The U.S. Environmental Protection Agency – EPA – released today new standards to reduce harmful air pollution associated with oil and natural gas production. In response to a court deadline, the new standards required by the Clean Air Act will reduce 95% of the harmful emissions from the wells.
EPA – sensitive, if not given over to election year politics and high energy prices – also emphasized the standards would enable companies to collect additional natural gas that can be sold. The updated EPA standards include the first federal clean air rules for natural gas wells that are hydraulically fractured, specifically requiring operators of new fractured natural gas wells to use what it says are cost-effective technologies and practices to capture natural gas that might otherwise escape the well.
In a so called “green completion,” equipment separates gas and liquid hydrocarbons from the flowback that comes from the well as it is being prepared for production. The gas and hydrocarbons can then be treated and used or sold, avoiding the waste of natural resources that cannot be renewed.
The estimated revenues from selling the gas that currently goes to waste are expected to offset the costs of compliance, while reducing pollution from this expanding industry. EPA’s analysis of the rules shows a cost savings of $11 to $19 million when the rules are fully implemented in 2015.
“The president has been clear that he wants to continue to expand production of important domestic resources like natural gas, and today’s standard supports that goal while making sure these fuels are produced without threatening the health of the American people,” said EPA Administrator Lisa P. Jackson.
“The industry has led efforts to reduce emissions by developing new technologies that were adopted in the rule. “EPA has made some improvements in the rules that allow our companies to continue reducing emissions while producing the oil and natural gas our country needs,” said American Petroleum Institute (API) Director of Regulatory and Scientific Affairs Howard Feldman. “This is a large and complicated rulemaking for an industry so critical to the economy, and we need to thoroughly review the final rule to fully understand its impacts.”
The rule delays the implementation wanted sooner by some environmental groups. During the first phase until January 2015, operators must either flare their emissions or use emissions reduction technology,” which cuts emissions compared to flaring. Some states such as Colorado and Wyoming already require green completions.
Only in 2015, will all new fractured wells be required to use green completions. The final rule does not require new federal permits. Instead, it sets clear standards and uses enhanced reporting to strengthen transparency and accountability, and ensure compliance, while establishing a consistent set of national standards to safeguard public health and the environment.
“These rules are a major American public health milestone. With our clean air literally being fracked away across the nation, these rules promise to safeguard our communities and keep the dirty process of drilling in check,” said Jeremy Nichols, WildEarth Guardians’ Climate and Energy Program Director. “Although we are disappointed that EPA may condone wasteful drilling, on the whole, this is a win-win plan that protects people and promotes responsible energy development.”
EPA said an estimated 13,000 new and existing natural gas wells are fractured or re-fractured each year. As those wells are being prepared for production, they emit volatile organic compounds (VOCs), which contribute to smog formation, and air toxics, including benzene and hexane, which can cause cancer and other serious health effects.
In addition, the rule is expected to yield an environmental co-benefit by reducing methane, the primary constituent of natural gas. Methane, when released directly to the atmosphere, is a potent greenhouse gas—more than 20 times more potent than carbon dioxide.
In January 2009, WildEarth Guardians and the San Juan Citizens Alliance sued EPA, alleging that the Agency had failed to review the new source performance standards and the major source air toxic standards for the oil and natural gas industry.
In February 2010, the U.S. District Court for the District of Columbia issued a consent decree that requires EPA to take actions related to the review of these standards. EPA issued the proposed rule July 28, 2011. The consent decree, which was recently revised, required that EPA take final action by April 17, 2012.
