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U.S. EPA Announces Proposed Methane Rule

As a follow-up to our previous post, earlier this week the U.S. EPA proposed a new Clean Air Act rule aimed at reducing methane emissions from oil and gas operations. The proposed rule includes, inter alia, a monitoring program for well sites and compressor stations, an option that encourages operators to use technology that detects leaks more rapidly and at a lower cost, a zero-emissions standard for pneumatic controllers, and standards aimed at eliminating venting of gas and requiring capture and sale of gas if a sales line is available. Once published in the Federal Register, the U.S. EPA will accept public comment on the proposed rule for 60 days.

The American Petroleum Institute (API) issued a statement in support of the direct regulation of methane and indicated that it intends to work with the agency to help shape the rule.

"'As global leaders convene at this pivotal moment in Glasgow for COP26, it is now abundantly clear that America is back and leading by example in confronting the climate crisis with bold ambition,' said EPA Administrator Michael S. Regan. 'With this historic action, EPA is addressing existing sources from the oil and natural gas industry nationwide, in addition to updating rules for new sources, to ensure robust and lasting cuts in pollution across the country. By building on existing technologies and encouraging innovative new solutions, we are committed to a durable final rule that is anchored in science and the law, that protects communities living near oil and natural gas facilities, and that advances our nation’s climate goals under the Paris Agreement.'"


oilandgas, epa, cop26, methane, greenhousegas, cleanairact, esg, carbonmarket