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Field Notes


Court’s decision on methane rule is win for Wyoming air quality, taxpayers

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On Wednesday, July 15, we received some good news. 

In a series of challenges that have been ongoing for nearly four years, a federal district court in California found that the Bureau of Land Management illegally repealed a 2016 rule designed to improve air quality, slow the progress of climate change, and provide a fair return for taxpayers by reducing the amount of natural gas lost through leaks, venting, and flaring from oil and gas development on public and tribal lands. 

The BLM’s 2016 methane waste prevention rule updated 30-year-old regulations regarding the agency’s congressional mandate to prevent waste of publicly owned oil and gas resources. This common-sense and much needed update protects our public lands, air quality, and our health by requiring oil and gas companies to conduct inspections and repair leaks that endanger human health and contribute to climate change. Because the pollution captured is also the product to be sold, these inspections and fixes end up paying for themselves. The rule helps ensure that natural gas owned by the American taxpayers generates revenue for our schools, public infrastructure, and social services, instead of literally being cast to the wind. 

But oil and gas industry groups — as well as Wyoming, Montana, and North Dakota — challenged the rule. The Wyoming Outdoor Council joined 17 public health, Indigenous rights, and conservation organizations, along with New Mexico and California, to help the BLM defend the rule in Wyoming federal district court. 

When President Donald Trump was elected, the BLM changed course. At industry’s urging, the BLM first sought to not enforce the rule and then took steps to repeal it altogether. We soon found ourselves on the other side of the courtroom as plaintiffs challenging the BLM’s 2018 “rescission rule.” The court’s decision on Wednesday means that the 2016 rule will be reinstated. 

While industry lobbying groups will likely challenge the 2016 rule — and we’ll be back in Wyoming district court to defend the rule again — the decision to reinstate it represents a huge victory for common-sense management of a valuable public resource. Notably, during the legal limbo of the past four years, more and more oil and gas companies have voluntarily adopted the requirements of the rule — because they’re cost effective and good PR for an industry under scrutiny for its contributions to climate change. 

More than $2.5 billion in natural gas has been lost to venting, flaring, or fugitive emissions on public and tribal lands since 2013. This loss also contributes to climate change — methane is a greenhouse gas and a serious contributor to global warming — and releases pollutants such as benzene into the air. 

As a 53-year old organization, the Wyoming Outdoor Council learned long ago not to rely exclusively on federal administrative rules for lasting policy change. This is a textbook example of why we don’t. The shifting politics of Washington D.C. mean any victories gained under one administration could be on the chopping block during the next. 

For this reason, even while we sought to defend the BLM’s national rule, we worked tirelessly with the state of Wyoming, the Department of Environmental Quality, and operators here in Wyoming to ensure state-level standards for leak detection and repair of fugitive emissions. In 2018, the DEQ finalized these requirements and they apply statewide in new and modified oil and gas fields. Ultimately, we’d like the state to require the same practices for existing oil and gas fields. 

Our work to combat climate change, protect public health, and support policies that reduce unnecessary lost revenue for the state of Wyoming will continue and we’ll keep you posted on our progress.

 

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Field Notes


State’s inaction costs counties millions in wasted, untaxed natural gas

The Outdoor Council is asking the state to implement best practices in oil and gas fields that would save the state and counties millions of dollars by curbing intentional flaring and venting, and unintentional leaks of natural gas.

The Wyoming Natural Gas Waste Report, compiled by the Outdoor Council and the Environmental Defense Fund, finds that the state is missing out on an estimated $8.8 million to $16.1 million each year in unrealized tax revenue due to wasted natural gas. Of that statewide loss, $3.4 million to $6.5 million is uncollected ad valorem revenue — property tax that goes directly to counties. That money could have gone to the purchase of emergency equipment, or road and bridge repair, or human services like nurses and libraries.

The top five counties missing out on the most ad valorem dollars associated with wasted gas in 2015 were Converse, Goshen, Campbell, Laramie and Sweetwater. The total lost in ad valorem for those counties in 2015 was $2.8 million with an average of $560,000 per county.

The Wyoming Department of Environmental Quality has already successfully implemented — in one corner of the state — operational protocols that reduce the need for flaring and venting, as well as leak detection and repair (LDAR) requirements. This program, implemented in the Jonah and Pinedale Anticline gas fields in the Upper Green River Basin, is a proven cost savings to Sublette County as well as the operators themselves.

“Sublette County is not on the list of missing out on ad valorem dollars due to wasted gas,” said Elaine Crumpley, of Citizens United for Responsible Energy Development (CURED). “That is because oil and gas field operators in the Upper Green River Basin, basically Sublette County, have already been doing flareless completions and LDAR inspections for several years.”

It’s urgent that Wyoming expands this successful program to oil and gas fields statewide, because the industry is preparing for a major increase in drilling. Projects such as the 5,000-well Converse County Oil & Gas Project and the 1,500-well Greater Crossbow field may be approved for drilling as soon as 2019.

“Addressing this problem is common sense: reducing waste means increasing revenue. Clean air and public health are added bonuses,” Outdoor Council Executive Director Lisa McGee said. “The state can and should take action to require oil and gas operators in eastern Wyoming to implement frequent leak detection and repair inspections as they have successfully done in western Wyoming.”

The state needs to live up to its responsibilities to protect its clean air and to collect all revenue that is due to its citizens and communities that desperately need it. Insisting on methods that reduce flaring and venting, and protocols that detect and fix gas leaks is a proven win-win-win for Wyoming communities, oil and gas operators, and the environment.

“Our operators pioneered all these gas-waste management methods, and our gas fields are flourishing, with 11 rigs drilling today,” Crumpley said of the Upper Green River Basin fields. “From our experienced perspective, the rest of the state should follow our lead. It’s a major step in the right direction.”

Click here to read the Wyoming Natural Gas Waste Report.