EPA delays new rules on methane emissions
Critics say move will worsen climate change
WASHINGTON — The Environmental Protection Agency announced Wednesday that it will postpone for 90 days regulations imposed by former President Barack Obama to reduce methane emissions from oil and gas wells.
The New Mexico Oil and Gas Association, which protested the so-called methane rule when it was announced last year, cheered the announcement by EPA Administrator Scott Pruitt. But environmentalists and other critics denounced the move as a shortsighted one that would exacerbate climate change.
Pruitt said the agency would enact a 90-day stay on the 2016 regulation, which was set to take effect June 3 and established requirements for operators of oil and gas wells to monitor and limit emissions at drilling sites. Pruitt’s decision will allow for more industry input on the rule, and it stemmed from President Donald Trump’s March 28 executive
order aimed at spurring domestic energy production.
“EPA is continuing to follow through with President Trump’s energy independence executive order,” Pruitt said. “American businesses should have the opportunity to review new requirements, assess economic impacts and report back before those new requirements are finalized.”
New Mexico has a lot at stake in the debate. The San Juan Basin in the Four Corners area is responsible for 14.5 percent of total U.S. methane emissions, according to data from the EPA’s Greenhouse Gas Reporting Program. A 2014 NASA satellite image showed a methane “hot spot” the size of Delaware hovering over the Four Corners.
ICF International, an independent consulting firm, has estimated New Mexico loses about $100 million worth of gas extracted annually on federal and tribal lands in the state.
Robert McEntyre, spokesman for the New Mexico Oil and Gas Association, said the decision to reconsider the Obama rule was the right one.
“We applaud Administrator Pruitt’s decision to take a more balanced approach and give this rule a more thorough review,” he said. “As it’s currently written, the rule could cost operators in New Mexico as much as $250,000 per well to comply, ultimately diverting money away from New Mexico’s cash-strapped general fund that supports our state’s schools, roads and health care.”
Michelle Robinson, director of the Clean Vehicles Program at the Union of Concerned Scientists in Washington, said Pruitt’s move was designed to appease the oil and gas industry without regard to the environment.
“This is a clear case of EPA leadership listening to powerful industry voices rather than the evidence,” she said.
The Obama rules require oil and gas operators to limit methane emissions caused by the leaking, venting and flaring of natural gas from oil and gas wells, pipelines and other infrastructure on public and tribal lands. The operators must also periodically inspect operations for leaks and replace outdated equipment.
That could improve air quality, reduce the impact on climate, and increase federal and state royalties by capturing more gas from operations. But the industry says it’s already attacking the problem on its own, with methane emissions at wellheads down 40 percent since 2006. Imposing new federal rules would hurt the industry, particularly small operators, critics of the rule contend.
Sen. Martin Heinrich, a New Mexico Democrat who sits on the Senate Energy and Natural Resources Committee, on Wednesday called Pruitt’s decision “wrongheaded.”
“Methane leaks waste valuable energy resources and pollute our air with harmful greenhouse gases that contribute to climate change,” Heinrich said. “When oil and gas companies modernize their equipment to reduce wasteful leaks, they capture more gas that they can sell and increase worker safety at their wells. Capturing more gas also means states like New Mexico can collect more royalties and revenues to pay for schools and essential services.”
But Rep. Steve Pearce, a New Mexico Republican and former oil industry executive who sits on the House Natural Resources Committee, applauded Pruitt’s move.
“This rule would be particularly harmful to small producers in New Mexico as it would greatly increase operating costs and likely result in decreased production,” Pearce said. “Roughly 40 percent of New Mexico’s operating funds come from revenues off of resource production. Without it, our entire economy suffers a loss. New Mexico can become a leader in energy development if it is given room to succeed.”