U.S. Bureau of Land Management Proposes a New Regulation to Reduce Methane Emissions at Energy Plants

January 2023

Environmental, Energy & Climate Change Law and Regulation Reporter, Volume 3, Number 4

On November 30, 2022, the U.S. Bureau of Land Management (BLM) proposed a new regulation to reduce the amount of methane and other greenhouse gases released into the atmosphere during the extraction of natural gas and oil (Rule). 87 FR 73588 (Nov. 30, 2022). The Rule would impose requirements on energy production facilities on both federal and Native American lands in an efforts by the federal government to cut carbon emissions drastically by 2030. BLM estimates that the Rule would impose costs to industry of approximately $122 million annually for compliance, while generating estimated annual profits of $55 million to industry and $40 million in royalties for the American public due, both due to the capture of previously wasted gas. The focus on lack of wasted gas is therefore for the joint purposes of reduction of greenhouse gas emissions and also recouping royalties for wasted resources from federal and Native American lands. The public comment period is open through January 30, 2023.

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