA has
participated on the CSA-administered Z21/83 Standards Committee for Fuel Gas
Appliances for decades, and also sponsors several of its members for their
participation on various technical advisory groups that write gas appliance
standards…
A new industry-sponsored study prepared by Resource Dynamics
Corp. (McLean, Va.)
identifies advanced distribution generation applications with the potential to
increase U.S.
propane sales. According to the study, “Propane Distributed Generation Market
Assessment,” the largest potential market for propane-fueled distributed
generation is commercial and industrial combined heat and power, or CHP.
According to Resource Dynamics, CHP systems could consume
430 MMgal. of propane a year. To help capture that emerging market, the
Propane Education & Research Council is field-testing CHP systems to verify
their performance in real-world settings.
An 810-kw CHP system has been installed at a resort in Kauai, Hawaii, and a
4.7-kw Ecopower micro-CHP system is being evaluated at a greenhouse in Pennsylvania. Another
1.2-kw Freewatt Plus system has been installed at three small commercial sites
in the Northeast, and a 10-kw Yanmar micro-CHP system is being evaluated for
commercial use. To download the report, visit
…Sunoco Logistics Partners (Philadelphia) has acquired the butane
blending business of Texon (Houston) for a reported $140 million plus
inventory. Sunoco Logistics expects to fund the acquisition with a $100-million
loan from parent company Sunoco and borrowings under its revolving credit
facility. The transaction is expected to close this month. The business
consists of patented technology for blending of butane into gasoline, contracts
with several terminal operators, butane inventories, and other assets…
The U.S. Chemical Safety Board (CSB) intends to appeal an
NFPA Technical Committee on Liquefied Petroleum Gases vote rejecting a comment it
submitted regarding revising NFPA 58 to add requirements for the training of
industry personnel, reports the National Propane Gas Association (NPGA).
NPGA notes that CSB developed a proposal and Comment 58-49
to change NFPA 58 following its investigation of the propane incident that
occurred at the Little General Store in Ghent, W. Va. The CSB proposal would require all industry
training programs to include the following components: recognition of the
safety and health hazards of working with propane; a description of safe work
practices; actions to take during emergency response; supervised, on-the-job
training; and testing and performance evaluation.
The NFPA Technical Committee on LPG objected to some of the
language in the CSB proposal, comments NPGA, that may be interpreted to require
the training mandates apply to others outside the industry, such as personnel
who work at convenience stores and assist customers in loading cylinders into
vehicles. The Technical Committee voted to request its chairman to formally
oppose the CSB appeal at the Standards Council meeting in August, and to ask
the council to reject the appeal.
In addition, the committee voted to have its chairman
propose that a tentative interim amendment be developed to address the concerns
of the CSB.
…Completed 2009 American Petroleum Institute (API) survey of
sales of natural gas liquids and liquefied refinery gases are due Aug. 9.
Completing and returning the annual API survey is critical to the allocation of
state rebates by the Propane Education & Research Council (PERC), which
account for one out of every five dollars PERC oversees. The survey is also the
propane industry’s benchmark for overall propane sales and assessment
collections, and it is the primary source on propane sales by market—residential,
commercial, engine fuel, agriculture, etc. To request a survey or for
information, contact Crystal Harrod of API at harrod@api.org, or call 202/682-8492…
The Gas Processors Association (GPA) notes that as the
traditionally most active months of the hurricane season are approaching, the
U.S. Energy Information Administration (EIA) is planning its emergency
response.
In this effort, EIA is asking GPA members and natural gas
processing plant operators to submit any updates to emergency contact names,
telephone numbers, and e-mail address. Of particular interest to EIA are any
emergency contact staff changes that may have occurred, namely the staff that
can provide status updates to EIA on operations during a supply emergency.
In addition, EIA is asking that all processing plant
operators report any ownership or operator changes, plant decommissions, and/or
acquisitions. Contact information and additional plant information was
initially requested on Form EIA-757, http://www.eia.doe.gov/pub/oil_gas/natural_gas/survey_forms/eia
757af.pdf. For
additional information, contact Lejla Alic of EIA at 202/586-0858 or Lance
Stewart at 202/586-8926. E-mail updated information to OOGEIA-757@eia.doe.gov.
The Occupational Safety & Health Administration (OSHA)
is focusing on removing or revising safety and health standards that have
requirements that are confusing, outdated, duplicative, unnecessary, or
inconsistent, notes the National Propane Gas Association (NPGA).
The effort is under the agency’s continuing efforts to build
upon its Standards Improvement Project. To that end, OSHA has published a
proposed rule to update its regulations with references to more current
industry consensus standards.
Regulations and standards under current consideration that
could potentially impact NPGA members are 29 CFR Part 1910, Subpart E-Means of
Egress, Subpart I-Training Certification Records for Personal Protective
Equipment, and Subpart J-Slings. Also under consideration are an update of
NFPA’s Life Safety Code to the 2006 edition and independent compliance options
via NFPA’s Life Safety Code 101 and the International Code Council’s
International Fire Code.
NPGA notes that OSHA believes that the proposed revisions will
reduce compliance costs, eliminate paperwork burdens, and clarify requirements
without diminishing worker protections. Comments are due Sept. 30. For more
information, contact Robert Elliot, NPGA director of regulatory affairs, at relliott@npga.org.
