TCS Co-founder Lancelot Remarks on Methane Rule

Feb 12, 2016 | 3 min read | Print Article

Below are the remarks of Jill Lancelot, co-founder of Taxpayers for Common Sense, from a conference call with New Mexico stakeholders and leaders discussing the Bureau of Land Management’s newly announced draft natural gas waste guidelines ahead of the Bureau of Land Management public listening session on Tuesday in Farmington.

Taxpayers for Common Sense was founded on the belief that American taxpayers needed a voice in Washington.

One of the issues we have focused on over the years is the idea of a fair return to taxpayers. We are extremely concerned about the millions of dollars in lost revenue owed to the federal government when oil and gas companies drill on federal land. We need to assure that taxpayers are protected, that royalties are collected, and that the American taxpayer receives what they are due.

When natural resources are extracted from public lands (lands that are owned by all Americans), taxpayers should be compensated by requiring private companies to pay a royalty for natural resources extracted. Yet, for too long, oil and gas companies have been allowed to waste billions of cubic feet in natural gas and avoid paying hundreds of millions in royalties to taxpayers. In 2013 more than, $390 million worth of natural gas was vapororized into thin air as a result of methane gas being wasted when vented or flared into the atmosphere.

The BLM proposed rule is an important step in the right direction, and we are hopeful that the public hearings will produce an even stronger rule to cut natural gas waste and protect the American taxpayer. We think that the changes that BLM has proposed so far make sense…such as the prohibition of venting and limits on flaring. However, there are exceptions and possible loopholes that are troubling for taxpayers and need to be addressed.

We believe that loose oversight and the lack of transparency has led to the absence of fiscal responsibility. Natural gas from federal lands is a public asset, and BLM is responsible for managing these resources on behalf of taxpayers. Greater transparency is needed in regard to how oil and gas companies report production and wasted natural gas.

Drilling on federal lands has changed dramatically since the old rules were put in place 30 years ago and taxpayers are losing millions every year because they are so out of date. The amount of natural gas that is being wasted and the amount of money that is not being collected from industry is simply unacceptable. We want to make sure that the final rule fulfills BLM’s fiduciary responsibility to federal taxpayers and prevents waste of federal resources.