Stewardship in Action

Ruby Pipeline

Ruby Pipeline will be the first carbon neutral pipeline project in the United States when it is placed in service in 2011. To achieve the goal of carbon neutrality we reviewed multiple mitigation options and carefully considered the current scope of the project, geography, market conditions, and the maturity of GHG mitigation technologies. Our team concluded that there is no single solution in mitigating all emissions, so we have adopted a portfolio approach; applying multiple technologies and techniques to the effort. While some significant uncertainties still surround the mitigation technologies, we believe we have chosen the most promising array of options. These include purchasing renewable electric power for compressor prime movers where possible, internal pipe coating, re-forestation, Best Management Practices, application of the U.S. Green Building Council Leadership in Energy and Environmental Design for buildings, and Voluntary Emissions Reduction credit purchases.

Participation in Natural Gas STAR

El Paso’s Pipeline Group has participated in the EPA Natural Gas STAR program since 1993 -- the year the program was founded. Natural Gas STAR is a voluntary partnership between the EPA and the oil and natural gas industry, designed to cost-effectively reduce methane emissions from oil and natural gas operations. As the primary component of natural gas, methane is also a valuable clean energy source, and reducing its emissions to the atmosphere adds to domestic natural gas supply. El Paso has deployed technologies and practices to reduce methane emissions and improve operational efficiency.

Based on EPA Natural Gas Guidelines for estimation of reductions, as of 2007, El Paso pipeline companies have reported more than 59 billion cubic feet of natural gas reductions which equates to approximately 24 million tonnes of CO₂e. The E&P Company joined the program in 2003, and has reported emissions reductions equivalent to more than 5.6 million tonnes of CO2e as of 2007.

El Paso has been recognized by the EPA multiple times for superior performance in this voluntary program. El Paso Pipeline Group was named Transmission Partner of the Year for 2008. In 2007, El Paso Pipeline Group reported the highest new reductions of any partner in the transmission sector.

El Paso’s E&P Group is also a partner in the Natural Gas STAR Program. Although E&P submits reduction estimates to the program, our focus has been identifying and implementing technology that directly reduces methane emissions. Over the last several years we have concentrated on maximizing the use of artificial lift technology to reduce the direct venting of wells to atmosphere.

Environmental Remediation

During a period of growth and acquisition, subsidiaries of El Paso inherited many assets which are on sites that are subject to environmental remediation. These sites include retail gas stations, textile mills, gas processing facilities, terminals, refineries, and mineral mines. As the current or former owner of these sites, we take the responsibility of clean-up and revitalization seriously.

The clean-up requirements for these sites vary greatly depending on the type and magnitude of the contamination, local geology, and state and federal regulations. Through responsible management of our current liabilities from pre-existing pollution conditions, we have seen a steady decline in our environmental reserve liability since 2004. This trend is just one measure of how accurately we assess and report clean up costs before a project begins.

Comstock Mill Site Clean-Up Recognized

The U.S. Bureau of Land Management (BLM) awarded El Paso the 2008 BLM Hardrock Mineral Environmental Award for our remediation of the Comstock Mill site in Nevada. This is the premier environmental recognition awarded by the BLM. El Paso was among three other companies recognized by the BLM for reclamation and sustainable mineral development.

“The awards recognize the efforts that have been made in implementing the principles of sustainable development, a concept adopted by the United States and 192 other countries, to balance environmental, economic, and social considerations in planning for mining operations,” said BLM director Jim Caswell.

This award is recognition by BLM of El Paso’s commitment to the environment at the Comstock site and to our environmental stewardship. Read more about this award on the BLM’s Web site.

This project was also recognized with the Southern Gas Association’s 2008 Environmental Excellence Award.