In comments submitted yesterday, Governor Mark Gordon criticized the Environmental Protection Agency’s (EPA) proposed rule establishing a waste emission charge for methane discharges from oil and gas facilities.
The Governor stressed that states like Wyoming are effectively addressing methane and other emissions, and the proposed charge for such emissions is another example of the federal government attempting to “help” the states by promulgating top-down requirements without adequate consultation from the states.
The proposed rule is a result of the Inflation Reduction Act and would establish a fee for the release of methane emissions. In addition to more burden to already strapped oil and gas producers, the proposal sets up a “bait and switch” exemption program. As proposed, the rule requires all states with oil and gas facilities within their jurisdiction to have submitted and approved plans as required under the rule before any exemptions of the fee would be allowed.
“This could also be weaponized by states who are opposed to oil and gas operations by intentionally delaying the development of a state plan for as long as possible, causing operators to pay the WEC for as long as possible,” Governor Gordon said.
The Governor noted the proposal is also flawed since many of its assumptions are based upon other rules that are not yet final.
“There is little doubt this proposed rule will likely have significant regulatory and economic impacts on Wyoming and our oil and gas producers, but identifying those impacts is virtually impossible since it is tiered off the proposed Greenhouse Gas Reporting Proposed Rule and Methane Fee Proposed Rule. This stacking renders accurate analysis highly speculative because we are basing comments on what might be.”
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