EPA Finalizes GHG Reporting Rule for Oil, Gas Industry
On November 13, 2014, the U.S. Environmental Protection Agency finalized its greenhouse gas reporting rule. The rule, which will go into effect on January 1, 2015, includes revised monitoring and data disclosure requirements for the petroleum and natural gas industry. In particular, the final rule clarifies the emission sources that must provide greenhouse gas reports as including engines, boilers, heaters, flares, and separation and processing equipment. Covered sources are directed to provide separate reports for methane, carbon dioxide, and nitrous oxide emissions in addition to reporting cumulative emissions for all greenhouse gases in metric tons of carbon dioxide equivalent. The rule allows the use of either actual gas composition or a default for natural gas transmission and compression, underground natural gas storage, liquefied natural gas storage, liquefied natural gas import and export, and natural gas distribution facilities.
In addition to the above-described final rule, the EPA has also issued a new proposed rule that would expand the types of sources that are covered by the greenhouse gas reporting rule. These sources would include oil well completions and workovers with hydraulic fracturing, petroleum and natural gas gathering and boosting systems, and transmission pipeline blowdowns between compressor stations.
Neither the finalized greenhouse gas reporting rule nor the proposed expansion of covered sources have been published in the Federal Register as of the date of this article. However, copies of the EPA’s rule submissions may be found here:
Upon publication in the Federal Register, the public will have 60 days to submit comments to the EPA’s proposal to expand the petroleum and natural gas activities that will be required to report greenhouse gas emissions.