In a launch despatched to Rigzone lately, the Unbiased Petroleum Affiliation of America (IPAA) revealed that it and 25 different state, regional, and nationwide oil and pure fuel associations wrote to congressional management “urging motion on methane rules that would have a detrimental influence on … [U.S.] vitality provide”.
The discharge was accompanied by a letter from the organizations, dated February 9, which was despatched to Speaker of the Home Mike Johnson, Home Minority Chief Hakeem Jeffries, Senate Majority Chief Chuck Schumer, and Senate Minority Chief Mitch McConnell. In that letter, the organizations famous that they “wish to specific severe considerations concerning the influence of the Environmental Safety Company’s (EPA) new methane emissions rules (Subparts OOOOb and OOOOc) and the Methane Emissions Discount Program (Methane Tax) on oil and pure fuel marginal properly homeowners”.
“Each actions threaten marginal wells continued operations by creating unfair, unworkable, and uneconomic rules. These small enterprise vitality producers want help to discover a regulatory or legislative answer to mitigate these threats,” the teams added within the letter.
“Collectively, the Subpart OOOOc rules and the Methane Tax pose severe and direct threats to lots of of hundreds of marginal wells. These threats haven’t been remotely addressed within the present regulatory actions accomplished or pending at EPA,” the teams acknowledged within the letter.
“Congress must step up and step in to forestall irresponsible company actions that may savage the nation’s marginal oil and pure fuel wells,” they went on to notice.
Commenting on the IPAA launch and accompanying letter, a spokesperson on the EPA instructed Rigzone that oil and fuel services are the nation’s largest industrial supply of methane and famous that fast, sharp cuts in methane can generate near-immediate local weather advantages “and are a vital addition to chopping carbon dioxide”.
“The ultimate rule will rule will keep away from an estimated 58 million tons of methane emissions from 2024 to 2038. That’s an almost 80 p.c discount in comparison with what emissions can be with out the rule,” the spokesperson stated.
“The advantages of the ultimate rule far outweigh the prices of compliance. EPA estimates that the rule will yield internet local weather and ozone well being advantages of $97 billion to $98 billion {dollars} from 2024-2038 ($2019), the equal of $7.3 billion to $7.6 billion a yr, after accounting for the prices of compliance and financial savings from recovered pure fuel,” the spokesperson added.
“Since methane is the important thing element of pure fuel, methane reductions imply trade will recuperate pure fuel that in any other case can be wasted. The ultimate rule saves sufficient fuel from 2024 to 2038 to warmth practically eight million properties for the winter,” the spokesperson continued.
The spokesperson additionally instructed Rigzone that the EPA is actively finalizing the Subpart W and Waste Emissions Cost guidelines, “together with the interpretation of exemptions, as directed by Congress”.
“We are going to think about the feedback acquired, together with the enter supplied within the referenced letter, as we finalize these guidelines. We’re additionally finalizing a rule to replace the World Warming Potentials used within the Greenhouse Gasoline Reporting Program, together with the GWP for methane,” the spokesperson stated.
Within the EPA assertion, the spokesperson instructed Rigzone that Congress anticipated the significance of addressing emissions from marginal typical wells by way of particularly allotted funding for such wells below the Inflation Discount Act.
“In December 2023, DOE and EPA introduced a conditional dedication to 14 states to obtain a complete of $350 million in method grant funding to assist properly homeowners and operators voluntarily and completely scale back methane emissions from marginal typical wells,” the spokesperson acknowledged.
A full listing of the 26 organizations that penned the letter to Home and Senate leaders might be seen beneath:
- IPAA
- Arkansas Unbiased Producers and Royalty House owners
- California Unbiased Petroleum Affiliation
- Home Power Producers Alliance
- Power Workforce and Expertise Council
- Gasoline and Oil Affiliation of West Virginia
- Unbiased Oil and Gasoline Affiliation of New York
- Unbiased Petroleum Affiliation of New Mexico
- Indiana Oil and Gasoline Affiliation
- Kansas Unbiased Oil and Gasoline Affiliation
- Kentucky Oil and Gasoline Affiliation
- Louisiana Oil and Gasoline Affiliation
- Michigan Oil and Gasoline Affiliation
- Montana Petroleum Affiliation
- Nationwide Stripper Nicely Affiliation
- Oil and Gasoline Staff Affiliation
- Oil Producers’ Alliance
- Panhandle Producers and Royalty House owners
- Pennsylvania Unbiased Oil and Gasoline Affiliation
- Permian Basin Petroleum Affiliation
- Petroleum Alliance of Oklahoma
- Southeastern Ohio Oil and Gasoline Affiliation
- Texas Alliance of Power Producers
- Texas Unbiased Producers and Royalty House owners
- Utah Petroleum Affiliation
- Western Power Alliance
The entire letter might be seen right here.
To contact the creator, electronic mail andreas.exarheas@rigzone.com