“Responsibly Procured” Gas is a Hot New in the Appalachia Basin

More Marcellus shale gas drillers aim to show their environmental and social awareness by producing “responsibly procured” natural gas.

Recent range resources Announcement Participate in a pilot program with Project Canary, a Denver-based climate technology company, to certify two well pads in southwestern Pennsylvania through the TrustWell certification process.

Southwestern Energy working Working with Project Canary, we will extend our existing responsible gas certification program to include all current and future well pads throughout the Appalachia Basin. This is the first exploration and production company to go after accrediting the entire production area.

Responsibly Procured Natural Gas (RSG) is the latest attempt to show that oil and gas companies are doing the right thing for the environment, but is it an environmental victory or green? There is debate about whether it is washing.

Optimism

Southwestern Energy began certifying wells in 2017. The company leases 571,000 acres of land in West Virginia, southeastern Ohio, southwestern Pennsylvania, and 217,000 acres in northeastern Pennsylvania.

The Range Resources announcement shows that all of Pennsylvania’s top three Marcellus shale gas drilling companies are heading towards responsibly procured gas production.Top two excavators, EQT and Chesapeake, both Announcement They started a pilot program at Project Canary earlier this year.

To be certified, in addition to continuous on-site emission monitoring, we analyze 300 data points that go through a third-party certification process to examine operational impacts on water, air, land, and communities. is needed.

Project Canary offers a continuous monitoring device that takes samples every second for 12 components, especially methane. That data is uploaded to the cloud database every minute. Wellpads typically have three sensors to allow triangulation of the source.

“Appalachians are often recognized as the most environmentally friendly production basin in the United States because operators here want to supply energy in the safest and most affordable way possible,” said Marcellus Shale Coalition. David Callahan, president of the company, said in a statement.

According to federal data, Appalachian is the largest natural gas producing region in the United States. Callahan said RSG is another example of how the industry “makes improvements that advance our society, economy and environment.”

Skepticism

But environmental groups are a little more skeptical. The Sierra Club says there is no such thing as gas supplied responsibly.

“This is yet another scam that tries to convince the public that what the hydraulic fracturing industry sells is not a disaster for public health and climate.” Cathy Collentine, associate director of the Sierra Club’s Beyond Dirty Fuels campaign, said in a statement.

Rob Altenburg, Senior Director of Energy and Climate at Pennsylvania-based environmental group Penn Future, is taking a more cautious approach. It’s bad when he gives a false or misleading impression of how responsibly supplied gas is an example of greenwashing, or how environmentally sound a company’s products or processes are. I said it doesn’t mean that.

“It’s great to look for leaks,” he said. It is a good business decision for oil and gas companies to monitor methane emissions. Also, people living near well pads may be relieved to know that the pads are being monitored, but whether emission data or large-scale leak events will be shared publicly with local residents. It’s not clear.

However, looking for leaks does not turn natural gas production into a clean energy industry. Altenberg said most of the emissions come from a small number of sources. If continuous surveillance is voluntary, as in the Appalachia basin and most other states, other companies may continue to cut corners.

“After all, it’s still a fossil-fueled mining industry,” he said. “There are many issues in the fossil fuel industry that this does not address.”

Financial boost

There is one thing for sure. Responsibly procured gas can make money.

Brian Miller, Vice President of Growth and Policy at Project Canary, said: Farm and dairy products In April, RSG won a premium over other natural gas products in both the domestic and international markets.

Now, more than ever, investors and customers want to know that the products they buy have been produced in a socially responsible way. The jargon for this is environment, society, governance, or ESG. When Range Resources announced the RSG pilot program, it also announced the establishment of ESG and safety committees.

Southwestern Energy President Billway announced in a statement on June 24 that he would promote new certifications, saying that the company saw “the potential for a differentiated market focused on responsibly procured gas.” Stated.

Southwestern Energy was the first company to sell a premium, responsible gas certified as a utility New Jersey Natural Gas in 2018. Completed a total of 6 responsible gas sales contracts.

(Reporter Rachel Wagoner can be contacted at 800-837-3419 or rachel@farmanddairy.com.)