HECHO Statement on the BLM Methane Waste Rule
Hispanics Enjoying Camping, Hunting, and the Outdoors (HECHO) applauds the Biden Administration for releasing its final Bureau of Land Management (BLM) methane waste rule to reduce methane waste from venting, flaring, and leaking natural gas into the air.
“For over 40 years, the Bureau of Land Management (BLM) had been utilizing outdated requirements to regulate venting and flaring from oil and gas companies. Evidence supports that these hazardous methane emissions into the air impact global warming, the environment, and our public health. Methane release can trigger life-threatening asthma attacks, worsen respiratory conditions, and cause cancer, which disproportionately affects Hispanic communities,” said Camilla Simon, executive director of Hispanics Enjoying Camping, Hunting, and the Outdoors (HECHO). “This final rule is a step in the right direction to limit methane waste on public lands, protecting the public and the environment and saving taxpayers millions.”
Energy companies have been releasing millions of cubic feet of natural gas into the air for decades. BLM estimates that in 2019, operators vented or flared about 151.7 billion cubic feet of gas on the leases it administers. But the actual amounts of waste on federal and Tribal lands are likely to be higher than government estimates because the agency's analysis only captures the waste that is reported by operators, yet excludes lost gas from leaks and abandoned wells.
According to an economic analysis, over $500 million worth of natural gas was wasted in 2019 by oil and gas companies operating on public lands through venting, flaring, and leaking gas. Another study by Synapse Energy Economics found that $ 63.3 million in royalties, $18.8 million in state revenue from taxes, and $509 million in gas value were lost due to venting, flaring, and leaks on public lands. The nearly $64 million loss of royalties could help improve our schools, roads, and other infrastructure.
The BLM final rule is expected to generate more than $50 million annually by requiring oil companies to pay royalties on "wasted" natural gas. It also requires drillers to either capture 100 percent of the gas or develop a plan to minimize waste.
"After four decades of outdated regulations, oil and gas companies will be finally accountable by demanding them to implement measures to avoid wasteful practices and find and fix leaks while ensuring American taxpayers receive their fair share through royalty payments," adds Simon.
Read here the final rule from the Bureau of Land Management (BLM) announced by the Department of the Interior.