If you have answered yes to both of these questions, the oil and gas fugitives method
may be suitable for your business. Read on for eligibility and compliance details.
The oil and gas fugitives method covers projects that reduce fugitive leak and venting emissions at oil and natural gas extraction, production, transport and processing facilities. Emissions are reduced by installing and operating equipment to capture emissions that would otherwise have been vented or leaked to the atmosphere. These gases are then re-routed and combusted in a flare device. The combustion converts the gas, which is primarily methane, into carbon dioxide which has a lower global warming potential.
The Clean Energy Regulator develops variations to methods for a range of reasons including:
Methods being varied or methods under review are published on the
Department of Industry, Science, Energy and Resources (DISER) website and our
method consultation page.
method variations page provides additional information about how a method variation might affect an existing project.
You must read and understand the method and other legislative requirements to conduct an oil and gas fugitives project and earn Australian Carbon Credit Units (ACCUs) for abatement of greenhouse gases. This includes:
Seven years the crediting period is the period of time a project undertakes activities which generate eligible abatement.
Relevant section of the Act:
General eligibility requirements of the Act which include:
In addition, the Method requires that:
Relevant section of the Method:
ERF applicants should be aware of types of projects and emissions that are excluded by the Method. They include:
The Method credits projects for improvements in the level of emissions by comparing the emissions resulting from flaring the re-routed gas with the emissions that would have resulted from the gas being released if the project had not been carried out.
This is then adjusted by a discount factor for the sampling uncertainty associated with the component gas measurement and any significant ancillary emissions associated with the project. Note that as uncertainty increases beyond the permitted 5%, the amount of abatement decreases proportionally.
Please see the method for further information about the equations that are to be used in calculating the abatement.
In addition to the
general monitoring requirements of the Act, projects must meet specific monitoring requirements in Part 5 of the Method. These include:
Section 35 outlines the consequences for not meeting the monitoring requirements. This includes reducing abatement to zero for the relevant reporting period.
In addition to the
general record keeping requirements of the Act, Division 2 of the Method sets out specific record keeping requirements for:
Relevant section of the Rule:
In addition to the general
reporting and notification requirements of the Act and the Rule, the Method sets out specific reporting requirements where emissions being reported under the project(s) is also likely to be reported in an NGER report. These include:
All projects receive an audit schedule when they are declared and must provide audit reports according to this schedule. A minimum of three audits will be scheduled and additional audits may be triggered. For more information on the audit requirements, see the Act, the Rule and the
audit information on our website.
Specialist skills will be required to carry out the project with the method. Examples of specialist skills include:
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The Clean Energy Regulator is a Government body responsible for accelerating carbon abatement for Australia.