Interior Department Aims to Cut Energy Waste on Oil Fields

December 2, 2022 by Dan McCue
Interior Department Aims to Cut Energy Waste on Oil Fields

WASHINGTON — The Interior Department on Thursday announced a proposed rule to address the waste of natural gas during the production of oil and gas on federal and tribal lands.

Officials with the department’s Bureau of Land Management said the proposed rule would generate $39.8 million a year in additional royalties for the American public and prevent billions of cubic feet of gas from being wasted through venting, flaring and leaks, boosting efficiency.

“The Biden-Harris administration has taken unprecedented action to tackle methane emissions and support a clean energy economy,” said Interior Secretary Deb Haaland in a written statement.

“This proposed rule will bring our regulations in line with technological advances that industry has made in the decades since the BLM’s rules were first put in place, while providing a fair return to taxpayers,” she said.

Venting and flaring activity from production on public lands has significantly increased over several decades, the department said.

Between 2010 and 2020, the total venting and flaring reported by federal and Native American onshore lessees averaged approximately 44.2 billion cubic feet per year, enough to serve roughly 675,000 homes. This contrasts to an average of 11 billion cubic feet lost per year between 1990 and 2000.

“No one likes to waste natural resources from our public lands. This draft rule is a commonsense, environmentally responsible solution as we address the damage that wasted natural gas causes. It puts the American taxpayer first and ensures producers pay appropriate royalties,” said BLM Director Tracy Stone-Manning. “We look forward to hearing from the public on this proposal.”

With a newly divided Congress, many see this regulation as a harbinger of things to come, with President Biden acting through executive action.

The proposed rule responds to a series of U.S. Government Accountability Office reports highlighting the potential revenue being lost due to the BLM’s outdated regulations. Several states, including Colorado, Wyoming, Pennsylvania and New Mexico, as well as the U.S. Environmental Protection Agency, have taken steps to limit venting, flaring and/or leaks from oil and gas operations.

Key elements of the proposed rule include:

Technology Upgrades: The rule would require the use of “low-bleed” pneumatic equipment as well as vapor recovery for oil storage tanks, where economically feasible.

Leak Detection Plans: The rule would require operators to maintain a leak detection and repair program for their operations on federal and Native American leases.

Waste Minimization Plans: Requires applicants to develop waste minimization plans demonstrating the capacity of available pipeline infrastructure to take the anticipated associated gas production.

Monthly Limits on Flaring: Places time and volume limits on royalty-free flaring. 

Importantly, officials said, this includes a monthly volume limit on royalty-free flaring due to pipeline capacity constraints — the primary cause of flaring from federal and Indian leases.

Flaring is the process of burning excess natural gas at a well. Venting is the direct release of natural gas into the atmosphere. 

While some amount of venting and flaring is expected to occur during oil and gas exploration and production operations, venting and flaring can be minimized when operators take reasonable precautions to avoid waste.

The proposed rule will be published in the Federal Register in the coming days. The draft Environmental Assessment and other supporting documents will be available on regulations.gov. 

Public comments will be accepted via regulations.gov for 60 days after the publication of the rule.

Dan can be reached at [email protected] and at https://twitter.com/DanMcCue

A+
a-
  • energy waste
  • federal lands
  • flaring
  • Interior Department
  • natural gas
  • oil fields
  • tribal lands
  • In The News

    Health

    Voting

    Energy

    March 27, 2024
    by TWN Staff
    Rep. Cleaver New Co-Chair of House Renewable Energy and Energy Efficiency Caucus

    WASHINGTON — Rep. Emanuel Cleaver II, D-Mo., is the new Democratic co-chair of the House Renewable Energy and Energy Efficiency... Read More

    WASHINGTON — Rep. Emanuel Cleaver II, D-Mo., is the new Democratic co-chair of the House Renewable Energy and Energy Efficiency Caucus. He was invited to serve as co-chair by Sens. Jack Reed, D-R.I., and Mike Crapo, R-Idaho, the co-chairs of the Senate Renewable Energy and Energy... Read More

    March 26, 2024
    by Dan McCue
    Biden Administration Approves Seventh Offshore Wind Project

    WASHINGTON — The Biden administration on Tuesday approved the construction of the Sunrise Wind offshore wind farm, a project off... Read More

    WASHINGTON — The Biden administration on Tuesday approved the construction of the Sunrise Wind offshore wind farm, a project off the coast of Martha’s Vineyard, Massachusetts, that proponents say will eventually power 320,000 homes. The project is the seventh commercial-scale wind farm to be approved under... Read More

    March 26, 2024
    by Dan McCue
    Sen. Blumenthal Lauds Expansion of Tax Credit for Offshore Wind Projects

    NEW LONDON, Conn. — Sen. Richard Blumenthal, D-Conn., visited State Pier in New London, Connecticut, on Monday to tout and... Read More

    NEW LONDON, Conn. — Sen. Richard Blumenthal, D-Conn., visited State Pier in New London, Connecticut, on Monday to tout and celebrate the Biden administration’s decision to expand eligibility of federal tax credits for offshore wind projects. “This tax credit has been a long time in coming,”... Read More

    Here Are the Big Hurdles to the Global Push to Build Up Renewable Energy

    The world's governments have agreed they want to triple renewable energy by 2030, a goal laid out at the U.N.... Read More

    The world's governments have agreed they want to triple renewable energy by 2030, a goal laid out at the U.N. climate summit in December. But right now, the post-pandemic global economy is throwing up obstacles that will need to be overcome if the goal is going... Read More

    March 25, 2024
    by Dan McCue
    Energy Department Awards $6B to Decarbonization Projects

    WASHINGTON — The U.S. Department of Energy on Monday awarded $6 billion to 33 projects across more than 20 states... Read More

    WASHINGTON — The U.S. Department of Energy on Monday awarded $6 billion to 33 projects across more than 20 states to decarbonize energy-intensive industries while creating jobs and revitalizing the communities in which they are located. Funded by the bipartisan infrastructure law and Inflation Reduction Act,... Read More

    Energy Agency Announces $6B to Slash Emissions in Industrial Facilities

    The Biden administration announced $6 billion in funding Monday for projects that will slash emissions from the industrial sector —... Read More

    The Biden administration announced $6 billion in funding Monday for projects that will slash emissions from the industrial sector — the largest-ever U.S. investment to decarbonize domestic industry to fight climate change. The industrial sector is responsible for roughly 25% of all the nation’s emissions, and has... Read More

    News From The Well
    scroll top