Department of Interior Releases Proposed Updates to Natural Gas Emissions Regs
Department of Interior Releases Proposed Updates to Natural Gas Emissions Regulations
The U.S. Department of the Interior (DOI) released proposed updates to natural gas emissions regulations for oil and gas operations on Native American and public lands on Friday. The proposal, which focuses on limiting flaring at oil wells and venting from gas storage tanks, requires producers to inspect their operations for leaks and modernize their techniques and equipment. Leaks and venting are major sources of methane emissions and U.S. oil production was, until very recently, at its highest level in almost 30 years. The DOI stated that its new rule is consistent with the Obama administration’s goal to cut methane emissions from the oil and gas sector by 40-45 percent from 2012 levels by 2025. The proposed rule also seeks to reform (i.e. increase) royalty rates for federal oil and gas leases.