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EPA places 90-day stay on methane rule

June 2nd, 2017 by Dakota Software Staff Industry News

EPA places 90-day stay on methane rule

As part of a larger overall effort to review and in many cases reverse environmental regulations enacted and put in motion by the previous administration, the Environmental Protection Agency has announced a 90-day stay of existing rules related to methane production. The requirements, which focused on methane production through petroleum industry wells, will not be enforced as the federal environmental regulator and the Trump administration consider the impact of the rule.

A major change for affected industries

The Obama-era methane rules involved a number of requirements for businesses in the oil and natural gas industries. Some of the most substantial are the need to install equipment or upgrade existing infrastructure to capture methane before it escapes wells, implement leak detection devices and have some staff members complete engineer certifications, Reuters said.

The previous rules, which were finalized in 2016, were supposed to take effect on June 3. The last-minute stay means businesses no longer have to take steps toward reaching the requirements. While the 90-day period is only temporary, it's likely that President Trump and the EPA under chief administrator Scott Pruitt will permanently revoke the regulations at some point.

The Hill noted widespread industry pushback against the rule since it was announced. Major criticisms include the cost - projected to be about $530 million overall - and the potentially redundant nature of some of the requirements. There was also negative state-level reactions among many of the largest oil and natural gas producers when the rule was announced. Those feelings culminated in a legal action led by Pruitt, who at the time was attorney general of Oklahoma. With Pruitt now in the top EPA leadership position, it's not surprising the federal agency is moving in a different direction on methane emissions.

Environmental groups have responded negatively to the decision, with some threatening legal actions of their own. Reuters said at least two groups, the Natural Resources Defense Council and the Environmental Defense Fund, both expressed a desire to stop the move through legal action.

"The Trump administration is giving its friends in the oil and gas industry a free pass to continue polluting our air," said David Doniger, director of the climate and clean air program at the NRDC, to Reuters. "We will fight Trump's latest polluter giveaway in court."

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