The Trump administration today announced a new proposal to reverse Obama-era regulations that limit how much methane, a potent greenhouse gas, the oil and natural gas industries are allowed to emit.
The Environmental Protection Agency’s proposed amendments would “remove unnecessary regulatory duplication” put into place in 2016, according to a press release. The proposals made today are separate from and in addition to a 2018 proposed rule that eased methane reporting and monitoring requirements for oil- and gas-extraction businesses.
The proposed plan (PDF) would “rescind emissions limits for methane from the production and processing segments of the industry,” the EPA says. The proposal would also remove parts of the transmission and storage segments of the oil and gas industry—generally called the midstream business—from being subject to regulation, by claiming the agency was out of line when it added sources such as transmission compressor stations, pneumatic controllers, and underground storage vessels to the rule.
The agency estimates an additional 370,000 short tons of methane would be released into the atmosphere by 2025, as compared to leaving the 2016 rule in place, as well as 10,000 short tons of volatile organic compounds and 300 short tons of “hazardous air pollutants.”
The increased emissions would also result in a loss to “total present value of climate benefits” between $2.3 million and $8.1 million per year, the EPA says. The removal of methane emissions caps would, however, save the oil and natural gas sector $17-$19 million per year ($97-$123 million by 2025), the EPA estimates, or about 0.07% of the US industry’s $28 billion net income for 2018.
The proposal “delivers on President Trump’s executive order and removes unnecessary and duplicative regulatory burdens from the oil and gas industry,” EPA head Andrew Wheeler said in a statement. “The Trump administration recognizes that methane is valuable, and the industry has an incentive to minimize leaks and maximize its use.”

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