METHANE MANAGEMENT REP ORT 2016

Transcription

1 METHANE MANAGEMENT REP ORT 2016

2 METHANE MANAGEMENT REPORT Executive Summary Dominion Resources, Inc. (Dominion) is focused on meeting our customers' energy needs with reliable, affordable energy in an environmentally responsible and sustainable manner. A diverse supply of fuel including clean burning natural gas ensures a reliable supply of energy for our customers. Natural gas pipelines continue to be an important driver for our economic and environmental future. We know that today's operations affect tomorrow's environment. As a major energy supplier in uniquely beautiful, natural regions, we work to protect and enhance the economic and environmental quality of life for our customers and our employees. In this spirit, Dominion has been actively engaged for many years in managing and reducing methane emissions from our natural gas businesses. Our methane management program is built around measurement, mitigation, and disclosure. One of the primary focuses related to reducing methane emissions released from our natural gas infrastructure is through our voluntary participation in EPA s Natural Gas STAR program. These measures have resulted in a reduction of approximately 4.4 billion cubic feet of methane emissions since In 2016, Dominion continued to be an industry leader by joining the EPA s Natural gas STAR Methane Challenge program as a founding member. Dominion has been voluntarily reporting on greenhouse gas emissions for more than 10 years. In 2015, we published our first methane report. In 2012, we began reporting methane emissions from our natural gas system under the EPA mandatory greenhouse gas reporting program. In 2008, we began developing a corporate GHG inventory for our natural gas businesses, and we have voluntarily reported our total carbon (CO2e) emissions on our company website 1 since Dominion has been proactive about reporting methane emissions and our program for estimating them using EPA recommended approaches. We have participated in the EPA s Natural Gas STAR program for more than four years, well in advance of mandatory regulatory programs to reduce methane emissions. We continue to incorporate and share cost-effective best practices in engineering design to reduce methane emissions from new projects. We have participated in studies on methane emissions from the transmission and storage segment and continue to support similar studies in other segments. In the interest of transparency, Dominion will continue to be proactive about reporting and about the steps we are taking to reduce emissions. We are proud of the work we have done and collaborating with others to learn and share what we have learned. The purpose of this report is to provide a general discussion of the facts and issues associated with 1

3 METHANE MANAGEMENT REPORT methane and to describe how Dominion currently manages these emissions.

4 METHANE MANAGEMENT REPORT Introduction & Background In the United States, carbon dioxide (CO 2 ) emissions have fallen over the past decade, thanks in large measure to the increased use of natural gas as a fuel to generate electricity. At the same time, this has led to an increased focus on natural gas as a contributor to greenhouse gas emissions, and methane (CH 4 ) in particular. Dominion has been disclosing its Greenhouse Gas (GHG) emissions for more than a decade, and the company published its first report on methane emissions and reductions in This document updates that information. Although natural gas is a very clean-burning fuel, when it is released to the atmosphere as uncombusted methane, it has a higher global warming potential than carbon dioxide. Methane is emitted from natural sources such as wetlands and also from human activities such as raising livestock and leakage from natural gas systems, yet it is still a small part of overall emissions. Methane emissions from the oil and gas sector accounts for 3% of total U.S. GHG emissions. This is calculated using the 2016 Environmental Protection Agency annual inventory (2016 GHGI) 2 whereby in 2014, methane contributed nearly 11% of the total U.S. greenhouse gas emissions from human activities, of which about 33% comes from natural gas systems encompassing production through distribution 3. Methane has a shorter half life than carbon dioxide (CO 2 ), but it is considered more potent than carbon dioxide (CO 2 ) with a global warming potential of 25 (i.e., 25 times more potent than CO 2 ). Based on EPA s Greenhouse Gas Inventory data, methane emissions in the U.S. decreased by 6% between 1990 and 2014 as shown below. Source: USEPA, 2016 GHGI 2 USEPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks: , EPA 430-R (published 2016). 3 USEPA

5 METHANE MANAGEMENT REPORT About Dominion Dominion is one of the nation's largest producers and transporters of energy, with a portfolio of approximately 26,400 megawatts of electric generation, 15,000 miles of natural gas transmission, gathering and storage pipeline, 51,300 miles of gas distribution pipeline, 6,600 miles of electric transmission lines and 57,600 miles of electric distribution lines. Dominion operates one of the nation's largest natural gas storage systems with trillion cubic feet of storage capacity and serves more than six million utility and retail energy customers in 17 states. Dominion s natural gas operations span the entire value chain from production to local distribution. Dominion operates production assets in Colorado, Ohio, Pennsylvania, Utah, West Virginia, and Wyoming. Dominion s transmission, gathering, and storage pipelines operate in 11 states Colorado, Georgia, Maryland, New York, Ohio, Pennsylvania, South Carolina, Utah, Virginia, West Virginia, and Wyoming. Dominion s distribution systems operate in Idaho, Ohio, Utah, West Virginia, and Wyoming. The company operates natural gas processing facilities in Ohio and West Virginia and processes gas at facilities in Utah and Colorado. Dominion also operates a liquefied natural gas (LNG) import and storage facility at Cove Point, Maryland. Dominion is actively engaged in efforts to manage methane emissions from its natural gas systems. This report covers emissions from sources that Dominion wholly owns and operates. It does not cover facilities or sources that are not operated by Dominion. For example, while Dominion co-owns Blue Racer Midstream and Iroquois Gas, it does not operate those assets, so emissions from these companies are not discussed in this report. Overview of Natural Gas Value Chain Dominion s natural gas value chain extends from exploration and production of natural gas to distribution to serve the end user. Methane emissions from natural gas systems include those resulting from normal operations, routine maintenance, and system upsets. Methane emissions from normal operations include: uncombusted natural gas in engine exhaust, bleed and discharge emissions from pneumatic controllers, compressor blowdown vents, and fugitive emissions from system components. Routine maintenance emissions originate from pipelines, equipment, and wells during repair and maintenance activities. Pressure surge relief systems can lead to system upset emissions. A picture of the natural gas value chain is shown below.

6 METHANE MANAGEMENT REPORT Source: PRODUCTION Natural gas is extracted from the ground using either conventional drilling techniques or directional drilling with hydraulic fracturing techniques in shale formations. Sources of methane emissions from the production sector include pneumatic device venting, well venting for liquids unloading, well completions, maintenance activities, and flare stacks. GATHERING AND PROCESSING In this process, natural gas from production wells is collected using a series of gathering pipelines and compressor boosting stations. The collected gas is stripped of impurities and other hydrocarbons to produce pipeline quality natural gas containing nearly 95-97% methane. In the gathering and processing sector, methane emissions typically come from compressor venting, blowdowns, dehydrator vents, acid gas removal systems, flares, and piping component leaks, such as flanges, connectors and valves. TRANSMISSION AND STORAGE In the transmission segment, natural gas is transported using a system of high pressure pipelines and compressors from the processing plants to the local distribution stations or industrial end users. In storage operations, natural gas is stored in underground storage systems during off-peak (i.e., less demand) periods and is withdrawn from the storage system during peak demand periods. Emission sources from the transmission and storage sector include compressor venting, storage tanks, blowdowns, pneumatic devices, flares, component leaks, and pipelines. A subset of the transmission and storage sector is LNG storage and import/export facilities. Methane emission sources from LNG facilities are similar to transmission compressor stations, with the addition of vapor recovery systems. DISTRIBUTION In the distribution segment, natural gas is transported from the major transmission and storage pipeline systems to the end users, including residential, commercial, or industrial customers. Local distribution company methane emissions most often stem from small leaks in low

7 METHANE MANAGEMENT REPORT pressure pipeline mains and services, as well as metering and regulator station component leaks. METHANE EMISSIONS FROM NATURAL GAS SYSTEMS In recent years, as improved data have become available, the EPA has updated methods and data sources for calculating greenhouse gas emissions for several key sources in the natural gas sector. Each year the EPA estimates national methane emissions from each sector of the natural gas value chain and according to the most recent data (2014), despite an increase in production and infrastructure, methane emissions in the U.S. have decreased by 6% since Below is the EPA s most recent analysis alysis of methane emissions from the natural gas sector. History of Regulations and Voluntary Programs Until recently, no regulatory programs required reductions in methane emissions from the natural gas sector. But the EPA has embarked on a series of regulatory programs some some voluntary, some mandatory to regulate methane emissions. In 2014, the White House released the Climate Action Plan Strategy to Cut Methane Emissions, directing the EPA to develop a comprehensive, interagency strategy to cut methane emissions. The strategy summarized the sources of methane emissions, committed to new steps to cut methane emissions, and outlined the EPA s efforts to improve the measurement of these emissions. It addressed methane from landfills, coal mines, and agriculture, as well as from the oil and gas industry. In January 2015, the White House announced the administration s Climate Action Plan to reduce methane emissions sions from the oil and gas sector including natural gas processing and transmission sources.

8 METHANE MANAGEMENT REPORT VOLUNTARY PROGRAMS The EPA s Natural Gas STAR program has provided a platform where proactive and progressive natural gas companies can voluntarily report methane emission reductions from their operations through implementation of best management practices. Several Dominion subsidiaries began participating as early as Collectively, EPA estimates that our methane reductions through the EPA s Natural Gas STAR program are 4,398,167 thousand cubic feet (Mcf), or 4.4 billion cubic feet, of natural gas reductions or 82,331 MT of methane emission since See Appendix A for more detail. Separately, in 2016 Dominion Carolina Gas joined the EPA s Natural Gas STAR program and will report methane emission reductions starting in In March 2016, the EPA finalized the Natural Gas STAR Methane Challenge, a voluntary program that covers the entire natural gas sector from production to distribution. The program is the next generation of EPA s Natural Gas STAR program, with more emphasis on transparency and increased reporting for both annual emissions and reductions achieved through implementation of reduction measures. (The existing Natural Gas STAR program continues to be available with no changes to that program. Eventually, the companies reporting under both programs have the option to transition solely to the Methane Challenge program.) Upon finalization of the program, Dominion joined as a founding partner of the Methane Challenge. At that time, the sole option for participation was a Best Management Practice option that includes prescribed reduction measures for each natural gas segment. In October 2016, a second option was added, called One Future, which requires a target leak rate of 1% across the natural gas value chain. (Reductions under the Best Management Practice option will be required five years earlier than under the One Future option.) Dominion made the following commitments under the Methane Challenge program: Dominion East Ohio and Dominion Hope will implement a pipeline replacement program for its main and service lines and commit to replacing at least 1.5% of the unprotected steel and cast iron pipes every year by 2021; Dominion Transmission will reduce methane emissions from planned pipeline blowdown events by at least 50% by The team will do this by reducing pipeline pressure before blowing down, utilizing hot taps for new pipelines, routing gas to a compressor or other systems for beneficial use; and Dominion Questar Gas will implement a pipeline excavation damage prevention program to reduce methane emissions.

9 METHANE MANAGEMENT REPORT The Methane Challenge implementation plans are included in Appendix B. REGULATORY PROGRAMS Until 2016, no mandatory federal programs were targeted at reducing methane emissions from the natural gas sector. On November 10, 2016, the EPA finalized a new regulation to reduce methane and volatile organic compound emissions from oil and natural gas sources from the production through transmission and storage segments. The regulation covers production wells, gathering and boosting stations, natural gas processing facilities, and transmission and storage compressor stations. It applies to any facility that is new, modified, or reconstructed after September 18, (Existing sources are not covered unless they are modified or reconstructed.) The regulation details engineering design specifications for certain equipment such as pneumatic controllers, centrifugal compressors, and storage tanks. Additionally, the regulation requires work practice standards such as periodic replacement of rod packing for reciprocating compressors and a leak monitoring and repair program using a relatively new technology for this purpose called optical gas imaging, commonly known as an infrared camera. Dominion s new or modified facilities in the production, gathering/boosting, processing, and transmission and storage segments are potentially impacted by this regulation. As discussed in our financial disclosure documents, Dominion has planned for and will comply with all applicable requirements of the new regulation. Dominion continues to address various implementation issues through its participation in industry associations and independently. How Dominion is Managing & Disclosing Methane Emissions Dominion s natural gas companies have been reporting emissions to the EPA since The emissions reported under the Greenhouse Gas Reporting program are based on a combination of actual field measurements (such as leak surveys), company average leak factors obtained through the Greenhouse Gas Reporting Program (GHGRP) and then applied to non-ghgrp facilities, composition of methane in the natural gas, and published EPA emission factors and protocols. Gathering and boosting blowdown volumes not tracked under the GHGRP, and emission factors from the American Petroleum Institute are used for gathering pipeline leak estimates. In January 2016, the GHGRP was expanded to also include GHG inputs and emissions associated with natural gas gathering and boosting sources and transmission pipeline blowdowns for facilities that exceed 25,000 metric tons per year of carbon CO 2 e emissions. The sources within these new facilities were not previously covered under the rule and the first reports for these new sources will be submitted on March 31, Since 2011, the GHGRP requires reporting for facilities (e.g., compressor stations) or natural gas systems (e.g., local distribution company) that exceed GHG emission thresholds of 25,000 metric tons per year of CO 2 e). Note that CO 2 e includes all regulated GHG pollutants (CO 2, methane, and

10 METHANE MANAGEMENT REPORT nitrous oxides). As a general matter, Dominion reports emissions under the GHGRP for our facilities/systems that exceed 25,000 metric tons of CO 2 e per year Here is a summary of Dominion s methane emissions for calendar year (For informational purposes, the chart also includes the 2015 methane emissions reported by Questar prior to being acquired by Dominion.) Additional information on the emissions reported to the EPA under the GHGRP can be found at Dominion Subsidiaries Methane Emissions (metric ton per year) Dominion Transmission 2,789 Dominion Carolina Gas 59 Dominion East Ohio 28,253 Dominion Hope 3,904 Cove Point 43 Dominion Questar 21,080 In addition to these emissions from our natural gas businesses, Dominion s electric power generation businesses emitted 3,122 metric tons (MT) of methane in Dominion s corporate GHG inventory tracks some emissions that are not reflected in EPA s GHGRP. A comprehensive discussion of Dominion s Greenhouse Gas Emissions from the corporate inventory can be found in the 2014 Greenhouse Gas Report on our website 4. Here is a summary of Dominion s total GHG emissions in carbon dioxide equivalents (CO2e) and methane emissions trends from the natural gas business from 2011 through 2015: 4

11 METHANE MANAGEMENT REPORT Additional carbon-related ed metrics are also provided in the annual Environmental and Corporate Sustainability Reports found in our 2016 Citizenship Report 5. A further breakdown of methane indicates that most methane emissions for Dominion come from the distribution segment of the natural gas value chain, based on 2015 data, as this chart shows: 5

12 METHANE MANAGEMENT REPORT The sources contributing to the overall emissions differ depending on the natural gas segment and/or the type of facility. The relative contribution of different pieces of equipment or processes for Dominion facilities is discussed below. The chart below shows the primary fugitive emission sources at Dominion compressor stations by subsidiary. (These charts do not include pipeline blowdowns, which will be included in the inventory starting in the 2017 report.) They do include compressor stations emissions from the gathering and boosting, processing, transmission and storage segments as well as from our Cove Point LNG Facility. Metric Tons per Year 4,000 3,500 3,000 2,500 2,000 1,500 1, Compressor Station Methane Emissions, by Source Type Compressor Vents Station Blowdowns Components (Valves, etc.) Glycol Dehys Pneumatics The chart below shows the emission sources for Dominion s local distribution companies, which report under the GHGRP. The emissions from mains and services lines are based on the pipe or service material (cast iron, plastic, bare steel, protected steel, and copper) using emission factors per mile of main or number of services. For a subset of above-

13 METHANE MANAGEMENT REPORT ground metering and regulating stations, leak surveys are conducted and leak rates per M&R run are established per subsidiary and applied to all metering and regulating runs in that subsidiary. MITIGATION MEASURES Dominion has been actively engaged in efforts to reduce methane emissions from its natural gas subsidiaries. We use a comprehensive approach to reduce methane emissions, starting with engineering and design specifications for its new projects, upgrades to existing facilities, and construction and subsequent operation of the facilities. Once a facility or project is constructed and in operation, appropriate work practice measures are implemented to minimize methane emissions. There are a number of approaches to reduce methane emissions along the natural gas value chain. The EPA has a comprehensive list of these measures by sector on its Natural Gas STAR Program website 6. From an engineering/design perspective, Dominion uses best-in-class engineering design and operational measures to minimize fugitive and episodic methane compressor turbine combustion emissions. These measures, implemented together, represent the most efficient design with the least environmental impact while providing reliable pipeline operation. Some of the more common measures implemented by Dominion on new projects include: Installing compressors with dry seals only, which are inherently lower emitting than the wet seals on older compressors. (Dominion Carolina Gas has emission control systems to recover gas from its existing wet seals on compressors.) Pneumatic controllers are air-activated activated only, as opposed to natural gas-activated. 6 dex.html#breakdown

14 METHANE MANAGEMENT REPORT Designing isolation valves as close to the compressor stations as possible to reduce emissions during blow downs. Installing a large volume, lower pressure header to recover blowdown gas to use as fuel where sufficient fuel burning sources are installed. Pumping down the pressure of lines using in-line compression prior to blowdown for maintenance. Installing instrument air (as opposed to natural gas) compressor engine start systems. Installing valve enclosures to reduce emissions during emergency shutdown from compressors. For all new projects, Dominion continues to look for opportunities to reduce methane and other emissions in a cost-effective and holistic manner. The design of the 600-mile Atlantic Coast Pipeline incorporates state-of-the-art controls, which are expected to reduce emissions of air pollutants. Some of the key design considerations for this project include selection of high efficiency turbines with voluntary add-on controls, design measures to reduce methane emissions during blowdown from the compression stations and implementation of leak monitoring and repair programs. We re also upgrading existing infrastructure. Studies conducted by the Environmental Defense Fund show that such programs can significantly reduce the methane emissions from distribution systems 7. Dominion East Ohio, for example, has embarked on a 25-year program to replace all cast iron and unprotected steel mains 8 and services 9 with plastic, which significantly reduces emissions, as this chart shows. Approximately 15 miles of old cast iron pipes and 4,000 miles of bare steel pipes are scheduled to be replaced under this program. In 2016, Dominion Hope began a Pipeline Replacement and Enhancement Program (PREP), 7 Direct Measurements Show Decreasing Methane Emissions from Natural Gas Local Distribution Systems in the United States; Brian K. Lamb, Steven L. Edburg, Thomas W. Ferrara, Touché Howard, Matthew R. Harrison, Charles E. Kolb, Amy Townsend-Small, Wesley Dyck, Antonio Possolo, and James R. Whetstone; Environmental Science & Technology (8), ; DOI: /es505116p 8 A larger pipeline conveying gas to smaller pipes for distribution to consumers 9 A distribution line that transports gas from a common source of supply to a customer meter or the connection to a customer's piping

15 METHANE MANAGEMENT REPORT where approximately 1,000 miles of bare steel or unprotected pipes will be replaced. Dominion continues to evaluate the feasibility of additional methane reduction measures across the company, tailoring them to local needs. Here are some of the Best Management Practices and reduction measures being implemented: Directed inspection and maintenance at Compressor Stations and Metering and Regulating Stations Installing centrifugal compressors with dry seals, rather than wet seals Replacing high-bleed pneumatic devices with low or no-bleed devices Reducing pipeline pressure before maintenance Injecting engine blowdown gas into low pressure mains or fuel gas system Use of capped Emergency Shutdowns Replacing orifice meters with ultrasonic meters Rehabilitating leaky distribution pipe Damage prevention programs for distribution lines Green Completion technology on completed and recompleted wells. Here is a description of some of these measures. ENGINE BLOWDOWN RECOVERY In this technique, natural gas vented from engine blow down is captured and re-routed for use with other combustion sources including engines and turbines at the facility. This technique has reduced more than 135,000 thousand cubic feet of natural gas, or 2,527 MT of methane emissions since Several more stations are being considered for similar modifications. This technique works best when other design changes are being considered at the facility or during design of new facilities. DIRECTED INSPECTION AND MAINTENANCE This technique is a cost-effective approach to identifying and fixing gross leakers making it more cost effective than the traditional leak detection and repair program. The technique is based on conducting semiannual surveys of the sources most likely to leak and fixing them. This has resulted in almost 120,000 MCF of natural gas or 2,246 MT of methane

16 METHANE MANAGEMENT REPORT emission reductions in our transmission business, and reductions of more than 230,000 MCF of natural gas or 4,306 MT of methane emissions in our distribution business. REDUCING PIPELINE PRESSURE BEFORE BLOWDOWN Significant savings in natural gas can come from reducing pipeline pressure before blowing down for maintenance and repair, as the EPA s Natural Gas STAR program recognizes. In this technique, the pipeline pressure is reduced using either inline compressors and/or portable compressors. Typically, the pressure can be reduced up to 50% using inline compressors, and by up to 90% using additional portable compressors. Dominion has achieved reductions of close to 180,000 MCF of natural gas, or 3,370 MT, of methane since 2012 using this technique. Under the Methane Challenge, Dominion s transmission business will implement measures to reduce methane emissions from planned pipeline blowdown systems by at least 50%. The emission reductions achieved will be reported annually to EPA and published on their website. Additionally, Dominion s distribution companies have reduced approximately 3,200 MCF of natural gas or 60 MT of methane emissions using this measure. CAPPED EMERGENCY SHUTDOWN TESTS Full compressor station blowdowns are required to be conducted periodically for safety evaluations. DTI staggers these shutdowns every five years in order to minimize annual emissions. During the other five years, stations do their annual safety test using Yale (or other) enclosures to prevent gas loss. The enclosures function similar to a cap at the end of the pipe and prevent gas loss. Since 2012, DTI has saved over 80,000 MCF natural gas or 1,498 MT of using this technique. REPLACING HIGH-BLEED PNEUMATIC DEVICES A continuous bleed pneumatic device is used to modulate process conditions for operational or safety purposes. A pneumatic device using natural gas with a bleed rate of greater than 6 standard cubic feet per hour is a high bleed device. Replacing high bleed pneumatic devices with either low bleed or no-bleed (using instrument air instead of natural gas to activate the device) results in reductions of methane emissions. All new projects undertaken by Dominion typically involve installation of instrument air pneumatic devices only. DTI has implemented this technique and reduced methane emissions of approximately 9,000 MCF of natural gas or 168 MT of methane since PIPELINE INFRASTRUCTURE REPLACEMENT PROGRAMS Since 2008, Dominion East Ohio has been actively replacing more than 5,000 miles of bare steel mains, and it has only 59 miles of old cast iron pipes left to replace. The pipeline infrastructure replacement program is a self-imposed program that has been approved by the Public Utilities Commission of Ohio. Bare steel and cast iron mains make up nearly 30% of the distribution pipeline system in their service territory. DEO schedules

17 METHANE MANAGEMENT REPORT about 200 miles for replacement per year. In addition, DEO targets about 17,000 service line replacement per year as well. In 2016, Dominion Hope began its pipeline replacement program where approximately proximately 1,000 miles of unprotected steel and bare steel pipes will be replaced, following approval by the West Virginia Public Service Commission. Dominion s distribution companies have committed to replacing approximately 1.5% of the remaining bare steel, cast iron, and unprotected steel el mains annually by The emission reductions achieved through this program will be reported annually to EPA and published on EPA s website. Dominion Questar Gas replaced all cast iron and unprotected steel (3,400 miles) prior to The company now has a proactive program to replace portions of coated, but aging high-pressure infrastructure on an annual basis. The chart below shows the methane emission reductions achieved through implementation of the Natural Gas STAR program. Under this program, EPA uses estimates to determine reduction credits based on the type of measures implemented and the life of these reductions. The methane emissions reported above under the GHGRP covers a subset of sources as noted above. These emission reduction credits under the Natural Gas STAR program do not represent actual emission reductions from our annual inventory. The emission reductions should be viewed as methane emissions which would have been emitted had these reductions measures not be implemented. With availability of approaches for calculating methane emissions and emission factors, the annual emissions reported under the GHGRP is expected to be more comprehensive and reductions would more closely correspond to the annual nual emissions inventory. Dominion s internal inventory of emissions

18 METHANE MANAGEMENT REPORT and emissions reductions is constantly evolving and continues to improve over time. TARGETS Dominion has committed to a program for reducing our methane emissions as part of the EPA s Methane Challenge program. Dominion expects to meet the targets established for planned pipeline blowdown emissions and the pipeline replacement options under the Methane Challenge. For new projects, along with meeting the standards required by the new and modified source standards, we evaluate and implement cost-effective state-of-the-art controls and design measures to reduce methane emissions. Our efforts at existing facilities have focused on best management practices as well as estimating, measuring, and reporting emissions. Based on the Natural Gas STAR annual report submitted for Calendar Year 2015, the methane emission reductions achieved at Dominion Transmission, Dominion East Ohio, and Dominion Hope through implementation of mitigation measures was approximately 1,057,595 thousand cubic feet (Mcf) of natural gas or 19,787 MT of methane. Overall, EPA estimates that Dominion has achieved approximately 4,398,167 Mcf in natural gas, or 82,331 metric tons, of methane emission reductions since Here is a summary of emission reductions achieved by Dominion Transmission using best management practices in (These reductions include credits earned for prior years practices under the program). Best Management Practice Directed Inspection and Maintenance at Compressor Stations Reduction of pipeline (or station) pressure before maintenance, or hot taps Installing turbines instead of engines Total mcf/methane Emissions Reductions Achieved Methane Emission Reductions (MCF) 62, , , ,553mcf/13,096 MT

19 METHANE MANAGEMENT REPORT Here is a summary of emission reductions achieved by distribution companies implementing best management practices in Best Management Practice Methane Emission Reduction (MCF) Pipeline Replacement Program 52,985 Identification and Replacement of High-bleed Pneumatic Devices Reduction of pipeline (or station) pressure before maintenance Directed Inspection and Maintenance at M&R Stations Total mcf/methane Emissions Reductions Achieved 35,632 3, , ,071mcf/6,029 MT Supporting Methane Studies and Sharing Best Practices METHANE STUDIES Dominion has been engaged in ongoing studies to better understand the sources of methane emissions from the T&S segment. In 2012, the Environmental Defense Fund launched a large research project: A series of 16 independent studies designed to find out how much and from where methane is escaping into the atmosphere across the entire natural gas supply chain. The studies examined all areas that make up the natural gas supply chain: production, gathering lines and processing facilities, long-distance pipelines, storage, and local distribution, as well as some natural gas end users, commercial trucks and refueling stations. Dominion participated in the study with Colorado State University and Carnegie Melon University from 2013 to Dominion and other industry participants allowed the study team access to company-owned compressor stations for comprehensive methane leak measurements using both a bottom-up measurement approach, as well as a tracer-flux downwind measurement technique, to capture facility-wide emissions profiles. According to Mark Brownstein, Environmental Defense Fund Associate Vice President, Climate & Energy, together, these two methods provided greater insight and certainty than either method alone. Results from the studies were published in Environmental Science and Technology in two separate articles, one describing measurement results, and the other extrapolating the measurement results into a national modeled estimate.

20 METHANE MANAGEMENT REPORT The study found that methane emissions from the natural gas transmission and storage sector are 27% lower than the EPA s estimate, the National Greenhouse Gas Inventory. The Colorado State-led study also estimated that 0.35% of the methane transported by the transmission and storage sector in 2012 was released into the atmosphere, significantly lower than the EPA estimate of 0.48%. Interestingly, researchers found that the equipment used in the transmission and storage sector has changed significantly since the release of a 1996 study conducted by the EPA and the Gas Research Institute, which the EPA relies upon to derive the emission factors used to calculate the sector s methane emissions. In particular, this new study reported that companies have replaced many smaller engine-driven reciprocating compressors with larger and fewer centrifugal compressors resulting in lower emissions. The EPA largely relies on data from a nearly 20-year-old study to calculate its greenhouse gas inventory. The study underscores the need for the EPA to update the emissions factors it uses to estimate its inventory to reflect more accurately how the Transmission and Storage sector operates today. While the EPA has appropriately updated emission factors and estimation methods in select cases for other industry sources, including wells in the exploration and production sector, it has not for transmission and storage sector sources. The new study indicates that a small number of leaks account for a disproportionally large share of overall methane released into the atmosphere, as the first study by the same groups showed in February This finding indicates a need to focus methane management measures at sites and equipment with the highest emissions profile. This is consistent with Dominion s approach in managing its methane emissions. SHARING BEST PRACTICES Dominion has a history of working with a variety of stakeholders to understand methane emissions and we use this information to identify opportunities for making real reductions in methane emissions across our businesses. Dominion is proud of its achievements and willingly shares knowledge with our peers. For example, in November 2016, Dominion participated in EPA s Technology Transfer Workshop, Pipeline Blowdowns in Transmission and Distribution, held in Houston. The workshop provided information and insights for natural gas companies and other stakeholders interested in achieving and promoting methane emission reductions from pipeline blowdowns. Dominion s presentation is available on EPA s workshop website 10. Moving Forward Through EPA s Natural Gas STAR program and Methane Challenge, Dominion has developed a progressive program to measure, mitigate, and disclose methane emissions from its natural gas systems. We continue to implement best-in-class measures and technology for new projects. For example, the Atlantic Coast Pipeline is expected to have state-of-the-art technology including one of the most efficient turbines, design measures 10

21 METHANE MANAGEMENT REPORT for reducing emissions during pipeline blow down, and a leak monitoring and repair program. As a part of our participation in the Methane Challenge Program, Dominion is committed to meeting the targets established for pipeline replacement programs and pipeline blowdown reduction programs. The methane emissions from Dominion will be reduced in a responsible and holistic manner, as we continue to deliver safe, reliable, affordable and increasingly clean energy. Dominion is committed to working with all of our stakeholders, including federal and state agencies, to develop reasonable and workable voluntary and regulatory programs to further reduce methane emissions. Finally, Dominion intends to continue supporting studies on quantifying methane emissions and reductions from the natural gas sector.

22 METHANE MANAGEMENT REPORT List of Acronyms ACP API Bcf CO2 CO2e CSU DCG DEO DH DI&M DQ DQG DQP DTI ESD GHGI GHGRP GWP LDAR LDC LNG Mcf MT OF PIR USEPA VOC Atlantic Coast Pipeline American Petroleum Institute Billion Cubic Feet Carbon dioxide Carbon dioxide equivalent Colorado State University Dominion Carolina Gas Dominion East Ohio Dominion Hope Directed Inspection and Maintenance Dominion Questar Dominion Questar Gas Dominion Questar Pipeline Dominion Transmission Inc Emergency Shut down Greenhouse Gas Inventory Greenhouse Gas Reporting Program Global Warming Potential Leak Detection and Repair Local Distribution Company Liquefied Natural Gas Thousand Cubic Feet Metric Ton One Future Pipeline Infrastructure Replacement United States Environmental Protection Agency Volatile Organic Compounds Appendices Appendix A EPA s Natural Gas STAR Program 2015 Summary Reports Appendix B Dominion s Methane Challenge Implementation Plans

23 METHANE MANAGEMENT REPORT APPENDIX A EPA s NATURAL GAS STAR PROGRAM 2015 SUMMARY REPORTS

24 Mcf Dominion Transmission Inc Natural Gas STAR Summary Report The Natural Gas STAR Program and its partners have realized nearly 1,316 billion cubic feet (Bcf) of domestic methane emissions reductions. 800, ,000 Dominion Transmission Inc.'s Historical Reductions¹ Gas STAR Program Reported Activities: Transmission Sector The Natural Gas STAR Program endeavors to assist partners in achieving the full benefits of participation by raising awareness about activities that other partners have undertaken to achieve cost-effective methane emissions reductions. Report Summary Joined Natural Gas STAR - Transmission Sector: Methane Emissions Reductions: 734,825 Mcf 600, , , ,000 Transmission Sector Top Activities for 2015 Technologies and practices employed in the Transmission Sector over the past 10 years. Technologies and practices employed in the Transmission Sector in Since joining the Natural Gas STAR Transmission Sector in 2011, Dominion Transmission Inc. has achieved cumulative methane emissions reductions of 3,635,451 Mcf. 200, ,000 0 New On-Going 2015 Reductions: 2 734,825 Mcf Cumulative Reductions: 3,635,451 Mcf To achieve these results, Dominion Transmission Inc. has employed these Natural Gas STAR methane emission reduction technologies and practices. Use pipeline pumpdown to lower pressure 26.9% Use of turbines at compressor stations 31.4% Use of turbines at compressor stations 19.8% Use pipeline pumpdown to lower pressure 27.6% Replace wet compressor seals with dry seals 12.5% Replace wet compressor seals with dry seals 13.9% DI&M: compressor stations 7.9% Install electric compressors 7.1% Use composite wrap repair 5.8% Use hot taps for in-service pipeline connections 3.7% Install VRU on pipeline liquid/condensate tank 5.6% DI&M: compressor stations 3.3% Use hot taps for in-service pipeline connections 4.2% Use of YALE closures for ESD testing 1.8% Install electric compressors 3.5% Use composite wrap repair 1.7% DI&M: surface facilities 1.9% Inject blowdown gas into low pressure mains 1.3% Other 12.0% Other 8.3% Total: 100.0% Total: 100.0% Use of turbines at compressor stations 41.3% Use of turbines at compressor stations 41.5% Use pipeline pumpdown to lower pressure 24.2% Use pipeline pumpdown to lower pressure 17.6% Inject blowdown gas into low pressure mains 14.3% Reduce/downgrade system pressure 10.4% DI&M: compressor stations 8.5% Inject blowdown gas into low pressure mains 10.4% Use hot taps for in-service pipeline connections 6.9% Use hot taps for in-service pipeline connections 6.3% Other 4.7% Other 13.9% Total: 100.0% Total: 100.0% Dominion Transmission Inc.'s methane emissions reductions are approximately equivalent to:³ Tonnes CO2 equivalent: 1,742,795 (cumulative) 352,267 (2015) CO2 emissions from the electricity use of this many homes for one year: 239,725 (cumulative) 48,455 (2015) Suggested Methane Emission Reduction Technologies and Practices Based on commonly reported technologies and practices employed by Transmission Sector partners, below is a list of other activities Dominion Transmission Inc. might consider.* Replace wet compressor seals with dry seals Use composite wrap repair Install VRU on pipeline liquid/condensate tank Install electric compressors Replace compressor rod packing systems Carbon sequestered annually by this many acres of pine or fir forests: 1,428,521 (cumulative) 288,744 (2015) Value of methane saved (at $4 per Mcf): $14,541,804 (cumulative) $2,939,300 (2015) Additional information on these technologies and practices is available on the Natural Gas STAR website at epa.gov/gasstar/tools/recommended.html. * In evaluating technologies and practices to report to the Natural Gas STAR Program, please note that companies may report voluntary activities only. By definition, voluntary activities are those implemented above and beyond what is required by regulation. ¹ Partners may retroactively report methane emissions reductions to EPA back to ² Annual methane emissions reductions include new reductions plus on-going reductions. ³ Emissions reductions are calculated using a GWP of 25.

25 Natural Gas STAR Online Reporting Annual Report 2015 Transmission Sector OMB Control No Pending OMB Approval Company Information Company Name: Dominion Transmission, Inc. Gas STAR Contact: Anand Yegnan Title Address: Manager - Environmental Policy 5000 Dominion Blvd City: State: Zip: Phone: Fax: Glen Allen VA anand.yegnan@dom.com Company Information Updated: Yes Activities Reported BMP1: Yes BMP2: No BMP3: Yes BMP4: Yes Total Methane Emission Reductions Reported This Year : 422,462 Previous Years' Activities Reported : No Period Covered by Report From: 01/01/2015 To: 12/31/2015 I hereby certify the accuracy of the data contained in this report. Additional Comments May 26, 2016

26 Natural Gas STAR Online Reporting Annual Report 2015 Transmission Sector OMB Control No Pending OMB Approval BMP1: Directed Inspection and Maintenance at Compressor Stations Current Year Activities A. Facility/location identifier information: Dominion Transmission, Inc. B. Leak Summary Number of surveys at this facility for reporting period: 88 surveys Total number of leaks found this reporting period: 101 found Total number of leaks repaired: 101 repaired C. Cost Summary Total cost of surveys conducted this reporting period: Total cost of leak repairs: $ 0 $ 0 D. Methane Emissions Reduction Method Used: Actual field measurement Methane Emissions Reduction: 62,602 Mcf/year The facility leak inspections address Compressor Engines (shutdown and blowdown valves), rod packing and distance piece vents, as well as fire gates. Leak rates are estimated using flow meters and are based on pre and post repair leak rates per day times the number o days since last inspection. May 26, 2016

27 Natural Gas STAR Online Reporting Annual Report 2015 Transmission Sector OMB Control No Pending OMB Approval E. Total Value of Gas Saved Value of Gas Saved: $ / Mcf used: $ 1.72 $ 107,675 F. Planned Future Activities Do you plan to survey this facility/location next year? Yes Previous Years' Activities Year Total Cost of Surveys ($) Total Cost of Repairs ($) Estimated Reductions (Mcf/Yr) Value of Gas Saved ($) Additional Comments Costs are not tracked separately within O&M budget. May 26, 2016

28 Natural Gas STAR Online Reporting Annual Report 2015 Transmission Sector OMB Control No Pending OMB Approval BMP3: Identify and Replace High-Bleed Pneumatic Devices Current Year Activities A. Facility/location identifier information: Dominion Transmission, Inc. B. Facility Summary Number of devices replaced this reporting period: Percent of system now equipped with low/no-bleed units: 15 devices 90 % C. Cost Summary Estimated cost per replacement (including equipment and labor): $ 8,000 D. Methane Emissions Reduction Method Used: Other Data Source: Not Applicable Methane Emissions Reduction: NG Star web page for high bleed devices 250 Mcf/year E. Are these emissions reductions a one-year reduction or a multi-year reduction? One-year Multi-year If Multi-year: Partner will report this activity once and let EPA automatically calculate future emission reductions based on sunset date duration (BMP 3 has a sunset period of 7 years). Partner will report this activity annually up to allowed sunset date. F. Total Value of Gas Saved Value of Gas Saved: $ / Mcf used: $ 430 $ 1.72 G. Planned Future Activities Number of high-bleed devices to be replaced next year: 5 devices May 26, 2016

29 Natural Gas STAR Online Reporting Annual Report 2015 Transmission Sector OMB Control No Pending OMB Approval Previous Years' Activities Number of Year Devices Replaced Total Cost * ($) Estimated Reductions (Mcf/Yr) Value of Gas Saved ($) * Total cost of replacements (including equipment and labor) Additional Comments May 26, 2016

30 Natural Gas STAR Online Reporting Annual Report 2015 Transmission Sector OMB Control No Pending OMB Approval BMP4: Partner Reported Opportunities (PROs) Current Year Activities A. Facility/location identifier information: Dominion Transmission, Inc. B. Description of PRO Please specify the technology or practice that was implemented: Inject blowdown gas into low pressure mains or fuel gas system Please describe how your company implemented this PRO: One additional station this year was retrofitted to inject compressor engine blowdown gas into lower pressure fuel lines. To date, six stations have been retrofitted. C. Level of Implementation Other: The total reductions reflect blowdowns from six retrofitted stations to date (one new one in 2015). The cost estimate is for the o station retrofitted in D. Methane Emissions Reduction Methane Emissions Reduction: 104,915 Mcf/year Basis for the emissions reduction estimate: Actual field measurement E. Are these emissions reductions a one-year reduction or a multi-year reduction? One-year Multi-year If Multi-year: Partner will report this activity once and let EPA automatically calculate future emission reductions based on sunset date duration. Partner will report this activity annually up to allowed sunset date. May 26, 2016

31 Annual Report 2015 Transmission Sector OMB Control No Pending OMB Approval Natural Gas STAR Online Reporting F. Cost Summary Estimated cost of implementing the PRO (including equipment and labor): G. Total Value of Gas Saved Value of Gas Saved: $ 180,454 $ / Mcf used: $ 1.72 H. Planned Future Activities To what extent do you expect to implement this PRO next year?: $ 75,000 DTI will continue to evaluate and retrofit when feasible. Each station is somewhat different in configuration and piping and there must be an active combustion unit to use the fuel injected into the low pressure lines. Previous Years' Activities Frequency of practice/activity Total Cost * Estimated Reductions Value of Gas Year or # of Installations ($) (Mcf/Yr) Saved ($) * Total cost of practice/activity (including equipment and labor) Additional Comments A side benefit of this retrofit is that compressor valve leaks are identified in a more timely manner and any leaked gas is collected and combusted rather than being released to the atmosphere. May 26, 2016

32 Natural Gas STAR Online Reporting Annual Report 2015 Transmission Sector OMB Control No Pending OMB Approval BMP4: Partner Reported Opportunities (PROs) Current Year Activities A. Facility/location identifier information: Dominion Transmission, Inc. B. Description of PRO Please specify the technology or practice that was implemented: Replace bi-directional orifice meter w/ ultrasonic meters Please describe how your company implemented this PRO: As DTI reviews Lost and Unaccounted For Gas (LAUFG) each year, metering equipment is targeted for replacement based on age and performance. In 2015, 12 meters were replaced. C. Level of Implementation Number of units installed: 12 units D. Methane Emissions Reduction Methane Emissions Reduction: 240 Mcf/year Basis for the emissions reduction estimate: EPA NG STAR "Fact Sheet #907" - 20 mcf/unit Other E. Are these emissions reductions a one-year reduction or a multi-year reduction? One-year Multi-year If Multi-year: Partner will report this activity once and let EPA automatically calculate future emission reductions based on sunset date duration. Partner will report this activity annually up to allowed sunset date. May 26, 2016

33 Annual Report 2015 Transmission Sector OMB Control No Pending OMB Approval Natural Gas STAR Online Reporting F. Cost Summary Estimated cost of implementing the PRO (including equipment and labor): G. Total Value of Gas Saved Value of Gas Saved: $ 413 $ / Mcf used: $ 1.72 H. Planned Future Activities To what extent do you expect to implement this PRO next year?: $ 9,100,000 DTI will continue to review metering locations and new facilities for appropriateness of ultrasonic versus orifice meters. Previous Years' Activities Frequency of practice/activity Total Cost * Estimated Reductions Value of Gas Year or # of Installations ($) (Mcf/Yr) Saved ($) * Total cost of practice/activity (including equipment and labor) Additional Comments Ultrasonic meters enable us to tighten up our gas measurements and reduce LAUFG. They also help us identify and resolve excessive gas loss issues more quickly when they develop. Such reductions cannot always be quantified. May 26, 2016

34 Natural Gas STAR Online Reporting Annual Report 2015 Transmission Sector OMB Control No Pending OMB Approval BMP4: Partner Reported Opportunities (PROs) Current Year Activities A. Facility/location identifier information: Dominion Transmission, Inc. B. Description of PRO Please specify the technology or practice that was implemented: Use hot taps for in-service pipeline connections Please describe how your company implemented this PRO: DTI personnel evaluate whether hot tapping installations are safe and feasible for each project. C. Level of Implementation Number of units installed: 3 units D. Methane Emissions Reduction Methane Emissions Reduction: 50,943 Mcf/year Basis for the emissions reduction estimate: Actual field measurement E. Are these emissions reductions a one-year reduction or a multi-year reduction? One-year Multi-year If Multi-year: Partner will report this activity once and let EPA automatically calculate future emission reductions based on sunset date duration. Partner will report this activity annually up to allowed sunset date. May 26, 2016

35 Annual Report 2015 Transmission Sector OMB Control No Pending OMB Approval Natural Gas STAR Online Reporting F. Cost Summary Estimated cost of implementing the PRO (including equipment and labor): G. Total Value of Gas Saved Value of Gas Saved: $ 87,622 $ / Mcf used: $ 1.72 H. Planned Future Activities To what extent do you expect to implement this PRO next year?: $ 0 DTI will continue to review each tap request to determine safety and feasibility and implement the practice when appropriate. Previous Years' Activities Frequency of practice/activity Total Cost * Estimated Reductions Value of Gas Year or # of Installations ($) (Mcf/Yr) Saved ($) * Total cost of practice/activity (including equipment and labor) Additional Comments May 26, 2016

36 Natural Gas STAR Online Reporting Annual Report 2015 Transmission Sector OMB Control No Pending OMB Approval BMP4: Partner Reported Opportunities (PROs) Current Year Activities A. Facility/location identifier information: Dominion Transmission, Inc. B. Description of PRO Please specify the technology or practice that was implemented: Use of YALE closures for ESD testing Please describe how your company implemented this PRO: Station ESD testing utilizes YALE enclosures to prevent full station blowdowns. No new YALE enclosures were installed in 2015; however there were 73 capped ESD tests performed in Full station blowdowns are avoided when possible. C. Level of Implementation Other: Frequency of practice: 73 capped ESD tests in D. Methane Emissions Reduction Methane Emissions Reduction: 25,593 Mcf/year Basis for the emissions reduction estimate: Actual field measurement E. Are these emissions reductions a one-year reduction or a multi-year reduction? One-year Multi-year If Multi-year: Partner will report this activity once and let EPA automatically calculate future emission reductions based on sunset date duration. Partner will report this activity annually up to allowed sunset date. May 26, 2016

37 Annual Report 2015 Transmission Sector OMB Control No Pending OMB Approval Natural Gas STAR Online Reporting F. Cost Summary Estimated cost of implementing the PRO (including equipment and labor): G. Total Value of Gas Saved Value of Gas Saved: $ 44,020 $ / Mcf used: $ 1.72 H. Planned Future Activities To what extent do you expect to implement this PRO next year?: $ 0 DTI will continue to use capped EST tests on stations with YALE enclosures, and will consider capping in future station design. Previous Years' Activities Frequency of practice/activity Total Cost * Estimated Reductions Value of Gas Year or # of Installations ($) (Mcf/Yr) Saved ($) * Total cost of practice/activity (including equipment and labor) Additional Comments May 26, 2016

38 Natural Gas STAR Online Reporting Annual Report 2015 Transmission Sector OMB Control No Pending OMB Approval BMP4: Partner Reported Opportunities (PROs) Current Year Activities A. Facility/location identifier information: Dominion Transmission, Inc. B. Description of PRO Please specify the technology or practice that was implemented: Use pipeline pump-down techniques to lower gas line pressure before maintenance Please describe how your company implemented this PRO: Gas Control worked with Operations and Engineering when large planned pipeline blowdowns were needed. Except when infeasible due to safety and/or reliability concerns, the pipeline pressure was pumped down before maintenance. Gas loss reductions were recorded in a Gas Loss Event Tracker (GLET). C. Level of Implementation Other: Frequency of events: 19 planned events on the pipeline. D. Methane Emissions Reduction Methane Emissions Reduction: 177,919 Mcf/year Basis for the emissions reduction estimate: Actual field measurement E. Are these emissions reductions a one-year reduction or a multi-year reduction? One-year Multi-year If Multi-year: Partner will report this activity once and let EPA automatically calculate future emission reductions based on sunset date duration. Partner will report this activity annually up to allowed sunset date. May 26, 2016

39 Annual Report 2015 Transmission Sector OMB Control No Pending OMB Approval Natural Gas STAR Online Reporting F. Cost Summary Estimated cost of implementing the PRO (including equipment and labor): G. Total Value of Gas Saved Value of Gas Saved: $ 306,021 $ / Mcf used: $ 1.72 H. Planned Future Activities To what extent do you expect to implement this PRO next year?: $ 0 DTI will continue to evaluate each planned event and use this method whenever feasible, considering safety, reliability, customer requirements, and cost. Previous Years' Activities Frequency of practice/activity Total Cost * Estimated Reductions Value of Gas Year or # of Installations ($) (Mcf/Yr) Saved ($) * Total cost of practice/activity (including equipment and labor) Additional Comments Pump down costs are considered part of O&M budget. No portable compression equipment was used in May 26, 2016

40 Natural Gas STAR Online Reporting Annual Report 2015 Transmission Sector OMB Control No Pending OMB Approval Additional Accomplishments May 26, 2016

41 Mcf Dominion - Hope Gas 2015 Natural Gas STAR Summary Report The Natural Gas STAR Program and its partners have realized nearly 1,316 billion cubic feet (Bcf) of domestic methane emissions reductions. 240, ,000 Dominion - Hope Gas' Historical Reductions¹ Gas STAR Program Reported Activities: Distribution Sector The Natural Gas STAR Program endeavors to assist partners in achieving the full benefits of participation by raising awareness about activities that other partners have undertaken to achieve cost-effective methane emissions reductions. Report Summary 160,000 Distribution Sector Top Activities for 2015 Joined Natural Gas STAR - Distribution Sector: Methane Emissions Reductions: 233,018 Mcf 120,000 Technologies and practices employed in the Distribution Sector over the past 10 years. Technologies and practices employed in the Distribution Sector in Since joining the Natural Gas STAR Distribution Sector in 2015, Dominion - Hope Gas has achieved cumulative methane emissions reductions of 233,018 Mcf. 80,000 40,000 0 New On-Going 2015 Reductions: 2 233,018 Mcf Cumulative Reductions: 233,018 Mcf To achieve these results, Dominion - Hope Gas has employed these Natural Gas STAR methane emission reduction technologies and practices. Identify and rehabilitate leaky distribution pipe 49.0% Identify and rehabilitate leaky distribution pipe 60.6% DI&M: survey and repair leaks 16.6% DI&M: surface facilities 19.2% DI&M: surface facilities 14.0% Install excess flow valves 4.9% Identify and replace high-bleed pneumatic devices 4.3% Identify and replace high-bleed pneumatic devices 3.8% Third-party damage prevention/reduce emissions 3.7% Third-party damage prevention/reduce emissions 3.1% Install excess flow valves 3.0% Convert to instrument air systems 2.2% Inject blowdown gas into low pressure mains 2.9% Reduce/downgrade system pressure 1.5% Convert to instrument air systems 1.4% Improve system design/operation 1.4% Reduce/downgrade system pressure (manual) 1.4% Pneumatic devices to mechanical/electronic 1.4% Other 3.7% Other 1.9% Total: 100.0% Total: 100.0% DI&M: surface facilities 98.3% DI&M: surface facilities 98.3% Identify and rehabilitate leaky distribution pipe 1.4% Identify and rehabilitate leaky distribution pipe 1.4% Third-party damage prevention/reduce emissions 0.3% Third-party damage prevention/reduce emissions 0.3% Total: 100.0% Total: 100.0% Dominion - Hope Gas' methane emissions reductions are approximately equivalent to:³ Tonnes CO2 equivalent: 111,706 (cumulative) 111,706 (2015) CO2 emissions from the electricity use of this many homes for one year: 15,365 (cumulative) 15,365 (2015) Suggested Methane Emission Reduction Technologies and Practices Based on commonly reported technologies and practices employed by Distribution Sector partners, below is a list of other activities Dominion - Hope Gas might consider. DI&M: survey and repair leaks Identify and replace high-bleed pneumatic devices Install excess flow valves Inject blowdown gas into low pressure mains Convert to instrument air systems Carbon sequestered annually by this many acres of pine or fir forests: 91,563 (cumulative) 91,563 (2015) Value of methane saved (at $4 per Mcf): $932,072 (cumulative) $932,072 (2015) Additional information on these technologies and practices is available on the Natural Gas STAR website at epa.gov/gasstar/tools/recommended.html. ¹ Partners may retroactively report methane emissions reductions to EPA back to ² Annual methane emissions reductions include new reductions plus on-going reductions. ³ Emissions reductions are calculated using a GWP of 25.

42 Annual Report 2015 Distribution Sector Natural Gas STAR Online Reporting OMB Control No Pending OMB Approval Company Information Company Name: Dominion-Hope Gas Gas STAR Contact: Anand Yegnan Title Address: Manager-Environmental Policy 5000 Dominion Blvd City: State: Zip: Phone: Fax: Glen Allen VA Company Information Updated: Yes Activities Reported BMP1: Yes BMP2: Yes BMP3: Yes Total Methane Emission Reductions Reported This Year : 233,018 Previous Years' Activities Reported : No Period Covered by Report From: 01/01/2015 To: 12/31/2015 I hereby certify the accuracy of the data contained in this report. Additional Comments May 25, 2016

43 Annual Report 2015 Distribution Sector Natural Gas STAR Online Reporting OMB Control No Pending OMB Approval BMP1: Directed Inspection and Maintenance at Gate Stations and Surface Facilities Current Year Activities A. Facility/location identifier information: DOMINION-HOPE GAS B. Leak Summary Number of surveys at this facility for reporting period: 1,561 surveys Total number of leaks found this reporting period: 297 found Total number of leaks repaired: 289 repaired C. Cost Summary Total cost of surveys conducted this reporting period: Total cost of leak repairs: $ 0 $ 490,820 D. Methane Emissions Reduction Method Used: Other Methane Emissions Reduction: 229,077 Mcf/year Compared calculated Gas Loss of 289 Repaired Leaks in 2015 to the calculated Gas Loss in 2015 to year end (notrepairing). The differe is MCF gas loss avoided or savings. Gas Loss is calculated/estimated using factors that take into account line pressure, location of leak, size of leak). Start of leak is REPORT DATE (date leak found). May 25, 2016

44 Annual Report 2015 Distribution Sector Natural Gas STAR Online Reporting OMB Control No Pending OMB Approval E. Total Value of Gas Saved Value of Gas Saved: $ / Mcf used: $ 1.72 $ 394,012 F. Planned Future Activities Do you plan to survey this facility/location next year? Yes Previous Years' Activities Year Total Cost of Surveys ($) Total Cost of Repairs ($) Estimated Reductions (Mcf/Yr) Value of Gas Saved ($) Additional Comments We do not track costs of repair per Leak Report. We are transitioning to a new Leak Management and Reporting system for 2016 and hope to be able to report Leaks Found, and costs associated with Repairing Leaks in 2016 May 25, 2016

45 Annual Report 2015 Distribution Sector Natural Gas STAR Online Reporting OMB Control No Pending OMB Approval BMP2: Identify and Rehabilitate Leaky Distribution Pipe Current Year Activities A. Facility/location identifier information: DOMINION - HOPE GAS B. Replacement Summary Miles of distribution pipe replaced this reporting period: 20 miles Total cost of pipe replacement this reporting period: $ 8,047,914 C. Leak Summary Total number of leaks repaired (excluding pipe replacement): Total cost of leaks repaired: $ 0 0 leaks repaired D. Methane Emissions Reduction Method Used: Calculation using default Methane Emissions Reduction: 3,325 Mcf/year Main Replacement Services Replacement Type of Pipe Replaced Cast Iron Miles Replaced Leak Rate Conversion (Mcf/mi/yr) Replaced 239 Methane Emissions (Mcf/yr) 0 Services Replaced N/A Leak Rate Conversion (Mcf/service/yr) Replaced N/A Methane Emissions (Mcf/yr) N/A Protected Steel Unprotected Steel Plastic Copper N/A N/A N/A Not Available (Avg) Subtotals: May 25, 2016

46 Annual Report 2015 Distribution Sector Natural Gas STAR Online Reporting OMB Control No Pending OMB Approval E. Total Value of Gas Saved Value of Gas Saved: $ / Mcf used: $ 1.72 $ 5,719 F. Planned Future Activities Miles of pipe to be replaced next year: 12 miles Number of services to be replaced next year: 500 services Previous Years' Activities Year # Miles of Pipe Replaced # Services Replaced Total Cost of Replacements ($)* # Leaks Repaired Total Cost of Repairs ($)* Est. Reductions (Mcf/Yr) Value of Gas Saved ($) * Total cost of replacements (including equipment and labor) Additional Comments Only included unprotected bare/coated steel pipeline replacements. In 2016, we hope to also include leaks repaired on unprotected pipe in addition to replacements if systems are in place to capture/report this data. May 25, 2016

47 Annual Report 2015 Distribution Sector Natural Gas STAR Online Reporting OMB Control No Pending OMB Approval BMP3: Partner Reported Opportunities (PROs) Current Year Activities A. Facility/location identifier information: DOMINION - HOPE GAS B. Description of PRO Please specify the technology or practice that was implemented: Damage Prevention Program Please describe how your company implemented this PRO: Reduce the number of damage incidents resulting in gas loss through accurate marking and Miss Utility use. C. Level of Implementation Other: Tracking Damage Events and associated gas loss: Damage Events in 2015=65 compared to Damage Events in 2014=85 - dec of 20 damage events. D. Methane Emissions Reduction Methane Emissions Reduction: 616 Mcf/year Basis for the emissions reduction estimate: Other # of Damage Events in 2015: 65 compared to # Damage Events in 2014: 85 - decrease of 20 damage events at Avg mcf loss reduction / 30.8 as avoided gas loss. ( ) E. Are these emissions reductions a one-year reduction or a multi-year reduction? One-year Multi-year If Multi-year: Partner will report this activity once and let EPA automatically calculate future emission reductions based on sunset date duration. Partner will report this activity annually up to allowed sunset date. May 25, 2016

48 Annual Report 2015 Distribution Sector Natural Gas STAR Online Reporting OMB Control No Pending OMB Approval F. Cost Summary Estimated cost of implementing the PRO (including equipment and labor): G. Total Value of Gas Saved Value of Gas Saved: $ 1,060 $ / Mcf used: $ 1.72 H. Planned Future Activities To what extent do you expect to implement this PRO next year?: $ 0 Continue to monitor and track damage events to improve accurate marking of facilities. Previous Years' Activities Frequency of practice/activity Total Cost * Estimated Reductions Value of Gas Year or # of Installations ($) (Mcf/Yr) Saved ($) * Total cost of practice/activity (including equipment and labor) Additional Comments We are developing a process to capture program costs in future reports. May 25, 2016

49 Annual Report 2015 Distribution Sector Natural Gas STAR Online Reporting OMB Control No Pending OMB Approval BMP3: Partner Reported Opportunities (PROs) Current Year Activities A. Facility/location identifier information: DOMINION - HOPE GAS B. Description of PRO Please specify the technology or practice that was implemented: DI&M: survey and repair leaks Please describe how your company implemented this PRO: GHG Surveys of LS Stations at Transmission to Distribution system interconnects as part of EPA Mandatory Greenhouse Gas Reporting Program. Surveys followed up with repairs. No leaks were identified in C. Level of Implementation Other: 20% of LS Stations surveyed annually. 23 sites surveyed in 2015 by consultants. D. Methane Emissions Reduction Methane Emissions Reduction: 0 Mcf/year Basis for the emissions reduction estimate: Other Use the GHGRP emission factors and difference between FIND to FIX vs FIND to YE (not repaired). E. Are these emissions reductions a one-year reduction or a multi-year reduction? One-year Multi-year If Multi-year: Partner will report this activity once and let EPA automatically calculate future emission reductions based on sunset date duration. Partner will report this activity annually up to allowed sunset date. May 25, 2016

50 Annual Report 2015 Distribution Sector Natural Gas STAR Online Reporting OMB Control No Pending OMB Approval F. Cost Summary Estimated cost of implementing the PRO (including equipment and labor): G. Total Value of Gas Saved Value of Gas Saved: $ 0 $ / Mcf used: $ 1.72 H. Planned Future Activities To what extent do you expect to implement this PRO next year?: Previous Years' Activities Year $ 37,005 We will survey ~ 20% of LS stations in 2016 Frequency of practice/activity Total Cost * Estimated Reductions Value of Gas or # of Installations ($) (Mcf/Yr) Saved ($) * Total cost of practice/activity (including equipment and labor) Additional Comments May 25, 2016

51 Annual Report 2015 Distribution Sector Natural Gas STAR Online Reporting OMB Control No Pending OMB Approval Additional Accomplishments May 25, 2016

52 Mcf Dominion East Ohio 2015 Natural Gas STAR Summary Report The Natural Gas STAR Program and its partners have realized nearly 1,316 billion cubic feet (Bcf) of domestic methane emissions reductions. 100,000 Dominion East Ohio's Historical Reductions¹ Gas STAR Program Reported Activities: Distribution Sector The Natural Gas STAR Program endeavors to assist partners in achieving the full benefits of participation by raising awareness about activities that other partners have undertaken to achieve cost-effective methane emissions reductions. Report Summary 80,000 Distribution Sector Top Activities for 2015 Joined Natural Gas STAR - Distribution Sector: Methane Emissions Reductions: 89,752 Mcf 60,000 40,000 Technologies and practices employed in the Distribution Sector over the past 10 years. Technologies and practices employed in the Distribution Sector in Since joining the Natural Gas STAR Distribution Sector in 2014, Dominion East Ohio has achieved cumulative methane emissions reductions of 529,698 Mcf. 20,000 0 New On-Going 2015 Reductions: 2 89,752 Mcf Cumulative Reductions: 529,698 Mcf To achieve these results, Dominion East Ohio has employed these Natural Gas STAR methane emission reduction technologies and practices. Identify and rehabilitate leaky distribution pipe 49.0% Identify and rehabilitate leaky distribution pipe 60.6% DI&M: survey and repair leaks 16.6% DI&M: surface facilities 19.2% DI&M: surface facilities 14.0% Install excess flow valves 4.9% Identify and replace high-bleed pneumatic devices 4.3% Identify and replace high-bleed pneumatic devices 3.8% Third-party damage prevention/reduce emissions 3.7% Third-party damage prevention/reduce emissions 3.1% Install excess flow valves 3.0% Convert to instrument air systems 2.2% Inject blowdown gas into low pressure mains 2.9% Reduce/downgrade system pressure 1.5% Convert to instrument air systems 1.4% Improve system design/operation 1.4% Reduce/downgrade system pressure (manual) 1.4% Pneumatic devices to mechanical/electronic 1.4% Other 3.7% Other 1.9% Total: 100.0% Total: 100.0% Identify and rehabilitate leaky distribution pipe 55.4% Identify and rehabilitate leaky distribution pipe 68.9% Identify and replace high-bleed pneumatic devices 39.7% Identify and replace high-bleed pneumatic devices 26.1% Use pipeline pumpdown to lower pressure 3.6% Third-party damage prevention/reduce emissions 4.2% DI&M: surface facilities 1.3% Use pipeline pumpdown to lower pressure 0.6% Total: 100.0% DI&M: surface facilities 0.2% Total: 100.0% Dominion East Ohio's methane emissions reductions are approximately equivalent to:³ Tonnes CO2 equivalent: 253,931 (cumulative) 43,026 (2015) CO2 emissions from the electricity use of this many homes for one year: 34,929 (cumulative) 5,918 (2015) Suggested Methane Emission Reduction Technologies and Practices Based on commonly reported technologies and practices employed by Distribution Sector partners, below is a list of other activities Dominion East Ohio might consider. DI&M: survey and repair leaks Install excess flow valves Inject blowdown gas into low pressure mains Convert to instrument air systems Reduce/downgrade system pressure (manual) Carbon sequestered annually by this many acres of pine or fir forests: 208,141 (cumulative) 35,267 (2015) Value of methane saved (at $4 per Mcf): $2,118,792 (cumulative) $359,008 (2015) Additional information on these technologies and practices is available on the Natural Gas STAR website at epa.gov/gasstar/tools/recommended.html. ¹ Partners may retroactively report methane emissions reductions to EPA back to ² Annual methane emissions reductions include new reductions plus on-going reductions. ³ Emissions reductions are calculated using a GWP of 25.

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