Flames from a flaring pit near a well in the Bakken Oil Field. The primary component of natural gas is methane, which is odorless when it comes straight from a gas well. In addition to methane, natural gas typically contains other hydrocarbons such as ethane, propane, butane, and pentane.
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The Interior Department has proposed rules to reduce methane leaks from oil and gas drilling on public lands, in the latest move by the Biden administration to aggressively tackle emissions of the climate-warming greenhouse gas.
Rules by the Internal Bureau of Land Management Will enforce strict monthly time and quantity limits On flaring, the process of burning excess natural gas in a well, and flaring that exceeds that limit requires payment.
Global methane emissions are the second largest contributor to climate change after carbon dioxide and come primarily from oil and gas extraction, landfills and wastewater, and livestock farming. Methane is a major component of natural gas and is 84 times more potent than carbon dioxide, but it doesn’t last long in the atmosphere before breaking down. Scientist argued that limiting methane It is necessary to avoid the worst consequences of global warming.
The proposal would also require oil and gas producers to develop a waste mitigation plan demonstrating the capacity of available pipeline infrastructure for anticipated gas production. The BLM may delay action or ultimately deny permission to drill to avoid the excessive flow of gas, said activity that has increased significantly over the past few decades.
“This proposed rule will bring our rules in line with the technological advances the industry has made the first time BLM rules have been implemented in decades, while providing a fair return to taxpayers,” Interior Secretary Deb Haaland said in a statement Monday.
A ruptured oil well pipeline gauge near Depuy, Oklahoma
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Officials said the proposal would generate $39.8 million a year in royalties for the US and prevent billions of cubic feet of gas from being wasted through venting, flaring and leaks. The BLM has a statutory mandate and legal authority to prevent the waste of public and tribal resources.
“This draft rule is a common-sense, environmentally responsible solution as we address the harm caused by natural gas,” said Tracy Stone-Manning, director of the BLM. “It puts the American taxpayer first and ensures creators are paid fair royalties.”
The BLM’s proposed rule comes after the Environmental Protection Agency said it would expand its 2021 methane rule to require drillers to identify and plug leaks at every well site nationwide. The EPA said its updated rule would reduce methane emissions from the oil and gas sector by 87% below 2005 levels and move the US closer to its commitment to reduce overall methane emissions by 30% by 2030.
In addition to the EPA rule, the Inflation Reduction Act passed by Congress earlier this year would tax energy producers that exceed a certain level of methane emissions.
Mallory Miller, vice president of government relations for the Independent Petroleum Association of America, argued that federal methane regulation should be handled by the EPA.
“The issue is not as cut and dry as this regulation appears to be because there are a number of reasons for flaring and flaring gas, such as safety concerns and connectivity issues,” Miller said. “Of course, it will always be in a producer’s best interest to capture and sell something in the marketplace whenever possible.”
Cole Ramsey, vice president of upstream policy at the American Petroleum Institute, the oil and gas industry’s largest trade group, said the union supports waste containment rules that are consistent with international authority to require economic capture of greenhouse gases.
“We look forward to thoroughly reviewing the proposed regulation and will work with the BLM in support of a final rule that is cost-effective and advances the progress we continue to reduce emissions,” Ramsey said.
Western and national conservation groups said the proposal was an important first step but should be strengthened to eliminate gas flaring.
“The Biden administration and Secretary Haaland are committed to eliminating the waste caused by venting and flaring to protect public resources while protecting taxpayers and our energy security,” said John Goldstein, senior director of regulatory and legislative affairs at the Environmental Defense Fund. should proceed by setting clear requirements for ,
The BLM is accepting comments on the proposed rule for 60 days and a final rule is expected next year.