Methane is a potent greenhouse gas that contributes significantly to global warming, trapping 80 times as much heat as carbon dioxide during its initial 20 years in the atmosphere.

The rule, issued by the Bureau of Land Management (BLM) under the Interior Department, builds upon the broader methane reduction strategy of the Biden administration. The Environmental Protection Agency (EPA) had previously unveiled plans for preventing methane leaks from oil and gas wells at the U.N. Climate Change Conference. Additionally, the Inflation Reduction Act, a signature climate law by President Biden, now mandates that companies pay a federal fee for each metric ton of methane they emit.

"This final rule, which updates 40-year-old regulations, furthers the Biden-Harris administration's goals to prevent [methane] waste, protect our environment, and ensure a fair return to American taxpayers," stated Interior Secretary Deb Haaland.

The primary objective of the new rule is to prevent accidental and negligent leaks of methane, the primary component of natural gas, from wells, pipelines, and other infrastructure. It also aims to discourage venting and flaring, which involves intentionally releasing methane into the atmosphere instead of capturing it. These practices have become prevalent on public and tribal lands nationwide, with companies reporting an average of approximately 44.2 billion cubic feet of gas per year vented and flared between 2010 and 2020.

Although some fossil fuel companies argue that they resort to venting and flaring due to the lack of pipelines for fuel delivery, environmentalists counter that these practices are wasteful and burdensome to taxpayers. Under the new rule, which sets a ceiling on venting and flaring without paying royalties, the Interior Department estimates that it will generate over $50 million in additional payments to the federal government annually. Moreover, it is expected to conserve billions of cubic feet of gas that would otherwise be wasted.

"The BLM methane rule is important for making sure that we are not wasting publicly owned resources and that if companies flare or vent methane that belongs to taxpayers, they pay for it," stated Aaron Weiss, deputy director of the Center for Western Priorities.

The finalization of the rule has received support from various environmental organizations and advocates. Jon Goldstein, senior director of regulatory and legislative affairs at the Environmental Defense Fund, emphasized that limiting methane waste on public lands is a win-win situation for taxpayers, producers, and communities affected by the associated pollution.

However, the oil and gas industry, while expressing support for well-designed federal methane regulations, has raised concerns about duplication with existing requirements from the EPA and states. Holly Hopkins, vice president of upstream policy at the American Petroleum Institute, cautioned that overlapping regulations and lack of coordination may hinder progress and create unnecessary barriers to development on federal lands.

It is worth noting that the Obama administration initially attempted to address methane waste on public lands in 2016 but faced opposition and subsequent easing of requirements under the Trump administration. The federal courts invalidated both the Obama-era and Trump-era rules, criticizing their respective shortcomings.

Considering the ongoing regulatory shifts, William Perry Pendley, former acting director of the BLM during the Trump administration, predicted that a potential second term for Donald Trump would overturn the Biden rule. Pendley argued that the rule would hinder fossil fuel production and be detrimental to the nation, albeit aligning with the Biden administration's philosophy of leaving fossil fuels in the ground.

In conclusion, the Biden administration's new rule to curtail methane emissions from drilling operations on federal and tribal lands marks a significant step in addressing climate change and reducing greenhouse gas emissions. By incentivizing companies to capture methane, the rule helps protect the environment, conserve valuable resources, and ensure a fair return for American taxpayers.