1. Presentation to the North Carolina DENR/DAQ Mercury/CO 2 Workshop April 19-21, 2004 Presented by Gerald R. Hill, Ph.D. Senior Technical Advisor Southern States Energy Board hill@sseb.org Southern States Energy Board Southeast Regional Carbon Sequestration Partnership

2. Regional Partnerships WC West Coast Region GP Great Plains Region SW Southwest Region SE Southeast Region MW Midwest Region 5 5 7 7 1 1 3 3 4 4 6 6 2 2 Saskatchewan Manitoba

3. Kyoto protocol demonstrates growing evidence that Greenhouse Gases are affecting global climate – CO 2 most significant International consensus document, but not accepted by US Exempted developing countries and scientific basis questioned In response to Kyoto, President Bush initiated national sequestration program Aimed at reducing greenhouse gas intensity 18% by 2012 Aimed at achieving emission goal in a manner that sustains economic growth Established seven regional partnerships across country Regional Partnerships and National Program

4. Regional partnerships to identify Sources, sinks, infrastructure and potential uses of CO 2 in region Regulatory and public perception issues Issues for technology deployment Potential impacts of sequestration on region Regional Partnerships and National Program (continued)

5. In the southeast region, coal and natural gas (the primary sources of CO 2 ) are major fuels for electricity production 44% of total US CO 2 emissions originate from sources in 16 of SSEBs member states, over 25% from the partnerships 11 states (EIA, 1999) Significant potential terrestrial and geologic sequestration sinks exist in the SSEB region Significant opportunities exist for value-added CO 2 usage, that also achieves sequestration [e.g. enhanced oil recovery (EOR) or enhanced coalbed methane production (ECBM)] Importance of CO 2 to the Region

6. CO 2 Emissions by US Census Regions 11.3% 0.8% 0.1% 12.4% 11.3% 0.8% 22.2% 11.7% 21.1% 12.0% 7.5%

7. Diverse Partnership Composition State Executive & Legislative Leadership Natural Resource Advocates Energy Producers & Associations Sequestration & GIS Research Electric Utilities & Associations

8. Southern States Energy Board (SSEB) Ken Nemeth, Overall Project Manager Kathy Baskin, Overall Administrative Manager Gerald Hill, Overall Technical Manager Diagnostic Information & Analysis Laboratory (DIAL) at Mississippi State University John Plodinec, Senior Technical Advisor Electric Power Research Institute (EPRI) Richard Rhudy, Senior Technical Advisor Augusta Systems (AS) Pat Esposito, Technical Advisor & Geologic, Industry and Public Outreach Patrick Esposito, Technical Advisor & Regulatory, Permitting, and Public Outreach United States Department of Energy / National Energy Technology Laboratory (USDOE/NETL) Karen Cohen, USDOE Project Manager Regional Partnership Leadership

9. Industry Members SSEB Associate Members and Utility Advisory Committee Southern Company Duke Power Tampa Electric Company Progress Energy SCANA South Carolina Electric and Gas Company Interstate Oil and Gas Compact Commission The North American Coal Corporation Center for Energy and Economic Development Oak Ridge National Laboratory Clean Energy Systems, Incorporated Regional Partnership Technology Coalition

10. Partnership Program CO 2 Sources / Sinks CO 2 Capture Technologies CO 2 Sequestration Potential Terrestrial and Geological Transportation Methodologies for CO 2 Existing Infrastructure Commercial Uses of CO 2 Technical Barriers Public Involvement, Education and Acceptance Methods Regulatory, Permitting and Accounting Frameworks Measurement, Monitoring and Verification Protocols Define geographical boundaries of the region Task 1 SSEB Characterize the region Task 2 EPRI Identify and address issues for technology deployment Task 3 DIAL Identify preferred capture, sequestration, and transport options Task 5 EPRI Prepare plans for technology validation activities Task 6 DIAL Develop and plan public involvement and education Task 4 AS Partnership Will Identify:

11. Communicate/collaborate with other interested parties inside and outside the region to execute an effective outreach program All Regional Carbon Sequestration Partnerships Federal, state, local and tribal governments Technology developers Industry partners Community organizations External Lines of Communication

12. Potential Issues and Obstacles and Methods for Mitigation Carbon sequestration issue poses significant communication and education challenges Barriers to the implementation of the most promising options could require extensive changes to regulatory and permitting requirements

13. Next Steps Continue progress on Tasks 2.0 and 3.0 Activities Initiate work on Tasks 4.0 and 5.0 Participate in the Third Carbon Sequestration Partnership Meeting, May 2-5, 2004 Participate in the NETL Workshop, May 6, 2004 Convene the SSEB Chairmans Forum on Carbon Management, May 19-21, 2004 Maintain the www.secarbon.org website

14. Presentation to the North Carolina DENR/DAQ Mercury/CO 2 Workshop Gerald R. Hill, Ph.D. Southern States Energy Board hill@sseb.org Southern States Energy Board Southeast Regional Carbon Sequestration Partnership