Justification for nonmaterial change to 1905-0165-Eliminate Part 4, form EIA-816

Justification for nonmaterial/ non-substantive change (EIA-814, elimination of Part 4)

This is to request a nonmaterial/non-substantive change. EIA is proposing to eliminate Part 4, Natural Gas Activity, on the Form EIA-816 that was submitted and approved by the Office of Management and Budget on December 29, 2006. Part 4 is completed only by natural gas processing plants and measures natural gas received, total plant volumetric reduction of natural gas, natural gas returned for reinjection, and the volume of residue gas shipped to the pipeline. The EIA has determined that Part 4 does not adequately capture the desired information for calculating an estimate of gas shrinkage at natural gas processing plants. Subsequently, EIA has developed an alternative methodology to estimate this data on a monthly basis. EIA has determined that Part 4 of the EIA-816 is no longer needed and, thus, would like to reduce the burden to respondents.

Part 4 of form EIA-816, which collects volumetric information on natural gas -- vented and flared, repressurring, nonhydrocarbon gases removed, fuel used as part of plant operations, and shrinkage -- will no longer be collected to estimate monthly extraction loss.  Instead, EIA will use an alternative method utilizing data collected from gas processing plants on Form EIA-816 Part 3.  Monthly extraction loss will be estimated from monthly natural gas liquids production, reported in Part 3 on Form EIA-816.  These liquid volumes will be converted to natural gas equivalents using factors consistent with industry standards published by the Gas Processors Association and instructions to respondents to EIA’s annual survey of gas processing plants, Form EIA-64A, “Annual Report of the Origin of Natural Gas Liquids Production.”    No additional information is being requested from respondents as the alternative method makes use of data already submitted on Part 3 of Form EIA-816; hence there is no increased burden.