Draft Methodological Tool. Upstream leakage emissions associated with fossil fuel use. (Version )

Transcription

1 Page 1 Draf Mehodological Tool Upsream leakage emissions associaed wih fossil fuel use (Version ) I. DEFINITIONS, SCOPE, APPLICABILITY AND PARAMETERS Definiions For he purpose of his ool, he following definiions apply: Upsream emissions. The greenhouse gas (GHG) emissions associaed wih he producion, processing, ransmission, sorage and disribuion of a fossil fuel, beginning wih he exracion of raw maerials from he fossil fuel origin and ending wih he delivery of he fossil fuel o he sie of use. Upsream emissions sage. The segmenaion of upsream emissions ino sages based on disinc aciviies occurring wihin a sage. Upsream emissions sages are inerdependen and lead from one o he nex, ypically consising of producion, processing, ransmission, sorage and disribuion. Upsream emissions sages may be broadly generalized for ypes of fossil fuel. However, only some of he upsream emission sages may apply o a paricular fossil fuel because of locaion and applicaionspecific circumsances. For example, a paricular naural gas may go direcly from he producion sage o he disribuion sage, wihou going hrough any processing, ransmission or sorage upsream emissions sages. Fossil fuel origin. This refers o he locaion and ype of reservoir(s) or mine(s) from which he fossil fuel originaes. The ype of reservoir differeniaes key characerisics which influence upsream emissions. For naural gas based fossil fuels he ypes of reservoirs include swee, sour, coal-bed, shale or associaed gas. For coal-based fuels he ypes of mines include underground or surface. Scope and applicabiliy This ool provides a procedure o calculae leakage upsream emissions associaed wih he use of fossil fuels. The ool is applicable o fossil fuel use in eiher or boh he baseline scenario and projec aciviy as well as fossil fuel consumpion for leakage emission sources. Upsream emissions associaed wih fossil fuel use are: (a) Fugiive emissions of CH 4 and CO 2, including vening, flaring and physical leakage from equipmen; (b) CO 2 emissions from combusion of fossil fuels; and (c) CO 2 emissions associaed wih consumpion of elecriciy. Oher GHG emissions sources, such as hose associaed wih he consrucion of equipmen are relaively small and herefore no considered. The ool has wo opions o deermine hese emissions: Opion (A) provides simple defaul emission facors for differen ypes of fossil fuels, and Opion (B) calculaes emission facors based on emissions for each upsream emissions sage. Opion (B) requires idenifying he relevan upsream emissions sages and he corresponding emission facor for each sage, which may be a defaul value or calculaed, such as according o he 2006 IPCC Tier 2 or 3 mehodology.

2 Page 2 This ool is applicable o he following ypes of fossil fuels, which can be caegorized o be eiher based on naural gas, oil or coal: Naural gas: (a) Naural gas; (b) Naural gas liquids (mixures of primarily penanes and heavier hydrocarbon); (c) Propane, buane, and oher ypes of liquefied peroleum gas (LPG); (d) Liquefied naural gas (LNG); (e) Compressed naural gas (CNG); Oil: (f) Ligh fuel oil (diesel); (g) Heavy fuel oil (bunker or marine ype); (h) Gasoline; (i) Kerosene (household and aviaion); (j) Propane, buane, and oher ypes of liquefied peroleum gas (LPG); Coal: (k) Coal; and (l) Lignie. Mehodologies which refer o his ool should sae: (a) The fossil fuel ype(s), as lised above, for which upsream emissions should be deermined. For he siuaion ha he fossil fuel is defined a he projec level, insead of in he mehodology, and does no exacly mach a ype lised above, hen he closes approximaion shall be seleced in erms of he fuel characerisics (e.g. naural gas, oil or coal based fuel) and fossil fuel lifecycle sages (see Table 3); (b) Procedures o deermine he amoun of each fossil fuel ype(s) used in he baseline or projec siuaion on a ne calorific value (NCV); and (c) If leakage upsream emissions values of less han 0 are accepable, such as for projec aciviies in which a fossil fuel in he baseline siuaion is displaced wih a renewable fuel in he projec siuaion. Oherwise, if negaive values are calculaed using his ool, hen hey are assumed o equal 0. This ool also refers o he laes approved version of he following ools: Tool o deermine projec, leakage or baseline emissions from elecriciy consumpion ; and Tool o calculae projec or leakage CO 2 emissions from fossil fuel combusion. For more informaion regarding he proposed new mehodologies and he ools, as well as heir consideraion by he Execuive Board, please refer o <hp://cdm.unfccc.in/goo/mpappmeh>.

3 Page 3 The applicabiliy condiions of hese ools also apply. Parameers This ool provides procedures o deermine he following parameer: Parameer SI Uni Descripion LE US,y CO 2 e / yr Leakage upsream emissions in year y The following daa, for which provisions are no given in he ool, are required by his ool. The underlying mehodology shall provide he corresponding procedures. Parameer SI Uni Descripion FC PJ,y TJ / yr Quaniy of fossil fuel ype x used in he projec siuaion in year y (on a NCV basis) FC BL,y TJ / yr Quaniy of fossil fuel ype x used in he baseline siuaion in year y (on a NCV basis) II. METHODOLOGY PROCEDURE Leakage upsream emissions shall be deermined using one of he following wo opions: Opion (A): Simple approach based on defaul emission facors; or Opion (B): Refined approach based on he upsream emissions sages of he fossil fuel. In he case ha par of he upsream emissions occur wihin he projec boundary of he CDM projec aciviy (e.g. he projec aciviy is implemened in a refinery), hen projec paricipans shall apply opion (B). Oherwise, projec paricipans may choose beween opion (A) and opion (B). The projec paricipans should documen in he CDM-PDD and monioring repors which approach is applied. The approach may be changed during he crediing period, however a combinaion of opions (A) and (B) is no allowed in he same monioring period. Opion (A): Simple approach based on defaul emission facors Leakage upsream emissions are calculaed as follows: LE EF FC FC (1) US, y x US,defaul PJ,y BL,y If LE US,y is calculaed as a value of less han 0, hen a value of 0 shall be used insead, unless he mehodology referencing his ool specifies ha negaive values for LE US,y are permied. Where: LE US,y = Leakage upsream emissions in year y ( CO 2 e / yr) FC PJ,y = Quaniy of fossil fuel ype x used in he projec siuaion in year y (TJ / yr) FC BL,y = Quaniy of fossil fuel ype x used in he baseline siuaion in year y (TJ / yr) EF US,defaul = Defaul emission facor for upsream emissions associaed wih consumpion of fossil fuel ype x ( CO 2 e / TJ) x = Fossil fuel ypes used in he projec and/or baseline siuaion and for which upsream emissions should be deermined

4 Page 4 Selec EF US,defaul from Table 1 for he corresponding fossil fuel ype x. In his able, a simple defaul emission facors is provided for each fossil fuel ype, no disinguishing facors for differen fossil fuel origin excep for coal based fuels. For his fuel ype, here are defaul emission facors provided if i is known ha he coal based fuel is wholly sourced from an underground mine or mine(s) locaed in he hos counry of he projec aciviy. Defaul facors are also provided for he siuaion ha his informaion is no available. These defaul values have been deermined using he approach for Opion B. 1 Table 1: Defaul emission facors for upsream emissions for differen ypes of fossil fuels (EF US,defaul ) Fossil fuel ype x Defaul emission facor ( CO 2 e / TJ) (NG) 2.9 Liquids (NGL) 2.2 Liquefied (LNG) 16.2 Compressed (CNG) 10 Ligh Fuel Oil (Diesel) 16.7 Heavy Fuel Oil (Bunker or Marine Type) 9.4 Gasoline 13.5 Kerosene (household and aviaion) 8.5 LPG (including buane and propane) 8.7 Coal/lignie (unknown mine locaion(s) or coal/lignie no 100% sourced from wihin hos counry) Coal/lignie (coal/lignie 100% sourced from wihin hos counry) Lignie 2.9 Surface mine, or any oher siuaion 2.8 Underground (100% source) 10.4 Lignie 6.0 Surface mine, or any oher siuaion 5.8 Underground (100% source) The approach o calculae he defaul values is o sum ogeher he emission facors for each of he upsream emission sages for fossil fuel ype as lised in Table 3. Naural gas, liquefied naural gas, oil and coal are commodiies ha are raded globally. The fuels are produced in Annex I counries in various quaniies and herefore he emissions produced during he Exploraion and Producion, Upgrading and/or Refining Transporaion sages are already considered in he Naional invenories of hese Annex I counries. In order o avoid double couning, each emission facor (for naural gas, liquefied naural gas, oil and coal) is muliplied by a correcion facor which accouns for he exporing aciviy from Annex I counries, applying daa published by he U.S Energy Informaion Adminisraion, Inernaional Energy Saisics and BP Saisical Review of World Energy. The correcion facors for naural gas based fossil fuel ypes (Excep LNG), liquefied naural gas, oil based fossil fuel ypes and coal/lignie are he following respecively: 0.26, 0.85, 0.76 and 0.48.

5 Page 5 Opion (B) Deailed approach based on upsream emissions sages This approach esimaes upsream emissions by summing he emissions occurring in each upsream emissions sage relevan o he fossil fuel used in he projec or baseline siuaion. This requires idenifying: Fossil fuel ype(s) and origin; Upsream emissions sages ha are applicable o each fossil fuel ype and origin; and Emission facors corresponding o each applicable upsream emissions sage. Upsream leakage emissions are hen calculaed as follows: LE US, y EF FC FC (2) x i j i,y PJ,y BL,y Where: LE US,y = Leakage upsream emissions in year y ( CO 2 e / yr) EF i,y = Emission facor for upsream emissions sage i associaed wih consumpion of fossil fuel ype x from fossil fuel origin j applicable o year y ( CO 2 e / TJ) FC PJ,y = Quaniy of fossil fuel ype x from fossil fuel origin j used in he projec siuaion in year y (TJ / yr) FC BL,y = Quaniy of fossil fuel ype x from fossil fuel origin j used in he baseline siuaion in year y (TJ / yr) x = Fossil fuel ypes for which upsream emissions are deermined i = Upsream emissions sage j = Fossil fuel origin(s) in year y Sep 1: Idenifying he fossil fuel origin j The fossil fuel origin is needed o deermine he emission facor for an upsream emissions sage using Opion (B) and may also be useful for idenifying he applicable upsream emissions sages for each fossil fuel ype. For oil based fossil fuel ypes, he fossil fuel origin is global. 2 For coal based fossil fuel ypes, he fossil fuel origin is also global, unless he fossil fuel origin is clearly idenified as a mine locaed wihin he hos counry. For all oher siuaions and fossil fuel ypes he fossil fuel origin mus be deermined. Where i is no possible o idenify he fossil fuel origin, hen i should be deermined based on reasonable and conservaive assumpions for he region or jurisdicion. For insance, if a fossil fuel ype used in he projec aciviy could poenially be sourced from one of several fossil fuel origins, hen i can be assumed o have only one fossil fuel origin as long as his is jusified o be conservaive. The basis for deermining he fossil fuel origin, and if relevan he jusificaion of why any assumpions are conservaive, shall be documened in he CDM-PDD and monioring repors. Each year i shall be checked if he fossil fuel origin(s) has changed, and if i has changed, hen he Opion (B) procedure mus be updaed. 2 A global fossil fuel origin represens he siuaion ha i is no possible o confirm he exac source of he fossil fuel ha would be replaced or used as a resul of a CDM projec aciviy, given ha oil and is producs are globally raded commodiy. In which exac locaion oil producion is increased or decreased as a resul of a CDM projec aciviy may depend on many facors, such as he marginal producion coss, he locaion of he hos counry, he curren prices for raw oil, or geopoliical facors. For example, a projec aciviy locaed in an oil producing counry may no necessarily impac he oil producion in ha counry bu could insead increase or decrease he expor or impor of oil.

6 Page 6 As a check, he sum of he fossil fuel consumpion of each fossil fuel origin for fossil fuel ype x shall equal he quaniy of fossil fuel x consumed in he baseline and projec siuaions, as follows: FC PJ, y j FC PJ,y (3) and FC BL, y j FC BL, y (4) Where: FC PJ,y = Quaniy of fossil fuel ype x from fossil fuel origin j used in he projec siuaion in year y (TJ / yr) FC BL,y = Quaniy of fossil fuel ype x from fossil fuel origin j used in he baseline siuaion in year y (TJ / yr) FC PJ,y = Quaniy of fossil fuel ype x used in he projec siuaion in year y (TJ / yr) FC BL,y = Quaniy of fossil fuel ype x used in he baseline siuaion in year y (TJ / yr) x = Fossil fuel ypes for which upsream emissions are deermined j = Fossil fuel origin(s) in year y Sep 2: Idenifying upsream emissions sages The upsream emissions sages i ha are poenially applicable for each fossil fuel ype and origin are lised in Table 3. Those sages ha shall always be assumed o apply for a given fossil fuel ype are idenified as a mandaory upsream emissions sage. Oherwise, he sage may or may no apply depending on he projec specific circumsance and fossil fuel origin. If here is uncerainy as o wheher a paricular sage is applicable, hen for fuel consumpion ha is higher in he projec siuaion han he baseline, hen i shall be assumed o apply, and oherwise i shall be assumed o no apply. Sep 3: Idenifying he emission facor corresponding o each upsream emissions sage (EF i,y ) For fossil fuel ypes wih a global fossil fuel origin or an origin idenified o be locaed in an Annex 1 counry, hen he emission facor corresponding o specified upsream emissions sages i are calculaed as follows: For oil-based fuels, because heir fossil fuel origin j is global, he emission facors for he Exploraion and Producion, Upgrading and/or Refining and Transporaion sages shall be seleced from he lis of defaul emission facors in Table 3 (selecing an average, where a range in values is given), and muliplied by ; For coal based fuels wih a fossil fuel origin j ha is global, he emission facor for each upsream emission sage shall be seleced from he lis of defaul emission facors in Table 3 and muliplied by ; For naural gas based fossil fuel ypes (Excep LNG), wih a fossil fuel origin j ha is global, he emission facor for each upsream emission sage shall be seleced from he lis of defaul emission facors in Table 3 and muliplied by ; For liquefied naural gas, he emission facor for each upsream emission sage shall be seleced from he lis of defaul emission facors in Table 3 and muliplied by ; For a naural gas based fuel wih a fossil fuel origin j locaed in an Annex 1 counry, and he case ha fuel consumpion of ype x from his origin j is higher in he baseline siuaion han in

7 Page 7 he projec siuaion, hen he emission facor is 0 for he Exploraion and Producion, and Processing sages. For all oher siuaions projec paricipans may selec for each upsream emissions sage i, from eiher Opion (1) or Opion (2) o deermine he emission facor corresponding o each upsream emissions sage (e.g. differen opions may be seleced for each upsream emission sages of fossil fuel ype x from fossil fuel origin j): Opion (1): Selec a defaul emission facor from Table 3; Opion (2): Deermine a refined emission facor ha is specific o he projec aciviy. The daa needed o suppor he developmen of refined emission facors may be difficul o obain and he refined approach will ypically only be pracical for eiher fossil fuel origins ha can be idenified as a paricular reservoir or mine or for upsream emissions sages ha have few aciviies and he emission sources are easy o idenify. Opion (1): Defaul emission facors Selec EF i, from he lis of defaul emission facors for upsream emissions sages in Table 3. Where he defaul emission facor is given as a range of values, follow he insrucions given in he able noes on how o choose he appropriae value wihin he range. Opion (2): Refined emission facors Developing a refined EF i,x requires deermining he GHG emissions associaed wih he following emission sources in he upsream emissions sage: For oil and naural gas based fossil fuels: o Fossil fuel consumpion (E Fuel,i, ); o Purchased elecriciy consumpion (E Elecriciy,i, ); o Flaring (E Flaring,i, ); o Vening(E Vening,i, ); o Leaks from equipmen (E Leaks,i, ); o Sorage losses (E Sorage Losses,i, ); For coal based fossil fuels: o Fugiive mehane emissions (EFugiive,i, ); o Fossil fuel consumpion (EFuel,i,); and o Purchased elecriciy consumpion (E Elecriciy,i, ). The calculaion of he emission facor(s) shall be updaed a he renewal of he crediing period or if he fossil fuel origin j changes. To calculae he emission facor, he oal GHG emissions from he upsream emissions sage during a represenaive ime period are divided by he amoun of he fossil fuel oupu by he upsream emissions sage during he same ime period (FP i, ). Sufficien daa should be used o ensure balanced weighing of any variaions in emission inensiies, such as due o seasonal variaions in producion and process performance. The ime period should herefore be a leas one year.

8 Page 8 The emission facor is calculaed using Equaion 5 for oil and naural gas based fossil fuels and Equaion 6 for coal. A simplified approach is given in Equaion 7 for he siuaion ha he key aciviies of an upsream emissions sage comprise only ransporaion. Refined emission facor for an upsream emissions sage associaed wih oil or naural gas based fuels are calculaed as follows: EF i, y 1 FP i, E Fuel, i, ER Flaring, i, ER Vening, i, ER Leaks, i, ER SorageLosses, i, ER Elecriciy, i, (5) Where: EF i,y = Emission facor for upsream emissions associaed wih upsream emissions sage i of fossil fuel x from fossil fuel origin j applicable for year y ( CO 2 e / TJ) FP i, = Fuel oupu from upsream emissions sage i of fossil fuel ype x from fossil fuel origin j in he ime period (TJ) E Fuel,i, = Emissions from consumpion wihin upsream emissions sage i of fossil fuel ype x from fossil fuel origin j in he ime period ( CO 2 e) E Flaring,i, = Emissions from flaring wihin upsream emissions sage i of fossil fuel ype x from fossil fuel origin j in he ime period ( CO 2 e) E Vening,i, = Emissions from vening wihin upsream emissions sage i of fossil fuel ype x from fossil fuel origin j in he ime period ( CO 2 e). E Leaks,i, = Emissions from fugiive equipmen leaks wihin upsream emissions sage i of fossil fuel ype x from fossil fuel origin j in he ime period ( CO 2 e) E SorageLosses,i, = Emissions from sorage losses wihin upsream emissions sage i of fuel ype x from fossil fuel origin j in he ime period ( CO 2 e) E Elecriciy,i, = Emissions associaed wih elecriciy consumpion wihin upsream emissions sage i of fuel ype x from fossil fuel origin j in he ime period ( CO 2 e) x = Fossil fuel ypes for which upsream emissions are deermined i = Upsream emissions sage associaed wih oil and naural gas based fuels j = Fossil fuel origin(s) in year y = Time period of a leas one year Refined emission facor for an upsream emissions sage associaed wih coal based fuels are calculaed as follows: EF i, y 1 FP i, E Fuel, i, E Fugiives, i, E Elecriciy, i, (6) Where: EF i,y = Emission facor for upsream emissions associaed wih upsream emissions sage i of fossil fuel x from fossil fuel origin j applicable for year y ( CO 2 e / TJ) FP i, = Fuel oupu from upsream emissions sage i of fossil fuel ype x from fossil fuel origin j in he ime period (TJ) E Fuel,i, = Emissions from consumpion wihin upsream emissions sage i of fossil fuel ype x from fossil fuel origin j in he ime period ( CO 2 e) E Fugiives,i, = GHG emission rae from fugiive sources wihin upsream emissions sage i of fuel ype x from fossil fuel origin j in he ime period ( CO 2 e) E Elecriciy,i, = Emissions associaed wih elecriciy consumpion wihin upsream emissions sage i of fuel ype x from fossil fuel origin j in he ime period ( CO 2 e)

9 Page 9 x = Fossil fuel ypes for which upsream emissions are deermined i = Upsream emissions sage associaed wih coal based fuels j = Fossil fuel origin(s) in year y = Time period of a leas one year A simplified equaion is provided below o deermine he refined emission facor for upsream emissions sages ha only comprise ransporaion aciviies. As well as updaing he emission facor a he renewal of he crediing period or if he fossil fuel origin changes, he emission facor shall also be recalculaed if he mode of ransporaion r changes, or for he case ha here is more han one ranspor mode r and he relevan proporion of fuel ranspored by hese modes changes. EF i, y r EF FT, r, defaul FP x i, r, NCV FP i, DT i, r, Where: EF i,y = Emission facor for upsream emissions associaed wih upsream emissions sage i of fossil fuel x from fossil fuel origin j applicable for year y ( CO 2 e / TJ) EF FT,r, defaul = Emission facor for he emissions associaed wih energy consumed in ransporing fossil fuel by mode r ( CO 2 e / km) FP i,r, = Fossil fuel ype x from fossil fuel origin j ranspored in upsream emissions sage i by mode r in he ime period (TJ) DT i,r, = Disance ha fossil fuel x from fuel origin j was ranspored by mode r in upsream emissions sage i in he ime period (km) NCV x = Ne calorific value of he fossil fuel x (TJ / ) FP i, = Fuel oupu from upsream emissions sage i of fossil fuel ype x from fossil fuel origin j in he ime period (TJ) x = Fossil fuel ypes for which upsream emissions are deermined i = Upsream emissions sage ha comprises only ranspor aciviy j = Fossil fuel origin(s) in year y r = Transpor modes in year y = Time period of a leas one year Selec EF FT,r,defaul from Table 2 for he corresponding ranspor mode r. In he case ha a fuel ype x is used boh in he projec aciviy and in he baseline, hen he defaul emission facor for he baseline shall be applied where he fuel consumpion under he baseline exceeds he fuel consumpion under he projec aciviy. Oherwise, he defaul emission facor for he projec siuaion shall be applied. Table 2: Defaul emission facors for differen modes of peroleum ransporaion (EF FT,r,defaul ) Transpor Mode Defaul emission facor for baseline siuaion ( CO2/ km) Defaul emission facor for projec siuaion ( CO2/ km) Road ranspor 1 76 x x 10-6 Rail ranspor 22 x x x x 10-6 Barge ranspor 31 x 10-6 or 0 if rip consiss of inernaional shipping * Shor sea 16 x 10-6 or 0 if rip consiss of inernaional shipping * Deep-sea anker 5 x 10-6 or 0 if rip consiss of 5 x 10-6 (7)

10 Page 10 inernaional shipping * Inermodal road/rail 26 x x 10-6 Inermodal road/barge 34 x x 10-6 Inermodal road/shor sea 21 x x 10-6 Pipelines (Crude Oil and Refined 2.8 x x 10-6 Produc Transpor) 2 Pipelines ( Transmission) 3 5 x x 10-6 Pipeline ( Disribuion) x x 10-6 Source: CEFIC Guidelines for Measuring and Managing CO2 Emissions from Freigh Transpor Operaions. Issue 1/March pp. 19., and: 1. Emission facor for he baseline siuaion has been obained from empirical daa from European vehicles (Les émissions de CO2 par les poids lourds français enre 1996 e 2006 on augmené moins vie que les volumes ransporés.. Commissaria Général au Développemen Durable. # 25, 2009). The emission facor for he projec siuaion has been derived based on cusom design ransien speed-ime-gradien drive cycle (adaped from he inernaional FIGE cycle), vehicle dimensional daa, mahemaical analysis of loading scenarios, and dynamic modeling based on engine power profiles, which, in urn, are a funcion of gross vehicle mass (GVM), load facor, speed/acceleraion profiles and road gradien. 2. Based on deailed greenhouse gas emissions daa and sysem daa available for one major pipeline ransporer of crude oil and refined peroleum producs for differen pipeline neworks ha operaed in Norh America. 3. Based on deailed greenhouse gas emissions daa and sysem daa available for wo naural gas ransmission pipeline sysems in Norh America. 4. Based on deailed greenhouse gas emissions daa and sysem daa available for wo naural gas disribuion pipeline sysems in Norh America. * Baseline emissions associaed wih inernaional shipping are ignored in his ool, because emission reducion commimens se under he Kyoo Proocol do no include emissions by inernaional shipping. Deermining he emissions from emission sources Emissions associaed wih elecriciy consumpion (E Elecriciy,i,y ) shall be deermined using he Tool o deermine projec, leakage or baseline emissions from elecriciy consumpion. Emissions associaed wih fossil fuel consumpion (E Fuel,i,y ) shall be deermined using he Tool o calculae projec or leakage CO 2 emissions from fossil fuel combusion. Projec paricipans may choose beween wo opions o deermine he emissions from he remaining emission sources (E Flaring,i, y, E Vening,i, y, E Leaks,i, y, E Sorage Losses,i, y, E Fugiive,i, y ): Opion (i): use he applicable Tier 2 or 3 calculaion procedures in he IPCC 2006 Guidelines; 3 or Opion (ii): reference he emission rae from repuable published emissions invenories where hese exis (for example, counry-specific and indusry-specific emission invenories published 3 Volume 2 - Energy of he IPCC 2006 Guidelines is designed o assess GHG emissions conribuions from sources ha include hose associaed wih an upsream emission sage. The guidelines provide separae procedures for assessing GHG emission conribuions due o fugiive emissions and energy use. Mehods for esimaing fugiive emissions are provided in Volume 2, Chaper 4 - Fugiive Emissions. To apply a Tier 2 or Tier 3 mehodology o a specific emissions sage requires deermining he amoun of fossil fuel and purchased elecric power consumpion by ha sage, as well as he relevan aciviy daa (such as he echnology associaed wih vening, flaring, sorage losses, and fugiive equipmen leaks). For coal mining he mehod involves applying counry or mine specific emission facors o he mining and ore preparaion sages. For oil and naural gas sysems, i is necessary o apply more complicaed procedures involving boom-up approaches. Examples of hese are referenced in he IPCC 2006 Guidelines, such as he API Compendium and similar guidelines published by oher relevan indusry associaions.

11 Page 11 by naional reporing eniies and indusry associaions, confirming ha hese have been developed using a IPCC Tier 2 or Tier 3 approach). Documen in he CDM-PDD and monioring repors: Aciviies wihin he sage ha are associaed wih each emission source, and boundary of, he upsream emissions sage i (o assis wih his, informaion is given in Table 3 abou poenial aciviies and emission sources ha occur wihin each upsream emissions sage); and The calculaion of emissions for each emission source. III. MONITORING METHODOLOGY Monioring Procedures No monioring is required for applicaion of his ool. IV. SUMMARY DATA PARAMETER TABLES Daa / Parameer: NCV x Daa uni: TJ / Descripion: Ne calorific value of he fossil fuel x Source of daa: Use IPCC defaul ne calorific values (counry-specific, if available), ha reasonably represen local circumsances. Choose he values in a conservaive manner and jusify he choice Value applied Table 1.2 of Volume 2 Energy, IPCC 2006 Guidelines, convering values o TJ / Any commen: --- Daa / Parameer: Daa uni: Descripion: Source of daa: Value applied Any commen: DT i,r, km Disance ha fossil fuel x from fuel origin j was ranspored by mode r in upsream emissions sage i in he ime period Relevan ransporaion saisics may be available from naional saisics or ransporaion deparmens, or from relevan rade associaions Documen he basis for he applied values GHG emissions from inernaional shipping mus be ignored, because hey are excluded from reducion arges under he Kyoo Proocol. Thus, exclude he lengh of any inernaional ransporaion segmens when assessing he value of DT i,r, FP i,y Daa / Parameer: Daa uni: TJ / yr Descripion: Fuel oupu from upsream emissions sage i of fossil fuel ype x from fossil fuel origin j in he ime period Source of daa: Relevan producion saisics may be available from naional saisics or energy deparmens, or from relevan rade associaions Value applied Documen he basis for he applied values Any commen: ---

12 Page 12 V. REFERENCES Albera Energy Research Insiue Life Cycle Assessmen Comparison of Norh American and Impored Crudes Prepared by Jacobs Consulancy and Life Cycle Associaes LLC. API Compendium of Greenhouse Gas Emissions Mehodologies for he Oil and Indusry. Pp Available a: hp:// Cenre for Liquefied Life Cycle Assessmen of GHG Emissions from LNG and Coal Fires Generaion Scenarios: Assumpions and Resuls. Prepared by PACE. VA. CEFIC Guidelines for Measuring and Managing CO2 Emissions from Freigh Transpor Operaions. Issue 1/March pp. 19. Available a: ICF Inernaional APPENDIX B: Life Cycle Greenhouse Gas Emissions of Peroleum Producs from WCSB Oil Sands Crudes Compared wih Reference Crudes. A repor prepared for Cardno ENTRIX, he U.S. Deparmen of Sae s hird-pary environmenal conracor for he Keysone XL Projec environmenal review. pp. 57. His-Jen Chen and Yeh-Chion Lin Case Sudies on Opimum Reflux Raio of Disillaion Towers in Peroleum Refining Processses. Tamkang Journal of Science and Engineering. V 4, n 2 pp IPCC Guidelines for Naional Greenhouse Gas Invenories. Volumes 1 o 5. Available a: hp:// Jaramillo, P., W. Griffin, H. Mahews. Comparaive Life Cycle Carbon Emissions of LNG Versus Coal Gas for Elecriciy Generaion. Summers, D.R., K.G. Moore and R. Maisonneuve Properly Designed High Performance Trays Increase Column Efficiency and Capaciy. Presened a he AIChE Spring Naional Meeing, March 12, New Orleans, Louisiana.10 pp. (Table 3). Toyoa Moor Corporaion Well-o-Wheel Analysis of Greenhouse Gas Emissions of Auomoive Fuels in he Japanese Conex. Well-o-Tank. Prepared by Mizuho Informaion & Research Insiue, Inc.

13 ANNEX 1: DEFAULT EMISSION FACTORS FOR UPSTREAM EMISSIONS STAGES Page 13 Informaion abou poenial key aciviies and emission sources ha occur wihin each upsream emissions sage is presened in Table 3 for conex. This informaion can also assis wih he deerminaion of refined emission facors, if he projec proponen selecs his opion insead of using defaul emission facors. Fossil fuel ype x Table 3: Defaul upsream emission facors presened by upsream emissions sage for each ype of fossil fuel Poenial upsream emissions sage i Poenial key aciviies underaken Typical relaive emission conribuions by ype of emission source Fossil fuel consumpion Elecric power consumpion Fugiives Defaul Emission Facor ( CO2e / TJ) Mandaory sage Opion o calculae refined emission facor Reference (NG) NG Exploraion & Producion Drilling, well esing & servicing, field gas gahering (including compression and hydrae conrol), and produced waer separaion and disposal, plus associaed gas conservaion a oil producion faciliies High 3.4 yes yes Deailed California- Modified GREET 4 Pahway for Liquefied (LNG) from Norh American and Remoe Sources 4 The Greenhouse Gases, Regulaed Emissions, and Energy Use in Transporaion Model (GREET)

14 Liquids (NGL) NG Processing NG Sorage NG Disribuion NGL Exploraion & Producion Separaion, sweeening, dehydraion, hydrocarbon dew poin conrol, produced waer disposal and compression NG re-compression back ino he ransmission sysem and poenially dehydraion and processing Pressure ledown from he ransmission sysem and ranspor in medium and low pressure pipelines o he end users Sorage of NGL a field faciliies and gas processing plans, as well as ransporaion o cenral faciliies (i.e., by ruck, rail, ship and/or pipelines) High High small small Page 14 4 no yes Deailed California- Modified GREET Pahway for Liquefied (LNG) from Norh American and Remoe Sources 1.6 no yes GREET Model 2.2 no yes GREET Model small Moderae 3.4 yes yes Deailed California- Modified GREET Pahway for Liquefied (LNG) from Norh American and Remoe Sources

15 Liquefied (LNG) NGL Sabilizaion & Treaing NGL Transporaion NG Exploraion & Producion NG Processing Vapour pressure conrol and poenially reaing o remove reduced sulphur compounds. Poenially by ruck, rail, ship and/or pipelines Drilling, well esing & servicing, field gas gahering (including compression and hydrae conrol), and produced waer separaion and disposal, plus associaed gas conservaion a oil producion faciliies Separaion, sweeening, dehydraion, hydrocarbon dew poin conrol, produced waer disposal and compression High High small Page no yes Assumed o be he same as a debuanizer Nil 2.8 yes yes AERI 5 (2009) 3.4 yes yes Deailed California- Modified GREET Pahway for Liquefied (LNG) from Norh American and Remoe Sources 4 no yes Deailed California- Modified GREET Pahway for Liquefied (LNG) from Norh American and Remoe Sources 5 Albera Energy Research Insiue (AERI)

16 NG Transpor NG Liquefacion & LNG Sorage LNG Transporaion NG Transpor o LNG plan Compression, refrigeraion, expansion cooling, sorage and managemen of boil-off losses Tanker fuel and managemen of boil-off losses High High Small Small Page no yes Deailed California- Modified GREET Pahway for Liquefied (LNG) from Norh American and Remoe Sources 7.4 yes yes Deailed California- Modified GREET Pahway for Liquefied (LNG) from Norh American and Remoe Sources 3.5 yes yes Deailed California- Modified GREET Pahway for Liquefied (LNG) from Norh American and Remoe Sources

17 Compresse d Naural Gas (CNG) I is assumed ha CNG consiss of half NG - derived CNG (11.2) and half LNG - derived CNG (19). NG Disribuion Producion of CNG a he final sales poin. Pressure ledown from he ransmission sysem and ranspor in medium and low pressure pipelines NG compression from an inle pressure of 35 o 2070 kpag up o final pressure of 20,700 kpag small small Nil Page no yes Deailed California- Modified GREET Pahway for Liquefied (LNG) from Norh American and Remoe Sources Small 2.9 yes yes Well-owheels Analysis of Fuure Auomoive Fuels and Powerrains in he European Conex (Concawe)

18 Ligh Fuel Oil (Diesel) Crude Oil Exploraion & Producion Crude Oil Transporaion Peroleum Upgrading and/or Refining Drilling, well servicing, arificial lif sysems, enhanced recovery (e.g., hrough secondary and eriary recovery schemes), ranspor o cenral reaing faciliies (i.e., by ruck or pipeline) for solids and waer removal, waer disposal, wase gas disposal, oil sands mining and exracion, biumen and heavy oil diluion and/or heaing Transpor of reaed crude oil (including heavy oil and biumen) o upgraders and/or refineries by ruck, rail, ship and/or pipeline, plus (where applicable) diluen recycle Sal removal, disillaion, carbon rejecion and/or hydrogen addiion, followed by produc fracionaion, sorage and blending high large high Moderae high Page yes no ICF (2011) Nil 1.5 no no AERI(2009) 12.7 yes yes AERI(2009)

19 Heavy Fuel Oil (Bunker or Marine Type) Refined Produc Disribuion Crude Oil Exploraion & Producion Transporaion Transpor o bulk erminals and o reail disribuion sies by ruck, rail, ship and/or pipeline Drilling, well servicing, arificial lif sysems, enhanced recovery (e.g., hrough secondary and eriary recovery schemes), ranspor o cenral reaing faciliies (i.e., by ruck or pipeline) for solids and waer removal, waer disposal, wase gas disposal, oil sands mining and exracion, biumen and heavy oil diluion and/or heaing Transpor of reaed crude oil (including heavy oil and biumen) o upgraders and/or refineries by ruck, rail, ship and/or pipeline high Page 19 small Nil 0.9 yes yes Assumed o be he same as for gasoline high high 6.9 yes no ICF (2011) Nil 1.5 no no AERI(2009)

20 Gasoline Upgrading or Refining Disribuion Crude Oil Exploraion & Producion Sal removal, disillaion, carbon rejecion and/or hydrogen addiion, followed by produc fracionaion, sorage and blending Transpor o bulk erminals and o reail disribuion sies by ruck, rail, ship and/or pipeline Drilling, well servicing, arificial lif sysems, enhanced recovery (e.g., hrough secondary and eriary recovery schemes), ranspor o cenral reaing faciliies (i.e., by ruck or pipeline) for solids and waer removal, waer disposal, wase gas disposal, oil sands mining and exracion, biumen and heavy oil diluion and/or heaing large high Moderae Page yes yes Toyoo Moor Corporaion (2004) small Nil 0.9 yes yes Assumed o be he same as for gasoline high high 6.9 yes no ICF (2011)

21 Transporaion Upgrading and/or Refining Disribuion Transpor of reaed crude oil (including heavy oil and biumen) o upgraders and/or refineries by ruck, rail, ship and/or pipeline Sal removal, disillaion, carbon rejecion and/or hydrogen addiion, followed by produc fracionaion, sorage and blending Transpor o bulk erminals and o reail disribuion sies by ruck, rail, ship and/or pipeline large Moderae Page 21 Nil 1.5 no no AERI(2009) 8.4 yes yes ICF (2011) small Nil 0.9 yes yes ICF (2011)

22 Kerosene (household and aviaion) Crude Oil Exploraion & Producion Transporaion Upgrading and/or Refining Drilling, well servicing, arificial lif sysems, enhanced recovery (e.g., hrough secondary and eriary recovery schemes), ranspor o cenral reaing faciliies (i.e., by ruck or pipeline) for solids and waer removal, waer disposal, wase gas disposal, oil sands mining and exracion, biumen and heavy oil diluion and/or heaing Transpor of reaed NGL and crude oil (including heavy oil and biumen) o upgraders and/or refineries by ruck, rail, ship and/or pipeline Sal removal, disillaion, carbon rejecion and/or hydrogen addiion, followed by produc fracionaion, sorage and blending high large high Moderae high Page yes no ICF (2011) Nil 1.5 no no AERI(2009) 1.9 yes yes Toyoo Moor Corporaion (2004)

23 LPG (including Propane & Buane) Disribuion Crude Oil Exploraion & Producion Crude Oil Transporaion Transpor o bulk erminals and o reail disribuion sies by ruck, rail, ship and/or pipeline Drilling, well servicing, arificial lif sysems, enhanced recovery (e.g., hrough secondary and eriary recovery schemes), ranspor o cenral reaing faciliies (i.e., by ruck or pipeline) for solids and waer removal, waer disposal, wase gas disposal, oil sands mining and exracion, biumen and heavy oil diluion and/or heaing Transpor of reaed crude oil (including heavy oil and biumen) o upgraders and/or refineries by ruck, rail, ship and/or pipeline, plus (where applicable) diluen recycle high high Page 23 Nil 0.9 yes yes Assumed o be he same as for gasoline high 6.9 yes no ICF (2011) Nil 1.5 no no AERI(2009)

24 Processing of High Vapour Pressure Produc Sreams a Gas Plans, Upgraders and Refineries Fracionaion (e.g., de-propanizer and/or debuanizer) and sorage Page 24 Moderae Small Nil 2.1 yes yes Derived from depropanizer and debuanizer daa published by Summers e al (2002) and Chen and Lin (2001) Disribuion Transpor o bulk erminals and o reail disribuion sies by ruck, rail, ship and/or pipeline Nil 0.9 yes yes Assumed o be he same as for gasoline Coal Mining Mining equipmen, seam gas drainage and disposal before and during mining, waer drainage and disposal, pos mine seam gas emissions, unconrolled combusion and burning coal dumps. Moderae Moderae Moderae 18.9 (Undergroun d Mines) 3.3 (Surface Mines) yes Only if fossil fuel origin is no global Derived from indusry fuel use daa and maximum IPCC (2006) defaul CH4 emission Facors

25 Processing Crushing, screening, cleaning, drying, disposal of rejecs and ailings managemen Page 25 Moderae Small yes yes Transporaion By ruck, rail or barge Lignie Mining Mine mobile equipmen, seam gas drainage and disposal before and during mining, waer drainage and disposal, pos mine seam gas emissions, unconrolled combusion and burning coal dumps Moderae small Nil 2.5 no yes Based on 1000 km ranspor by ruck and 6000 km by marine vessel. Truck and marine vessel facors derived from CEFIC (2011) Moderae Moderae Moderae 3.4 yes Only if fossil fuel origin is no global Derived from indusry fuel use daa and maximum IPCC (2006) defaul CH4 emission Facors Processing Crushing, screening, cleaning, drying, disposal of rejecs and ailings managemen Moderae Small yes yes

26 Transporaion By ruck, rail or barge Page 26 Moderae small Nil 2.6 no yes Based on 500 km ranspor by ruck. Truck facor derived from CEFIC (2011)

27 Page Hisory of he documen Version Dae Naure of revision(s) Sepember 2012 EB 69, Annex # To be considered a EB 69. Decision Class: Regulaory Documen Type: Tool Business Funcion: Mehodology