Proposed BLM rules target venting, flaring

Goal to reduce methane releases on public, tribal lands; capture natural gas for use; increase royalty payments from operators

Kristen Nelson

Petroleum News

The U.S. Department of the Interior said Nov. 28 that the Bureau of Land Management is proposing rules addressing venting, flaring and leaks from oil and gas facilities on public and Indian lands. Reduced waste would increase natural gas for use and increase royalties, Interior said, citing waste of “billions of cubic feet of natural gas … through venting, flaring and leaks.”

The Biden administration has already taken action to tackle methane emissions, said Interior Secretary Deb Haaland, and “this proposed rule will bring our regulations in line with technological advances that industry has made in the decades since the BLM’s rules were first put in place, while providing a fair return to taxpayers.”

Interior said venting and flaring from production on public lands has increased from an average of 11 billion cubic feet per year between 1990 and 2000 to an average of some 44.2 billion cubic feet per year between 2010 and 2020.

“This draft rule is a common-sense, environmentally responsible solution as we address the damage that wasted natural gas causes,” said BLM Director Tracy Stone-Manning. “It puts the American taxpayer first and ensures producers pay appropriate royalties.”

Interior said the proposed rule responds to U.S. Government Accountability Office reports which highlighted “potential revenue being lost due to the BLM’s outdated regulations.”

Key elements of proposed rule

*Technology upgrades, with the rule requiring use of low-bleed pneumatic equipment and vapor recovery for oil storage tanks where economically feasible.

*Leak detection plans, with operators required to maintain a leak detection and repair program for operations on federal and Indian leases.

*Waste minimization plans, requiring applicants to develop waste minimization plans “demonstrating the capacity of available pipeline infrastructure to take the anticipated associated gas production. The BLM may delay action on, or ultimately deny, a permit to drill to avoid excessive flaring of associated gas.”

*Monthly limits on flaring, with time and volume limits on royalty-free flaring, including “a monthly volume limit on royalty-free flaring due to pipeline capacity constraints - the primary cause of flaring from Federal and Indian leases.”

Interior estimates the proposed rule would generate $39.8 million a year in additional royalties and prevent the waste of billions of cubic feet of natural gas.

Interior said Nov. 28 that the proposed rule would be published in the Federal Register in the coming days, with a draft environmental assessment and other supporting documents to be available on regulations.gov, and public comments to be accepted on regulations.gov for 60 days after publication of the rule.

In Alaska there are BLM oil and gas leases in Southcentral, primarily on the Kenai Peninsula, and in the National Petroleum Reserve-Alaska on the North Slope.