IPAA backs new EPA rules for oil and gas wells

The Independent Petroleum Association of America (IPAA) commended the Environmental Protection Agency (EPA) on its new rules that roll back Obama-era emissions standards related to oil and gas wells.

Specifically, it makes two changes to the 2016 Oil and Natural Gas New Source Performance Standards (NSPS) under an executive order from President Donald Trump on Promoting Energy Independence and Economic Growth.

One, the new rules state that the Obama EPA’s addition of the transmission and storage segment was improper, thus, it removes it from the regulation while rescinding emissions standards for that segment. However, it says oil and gas operators will still be required to reduce emissions of ozone-forming volatile organic compounds (VOCs) in the production and processing segment of the industry.

“The rule removes methane control requirements for the production and processing segments, because the pollution controls used to reduce VOC emissions also reduce methane emissions, making clear that the separate regulation of methane imposed by the 2016 rule was both improper and redundant,” the EPA writes.

The second rule, called technical changes, includes changes to the NSPS that will benefit smaller oil and gas operators in several ways. One, it exempts low-production wells from expending significant funds to monitor leaks. Low-producing wells are usually owned and operated by small businesses that do not have the same access to capital as larger companies. It also reduces monitoring of leaks at gathering and boosting compressor stations from quarterly to twice a year; improves cooperation with states by allowing the industry to meet certain states’ requirements instead of complying with EPA’s requirements; removes burdens to utilize new and more efficient emissions reductions technologies; updates the required schedule for repairing leaks to respect the realities of the oil and gas industry; and removes certain convoluted reporting requirements.

“These changes retain the basic framework of air emissions regulations of oil and natural gas production, but they modify flawed provisions, particularly in the 2016 New Source Performance Standards fugitive emissions program driven by the political pressures to rush those regulations to completion,” IPAA Executive Vice President Lee Fuller said.

IPAA represents the independent producers that develop 91 percent of America’s oil and natural gas wells.

“The technical changes made by the EPA regulations are important corrections that are necessary to address flawed programs resulting from the politically driven rush to complete the 2016 regulations. Most of these changes relate to the fugitive emissions program. This program relies on expensive and rapidly outdated technology. Among the issues the revisions address are the use of alternative technologies and low production wells,” Fuller added.