American Oil and Gas Reporter - July 2021 - 13

IndustryDigest
CRA Measure To Restore
Obama Methane Rule
Gets Biden's Signature
WASHINGTON-With President
Biden's signature on June 30,
Democrats on Capitol Hill successfully
negated a Trump administration
regulatory change urged by independent
oil and gas producers.
According to Congress.gov, the
measure reached Biden's desk after a
229-191 vote in the U.S. House of
Representatives on June 25 passed S.J.
Res. 14, a resolution under the
Congressional Review Act to nullify the
methane rule that took effect in late
2020. Because the U.S. Senate approved
the same resolution in late April, House
passage meant a signature from
President Biden was all that remained
for the resolution to take effect.
Last September, the U.S.
Environmental Protection Agency
officially rescinded the Obama
administration's New Source
Performance Standards regulating
methane emissions by the oil and gas
industry under the Clean Air Act
Subpart OOOOa.
The following day, EPA issued a
final rule describing new technical
standards for monitoring and
controlling volatile organic compound
emissions at upstream oil and gas sites
that took effect later that year. The
amended rule excluded low-production
sites-defined as those producing no
more than 15 barrels of oil equivalent a
day-from the NSPS. It provided that a
well site that previously was subject to
regulation could qualify for the lowproduction
exclusion when its
production fell below the 15 boe/d
threshold " based on a rolling 12-month
average " (AOGR, Oct. 2020, pg. 81).
Although the Independent Petroleum
Association of America has expressed
approval of the Trump administration's
changes, the American Petroleum
Institute and major companies such as
Shell and BP have applauded Congress
for moving to undo them, press
accounts note.
Opponents of the amended
standards, including Environmental
Defense Fund President Fred Krupp,
characterize the CRA resolution's
passage as a bipartisan win for the
climate. " Controlling methane is a
winning proposition for all sides
because it cuts pollution and reduces
waste, " he maintains. " This vote sends a
clear message to EPA that Congress
expects stronger limits on oil and gas
methane pollution to assure important
climate and clean air protections. "
However, IPAA says restoring EPA's
2016 NSPS regulation also revives a
specific problem for low-production
wells. " The high-production well leak
detection and repair program is
economically infeasible for lowproduction
wells and provides minimal
environmental benefits, " the association
explains. " The implications for lowproduction
wells are further
compounded if the EPA regulatory
program is based on managing methane.
Under the Clean Air Act, the choice of
regulating methane can trigger a
nationwide existing facility regulation
that would apply EPA Best System of
Emissions Reductions technology to the
750,000 low production wells currently
in operation.
" Industry seeks to find a regulatory
pathway designed for the sources it
regulates, " IPAA adds. " The 2016 NSPS
fugitive emissions program that was
designed for large facilities should not
be applied to low-production well sites.
The 2020 NSPS reconsideration moves
to correct that error. "
Noting that many states are
addressing low-volume wells' methane
emissions, IPAA says there may be an
appropriate low production well
program. However, it continues, " When
EPA developed its NSPS regulations, it
had no emissions profile for low
production wells. No extensive profile
yet exists. The Department of Energy
initiated a study of low production well
air emissions that should be completed
in September 2021. If EPA needs to
design a low production well program,
it should utilize (that profile) and then
focus on the most cost-effective options
to address the key sources. " ❒
Ohio Governor Signs
Legislation To Stymie
Bans On Natural Gas
COLUMBUS, OH.-The Ohio Oil &
Gas Association is applauding the 2021
Ohio General Assembly's passage of
legislation that prevents local
jurisdictions from banning natural gas
hookups. The legislation officially
became law a week after passage when
Governor Mike DeWine signed the
legislation.
OOGA President Matthew
Hammond says the new law will block
one of the many anti-industry attacks
attempted by Buckeye State oil and gas
opponents.
" As an industry we have been under
constant attack from well-funded antidevelopment
individuals who toss out
misleading claims and half-truths in a
desperate attempt to stop progress and
kill jobs, " Hammond describes. " In
Ohio, when shale development started,
these organizations came out of the
woodwork and tried to pass local laws
banning hydraulic fracturing. They had
little to no success. Then, they held
small protests to try and delay and stop
pipelines from being built. However,
due to very strong support from local
union labor, those pipelines are now
built and operating.
" Every time they lose, they adjust,
raise more money, rename themselves
and come at us with a different attack, "
he assesses. " Now, they are trying to
ban the use of natural gas in homes and
businesses. "
Representative Jason Stephens, RKitts
Hill, sponsored HB 201, which
forbids local governments from limiting
use of natural gas and propane. It
passed the House on May 6 and cleared
the Ohio Senate on June 24. DeWine
signed it on July 1.
" In Ohio, HB 201 maintains
consumer choice, " Hammond says.
" Energy is an issue of statewide
importance and should continue to be
dealt with at the state level and not with
a patchwork of various laws, and this
piece of legislation maintains that
common sense approach. " ❒
Army Corps Of Engineers
Gets Involved In Line 5
WASHINGTON-The Biden
administration has inserted itself into a
Michigan pipeline controversy with an
announcement by the acting assistant
secretary of the Army for Civil Works
that the U.S. Army Corps of Engineers
will proceed with an environmental
impact statement for Enbridge Energy
LP's Line 5 permit application.
" I have concluded that an EIS is the
most appropriate level of review because
of the potential for impacts significantly
JULY 2021 13
http://www.Congress.gov
American Oil and Gas Reporter - July 2021

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