Q444. How is a facility defined and who must report under subpart W (petroleum and natural gas systems )?

A444. The definition of facility depends on each industry segment and the proximity of emission sources to one another. Generally under the GHGRP, a facility is all co-located emission sources that are commonly owned or operated (see the definition of “facility” in 40 CFR 98.6 for more details). However, 40 CFR part 98, subpart W (petroleum and natural gas systems) defines five different types of petroleum and natural gas systems facilities for purposes of reporting thresholds in 40 CFR 98.231. You must apply the 25,000 metric ton CO₂ equivalent per year threshold separately to each facility to determine if that facility must report.

• For the onshore petroleum and natural gas production industry segment, a facility is defined as all petroleum or natural gas equipment on a single well-pad or associated with a single well-pad and CO₂ EOR operations that are under common ownership or common control including leased, rented, or contracted activities by an onshore petroleum and natural gas production owner or operator and that are located in a single hydrocarbon basin, as defined in 40 CFR 98.238. Where a person or entity owns or operates more than one well in a basin, then all onshore petroleum and natural gas production equipment associated with all wells that the person or entity owns or operates in the basin would be considered one facility.
• For the natural gas distribution industry segment, a facility is defined as the collection of all distribution pipelines and metering-regulating stations that are operated by a Local Distribution Company (LDC) within a single state that is regulated as a separate operating company by a public utility commission or that are operated as an independent municipally-owned distribution system.
• For the onshore petroleum and natural gas gathering and boosting industry segment, a facility is defined as all gathering pipelines and other equipment located along those pipelines that are under common ownership or common control by a gathering and boosting system owner or operator and that are located in a single hydrocarbon basin as defined in 40 CFR 98.238. Where a person owns or operates more than one gathering and boosting system in a basin (for example, separate gathering lines that are not connected), then all gathering and boosting equipment that the person owns or operates in the basin would be considered one facility. Any gathering and boosting equipment that is associated with a single gathering and boosting system, including leased, rented, or contracted activities, is considered to be under common control of the owner or operator of the gathering and boosting system that contains the pipeline. The facility does not include equipment and pipelines that are part of any other industry segment defined in subpart W.
• For the onshore natural gas transmission pipeline industry segment, a facility is defined as the total U.S. mileage of natural gas transmission pipelines, as defined in 40 CFR 98.238, owned and operated by an onshore natural gas transmission pipeline owner or operator as defined in 40 CFR 98.238. The facility does not include pipelines that are part of any other industry segment defined in subpart W.
• For all other industry segments, use the facility definition in the General Provisions to part 98.  Under this definition, a facility is defined generally as all sources for which emission calculation methods are provided in 40 CFR part 98 (including those in the table below) and that are located on a contiguous property and under common ownership or common control.

See 40 CFR part 98, subparts A and W for the precise definition of each of the “facility” types.