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National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2012 (No. 1)

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National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2012 (No. 1)1
National Greenhouse and Energy Reporting Act 2007
I, GREG COMBET, Minister for Climate Change and Energy Efficiency, make the following determination under section 7B and subsection 10 (3) of the National Greenhouse and Energy Reporting Act 2007.
Dated 27 June 2012
GREG COMBET
Minister for Climate Change and Energy Efficiency
1              Name of determination
                This determination is the National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2012 (No. 1).
2              Commencement
                This determination commences on 1 July 2012.
3              Amendment of National Greenhouse and Energy Reporting (Measurement) Determination 2008
                Schedule 1 amends the National Greenhouse and Energy Reporting (Measurement) Determination 2008.
Schedule 1        Amendments
(section 3)
  
[1]           Subsections 1.3 (1) and (2)
substitute
         (1)   This determination is made under section 7B and subsection 10 (3) of the National Greenhouse and Energy Reporting Act 2007. It provides for the measurement of the following:
                (a)    greenhouse gas emissions arising from the operation of facilities;
               (b)    the production of energy arising from the operation of facilities;
                (c)    the consumption of energy arising from the operation of facilities;
               (d)    potential greenhouse gas emissions embodied in an amount of natural gas.
         (2)   This determination deals with scope 1 emissions, scope 2 emissions and potential greenhouse gas emissions embodied in an amount of natural gas.
Note 1   Facility has the meaning given by section 9 of the Act.
Note 2   Potential greenhouse gas emissions embodied in an amount of designated fuel has the meaning given by section 7B of the Act.
Note 3   Natural gas has the meaning given by the Regulations.
Note 4   Scope 1 emission and scope 2 emission have the meaning given by section 10 of the Act (also see, respectively, regulations 2.23 and 2.24 of the Regulations).
[2]           Subsection 1.4 (2)
omit
                Generally:
insert
                For scope 1 emissions or scope 2 emissions:
[3]           Paragraph 1.4 (2) (b)
after
method 2 is
insert
generally
[4]           Paragraph 1.4 (2) (c)
after
method 3 is
insert
generally
[5]           After subsection 1.4 (2)
insert
         (3)   For potential greenhouse gas emissions embodied in an amount of natural gas:
                (a)    the default method set out in section 1.10B is based on national average estimates; and
               (b)    the prescribed alternative method set out in Subdivision 1.1A.2.2 uses Australian or equivalent standards for analysis.
[6]           Section 1.8
insert
ACARP Guidelines means the document entitled Guidelines for the Implementation of NGER Method 2 or 3 for Open Cut Coal Mine Fugitive GHG Emissions Reporting (C20005), published by the Australian Coal Association Research Program in December 2011.
[7]           Section 1.8, definition of API Compendium
substitute
API Compendium means the document entitled Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry, published in August 2009 by the American Petroleum Institute.
Note   The API Compendium is available at www.api.org.
[8]           Section 1.8
insert
Australian legal unit of measurement has the meaning given by the National Measurement Act 1960.
[9]           Section 1.8
insert
base of the low gas zone means the part of the low gas zone worked out in accordance with section 3.25A.
[10]         Section 1.8
insert
domain, of an open cut mine, means an area, volume or coal seam in which the variability of gas content and the variability of gas composition in the open cut mine have a consistent relationship with other geological, geophysical or spatial parameters located in the area, volume or coal seam.
[11]         Section 1.8
insert
estimator, of fugitive emissions from an open cut mine using method 2 under section 3.21 or method 3 under section 3.26, means:
                (a)    an individual who has the minimum qualifications of an estimator set out in the ACARP Guidelines; or
               (b)    individuals who jointly have those minimum qualifications.
[12]         Section 1.8, definition of gas bearing strata
substitute
gas bearing strata is coal and carbonaceous rock strata:
                (a)    located in an open cut mine; and
               (b)    that has a relative density of less than 1.95 g/cm3.
[13]         Section 1.8
insert
legacy waste means waste deposited at a landfill before 1 July 2012.
[14]         Section 1.8
insert
low gas zone means the part of the gas bearing strata of an open cut mine:
                (a)    that is located immediately below the original surface of the mine and above the base of the low gas zone; and
               (b)    the area of which is worked out by working out the base of the low gas zone.
[15]         Section 1.8
insert
natural gas has the meaning given by the Regulations.
[16]         Section 1.8
insert
natural gas supply pipeline has the meaning given by the Clean Energy Act 2011.
[17]         Section 1.8
insert
non‑legacy waste means waste deposited at a landfill on or after 1 July 2012.
[18]         Section 1.8, definition of open cut mine
substitute
open cut mine:
                (a)    means a mine in which the overburden is removed from coal seams to allow coal extraction by mining that is not underground mining; and
               (b)    for method 2 in section 3.21 or method 3 in section 3.26—includes a mine of the kind mentioned in paragraph (a):
                          (i)    for which an area has been established but coal production has not commenced; or
                         (ii)    in which coal production has commenced.
[19]         Section 1.8
insert
primary wastewater treatment plant:
                (a)    means a treatment facility at which wastewater undergoes physical screening, degritting and sedimentation; and
               (b)    does not include a treatment facility at which any kind of nitrification or denitrification treatment process occurs.
[20]         Section 1.8, definition of reductant
substitute
reductant:
                (a)    means a reducing agent or substance:
                          (i)    that causes another substance to undergo reduction; and
                         (ii)    that is oxidised while causing the substance to undergo reduction; and
               (b)    does not include fuels that are combusted only to produce energy.
[21]         Section 1.8, definition of sludge biogas
substitute
sludge biogas has the meaning given by the Regulations.
[22]         Section 1.8
insert
supply has the meaning given by the Clean Energy Act 2011.
[23]         Section 1.8, note
substitute
Note   The following expressions in this Determination are defined in the Act:
·      carbon dioxide equivalence
·      consumption of energy (see also regulation 2.26 of the Regulations)
·      energy
·      facility
·      greenhouse gas
·      group
·      industry sector
·      operational control
·      potential greenhouse gas emissions
·      production of energy (see also regulation 2.25 of the Regulations)
·      registered corporation
·      scope 1 emission (see also regulation 2.23 of the Regulations)
·      scope 2 emission (see also regulation 2.24 of the Regulations).
[24]         Subsection 1.9 (4)
omit
2010.
insert
2012.
[25]         Subsection 1.10 (1), table, after item 3O
insert
3P
 
Sodium cyanide production
[26]         After Part 1.1
Part 1.1A            Potential greenhouse gas emissions embodied in an amount of natural gas
Division 1.1A.1     Preliminary
1.10A      Purpose of Part
                This Part provides for:
                (a)    the measurement of potential greenhouse gas emissions embodied in an amount of natural gas in accordance with the default method set out in section 1.10B; and
               (b)    the ascertainment of potential greenhouse gas emissions embodied in an amount of natural gas in accordance with the prescribed alternative method set out in Subdivision 1.1A.2.2.
Division 1.1A.2     Available methods
Subdivision 1.1A.2.1          Default method
1.10B     Default method
                For subsection 7B (2) of the Act, the amount of greenhouse gas that would be released into the atmosphere as a result of the combustion of an amount of natural gas is determined to be the amount that results from using the following formula:
where:
E is the amount of greenhouse gas that would be released into the atmosphere as a result of the combustion of an amount of natural gas, measured in CO2‑e tonnes.
Q is taken to be the amount of natural gas supplied using a natural gas supply pipeline by a person in a reporting year, measured in:
                (a)    cubic metres, corrected to standard conditions; or
               (b)    gigajoules.
A is the value specified for subsection 7B (2) of the Act, worked out using the following formula:
where:
EC is the energy content factor, which:
                (a)    for natural gas measured in gigajoules, is equal to 1; or
               (b)    for natural gas measured in cubic metres, corrected to standard conditions, is:
                          (i)    mentioned in column 3 of item 17 of Part 2 of Schedule 1; or
                         (ii)    estimated by analysis in accordance with sections 1.10D, 1.10E and 1.10F.
EFCO2ox,ec is the emission factor for CO2 mentioned in column 4 of item 17 of Part 2 of Schedule 1.
EFCH4 is the emission factor for CH4 mentioned in column 5 of item 17 of Part 2 of Schedule 1.
EFN2O is the emission factor for N2O mentioned in column 6 of item 17 of Part 2 of Schedule 1.
Note   For a provision that:
(a)   specifies pipelines that are not natural gas supply pipelines, see regulation 1.8 of the Clean Energy Regulations 2011; and
(b)   describes when the supply of natural gas occurs, see section 6 of the Clean Energy Act 2011 and regulation 1.10 of the Clean Energy Regulations 2011.
Subdivision 1.1A.2.2          Prescribed alternative method
1.10C     Prescribed alternative method
         (1)   For subsections 7B (3) and 7B (4) of the Act, this Subdivision specifies the prescribed alternative method for ascertaining the potential greenhouse gas emissions embodied in an amount of natural gas.
         (2)   For subsection (1), work out the potential greenhouse gas emissions embodied in an amount of natural gas using the following formula:
where:
E is the potential greenhouse gas emissions embodied in an amount of natural gas, measured in CO2‑e tonnes.
Qis the amount of natural gas supplied using a natural gas supply pipeline by a person in a reporting year, measured in:
                (a)    cubic metres, corrected to standard conditions; or
               (b)    gigajoules.
EC is the energy content factor, which:
                (a)    for natural gas measured in gigajoules, is equal to 1; or
               (b)    for natural gas measured in cubic metres, corrected to standard conditions is:
                          (i)    mentioned in column 3 of item 17 of Part 2 of Schedule 1; or
                         (ii)    estimated by analysis in accordance with sections 1.10D, 1.10E and 1.10F.
EFCH4 is the emission factor for CH4 mentioned in column 5 of item 17 of Part 2 of Schedule 1.
EFN2O is the emission factor for N2O mentioned in column 6 of item 17 of Part 2 of Schedule 1.
EFCO2ox,ec is the carbon dioxide emission factor for natural gas supplied using a natural gas supply pipeline by a person in a reporting year, measured in kilograms CO2‑e per gigajoule and calculated in accordance with subsection (3).
         (3)   For subsection (2), work out the emission factor EFCO2ox,ec using the following steps:
Step 1
Estimate EFCO2ox,kgin accordance with the following formula:

where:
EFCO2ox,kg is the carbon dioxideemission factor for natural gas supplied using a natural gas supply pipeline by a person in a reporting year, incorporating the effects of a default oxidation factor expressed as kilograms of carbon dioxide per kilogram of natural gas.

Σy is sum for all component gas types.
moly%, for each component gas type (y) mentioned in the table in subsection (5), is that gas type’s share of:
   (a)  1 mole of natural gas supplied using a natural gas supply pipeline, expressed as a percentage; or
  (b)  the total volume of natural gas supplied using a natural gas supply pipeline, expressed as a percentage.

mwy, for each component gas type (y) mentioned in the table in subsection (5), is the molecular weight of the component gas type (y), measured in kilograms per kilomole.
V is the volume of 1 kilomole of the gas at standard conditions, which is 23.6444 cubic metres.

dy, total is worked out in accordance with subsection (4).
fy for each component gas type (y) mentioned in the table in subsection (5), is the number of carbon atoms in a molecule of the component gas type (y).

OFg is the oxidation factor 0.995 applicable to natural gas supplied using a natural gas supply pipeline.

Step 2
Work out the emission factor EFCO2ox,ec from the combustion of natural gas supplied using a natural gas supply pipeline, expressed in kilograms of carbon dioxide per gigajoule, using information on the composition of each component gas type (y) mentioned in the table in subsection (5), in accordance with the following formula:

where:
EFCO2ox,kg is the carbon dioxideemission factor for natural gas supplied using a natural gas supply pipeline by a person in a reporting year, incorporating the effects of a default oxidation factor expressed as kilograms of carbon dioxide per kilogram of natural gas, worked out under step 1.
EC is the energy content factor, measured in GJ/m3:
    (a)     mentioned in column 3 of item 17 of Part 2 of Schedule 1; or
   (b)     estimated by analysis in accordance with sections 1.10D, 1.10E and 1.10F.
C is the density of natural gas supplied using a natural gas supply pipeline, expressed in kilograms of natural gas per cubic metre, analysed in accordance with a standard mentioned in subsection 1.10E (3).

         (4)   For subsection (3), dy, total is worked out using the following formula:
where:
Σy is sum for all component gas types.
moly%, for each component gas type (y) mentioned in the table in subsection (5), is that gas type’s share of:
                (a)    1 mole of natural gas supplied using a natural gas supply pipeline, expressed as a percentage; or
               (b)    the total volume of natural gas supplied using a natural gas supply pipeline, expressed as a percentage.
mwy, for each component gas type (y), is the molecular weight of the component gas type (y) measured in kilograms per kilomole.
V is the volume of 1 kilomole of the gas at standard conditions, which is 23.6444 cubic metres.
         (5)   For subsection (3) and (4), the molecular weight and number of carbon atoms in a molecule of each component gas type (y) mentioned in column 2 of an item in the following table is set out in columns 3 and 4, respectively, for the item.
Item
Component gas type (y)
Molecular Wt (kg/kmole)
Number of carbon atoms in component molecules

1
Methane
16.043
1

2
Ethane
30.070
2

3
Propane
44.097
3

4
Butane
58.123
4

5
Pentane
72.150
5

6
Carbon monoxide
28.016
1

7
Hydrogen
2.016
0

8
Hydrogen sulphide
34.082
0

9
Oxygen
31.999
0

10
Water
18.015
0

11
Nitrogen
28.013
0

12
Argon
39.948
0

13
Carbon dioxide
44.010
1

Note   For a provision that:
(a)   specifies pipelines that are not natural gas supply pipelines, see regulation 1.8 of the Clean Energy Regulations 2011; and
(b)   describes when the supply of natural gas occurs, see section 6 of the Clean Energy Act 2011 and regulation 1.10 of the Clean Energy Regulations 2011.
1.10D     General requirements for sampling and analysis—prescribed alternative method
         (1)   Natural gas supplied using a natural gas supply pipeline must be sampled in accordance with:
                (a)    one of the standards mentioned in subsection (2) or a standard that is equivalent to one of those standards; or
               (b)    the requirements mentioned in subsections (3), (4) and (5).
         (2)   For paragraph (1) (a), the standards are the following:
                (a)    ISO 10715:1997;
               (b)    ASTM D 5287–97 (2002);
                (c)    ASTM F 307–02 (2007);
               (d)    ASTM D 5503–94 (2003);
                (e)    GPA 2166–05.
         (3)   Samples of natural gas supplied using a natural gas supply pipeline must:
                (a)    be derived from a composite of amounts of the natural gas in the natural gas supply pipeline; and
               (b)    be collected on enough occasions to produce a representative sample; and
                (c)    be free of bias so that any estimates are neither over nor under estimates of the true value.
         (4)   Bias must be tested in accordance with an appropriate standard (if any).
         (5)   The value obtained from the samples must be used for the delivery period, usage period or consignment of the natural gas supplied using a natural gas supply pipeline for which it was intended to be representative.
Note   For a provision that:
(a)   specifies pipelines that are not natural gas supply pipelines, see regulation 1.8 of the Clean Energy Regulations 2011; and
(b)   describes when the supply of natural gas occurs, see section 6 of the Clean Energy Act 2011 and regulation 1.10 of the Clean Energy Regulations 2011.
1.10E      Standards for analysing samples of natural gas supplied using natural gas supply pipeline
         (1)   Samples of natural gas supplied using a natural gas supply pipeline must be analysed:
                (a)    for analysis of energy content—in accordance with one of the following standards or a standard that is equivalent to one of the following standards:
                          (i)    ASTM D 1826—94 (2003);
                         (ii)    ASTM D 7164—05;
                        (iii)    ASTM 3588—98 (2003);
                        (iv)    ISO 6974, part 1 (2000);
                         (v)    ISO 6974, part 2 (2001);
                        (vi)    ISO 6974, part 3 (2000);
                       (vii)    ISO 6974, part 4 (2000);
                      (viii)    ISO 6974, part 5 (2000);
                        (ix)    ISO 6974, part 6 (2002);
                         (x)    ISO 6976:1995;
                        (xi)    GPA 2172—96; and
               (b)    for analysis of gas composition—in accordance with one of the following standards or a standard that is equivalent to one of the following standards:
                          (i)    ASTM D 1945—03;
                         (ii)    ASTM D 1946—90 (2006);
                        (iii)    ISO 6974, part 1 (2000);
                        (iv)    ISO 6974, part 2 (2001);
                         (v)    ISO 6974, part 3 (2000);
                        (vi)    ISO 6974, part 4 (2000);
                       (vii)    ISO 6974, part 5 (2000);
                      (viii)    ISO 6974, part 6 (2002);
                        (ix)    GPA 2145 – 03;
                         (x)    GPA 2261 – 00.
         (2)   The analysis of samples of natural gas supplied using a natural gas supply pipeline must be undertaken:
                (a)    by an accredited laboratory; or
               (b)    by a laboratory that meets requirements that are equivalent to the requirements in AS ISO/IEC 17025:2005; or
                (c)    using an online analyser if:
                          (i)    the online analyser is calibrated in accordance with an appropriate standard; and
                         (ii)    the online analysis is undertaken in accordance with this section.
Note   An example of an appropriate standard is ISO 10723: 1995 Natural gas—Performance evaluation of on‑line analytical systems.
         (3)   The density of natural gas supplied using a natural gas supply pipeline must be analysed in accordance with ISO 6976:1995 or in accordance with a standard that is equivalent to that standard.
Note   For a provision that:
(a)   specifies pipelines that are not natural gas supply pipelines, see regulation 1.8 of the Clean Energy Regulations 2011; and
(b)   describes when the supply of natural gas occurs, see section 6 of the Clean Energy Act 2011 and regulation 1.10 of the Clean Energy Regulations 2011.
1.10F      Frequency of analysis—prescribed alternative method
                Samples of natural gas supplied using a natural gas supply pipeline must be analysed:
                (a)    for gas composition—monthly; and
               (b)    for energy content:
                          (i)    if the samples are analysed using gas measuring equipment that is in category 1 or 2 of the following table—monthly; or
                         (ii)    if the samples are analysed using gas measuring equipment that is in category 3 or 4 of the following table—continuously.
Item
Gas measuring equipment category
Maximum daily quantity of natural gas supplied using a natural gas supply pipeline (GJ/day)
Transmitter and accuracy requirements (% of range)

1
1
0–1750
Pressure