EPA Withdraws Controversial Methane Information Collection Request

Effective March 2, 2017, the U.S. Environmental Protection Agency (EPA) has withdrawn the information collection request (ICR) entitled, “Information Collection Effort for Oil and Gas Facilities.”  EPA issued the final ICR in November 2016, requiring more than 15,000 owners and operators in the oil and natural gas industry to submit information that would support a future EPA rulemaking to reduce methane emissions from existing sources.  The ICR required companies to provide a significant amount of information in two phases, known as the Part 1 Operator Survey and Part 2 Facility Survey.  EPA has withdrawn both parts of the ICR, which means that owners and operators who received a letter directing them to complete an ICR survey are no longer required to respond.

According to an official withdrawal notice that is expected to be published in the Federal Register on March 7, 2017, “[t]he withdrawal is occurring because EPA would like to assess the need for the information that the agency was collecting through these requests, and reduce burdens on businesses while the Agency assesses such need.”  The notice also indicates that EPA acted in response to a letter from a group of states expressing concern for burdens on businesses.

Administrative Watch: Environmental Groups File Suit Over Absence of Regulation of Oil & Gas Waste

On May 4, 2016, seven environmental groups followed through on a prior threat to sue the United States Environmental Protection Agency (EPA) by filing a lawsuit against the EPA in a bid to force the agency to develop tailored rules for the disposal, storage, transportation, and handling of oil and gas waste under the Resource Conservation and Recovery Act (RCRA) Subtitle D solid waste program.  In an effort to trigger movement on the issue, the environmentalists had previously sent the EPA a 60-day Notice of Intent to Sue in August 2015; however, according to the environmentalists, the agency did not formally respond to the Notice.  The Complaint, filed with the U.S. District Court for the District of Columbia, alleges that the agency has not within the statutorily required three-year timeframe (1) reviewed and, where necessary, revised RCRA’s Subtitle D solid waste regulations for oil and gas waste, and (2) reviewed and/or revised its guidelines for state solid waste management plans for oil and gas waste.

For more information, read our Administrative Watch.

EPA Proposes to Revise Greenhouse Gas Reporting Rule to Address Equipment Leaks

On January 29, 2016, the U.S. Environmental Protection Agency (EPA) published in the Federal Register a proposed rule that would amend the Greenhouse Gas Reporting Program for the petroleum and natural gas systems source category at 40 CFR Part 98, Subpart W, which was revised as recently as October 2015.  Specifically, EPA now proposes to add new monitoring methods for detecting leaks from oil and natural gas equipment in order to achieve consistency with the leak detection methods in the agency’s pending New Source Performance Standards rulemaking for the oil and natural gas industry.  In addition, EPA is proposing to add emission factors for leaking equipment for use in the calculation and reporting of greenhouse gas emissions.  Comments regarding the latest Subpart W rulemaking are due February 29, 2016.

Environmental Groups Plan Suit Over Absence of Regulation of Oil and Gas Waste

On August 26, 2015, seven environmental groups sent the U.S. Environmental Protection Agency (EPA) a Notice of Intent to Sue the agency in an attempt to force the agency to develop tailored rules for oil and gas wastes under the Resource Conservation and Recovery Act (RCRA) Subtitle D solid waste program.  The groups argued that the agency has not within the statutorily required three-year timeframe (1) reviewed and, where necessary, revised RCRA’s Subtitle D solid waste regulations for oil and gas wastes, and (2) reviewed and/or revised its guidelines for state solid waste management plans for oil and gas wastes.  For additional information, read our recent Administrative Watch.

Public Hearings Announced for EPA Air Rules Targeting Oil and Gas Sector

Today the U.S. Environmental Protection Agency (EPA) announced that it will host three public hearings in September regarding proposed Clean Air Act rulemaking actions that will affect the oil and gas industry.  Two hearings will be held in Denver and Dallas on the same day, September 23, 2015.  A third hearing is scheduled to be held on September 29, 2015, in Pittsburgh.  The hearing in Pittsburgh will take place at the William S. Moorhead Federal Building downtown.  For additional information about EPA’s proposed rules, check out our Administrative Watch: EPA Announces Clean Air Act Proposals Targeting the Oil and Natural Gas Sector.

EPA Announces Rulemaking Proposal to Curb Methane Emissions from Oil and Gas Sector

Today the U.S. Environmental Protection Agency (EPA) formally announced its highly-anticipated proposal to regulate methane emissions from the oil and natural gas sector.  Specifically, EPA is proposing to amend the New Source Performance Standards (NSPS) rule for the sector, NSPS Subpart OOOO, to include standards for reducing methane as well as volatile organic compound (VOC) emissions from sources located across the oil and natural gas source category (i.e., production, processing, transmission and storage).  This proposal is part of the agency’s broader strategy for reducing emissions of ground level ozone-forming pollutants from the oil and gas sector.  Public comments will be accepted for 60 days following publication in the Federal Register, and EPA is planning to host public hearings on the rulemaking.  In conjunction with today’s announcement regarding the proposed NSPS revisions, EPA also announced proposed guidelines for states to follow in order to reduce VOC emissions from existing oil and gas sources located in areas where the ambient air quality does not meet certain thresholds with respect to ozone.

EPA Inspector General Reports on Hydraulic Fracturing Regulators

The U.S. Environmental Protection Agency (EPA) Office of Inspector General (OIG) recently released a report entitled, “Enhanced EPA Oversight and Action Can Further Protect Water Resources From the Potential Impacts of Hydraulic Fracturing.”  The report evaluates how EPA and state agencies have used existing authorities to address the potential impacts of hydraulic fracturing on water resources, and also recommends two areas for EPA improvement.  First, the OIG recommends that EPA improve its oversight of Underground Injection Control (UIC) permit issuance for the use of diesel fuels in hydraulic fracturing.  Second, the report recommends that EPA develop an action plan to address public comments submitted in response to the agency’s May 2014 advance notice of proposed rulemaking (ANPR) related to possible federal chemical disclosure requirements.  The OIG found that EPA does not have a plan for responding to the comments submitted in response to the 2014 ANPR, nor for making a final determination on whether to proceed with a formal rulemaking.

OMB Begins Review of EPA Proposals to Curb Methane Emissions, Define Major Source

This week the U.S. Environmental Protection Agency (EPA) sent a highly-anticipated proposed rule to the White House Office of Management and Budget (OMB) for interagency review that would address methane emissions in the oil and natural gas sector.  Earlier this year, EPA announced its plan to initiate such a rulemaking  as part of its methane reduction strategy.  A second proposed rule was also reportedly sent to OMB for review this week – EPA is working on new definitions for certain regulatory terms associated with permitting sources in the oil and gas industry, in order to assist permitting agencies in making major stationary source determinations.  Both of the proposed rules are expected to be published in the Federal Register in August.

EPA Issues New Rule on Definition of Waters of the United States

On May 27, 2015, the United States Environmental Protection Agency (EPA) and the United States Army Corps of Engineers (Corps) released the long-awaited final rule redefining the extent of the agencies’ jurisdiction over “waters of the United States” (WOTUS) under the Clean Water Act.  The Final Rule, known as the “Clean Water Rule,” abruptly changes (i.e., within 60 days of publication in the Federal Register) the types of waters that will be regulated under numerous federal programs, including NPDES permitting, wetland and watercourse (i.e., dredge and fill) permitting, spill response planning, and spill reporting.  The Final Rule will affect all types of industries, real estate development, construction activities, and other entities by increasing the types and extent of waters that will be regulated under the Clean Water Act and introducing a new analysis for evaluating whether a water is jurisdictional.

For more information, read our Administrative Watch regarding the Clean Water Rule.

Clean Water Act Jurisdiction Rule Sent to White House for Review

This week the U.S. Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers (Corps) announced that they have submitted to the White House Office of Management and Budget (OMB) a joint final rule aimed at clarifying which water bodies are subject to Federal jurisdiction under the Clean Water Act.  On April 6, 2015, the agencies announced on an EPA blog that the draft final rule was recently submitted to OMB for interagency review.  EPA and the Corps published their initial rulemaking proposal in early 2014 and reportedly received more than one million stakeholder comments since then.  Interagency review of a final draft rule is generally considered the last step in the federal rulemaking process.

USEPA Seeks Small Business Input on Greenhouse Gas Rulemaking for Oil and Gas Sector

The U.S. Environmental Protection Agency (EPA) is convening a Small Business Advocacy Review Panel to discuss a rulemaking aimed at regulating greenhouse gas emissions from the oil and natural gas sector, as part of the Obama Administration’s methane reduction strategy announced in mid-January.  The rulemaking is expected to affect sources in the production, processing, transmission and storage segments of the industry.  Small businesses operating in the oil and natural gas sector that expect to be subject to the requirements of the rulemaking may be eligible to serve on the Panel as a “Small Entity Representative” (SER).  According to EPA, the role of a SER is “to provide advice and recommendations to ensure that the Panel carefully considers small entity concerns regarding the impact of the potential rule on their organizations and to communicate with other small entities within their sector who do not serve as SERs.”  Interested parties must contact EPA by February 11, 2015.

EPA Announces Plan to Reduce Methane, VOC Emissions from Oil and Gas Industry

Today the U.S. Environmental Protection Agency (EPA) released a fact sheet outlining the agency’s strategy for reducing emissions of methane and ground level ozone-forming pollutants from the oil and natural gas sector.  Release of the EPA strategy is part of a broad multi-agency initiative by the Obama Administration to curb emissions from the sector.  In March 2014, the White House identified the reduction of methane and other emissions from the sector as a key element of President Obama’s Climate Action Plan, and directed EPA to assess how best to pursue such reductions.  According to EPA’s recently-released fact sheet, emissions of methane (the primary constituent of natural gas) from the sector are “projected to increase by about 25 percent over the next decade if additional steps are not taken to reduce emissions from this rapidly growing industry.”  EPA plans to use both “regulatory” and “voluntary” approaches to avoid this anticipated emissions increase.

Among other actions, EPA plans to “build on” its New Source Performance Standards (NSPS) for the sector, namely NSPS Subpart OOOO, to reduce methane emissions and further restrict emissions of volatile organic compounds (VOCs).  The fact sheet indicates that EPA intends to issue a proposed rule in late summer and a final rule in 2016.  EPA also plans to provide state air permitting agencies with special “guidelines” for controlling VOC emissions from existing oil and gas sources located in ozone nonattainment areas and the Ozone Transport Region, which includes Pennsylvania and New York.  EPA expects to propose these Control Technique Guidelines this summer and issue final guidelines in 2016.

USEPA Extends Waters of the United States Comment Deadline

The U.S. Environmental Protection Agency (USEPA) has, for a second time, extended the public comment deadline associated with its proposed rule to redefine “waters of the United States” and related terms for purposes of various federal Clean Water Act programs.  USEPA and the U.S. Army Corps of Engineers initiated the joint rulemaking effort this past spring.  Comments are now due on Friday, November 14, 2014.  Additional information is available at http://www2.epa.gov/uswaters.

Environmental Advocacy Groups Call for National Methane Emission Standards

On September 18, 2014, sixteen of the nation’s largest environmental advocacy groups joined forces in a letter to President Barack Obama calling for national standards aimed at reducing methane emissions from oil and gas operations.  The letter urged the U.S. Environmental Protection Agency (USEPA) to exercise its authority under the Clean Air Act to develop “smart and reasonable” methane standards for the oil and gas industry.  The letter also encouraged the U.S. Department of the Interior to update their policies for national gas and methane emissions on public lands.  As reported earlier this year, USEPA has released technical white papers regarding methane and volatile organic compound emissions, and is currently developing a strategy to address emission sources in the industry.

House Votes to Thwart USEPA and Army Corps’ ‘Waters of the United States’ Rulemaking

On September 9, the U.S. House of Representatives voted to pass a bill introduced in response to the ‘Waters of the United States’ Proposed Rule that was prepared jointly by the U.S. Army Corps of Engineers (USACE) and U.S. Environmental Protection Agency (USEPA) and published in April 2014.  The bill, known as the “Waters of the United States Regulatory Overreach Protection Act of 2014” (H.R. 5078), would prohibit USEPA and USACE from “developing, finalizing, adopting, implementing, applying, administering, or enforcing” the proposed rule.  On September 8, the White House announced its objections to the bill, including concerns that H.R. 5078 would “derail” efforts to clarify the scope of the Clean Water Act.  The announcement also noted that if the President were presented with H.R. 5078, his senior advisors would recommend that he veto the bill.   Notwithstanding H.R. 5078, the public comment deadline for the proposed rule is fast-approaching.  Comments are due to USEPA/USACE by Monday, October 20, 2014.

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