Source: United States Senator Kevin Cramer (R-ND)
BISMARCK – U.S. Senator Kevin Cramer (R-ND), member of the Senate Environment and Public Works (EPW) Committee, and Ranking Member Shelley Moore Capito (R-WV) led all EPW Republicans in pushing back on an Environmental Protection Agency (EPA) supplemental proposal to further regulate methane and other emissions.
In their letter to EPA Administrator Michael Regan, the senators outlined impending consequences of the rule, including analyses it will decrease U.S. oil and natural gas production, increase costs for consumers, and offshore market opportunities to foreign suppliers with subpar environmental standards.
“The Supplemental Proposal, if finalized in its current form, will reduce domestic energy production, impose significant costs on the oil and natural gas industry absent commensurate environmental benefits, illegally delegate EPA enforcement to third parties, withhold necessary flexibility from operators, remove the established regulatory separation between new and existing sources, expand the EPA’s jurisdiction where states and other agencies are already taking action, and undercut the EPA’s principles of Cooperative Federalism,” wrote the senators.
“Demand for consistent, reliable energy and the industrial inputs these fuels provide is only growing. Renewables cannot replace the role of oil and gas in our economy, and the EPA’s push to require electrification in the oil field, regardless of cost, flies in the face of economic reality. Utilities are facing shortages of basic equipment such as transformers, and manufacturers are facing shortages of the steel used to build them,” continued the senators. “These and other proposed requirements of this rule will create a supply gap that will inevitably be filled by the bad actors of the globe who lack any semblance of environmental regulation or performance. We urge you to reverse course on this onerous rule, fully engage with producers, and listen to the states that must bear the brunt of these regulations.”
Among concerns, the group underscored the following:
- A Regulatory Impact Analysis determined, by 2026, the supplemental would cost the industry $15-$19 billion and cut annual production of oil by approximately 21 million barrels and natural gas by about 358 million Mcf.
- Multiple components of the proposal, such as its “Super-Emitter Response Program” and one-size-fits-all treatment of production sites, run contrary to the letter and spirit of the Clean Air Act.
- The rule could allow for a de facto ban on flaring at a time when operators are suffering from the federal government’s permitting malaise. In fact, the Government Accountability Office has acknowledged employing existing technologies could significantly improve gas capture rates on federal lands.
- As written, its duplicative language could require operators to plug wells if they fail to produce for a period of 30 days, discounting market conditions and typical temporary shutdown procedures.
Stakeholders who commented on the rule and support the senators’ letter include: the North Dakota Petroleum Council; American Petroleum Institute; Independent Petroleum Association of America; American Exploration and Production Council; Domestic Energy Producers Alliance; Western Energy Alliance; and the U.S. Oil and Gas Association.
Click here to read the letter.
Background:
In November 2022, Senator Cramer opposed a methane flaring rule the U.S. Department of the Interior (DOI) put forward. Before then, he responded to a 2021 methane emissions proposal by the EPA.
Last year, North Dakota reported marketing a record amount of natural gas, while driving its capture rate to 95% on state and private lands. Senator Cramer has showcased North Dakota’s leadership in this area, as well as worked with bipartisan colleagues on crafting legislation to spur research and employment opportunities in oil and gas.