On November 26, the Environmental Protection Agency (EPA) announced a final rule delaying compliance deadlines for new standards to reduce methane and volatile organic compound (VOC) emissions in the oil and gas sector. The delay—up to a year and a half for some provisions—is expected to result in an estimated $170 million worth of natural gas being unnecessarily flared, vented, or leaked instead of captured and sold.

Autumn Hanna, Vice President of Taxpayers for Common Sense, issued the following statement:

“Methane waste is a lose-lose-lose: it squanders a valuable energy resource, drains potential revenue from federal and state budgets, and adds to health and safety liabilities for nearby communities. Delaying implementation of common sense methane standards only increases these costs.

Methane mitigation technology is widely available, but ongoing regulatory uncertainty stalls investments. Extending deadlines beyond the reasonable timeline set in the 2024 rule does not provide a needed flexibility—it  simply allows wasteful practices to continue at taxpayer expense. This delay also creates an uneven playing field, placing companies that have already started complying at a competitive disadvantage to laggards and bad actors.

Taxpayers for Common Sense has repeatedly called for reforms to reduce waste across the federal government. This final rule fails taxpayers and shifts the costs of inaction squarely onto the public.”

Background

Oil and gas operators across the U.S. routinely flare, vent, and leak billions of cubic feet of natural gas each year. According to the Energy Information Administration, between FY2012 and FY2021, approximately 3,170 billion cubic feet (bcf) of natural gas was vented or flared. This ongoing waste squanders a valuable resource, costs federal and state budgets millions in lost royalties, and exposes neighboring communities to increased health and safety risks.

The EPA’s 2024 methane rule introduced New Performance Standards (NSPS) for facilities built or modified after December 6, 2022, and Emission Guidelines (EG) for existing sources under section 111(d) of the Clean Air Act. States are required to develop State Implementation Plans (SIPs) that establish performance standards for existing sources.

The rule required commonsense measures, including:

• Routine Well Monitoring: Operators must regularly check for and repair leaks at well pads.

• Enhanced Leak Detection and Reporting: Detected leaks must be repaired within 60 days, with limited extensions of up to two years.

• Phasing Out Routine Flaring: Flaring is restricted to 24 hours to 30 days for safety, based on well construction dates. Certain exemptions apply to existing wells.

• Limits on Venting: Temporary venting is capped at 30 minutes for monitoring or tests and 12 hours during emergencies.

• Super-Emitter Response: EPA-certified third parties using approved remote sensing technologies (e.g., satellites) can report large-scale methane releases (100 kg/hr or more); operators must investigate within five days and report findings to EPA within fifteen.

The 2024 rule relied on proven, cost-effective mitigation technologies already in use throughout the industry. Further delays will only prolong needless waste, with taxpayers footing the bill.

Additional Resources

• Comments on Delay of EPA Rule to Curb Methane Waste: Delaying compliance deadlines will result in more wasted gas, more lost royalties, and higher costs for taxpayers.
• Taxpayer Costs of Methane Emissions Fact Sheet: TCS factsheet on the taxpayer costs of methane released into the atmosphere during oil and gas production.
• BWAF Podcast — Ep. 96: Up in Smoke: The Methane Waste Crisis Costing Taxpayers Billions: TCS podcast on how methane waste from oil and gas development on federal lands is causing economic damage to taxpayers and harming communities.
• TCS Statement on EPA Final Rule to Reduce Methane Emissions in the Oil and Gas Sector: TCS statement on the final supplemental rule, “Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review.”