IPAA REGULATORY NEWS – OOOOb/c Methane Rules Coming to Federal Register March 8th
Comment deadline for methane tax rule extended

On Friday, the Federal Register published a notice that the EPA OOOOb/OOOOc regulations (Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review) would be published on March 8 more than three months after the Biden administration announced it with fanfare.

The regulation was completed Nov. 30 and announced Dec. 2 by EPA Administrator Michael Regan at the COP28 climate talks in Dubai, United Arab Emirates. Earth Science Systems evaluated the impact of EPA’s regulations and concluded that 30 percent of existing marginal wells would be shut down – an estimated 300,000 wells.

The formal publication date starts the clock for the rule to take effect. It also triggers a window in which Congress could nullify the rule through the Congressional Review Act. The pathway to that happening is not likely as it would require bipartisan support and support from the President. Also opened with the publishing in the Federal Register is the opportunity for litigation from industry and states that would have to implement the rules.

In related news, the EPA recently announced an extension of the comment period of the the proposed Waste Emissions Charge (the methane tax). The proposed rule “Waste Emissions Charge for Petroleum and Natural Gas Systems” was published in the Federal Register (89 FR 5318) on January 26, 2024. EPA is extending the comment period for this proposed rule—comments must be received on or before March 26, 2024.

IPAA continues to assess these regulations, file comments and engage with Congress and EPA to address the issues that they pose to independent oil and natural gas producers.

Information on how to submit comments on the Waste Emissions Charge proposed rule is available via the WEC webpage, along with several supporting documents including the proposed rule, a fact sheet, and examples of charge calculations under the proposed WEC.