DOI Proposes Regulations Aimed At Reducing Methane Emissions From Oil And Gas Operations On Public / Tribal Lands -- January 22, 2016

Oil & Gas Journal is reporting:

The US Department of the Interior proposed regulations aimed at reducing methane emissions from oil and gas operations on public and tribal lands. Three leading industry associations immediately said the proposed rules are unnecessary because operators already are curbing methane releases voluntarily.

“We need to modernize decades-old standards to reflect existing technologies so that we can cut down on harmful methane emissions and use this captured natural gas to generate power and provide a return to taxpayers, tribes and states for this public resource,” US Interior Secretary Sally Jewell said as the proposal was announced on January 22, 2016.

The proposed rule would revise provisions related to venting, flaring, and royalty-free use of gas in a 1979 notice to lessees and operators of onshore oil and gas leases on federal and Indian lands. Comments will be accepted for 60 days ...

Developed by the US Bureau of Land Management, the proposed rule would require producers to adopt currently available technologies, processes, and equipment that would limit the rate of flaring at oil wells on public and tribal lands, make operators periodically inspect their operations for leaks, and replace outdated equipment that vents large quantities of gas into the air.

Operators also would be required to limit venting from storage tanks and use best practices to limit gas losses when removing liquids from wells. The new measures also would clarify when operators owe royalties on flared gas, and ensure that BLM’s regulations provide congressionally authorized flexibility to set royalty rates at or above 12.5% of the value of production.