Petroleum groups applaud Bureau of Land Management’s revised waste prevention rule

Several petroleum sector trade associations welcomed the release of the Bureau of Land Management’s (BLM) announcement on Sept. 18 that it has revised its 2016 waste prevention rule with the aim of reducing duplicative regulations on the private sector.

The rule addresses the venting and flaring of methane during oil and gas extraction and production. It replaces the 2016 Methane and Waste Prevention Rule, which Western Energy Alliance, the Independent Petroleum Association of America (IPAA) and the states of Wyoming, North Dakota, Texas and Montana sued in the U.S. District Court for Wyoming on the grounds that the rule went beyond BLM’s authority by seeking to control air quality. As a result of litigation, the 2016 rule never fully went into effect.

“We are relieved that BLM’s final rule has been released and that it actually addresses waste prevention,” Kathleen Sgamma, president of Western Energy Alliance, said. “The late 2016 Obama Administration rule was all about regulating air quality, which is the job of EPA and the states under the Clean Air Act, not BLM which has no air quality expertise or authority. The new regulation restores the rule of law while reducing waste of natural gas, which was supposed to be the intent of the original rule in the first place.”

The BLM said it reviewed the 2016 rule and found that it had considerable overlap with existing state, tribal and federal regulations. Additionally, the agency said it determined the previous administration underestimated the cost in the 2016 rule.

IPAA President and CEO Barry Russell also applauded the Department of the the Interior’s release of the revised BLM rule.

“As environmental stewards and businessmen and women who live in the communities where they work, IPAA member companies strive to explore for and produce as much American oil and natural gas as possible, while always being mindful of the need to protect public lands and the environment,” Russell said. “The Trump Administration’s rule recognizes this fact and acknowledges the cost burden placed on companies that work and explore on federal lands.”

In its statement, the American Petroleum Institute (API) noted that methane emissions emissions have decreased over the years.

“We support smart, cost effective BLM regulations that focus on prevention of waste and the conservation of resources,” API Upstream and Industry Operations Group Director Erik Milito said. “As a result of continued industry innovation across the U.S. oil and natural gas industry, methane emissions have plummeted 14 percent since 1990 during the same period that natural gas production has increased more than 50 percent. Driven by greater use of natural gas, emissions from power generation continue to decline and air quality continues to improve.”