Happy Wednesday!
Did anyone
happen to read the Oil & Gas Journal’s Daily Update Newsletter on January
17, 2024, their article titled, “EPA sets rules for proposed methane emissions
fee for oil, gas industry”? In the
article, it goes on speak about the U.S. Environmental Protection Agency (EPA)
released their much-anticipated proposed new Waste Emissions Charge (WEC) on Friday, January 12, 2024, and the new rule is
expected to finalize later this year. WEC
is one step of the Methane Emissions Reduction Program which is part of the Inflation Reduction Act which
was adopted by Congress in 2022. WEC is
aimed at reducing methane pollution which then will encourage oil and natural gas
companies to reduce their methane emissions to below 25,000 tonnes per year
(TPY) or pay a fee of $900 per metric ton for anything over starting later this
year, and it will increase by $300 in 2025 and again in 2026 and so on. The fee is to nudge the industry to ratify
best practices which lower emissions instead of paying the fee. In December, the EPA finalized its methane
emissions rule (See our Blog on December 13, 2023.) which allows for a two-year
adjustment period to the methane rules. The
EPA is working with the US Department of Energy (DOE) as another part of the
Methane Emission Reductions Program to help O&G companies with money and technical
help in the tune of $1 billion to change over to no- to low-emitting tech to
aid in reducing methane. Lastly, EPA is trying
to aid by helping make the current Greenhouse Gas Reporting Program more precise.
The new rule is aimed at the industry because
for a long time it was cheaper to allow the methane to leaked or be flared
instead of collecting it. Some companies
have implemented emission controls, but others haven’t, and this will be the
spark which should encourage the industry to help reduce greenhouse gases and
slow climate change. If you would like
to read more of the Oil & Gas Journal’s article, please click the
link: EPA
sets rules for proposed methane emissions fee for oil, gas industry | Oil &
Gas Journal (ogj.com).
If you would
like information about the technical and financial help offered by program,
please click the link: Financial and Technical Assistance from the Methane Emissions Reduction Program | US EPA
If you would
like help in looking into how to reduce your methane emissions with emission
controls and help with adopting best practices, contact us via email in the
blog and check out our ESC's website!
We hope you have a wonderful evening and a productive week! Keep warm!
**Disclaimer: You may be charged a fee to read The Oil
and Gas Journal’s article. **