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EPA’s Finalized Methane Emissions Standards Change Little from Proposal: Bad News for Small Business and Existing Sources
Harrisburg, Pa. — The United States Environmental Protection Agency (EPA) released early this morning its long-awaited New Source Performance Standards revisions (Subpart OOOOb) and its Emissions Guidelines (Subpart OOOOc) mandating new state existing source regulations.
The new source requirements will impose complicated new requirements, and the 2022 proposed existing source requirements have been estimated to lead to the shutdown of 300,000 of the nation's 750,000 low production wells, wells that are essential to U.S. energy production.
“Other than extending a few compliance deadlines, the final rules remain essentially the same as the proposed standards. It appears EPA failed to accept any of the changes proposed by the Producer Associations,” said James D. Elliott, counsel at Spilman who has represented the Producers Associations, a coalition of national, regional, and state oil and natural gas associations across the country, led by the Independent Petroleum Association of America (IPAA), on these issues for the past decade.
The Producer Associations and the IPAA support the cost-effective management of methane and volatile organic compounds emissions related to the oil and natural gas production industry that achieve sound environmental benefits while reflecting the significant differences between aspects of the industry.
“EPA is requiring monitoring of fugitive emissions in a manner that is inconsistent with every state regulatory program – based on the number and type of equipment on a well site, instead of throughput,” Elliott continued.
Stakeholders will have 60 days from when the final rules are published in the Federal Register to decide if they want to challenge the rules in court. Spilman will assist the Producer Associations with evaluation of the rules and examine their options, including litigation.
About The Producer Associations
The Producer Associations are comprised of national, regional, and state associations that represent the full range of oil and natural gas producers from large publicly traded companies to small privately held companies. It includes the following national and state trade associations: the Independent Petroleum Association of America ("IPAA"), Arkansas Independent Producers and Royalty Owners ("AIPRO"), Domestic Energy Producers Alliance ("DEPA"), Eastern Kansas Oil & Gas Association ("EKOGA"), Illinois Oil & Gas Association ("IOGA"), Gas & Oil Association of West Virginia ("GO-WV"), Independent Petroleum Association of New Mexico ("IPANM"), Indiana Oil and Gas Association ("INOGA"), International Association of Drilling Contractors ("IADC"), Kansas Independent Oil & Gas Association ("KIOGA"), Kentucky Oil & Gas Association ("KOGA"), Michigan Oil and Gas Association ("MOGA"), National Stripper Well Association ("NSWA"), North Dakota Petroleum Council ("NDPC"), Ohio Oil and Gas Association ("OOGA"), The Petroleum Alliance of Oklahoma ("The Alliance"), Petroleum Association of Wyoming ("PAW"), Pennsylvania Independent Oil & Gas Association ("PIOGA"), Texas Alliance of Energy Producers ("Texas Alliance"), Texas Independent Producers & Royalty Owners Association ("TIPRO"), and Western Energy Alliance.
About Spilman Thomas & Battle, PLLC
Spilman Thomas & Battle is a full-service, super-regional law firm serving local, regional, national and international businesses. Founded in 1864, Spilman has offices in Charleston, Morgantown and Wheeling, West Virginia; Winston-Salem, North Carolina; Harrisburg and Pittsburgh, Pennsylvania; Roanoke, Virginia; and St. Augustine, Florida.