Effective March 2, 2017, the U.S. Environmental Protection Agency (EPA) has withdrawn the information collection request (ICR) entitled, “Information Collection Effort for Oil and Gas Facilities.” EPA issued the final ICR in November 2016, requiring more than 15,000 owners and operators in the oil and natural gas industry to submit information that would support a future EPA rulemaking to reduce methane emissions from existing sources. The ICR required companies to provide a significant amount of information in two phases, known as the Part 1 Operator Survey and Part 2 Facility Survey. EPA has withdrawn both parts of the ICR, which means that owners and operators who received a letter directing them to complete an ICR survey are no longer required to respond.
According to an official withdrawal notice that is expected to be published in the Federal Register on March 7, 2017, “[t]he withdrawal is occurring because EPA would like to assess the need for the information that the agency was collecting through these requests, and reduce burdens on businesses while the Agency assesses such need.” The notice also indicates that EPA acted in response to a letter from a group of states expressing concern for burdens on businesses.
Today the U.S. Environmental Protection Agency (EPA) announced the availability of several highly-anticipated regulatory measures affecting both existing and new emission sources in the oil and natural gas sector. EPA has released the pre-publication version of its final New Source Performance Standards (NSPS) rulemaking to reduce emissions of methane and volatile organic compounds from new, modified, and reconstructed sources. The agency received more than 900,000 public comments on the proposed NSPS rulemaking that was released in August 2015.
In March, EPA announced its intent to also regulate methane emissions from existing sources in the oil and natural gas sector. Today EPA issued a draft Information Collection Request (ICR) directing oil and natural gas companies to submit extensive information to support the development of a federal rule targeting existing sources. Public comments will be accepted for 60 days following publication of the draft ICR in the Federal Register. As a related measure, EPA will soon release a voluntary “Request for Information” inviting industry, government, and public interest stakeholders “to provide information on innovative strategies to accurately and cost-effectively locate, measure and mitigate methane emissions.”
Additionally, today EPA released the pre-publication version of its final Source Determination Rule aimed at clarifying the term “adjacent” for air permitting purposes. The final rule is intended to clarify when oil and gas equipment and activities constitute a single source that is subject to “major source” permitting requirements under the Clean Air Act. In general, according to EPA’s fact sheet, the final rule provides that pollutant-emitting activities are adjacent “if they are located on the same site or on sites that share equipment and are within 1/4 mile of each other.”
Finally, EPA also released the pre-publication version of a final Federal Implementation Plan rule to clarify air permitting requirements for oil and natural gas sources located in Indian Country, specifically.
Today the U.S. Environmental Protection Agency (EPA) announced the next step in its strategy for reducing methane emissions from the oil and natural gas sector: regulating emissions from existing sources. According to EPA’s fact sheet, the agency will issue an Information Collection Request (ICR) “to require companies operating existing oil and gas sources to provide information to assist in the development of comprehensive regulations to reduce methane emissions.” EPA plans to reach out to stakeholders about the ICR process in the next few weeks and begin the formal ICR process next month. A draft ICR will be released for public comment.
Today the U.S. Environmental Protection Agency (EPA) released a fact sheet outlining the agency’s strategy for reducing emissions of methane and ground level ozone-forming pollutants from the oil and natural gas sector. Release of the EPA strategy is part of a broad multi-agency initiative by the Obama Administration to curb emissions from the sector. In March 2014, the White House identified the reduction of methane and other emissions from the sector as a key element of President Obama’s Climate Action Plan, and directed EPA to assess how best to pursue such reductions. According to EPA’s recently-released fact sheet, emissions of methane (the primary constituent of natural gas) from the sector are “projected to increase by about 25 percent over the next decade if additional steps are not taken to reduce emissions from this rapidly growing industry.” EPA plans to use both “regulatory” and “voluntary” approaches to avoid this anticipated emissions increase.
Among other actions, EPA plans to “build on” its New Source Performance Standards (NSPS) for the sector, namely NSPS Subpart OOOO, to reduce methane emissions and further restrict emissions of volatile organic compounds (VOCs). The fact sheet indicates that EPA intends to issue a proposed rule in late summer and a final rule in 2016. EPA also plans to provide state air permitting agencies with special “guidelines” for controlling VOC emissions from existing oil and gas sources located in ozone nonattainment areas and the Ozone Transport Region, which includes Pennsylvania and New York. EPA expects to propose these Control Technique Guidelines this summer and issue final guidelines in 2016.
On Tuesday, September 23, 2014, the United Nations’ Climate and Clean Air Coalition (CCAC) announced the launch of an Oil and Gas Methane Partnership. The partnership includes representatives of the private sector, government members of CCAC and environmental groups who pledged to cut methane emissions from the oil and gas sector. Six oil and gas companies, including Southwestern Energy Co. and Statoil ASA, have signed on to the partnership, which aims to identify cost-effective ways for companies to reduce methane emissions during oil and gas production. The Oil and Gas Methane Partnership was one of five partnerships announced at the United Nations climate change summit that occurred on September 23.
On September 18, 2014, sixteen of the nation’s largest environmental advocacy groups joined forces in a letter to President Barack Obama calling for national standards aimed at reducing methane emissions from oil and gas operations. The letter urged the U.S. Environmental Protection Agency (USEPA) to exercise its authority under the Clean Air Act to develop “smart and reasonable” methane standards for the oil and gas industry. The letter also encouraged the U.S. Department of the Interior to update their policies for national gas and methane emissions on public lands. As reported earlier this year, USEPA has released technical white papers regarding methane and volatile organic compound emissions, and is currently developing a strategy to address emission sources in the industry.
On April 15, 2014, the U.S. Environmental Protection Agency (EPA) released five technical white papers for peer review, each one focusing on a possible source of methane and volatile organic compound (VOC) emissions within the oil and natural gas sector. The papers describe estimated emissions and techniques for reducing emissions from the following: compressors; hydraulically fractured oil well completions and associated gas during production; leaks; liquids unloading; and pneumatic devices. The public has until June 16, 2014 to provide comments, which EPA will use in conjunction with the papers to develop a strategy to further reduce methane and VOC emissions pursuant to the Obama Administration’s Strategy to Reduce Methane Emissions revealed in March.
Last week the University of Texas, in conjunction with the Environmental Defense Fund and 9 companies involved in natural gas production, released a study which found that 0.42% of natural gas produced in the U.S. is emitted into the atmosphere as methane (the main component of natural gas). This estimate is lower than the leak rates found in a 2010 Cornell University study, which estimated leakage at between 0.6 to 3.2%, and U.S. EPA’s review of 2011 data which showed that gas leaked from wells at a rate of 0.47%. Researchers in the University of Texas study recorded direct measurements of actual emissions at 190 well sites, whereas Cornell and U.S. EPA researchers used data provided by drillers. This is the first of multiple studies to be completed by the University of Texas.
The Pennsylvania Department of Environmental Protection (DEP) has reportedly concluded that high levels of methane found in three private water wells in Franklin Forks (Susquehanna County) are not attributable to the nearby gas drilling operations of WPX Energy. DEP conducted an extensive 16-month investigation which included isotopic testing to determine the origin of methane found in the private water wells. Meanwhile, WPX voluntarily provided residents with replacement water supplies. Based on the agency’s own investigation, DEP determined that the elevated methane in the private water wells can be attributed to naturally-occurring methane in the area. The Franklin Forks case has drawn significant media attention partly because the town is located just 10 miles from the border of New York State, where the fracking debate continues at full steam.