Rule targets flaring of natural gas
Regulation orders companies on U.S. land to take ‘reasonable steps’ against waste
WASHINGTON — Oil companies operating on federal and tribal lands will have to curb the practice of flaring and venting natural gas, the Biden administration announced Wednesday.
Under a new regulation finalized by the Bureau of Land Management, companies must take “reasonable steps” to avoid the waste of natural gas, including leak detection and repair, and will have to pay royalties on “avoidable losses” of gas.
“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 statement.
The new rule updates laws that are more than 40 years old, during which time the percentage of natural gas lost to venting and flaring has more than doubled, according to the Interior Department.
Drilling operations on federal and tribal lands accounted for 11% of U.S. oil production and 9% of natural gas production in 2022.
The oil sector has been moving to reduce instances of natural gas flaring, venting and leaks toward reducing its greenhouse gas footprint as the Biden administration cracks down on emissions.
The American Petroleum Institute said it was reviewing the new rule and “will consider all options to prevent regulatory overreach.”
“API supports a smart regulatory framework for reducing methane emissions, but overlapping regulations and lack of coordination between policymakers could hinder progress, create unnecessary barriers to development on federal lands and result in regulatory incoherence,” API Vice President of Upstream Policy Holly Hopkins said in a statement.
The Interior Department estimates the new rule would result in $50 million in additional royalty payments each year to the federal government and Native American tribes.
Jon Goldstein, senior director of regulatory and legislative affairs at the Environmental Defense Fund, praised the new rule as protecting taxpayers from “wasted energy resources.”
“Taking action to limit methane waste on public lands offers a win-win-win for taxpayers, producers and communities harmed by this waste and associated pollution,” he said.