EPA issues rules to cut methane, volatiles from new oil and gas sites

Asks for data on existing hardware to prep rules for that, too.

John Timmer – May 12, 2016 4:20 pm | 12

Today, the US Environmental Protection Agency announced that it had completed rules that will regulate methane and other emissions from new natural gas and oil drilling sites. The rules, which have already received extensive public and industry comment, are focused on methane due to its potency as a greenhouse gas, but they’ll also limit emissions of toxic chemicals and pollutants that contribute to ground-level ozone. In making the announcement, the EPA also issued a call for data regarding existing hardware; the agency intends to eventually regulate the emissions from that hardware as well.

The new rules cover any new or updated hardware for oil and natural gas wells, as well as sites that collect, process, and compress natural gas for distribution. Formulated under the Clean Air Act, the rules had already gone extensive public comment. In response, the EPA tightened a few cases; low production wells will now have to be monitored, and the frequency of monitoring at compressor stations was increased.

One rule is focused on methane emissions, and the EPA estimates that it will cut the greenhouse equivalent of 11 million metric tons of carbon dioxide (out of the US’ roughly 5.3 billion). But as a side benefit, the release of various organic toxins, including benzene, toluene, and xylene, will also be cut, as will emissions of ozone-forming chemicals. The Agency hasn’t quantified the value of the ensuing health benefits, but it figures the climate benefits by 2025 ($690 million) will significantly outweigh the implementation costs ($530 million).

The limited emissions cuts are at least in part due to the fact that the rules are focused on new and upgraded hardware; they don’t touch existing equipment. But that should change. The Obama administration has set a goal of reducing methane emissions from the oil and natural gas industries by 40 percent in 2025. And in announcing the new rules, the EPA stated, “EPA is also starting the process to control emissions from existing sources by issuing for public comment an Information Collection Request that requires companies to provide the information that will be necessary for EPA to reduce methane emissions from existing oil and gas sources.”