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Q734. How does EPA define a “facility” for petroleum and natural gas systems?

A734. The definition of facility depends on each 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).

For natural gas distribution, the “facility” is a local distribution company as regulated by a single state public utility commission.

For onshore production the emission sources are relatively dispersed and so facility definition is delineated by basin.  For the onshore production segment, the “facility” includes all emissions associated with wells owned or operated by a single company in a specific hydrocarbon producing basin.  A basin refers to a geologic region where sediment infilling has occurred.  Hydrocarbons often are trapped within the basin boundaries and as a result basins are a useful means for identifying areas of hydrocarbon production.  The GHG Reporting Program definition of basin refers to the geologic provinces as published by the American Association of Petroleum Geologists (AAPG).

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