There's no question that the pressure is on about reducing surface impact of drilling operations. Most often perceived as something that will increase costs, there is evidence that closed loop drilling systems can actually reduce costs. Advanced Solids Control LLC (ASC) provides a patented and proven closed-loop system (www.advancedsolidscon
trol.com).

ASC's process is straightforward. Drilling fluids flow through a patented baffle system, settling out the solids. An auger system on the bottom of the mud tank removes solids into a centrifuge system and then the fluids are re-circulated through the system. Other ASC information notes that there are currently 80 tanks in use in Canada and the U.S. with the customer list including well recognized producers. ASC claims that water usage is reduced by 80%. The system can also reduce drilling waste, fluid handling and disposal costs by as much as 75% per well.

Food for thought—an article (www.
pttc.org/newsletter/2qtr2007/v13
n2p5.htm#2) in last issue's PTTC Network News highlighted Cimarex's experience in drilling 40 wells in New Mexico. Measurable cost savings were cited.

Each year EPA's Natural Gas STAR Program announces award winners during its annual implementation workshop. 2007 Winners are:

• Production Partner of the Year: EnCana Oil & Gas Inc.

• Processing Partner of the Year: Enbridge Energy Partners, Inc.

• Transmission Partner of the Year: Columbia Gas Transmission Corporation

• Distribution Partner of the Year: Alliant Energy

• Continuing Excellence-5 Years: Northern Natural Gas Company

• Continuing Excellence-10 Years: Consumers Energy; Southwest Gas Corporation

• Continuing Excellence-12 Years: Chevron Corporation; Great Lakes Gas Transmission Company

• Implementation Manager of the Year: Scott Mason (EnCana Oil & Gas Inc.)

On October 1, 2007, EPA Administrator Stephen L. Johnson signed a proposed rule to amend the Spill Prevention, Control, and Countermeasure (SPCC) rule 40 CFR Part 112. With these proposed changes, EPA intends to provide clarity and tailor certain requirements to encourage greater compliance. Comments on this proposed rule are due by December 14, 2007 (www.regulations.gov).

Oil production facilities are subject to the SPCC rule if they meet at least one of the following capacity thresholds (counting only containers with a capacity of 55 gallons or greater):

• Aboveground oil storage capacity greater than 1,320 gal, or

• Completely buried oil storage capacity greater than 42,000 gal.

Among other things, EPA is proposing to:

• Exclude oil production facilities from the loading/unloading rack requirements;

DOE recently announced the completion of its Final Environmental Impact Statement (EIS) for the FutureGen project. The EIS evaluated four potential sites to host the project: Mattoon, IL; Tuscola, IL; Jewett, TX; and Odessa, TX and preliminarily found that these sites were acceptable locations for funding the FutureGen project. The EIS offers a comprehensive evaluation of potential environmental impacts of the project with respect to the design, construction, and operation of the FutureGen facility. DOE benefited from extensive public review and comment on the Draft EIS issued on June 1, 2007. DOE conducted public meetings near each site and reviewed and evaluated all comments received during the 45-day comment period.

The FutureGen project is a partnership between DOE and the FutureGen Industrial Alliance, Inc.—a non-profit consortium of some of the largest coal producers and electricity generators in the world. DOE anticipates site selection will be made later this year. Announced in 2003, the FutureGen project is a 275 megawatt prototype power plant based on cutting-edge technology. Once operational, this plant would remove and sequester carbon dioxide while producing electricity and hydrogen gas.

For more information, view DOE's TechLine at www.fe.doe.gov/news/
techlines/2007/07078FutureGen_
EIS_Released.html