Texas, the largest energy-producing state of the US, has filed a lawsuit against the US government over the Environmental Protection Agency (EPA) rules aimed at curbing methane emissions from the oil and gas industry, as reported by Reuters on March 8. State Attorney General, Ken Paxton, accused federal regulators of “blatant overreach” in rulemaking and of usurping Texas authority to set its own emission standards. Prior to the lawsuit, the Texas Railroad Commission, the regulator of the state’s oil industry, had asked Paxton in January to challenge the EPA, saying the new rules are too burdensome for small producers. In 2022, Texas gained a substantial USD24.7bn in taxes and royalties from the oil and gas industry.

The recent EPA rules laid out multiple measures to contain methane leaks from drill sites, gas pipelines, and other oil and gas infrastructure. These measures includebanning routine flaring of natural gas produced at new oil wells, requiring oil companies to monitor leaks from well sites and compressor stations, and formulating a program using third-party remote sensing to detect large methane releases from super emitters. The EPA estimated the new regulations could prevent 58 million tons of methane from entering the atmosphere from 2024 to 2028, equivalent to mitigating 1.5 billion tons of carbondioxide emissions. However, opponents contend that these rules may pose financial risks on minor producers who have difficulties bringing older equipment into compliance, potentially causing energy shortage.

Sources:

https://www.reuters.com/world/us/texas-challenges-us-epa-limits-oil-gas-industry-methane-emissions-2024-03-09/

https://www.bloomberg.com/news/articles/2024-03-08/texas-challenges-us-epa-over-new-rule-on-methane-emissions

https://www.epa.gov/newsreleases/biden-harris-administration-finalizes-standards-slash-methane-pollution-combat-climate