Some underground coal mine operators already saddled with
copious amounts of paperwork will soon be required to monitor and
report their greenhouse gas emissions. This week, the Environmental
Protection Agency ("EPA") signed a rule requiring that
four additional source categories track and report greenhouse gas
emissions under EPA's earlier GHG reporting rule published
October 30, 2009. Underground coal mines were originally excluded
from the 41 sources regulated in the 2009 rule, but will now be
required to report certain methane, carbon dioxide, and nitrous
oxide emissions when the rule becomes effective.
While surface mines, post-mining activities, and abandoned mines
are excluded from the rule, underground coal mines classified by
the Mine Safety and Health Administration ("MSHA") as
active, currently under development, or with active degasification
systems will be required to record and report emissions if they are
subject to MSHA's ventilation system sampling program.
According to the rule's technical support document, this rule
will affect approximately 114 underground coal mines around the
country at an average first year cost of $34,717 per mine. The rule
especially targets underground mines with degasification systems;
as of 2006, 20 mines had degasification systems in place.
For the 114 mines believed to be covered under this rule, the
reporting requirements and monitoring techniques may be demanding.
A covered mine must report the following for each ventilation and
degasification well or shaft:
- Quarterly and net methane liberation from each ventilation well or shaft including methane content, flow data, temperature and pressure readings, and moisture content;
- Weekly methane liberation from each degasification system including methane content, flow data, temperature and pressure readings, and moisture content;
- Weekly methane destruction from each device, including destruction by sale, use, or onsite flaring;
- Quarterly carbon dioxide emissions from methane destruction onsite, excluding flaring; and
- Annual carbon dioxide, methane, and nitrous oxide emissions from any fuel combustion units onsite.1
The rule treats these monitoring sites quite expansively;
degasification systems "include all degasification wells and
gob gas vent holes at the underground mine." In addition,
"ventilation well or shaft" encompasses any and all wells
and shafts used as an outlet to move air from the system out of the
mine. As a result, even a simple borehole used for ventilation or
an outlet from a required longwall degasification entry must be
monitored.
Covered mines can monitor these emissions in one of two ways;
liberated methane can be tracked using continuous emissions
monitoring systems ("CEMS"), or through quarterly
sampling using MSHA protocols. If the mine chooses to undertake
quarterly sampling, it may either rely upon MSHA's sample
results or conduct its own independent sampling. This choice may
seem straightforward, but choosing the monitoring system with the
least upfront cost and labor may not be the best route. If GHG
reporting is compiled for use in a future greenhouse gas regulatory
scheme, inaccurate results could put the mine at a significant
disadvantage.
Covered mines must start tracking emissions on January 1, 2011, and
report the results to the EPA by March 31, 2012. Since this
requirement is less than a year away, underground mine managers
should begin now to determine (i) whether the rule applies to its
operations, (ii) each emissions monitoring point, (iii) its
preferred tracking method, and (iv) its reporting infrastructure.
During this process, management should be aware of this rule's
repercussions. The GHG reporting rule is widely viewed as the first
step toward implementing GHG emissions limits and related climate
change regulation; hence, the results of this reporting may be used
to determine a mine's required emissions reductions or
marketable credits. Attorneys in Dinsmore & Shohl's Natural
Resources Practice Group have experience in addressing such issues,
and may be able to help mine management assess its duties and
options under this mandatory rule, with a focus on planning for
timely compliance.is whether firms and their clients are willing to
develop the processes necessary for the change to succeed.
Footnote
1. See EPA's "Underground Coal Mines Monitoring Checklist," available at http://www.epa.gov/climatechange/emissions/downloads10/Subpart-FF_checklist.pdf
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