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addressing uncertainty in oil and natural gas industry greenhouse

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For two terms that might be correlated, the errors or uncerta<strong>in</strong>ties are plotted aga<strong>in</strong>st each other. For the<br />

purpose of this discussion, U x represents the uncerta<strong>in</strong>ties of one variable plotted along the x-axis, <strong>and</strong> U y<br />

represents the uncerta<strong>in</strong>ties of the second variable plotted on the y-axis. The correlation coefficient, r, is<br />

determ<strong>in</strong>ed by a l<strong>in</strong>ear regression of the U x <strong>and</strong> U y values.<br />

If one suspects that the <strong>uncerta<strong>in</strong>ty</strong> parameters are correlated, but data are not available to plot or calculate<br />

the correlation coefficient, the follow<strong>in</strong>g rule-of-thumb values could be applied us<strong>in</strong>g expert judgment<br />

(Franzblau, 1958):<br />

o<br />

o<br />

o<br />

o<br />

o<br />

r = 0: no correlation, the data are <strong>in</strong>dependent<br />

r = ±0.2: weak correlation<br />

r = ±0.5: medium correlation<br />

r = ±0.8: strong correlation<br />

r = ±1: perfect correlation, the data fall on a straight l<strong>in</strong>e.<br />

4.3 Quantify<strong>in</strong>g Emission Estimation Uncerta<strong>in</strong>ty<br />

For the purpose of these guidel<strong>in</strong>es, the general steps for quantify<strong>in</strong>g <strong>uncerta<strong>in</strong>ty</strong> are:<br />

1. Determ<strong>in</strong>e the <strong>uncerta<strong>in</strong>ty</strong> for emission factor data;<br />

2. Determ<strong>in</strong>e the <strong>uncerta<strong>in</strong>ty</strong> for measured data; <strong>and</strong><br />

3. Aggregate uncerta<strong>in</strong>ties.<br />

The follow<strong>in</strong>g provides two simple examples of <strong>uncerta<strong>in</strong>ty</strong> calculations for emissions estimation<br />

methods common <strong>in</strong> the <strong>oil</strong> <strong>and</strong> <strong>gas</strong> <strong>in</strong>dustry.<br />

4.3.1 Simple Emission Estimation: EF × AF<br />

In construct<strong>in</strong>g a facility or entity-wide GHG <strong>in</strong>ventory, many of the emission estimates are based on a<br />

simple multiplication of the emission factor (EF) by a measure of the activity (AF, or activity factor). The<br />

follow<strong>in</strong>g example demonstrates how <strong>uncerta<strong>in</strong>ty</strong> is determ<strong>in</strong>ed for this type of emission estimate.<br />

Pilot Version, September 2009 4-8

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