Is EPA off base with oil and gas methane regs?

August 19, 2015 | By Jaclyn Brandt

The Environmental Protection Agency (EPA) is looking at the future of methane in the oil and gas sector, and has announced plans to regulate the industry -- but industry leaders are crying foul.

The remains of a former hydraulic fracturing operation. Credit: Joshua Doubek/Wikimedia Commons

The EPA's plans are a part of the Obama Administration's Climate Action Plan to cut methane emissions from the oil and gas sector by 40 to 45 percent from 2012 levels by 2025. Their new plans is meant to reduce emissions of greenhouse gases (GHG) and volatile organic compounds (VOC) from the oil and natural gas industry.

Some of the proposed changes to the industry suggested by the EPA, include finding and repairing leaks; capturing natural gas from the completion of hydraulically fractured oil wells; limiting emissions from new and modified pneumatic pumps; and limiting emissions from several types of equipment used at natural gas transmission compressor stations, including compressors and pneumatic controllers. They would also requires owners and operators

The new rules also complement 2012 rules to reduce methane emissions from new natural gas hydraulic fracturing (fracking) facilities.

"As part of the proposal announced today, the agency is updating the 2012 New Source Performance Standards (NSPS) to address methane as well as VOC emissions for sources covered in that rule," the agency explained. "EPA's proposal would also require that industry reduce VOC and methane emissions from hydraulically fractured and refractured oil wells."

EPA said those wells can can contain high amounts of natural gas, along with the oil. The proposal also said methane and VOC reductions "downstream" from wells and production sites was not covered in the 2012 rules, so it was included in their newest proposal.

The rules would also clarify and streamline Clean Air Act (CAA) permitting requirements in states.

The EPA explained that 30 percent of methane emission come from oil production and the production, transmission, and distribution of natural gas. According to the agency, methane is the second-most prevalent GHG emitted in the United States, from human activities.

"Today, through our cost-effective proposed standards, we are underscoring our commitment to reducing the pollution fueling climate change and protecting public health while supporting responsible energy development, transparency and accountability," said EPA Administrator Gina McCarthy in a statement. "Cleaner-burning energy sources like natural gas are key compliance options for our Clean Power Plan and we are committed to ensuring safe and responsible production that supports a robust clean energy economy."

EPA expects that, with their new proposed standards for both new and modified sources, there should be a reduction of 340,000 to 400,000 short tons of methane in 2025 -- which is the equivalent of reducing 7.7 to 9 million metric tons of carbon dioxide.

The agency also estimated to yield net climate benefits of $120 to $150 million in 2025, reduce 170,000 to 180,000 tons of ozone-forming VOCs and 1,900 to 2,500 tons of air toxics -- such as benzene, toluene, ethylbenzene and xylene --by 2025.

"Ozone is linked to a variety of serious public health effects, including reduced lung function, asthma attacks, asthma development, emergency room visits and hospital admissions, and early death from respiratory and cardiovascular causes. Air toxics include chemicals that are known or suspected to cause cancer and other serious health effects," EPA explained.

However, a number of industry leaders and experts are saying the new rules are not needed.

"The oil and gas industry is leading the charge in reducing methane," said American Petroleum Institute (API) President and CEO Jack Gerard. "The last thing we need is more duplicative and costly regulation that could increase the cost of energy for Americans. Even as oil and natural gas production has surged, methane emissions from hydraulically fractured natural gas wells have fallen nearly 79 percent since 2005, and CO2 emissions are down to 27-year lows. This is due to industry leadership and significant investments in new technologies."

Gerard added, "API supports a common sense regulatory approach that builds on cost-effective controls already required by EPA for new equipment. Combined with smart, voluntary efforts for existing sources, this approach will continue to lower methane emissions. To avoid undermining American competitiveness, we urge the EPA to coordinate its efforts and not add duplicative rules."

Texas Rep. Lamar Smith, who is the chairman of the House Science, Space, and Technology Committee, said the proposed rule is not only not needed, but is hurting energy workers.

"The EPA's proposed methane rule is yet another example of the Obama administration's war on American energy jobs. The EPA's own data shows that methane emissions in the United States decreased by almost 15 percent between 1990 and 2013, yet EPA is forging ahead with this extraneous and unnecessary regulation," Lamara said in a statement. "Instead of conspiring with extreme environmental interests, EPA should stop punishing cooperative industry stakeholders and start partnering with them in their current efforts to capture methane in a responsible manner. The EPA's opposition to responsible, market-driven, 'all-of-the-above' domestic energy development is on full display with the announcement of this new regulation."

The EPA's proposed standards are also expected to complement EPA's current voluntary efforts, including the Methane Challenge Program. They are also basing their numbers on current practices and technologies used by the industry.

EPA's proposal also suggests guidelines for states in certain ozone nonattainment areas, as well as mid-Atlantic and Northeast states that are part of the Ozone Transport Region, to reduce VOC emissions from existing oil and gas sources.

The agency is looking for comments on the proposal, and will be holding public hearings on the topic in the coming months.

For more:
- view the rules
- view this fact sheet

http://www.fierceenergy.com/story/epa-base-oil-and-gas-methane-regs/2015-08-19