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An important step in addressing GHG issues is developing procedures and methods to collect data critical for calculating emissions. We began this process first using data from calendar years 2004 and 2005 to complete two rounds of enterprise-wide inventory development, covering operations for various business units. Each inventory has provided valuable experience to enhance our technical knowledge and improve subsequent inventories.
When we reported our 2006 GHG emissions from our California operations to the California Climate Action Registry (CCAR), we were the first company ever to submit its GHG inventory without material error. El Paso also became the first natural gas transmission company in the U.S. to submit an independent third-party certified inventory covering multiple GHG pollutants to the program.
Our 2006 enterprise-wide GHG inventory for domestic operations was submitted to the U.S. Department of Energy’s (DOE) Voluntary GHG Registry. As with our CCAR submission, this inventory was verified by an independent third party. Based on revised DOE’s guidelines, our total emissions were 15.56 million tonnes of CO2 equivalents (CO2e). These emissions reflect El Paso’s total U.S. emissions in 2006 and do not include emissions from ANR Pipeline which, was owned and operated by El Paso in 2006, but sold in 2007.
Our staff involved in developing these submissions has been invited to speak at various forums and conferences to discuss and share our inventory development experience and legislative/regulatory policy development surrounding natural gas in a carbon-constrained environment.
2006 GHG Emissions by Emission Category in MMT CO2e

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| Reducing Energy Consumption… By Degrees |
Before plans for a building renovation were approved, El Paso was taking considerable steps to improve the energy efficiency of our Houston headquarters. In September 2006, we replaced the chillers for our air conditioning system, which were originally installed when the building was built in the 1960s.
The new chillers use 40 percent less energy, which translated into a 15 percent reduction in our overall energy consumption in Houston for 2007 when compared with the previous year. The new chillers also use a non-ozone depleting refrigerant – saving 2,300 tonnes of CO2e emissions per year.
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