IPAA, Western Energy welcome BLM venting and flaring regulation suspension

The Independent Petroleum Association of America (IPAA) and Western Energy recently released statements welcoming the Bureau of Land Management’s (BLM) suspension of a regulation for venting and flaring from oil and natural gas operations on federal and tribal lands.

“This action is a good step in providing our member companies some much-needed certainty as they plan their capital expenditure budgets for the upcoming year,” IPAA President and CEO Barry Russell said. “It is never the desire of any company to waste a valuable product that could otherwise be brought to market and sold to the American consumers. IPAA welcomes BLM’s efforts and looks forward to working with the agency as they move forward in the rulemaking process to address waste prevention while safeguarding American jobs and ensuring continued economic growth.”

In November 2016, IPAA and Western Energy Alliance filed a lawsuit challenging the venting and flaring rule.

In the claim the trade associations filed before the U.S. District Court in Wyoming, they said that the rule goes beyond legitimate waste prevention and into the realm of air quality control.

BLM attempted to grant relief from compliance dates during the summer using Section 705 of the Administrative Procedures Act, but that was overturned in early October following a challenge in the U.S. District Court for Northern California.

In the meantime, companies have had to comply with the rule. IPAA and Western Energy Alliance filed a preliminary injunction in October seeking relief from the impending compliance dates, which were to take effect in January 2018.

“We applaud BLM for suspending the venting and flaring rule. It makes no sense for companies to comply with a rule that is being significantly rewritten,” Kathleen Sgamma, president of Western Energy Alliance, said. “In suspending the rule, BLM has recognized that it does not have the statutory authority claimed by the Obama Administration. The notice even quotes the federal judge’s clear statement earlier this year that BLM attempted to usurp the Clean Air Act authority of the states and the Environmental Protection Agency. Despite the suspension, industry will continue the long-term trend of reducing methane emissions by nearly 20 percent while increasing production of natural gas production over 50 percent.