API: BLM's methane and waste prevention rule hurting consumers and local economies
“Despite our industry’s success in reducing methane emissions, the BLM has imposed a flawed regulation that adds significant costs and reduces local revenues, without corresponding environmental or consumer benefits,” said Bentley. “We urge the Senate to support the disapproval resolution passed by the House. The BLM’s rule doesn’t support the continued successes in methane emissions reductions and could have a negative impact on consumers and local economies.”
The added costs of compliance with the BLM rule could result in up to 40% of federal wells that flare being permanently shut in – as they would become uneconomical to produce, according to an analysis by Environmental Resources Management. Even a one percent loss of royalties could result in lost federal revenues of over 14 million dollars – far more than the $3 million to $10 million, in additional incremental royalties estimated by the Bureau of Land Management. Many western states, which will be most impacted, submitted comments to the BLM to express their economic and environmental concerns with the rule.
“Companies in Colorado operate under some of the most stringent rules in the country to produce clean, safe, affordable energy while being good environmental stewards,” said Bentley. “These declining revenues would directly impact state and local governments. Such a drop in production would reduce the availability of affordable energy to consumers.
“The oil and natural gas industry has proven that we can protect the environment, grow our economy, add to state and local revenues, and has simultaneously helped save the average American family an average of $1,337 per year.”