Manchin, Capito Air New EPA Methane Fee Complaints — “West Virginia’s senators are again challenging EPA over its efforts to reduce methane emissions. Democrat Joe Manchin and Republican Shelley Moore Capito separately wrote EPA administrator Michael Regan this week raising concerns about delays and costs for businesses as EPA seeks to cut down on methane — a noxious, planet-warming greenhouse gas. In their letters, Manchin, chair of the Energy and Natural Resources Committee, and Capito, ranking member of Environment and Public Works, outlined numerous issues with how EPA is carrying out two separate and complex rules under the Methane Emissions Reduction Program. ‘I am profoundly disheartened that instead of prioritizing genuine emissions reduction efforts, these rules seem intended to serve as yet another avenue to raise the costs of domestic energy production, disregarding the laws actually passed by Congress,’ wrote Manchin, who helped negotiate the methane provisions contained in the Inflation Reduction Act.” [E&E News, 3/27/24 (=)]
Biden Finalizes Rule To Prevent Methane Emissions And Wasted Gas From Public Lands Drilling — “The Biden administration on Wednesday finalized new rules on drilling for oil and gas on public lands — saying that it will cut down on both wasted fuel and planet-warming emissions from the production of these fossil fuels. The rules would require oil and gas drillers to either certify that they will capture all of the oil and gas produced by their wells or come up with a plan to reduce wasted gas. The Interior Department said this rule would be expected to result in $51 million per year in more government revenues and $17.9 million in climate-related benefits to society. A proposed version of the rule was expected to have climate benefits equivalent to taking nearly 1.6 million gas-powered cars off the road. It’s not immediately clear whether that figure had changed in the final rule, and spokespeople for the department did not immediately share regulatory impact documents with The Hill. ‘By leveraging modern technology and best practices to reduce natural gas waste, we are taking long-overdue steps that will increase accountability for oil and gas operators and benefit energy communities now and for generations to come,’ Interior Secretary Deb Haaland said in a written statement.” [The Hill, 3/27/24 (+)]
Most Oil And Gas Execs Concerned About Methane Fee, LNG Pause. According to Politico, “Most oil and gas executives surveyed by the Federal Reserve Bank of Dallas said the Biden administration’s liquefied natural gas export approval pause and EPA’s proposed methane fee will hurt their businesses. Some industry leaders said in a survey released Wednesday that uncertainty caused by the 2024 presidential election and the candidates’ potential regulatory regimes made them hesitant to drill new wells — even though current oil prices are more than high enough to make drilling profitable. President Joe Biden is expected to face former President Donald Trump in November.” [Politico, 3/28/24 (=)]
Interior Methane Rule: Climate Solution Or Lawsuit Magnet? — “The Interior Department’s long-awaited final methane rule is teeing up a potential legal fight even as environmentalists say it is critical to addressing climate change. The plan, which sets limits on emissions of the greenhouse gas on public lands, is being closely examined by oil and gas groups, which successfully axed a previous Bureau of Land Management methane rule in federal court for veering into air quality regulations overseen by EPA. BLM says the rule will bring in $50 million per year in added natural gas revenue. It makes oil companies pay royalties on ‘wasted’ methane and caps the amount of gas they can release or burn off due to lack of pipelines. It could also hamper drilling approvals for companies that don’t prove they can minimize releases of the gas, which has about 80 times the heat-trapping capability of carbon dioxide over a period of 20 years. ‘This rule represents a common sense, fair, and equitable solution to preventing waste that provides a level playing field for all of our energy-producing communities,’ BLM Director Tracy Stone-Manning said in a statement Wednesday.” [E&E News, 3/28/24 (+)]
BLM Finalizes Methane Venting And Flaring Rule — “The U.S. Bureau of Land Management on Wednesday announced its final rule meant to cut the amount of methane released at energy production facilities by reducing leaks and tightening limits on a process known as flaring. The final rule will force energy producers to cut back on flaring, in which excess natural gas — the primary component of which is the powerful greenhouse gas methane — is burnt at a well where it’s extracted. Facilities on federal or tribal land would also be required to limit the amount of gas they release, or ‘vent,’ directly into the atmosphere. ‘By building on technological advances and best management practices to help reduce waste, the rule is expected to generate more than $50 million in additional natural gas royalty payments each year to the federal taxpayer and tribal mineral owners, while conserving billions of cubic feet of gas that might otherwise have been vented, flared, or leaked from oil and gas operations,’ the BLM said in a statement. ‘This conserved gas will be available to power American homes and industries.’” [Law360, 3/27/24 (=)]