The U.S. Environmental Protection is reworking former President Obama-era rules on methane emissions from new oil and natural gas wells and other facilities, Kallanish Energy reports.
The agency is also rolling back federal rules on coal ash deposits in a move that will produce big savings for electric utilities.
The two changes concerning methane will reduce “significant and immediate compliance concerns” for the industry, while reducing burdens on state environmental agencies, saving millions of dollars in compliance costs, the agency said, in a statement Thursday. The EPA is still examining existing methane rules.
Additional actions to dismantle existing methane rules are expected from the EPA. That is likely to include an answer to the question of whether the emissions from wells should be regulated. The existing rule does not affect existing wells or facilities.
Opponents said they fear the changes will significantly weaken environmental protections. The methane rule would curtail emissions from new and modified oil and natural gas wells. It also would impact processing plants, pipelines and storage facilities.
The 2016 federal standards governing leaks and emissions from oil and gas drilling operations were an attempt to reduce the levels of escaping methane and other chemicals. Methane is generally considered a potent greenhouse gas.
The agency has now finalized two proposed amendments for requirements contained in the 2016 oil and gas New Source Performance Standards.
The amendments address two of the “fugitive emissions” requirements in the federal rule: a requirement that leaking components be repaired during unplanned or emergency shutdowns, and the monitoring survey requirement for well sites on Alaska’s North Slope.
The EPA also wants to withdraw the methane rule’s Control Techniques Guidelines (CTGs), an action the agency said will save $14 million to $16 million in regulatory compliance costs for the oil and gas industry from 2021 to 2035.
The guidelines are designed to control smog-forming volatile organic compounds from drilling equipment in areas where smog has been a long-time health threat.
The EPA action on coal ash is projected to save electric utilities about $100 million a year in compliance costs. The federal move is designed to give the states more flexibility in dealing with coal ash.
