BLM's methane, waste prevention rule ‘hurts American consumers, local economies’
WASHINGTON – Executive Director of the Colorado Petroleum Council, a division of API, Tracee Bentley urged the US Senate to follow the House and support a disapproval resolution on the Bureau of Land Management's methane and waste prevention rule.
"Despite our industry's success in reducing methane emissions, the BLM has imposed a flawed regulation that adds significant costs and reduces local revenues, without corresponding environmental or consumer benefits," Bentley said. "We urge the Senate to support the disapproval resolution passed by the House. The BLM's rule doesn't support the continued successes in methane emissions reductions and could have a negative impact on consumers and local economies."
According to the US Department of the Interior’s website, the proposed rule would require oil and gas producers to adopt currently available technologies, processes and equipment that would limit the rate of flaring at oil wells on public and tribal lands, and would require operators to periodically inspect their operations for leaks, and to replace outdated equipment that vents large quantities of gas into the air. Operators would also be required to limit venting from storage tanks and use best practices to limit gas losses when removing liquids from wells.
The added costs of compliance with the BLM rule could result in up to 40% of federal wells that flare being permanently shut in – as they would become uneconomical to produce, according to an analysis by Environmental Resources Management.
Even a 1% loss of royalties could result in lost federal revenues of over $14 million, the council stated in a press release. The Bureau of Lnad Management estimates additional incremental royalties would be between $3 MM and $10 MM.
"Companies in Colorado operate under some of the most stringent rules in the country to produce clean, safe, affordable energy while being good environmental stewards," Bentley said. "These declining revenues would directly impact state and local governments. Such a drop in production would reduce the availability of affordable energy to consumers.
"The oil and natural gas industry has proven that we can protect the environment, grow our economy, add to state and local revenues, and has simultaneously helped save the average American family an average of $1,337 per year."
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