US delays methane rule implementation until 2019

The Bureau of Land Management (BLM) has decided to temporarily suspend the federal law-regulating methane emissions from oil and gas operations in the US.

The waste prevention rule, or the venting and flaring rule, which was finalised in November last year under the previous federal administration, will now not be implemented until January 2019.

BLM Policy and Programmes deputy director Brian Steed said: “As we strengthen America’s energy independence, we need to make sure that regulations do not unnecessarily encumber energy production, constrain economic growth, or prevent job creation.

“By holding off on certain requirements, the BLM now has sufficient time to review the 2016 final rule while avoiding any compliance costs on industry that may not be needed after the review.”

The latest decision follows the BLM seeking responses from various stakeholders and is part of the government’s aim to conduct a review of the President Obama-era regulation.

It is in line with the current administration’s resolve to lower the costs of regulatory compliance.

A lawsuit was filed by US industry bodies, Independent Petroleum Association of America (IPAA) and Western Energy Alliance in November last year, challenging the venting and flaring rule on the grounds that it goes beyond legitimate waste prevention and into the realm of air quality control.

Welcoming the decision to suspend the rule, IPAA president and CEO Barry Russell said: “We’re pleased the Bureau of Land Management suspended an eleventh-hour Obama-era regulation aimed at shutting in marginal-producing wells, putting independent oil and gas producers, their livelihoods, and the considerable federal royalties generated from their businesses at jeopardy.

“This action is a good step in providing our member companies some much-needed certainty as they plan their capital expenditure budgets for the upcoming year.”