EPA Methane Regulations for the Oil and Gas Industry

by Eversheds Sutherland (US) LLP

On August 18, 2015, the Environmental Protection Agency (EPA) announced several proposals, including the first federal regulations, which, if adopted, would require the oil and gas industry to reduce methane emissions.

Specifically, EPA issued (i) a Proposed Rule on Emission Standards for New and Modified Sources for the oil and natural gas industry; (ii) draft guidelines for states to reduce volatile organic compound (VOC) emissions from existing oil and gas sources in smog areas, or ozone “non-attainment” areas; (iii) a Proposed Source Determination Rule, clarifying the definition of “adjacent” for purposes of determining whether oil and gas equipment and activities require a permit under the Clean Air Act’s permitting programs; and (iv) a Proposed Federal Implementation Plan for EPA’s Indian Country Minor New Source Review (NSR) program for oil and gas production sources.

The various proposals are part of President Obama’s Climate Action Plan, designed to implement the Administration’s goal of reducing, by 2025, methane emissions in the oil and gas sector by 40% to 45% from 2012 levels.

Comments are due 60 days after publication of the proposals in the Federal Register. In addition, EPA will hold public hearings on all the proposed rules.

The proposals are summarized in the chart below followed by a more detailed description.

Proposed Methane and VOC Emissions Regulations for the Oil and Natural Gas Industry and Clarifying Clean Air Act Permitting Requirements Announced on August 18, 2015
Regulatory Action Description Public Comment
Proposed updates to
New Source Performance Standards (NSPS)
Proposed updates to the New Source Performance Standards (NSPS) would set methane and VOC requirements for additional new and modified sources in the oil and gas industry

60 days after date of publication in the Federal Register

EPA will hold public hearings

Draft Control Techniques Guidelines (CTGs) for the Oil and Natural Gas Industry Draft Control Techniques Guidelines (CTGs) for reducing VOC emissions from existing oil and gas sources in certain ozone non-attainment areas and states in the Ozone Transport Region

CTGs are not regulations and do not impose legal requirements on sources

Provides recommendations for state and local air agencies to consider in determining reasonably available control technology (RACT) for reducing emissions from covered processes and equipment

States may use different technologies and approaches, subject to EPA approval and provided they achieve the required pollution reductions

Proposed Source Determination Rule

Seeks broad public comment on options for determining when multiple pieces of equipment and activities in the oil and gas industry are “adjacent” and must be deemed a single source that is subject to requirements under Clean Air Act air permitting programs

60 days after date of publication in the Federal Register

EPA will hold three public hearings

Proposed Federal Implementation Plan for EPA’s Indian Country Minor New Source Review (NSR) program for oil and gas production sources This proposed plan would limit harmful emissions while streamlining the permitting process for this rapidly growing industry in Indian Country

60 days after date of publication in the Federal Register

EPA will hold public hearings

A.  Reducing Methane and VOCs from New and Modified Sources

EPA is proposing to amend current 2012 New Source Performance Standards (NSPS) to include standards for reducing methane, as well as VOC emissions, for certain new, modified and reconstructed equipment, processes and activities in the oil and natural gas industry, including production, processing, transmission and storage.

The standards for new and modified sources are expected to reduce 340,000 to 400,000 short tons of methane in 2025, the equivalent of reducing 7.7 to 9 million metric tons of carbon dioxide. EPA estimates that the proposed rule for new oil and gas wells will cost the industry between $320 million and $420 million a year by 2025 and provide estimated climate-change benefits of $460 million to $550 million.

Except for improvements to enhance implementation of existing 2012 NSPS VOC requirements, the proposed amendments do not change the VOC requirements for existing operations and equipment already covered by the 2012 NSPS.

However, the proposed rule would update and expand the 2012 NSPS to add methane as a pollutant covered by the rule. Despite the addition of methane to the rules, sources already covered by the 2012 NSPS requirements for VOC reductions that would also be covered by the proposed 2015 methane requirements would not have to install additional controls because available controls for VOC are the same for methane and achieve the same reduction for both VOC and methane. For example, EPA notes that combustion-based control technologies, such as flares and enclosed combustors, which may be used to reduce VOC emissions by 95%, can be expected to also reduce methane emissions by 95%.

Importantly, the proposed regulations include new standards for methane emissions from sources that currently are unregulated under the current 2012 NSPS, such as hydraulically fractured oil well completions, pneumatic pumps and fugitive emissions from well sites and compressor stations.

The emissions reduction requirements for sources of methane and VOC pollution that were not covered in the 2012 rules would require owners/operators to take the following actions:

  • Find and repair leaks. Proposed standards to control methane emissions from equipment leaks at natural gas processing plants. These requirements are the same as the VOC equipment leak requirements in the 2012 NSPS.
  • Capture natural gas from the completion of hydraulically fractured oil wells. Many hydraulically fractured wells that are drilled primarily for oil also contain natural gas, which contains methane, VOCs and a number of air toxics. Owners/operators of hydraulically fractured and refractured oil wells would be required to capture the gas using a proven process known as a “reduced emissions completion” or “green completion.”
    • EPA had required green completions for hydraulically fractured natural gas wells in its 2012 rules, but had not included oil wells.
  • Limit emissions from new and modified pneumatic pumps. Pneumatic pumps are used throughout the industry – from well sites to transmission compressor stations.
  • Limit emissions from several types of equipment used at natural gas transmission compressor stations and at gas storage facilities. These would include compressors and pneumatic controllers. EPA had not included these facilities in its 2012 NSPS rules.

EPA’s chart identifying the sources covered by the 2012 NSPS for VOCs and the proposed 2015 NSPS for VOCs and methane organized by site type, such as the type of location and equipment, is reproduced further below and available at: http://www.epa.gov/airquality/oilandgas/pdfs/og_table_081815.pdf

Except for certain amendments to enhance implementation improvements, the proposed methane regulations would not change the current requirements for existing operations and equipment currently covered by the 2012 NSPS. The current requirements under 40 C.F.R. Part 60, Subpart OOOO would be updated to reflect that they apply to facilities constructed, modified or reconstructed after August 23, 2011, and before the date of publication of the new proposed methane regulations in the Federal Register.

Similarly, the new proposed methane regulations for new wells or equipment would be issued under 40 C.F.R. Part 60, Subpart OOOOa to indicate that those new regulations apply to facilities constructed, modified or reconstructed after the date the new methane regulations are published in the Federal Register.

B.  Reducing VOCs from Existing Source in Areas with Smog Problems

On August 18, 2015, EPA also announced its Draft Control Techniques Guidelines (CTGs) for the Oil and Natural Gas Industry. Although the draft guidelines do not propose regulations and would not have any legal effect, they do provide recommendations for state and local air agencies to reduce VOC emissions from existing oil and gas sources in areas with smog problems or ozone “non-attainment” areas.

Specifically, the recommendations provide state and local air agencies with guidelines for determining reasonably available control technology (RACT) for reducing emissions from covered processes and equipment. States may use different technologies and approaches, which would still be subject to EPA approval, and would have to achieve the requisite pollution reductions. The draft CTGs include information on cost-effective control technologies to help states in making their RACT determinations.
Under the Clean Air Act, RACT applies to ozone non-attainment areas classified as “Moderate” and above, and throughout the Ozone Transport Region, which includes 11 northeastern states (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont), and the metropolitan statistical area that includes Washington, DC and portions of northern Virginia. Affected areas and states would have to address the sources covered in the CTGs as part of state plans for meeting EPA’s ozone health standards.

Finally, EPA expects that regulatory actions taken to reduce methane emissions will impact its future designations of attainment and non-attainment areas to be made in October 2017. EPA expects to issue a final rule to strengthen the ozone health standard to improve public health protection by October 1, 2015.

C.  Clarifying Permitting Requirements

On August 18, 2015, EPA also issued two proposals to clarify and streamline permitting requirements in states and in Indian Country.

First, EPA issued a proposed Source Determination Rule that seeks broad public comment on two options to clarify the agency’s air permitting rules as they apply to the oil and natural gas industry. Specifically, EPA is requesting comment on how to define the term “adjacent,” which is one of three factors used to determine whether oil and gas equipment and activities are considered part of a source that is subject to major source permitting requirements under the Clean Air Act’s air permitting programs.

Second, EPA announced a proposed federal implementation plan (FIP) to implement the Minor New Source Review (NSR) program in Indian Country for oil and natural gas production. EPA highlights that the proposed plan would limit emissions of harmful air pollution while making the preconstruction permitting process more efficient for this rapidly growing industry.


Since EPA’s proposals would be the first federal rules to regulate methane emissions in the oil and natural gas sector, we expect industry participants to take a close look as to how these rules will affect their operations. 

Further, EPA and other federal agencies are expected to issue more regulations related to methane reductions in the near future. For example, it is expected that the Department of Interior’s Bureau of Land Management and the Department of Energy also will issue rules to curtail methane emissions.

Sutherland will continue to monitor the implementation and pending litigation of these new federal regulations and report on them.


Source: Table, Sources covered by the 2012 NSPS for VOCs and the 2015 Proposed NSPS for Methane and VOCs, by site, available at: http://www.epa.gov/airquality/oilandgas/pdfs/og_table_081815.pdf

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Eversheds Sutherland (US) LLP | Attorney Advertising

Written by:

Eversheds Sutherland (US) LLP

Eversheds Sutherland (US) LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide

JD Supra Privacy Policy

Updated: May 25, 2018:

JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.

This Privacy Policy describes how JD Supra, LLC ("JD Supra" or "we," "us," or "our") collects, uses and shares personal data collected from visitors to our website (located at www.jdsupra.com) (our "Website") who view only publicly-available content as well as subscribers to our services (such as our email digests or author tools)(our "Services"). By using our Website and registering for one of our Services, you are agreeing to the terms of this Privacy Policy.

Please note that if you subscribe to one of our Services, you can make choices about how we collect, use and share your information through our Privacy Center under the "My Account" dashboard (available if you are logged into your JD Supra account).

Collection of Information

Registration Information. When you register with JD Supra for our Website and Services, either as an author or as a subscriber, you will be asked to provide identifying information to create your JD Supra account ("Registration Data"), such as your:

  • Email
  • First Name
  • Last Name
  • Company Name
  • Company Industry
  • Title
  • Country

Other Information: We also collect other information you may voluntarily provide. This may include content you provide for publication. We may also receive your communications with others through our Website and Services (such as contacting an author through our Website) or communications directly with us (such as through email, feedback or other forms or social media). If you are a subscribed user, we will also collect your user preferences, such as the types of articles you would like to read.

Information from third parties (such as, from your employer or LinkedIn): We may also receive information about you from third party sources. For example, your employer may provide your information to us, such as in connection with an article submitted by your employer for publication. If you choose to use LinkedIn to subscribe to our Website and Services, we also collect information related to your LinkedIn account and profile.

Your interactions with our Website and Services: As is true of most websites, we gather certain information automatically. This information includes IP addresses, browser type, Internet service provider (ISP), referring/exit pages, operating system, date/time stamp and clickstream data. We use this information to analyze trends, to administer the Website and our Services, to improve the content and performance of our Website and Services, and to track users' movements around the site. We may also link this automatically-collected data to personal information, for example, to inform authors about who has read their articles. Some of this data is collected through information sent by your web browser. We also use cookies and other tracking technologies to collect this information. To learn more about cookies and other tracking technologies that JD Supra may use on our Website and Services please see our "Cookies Guide" page.

How do we use this information?

We use the information and data we collect principally in order to provide our Website and Services. More specifically, we may use your personal information to:

  • Operate our Website and Services and publish content;
  • Distribute content to you in accordance with your preferences as well as to provide other notifications to you (for example, updates about our policies and terms);
  • Measure readership and usage of the Website and Services;
  • Communicate with you regarding your questions and requests;
  • Authenticate users and to provide for the safety and security of our Website and Services;
  • Conduct research and similar activities to improve our Website and Services; and
  • Comply with our legal and regulatory responsibilities and to enforce our rights.

How is your information shared?

  • Content and other public information (such as an author profile) is shared on our Website and Services, including via email digests and social media feeds, and is accessible to the general public.
  • If you choose to use our Website and Services to communicate directly with a company or individual, such communication may be shared accordingly.
  • Readership information is provided to publishing law firms and authors of content to give them insight into their readership and to help them to improve their content.
  • Our Website may offer you the opportunity to share information through our Website, such as through Facebook's "Like" or Twitter's "Tweet" button. We offer this functionality to help generate interest in our Website and content and to permit you to recommend content to your contacts. You should be aware that sharing through such functionality may result in information being collected by the applicable social media network and possibly being made publicly available (for example, through a search engine). Any such information collection would be subject to such third party social media network's privacy policy.
  • Your information may also be shared to parties who support our business, such as professional advisors as well as web-hosting providers, analytics providers and other information technology providers.
  • Any court, governmental authority, law enforcement agency or other third party where we believe disclosure is necessary to comply with a legal or regulatory obligation, or otherwise to protect our rights, the rights of any third party or individuals' personal safety, or to detect, prevent, or otherwise address fraud, security or safety issues.
  • To our affiliated entities and in connection with the sale, assignment or other transfer of our company or our business.

How We Protect Your Information

JD Supra takes reasonable and appropriate precautions to insure that user information is protected from loss, misuse and unauthorized access, disclosure, alteration and destruction. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. You should keep in mind that no Internet transmission is ever 100% secure or error-free. Where you use log-in credentials (usernames, passwords) on our Website, please remember that it is your responsibility to safeguard them. If you believe that your log-in credentials have been compromised, please contact us at privacy@jdsupra.com.

Children's Information

Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.

Links to Other Websites

Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.

Information for EU and Swiss Residents

JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.

  • Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.
  • Your Rights
    • Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.
    • Right to Correct Information: You may ask that we make corrections to any information we hold, if you believe such correction to be necessary.
    • Right to Restrict Our Processing or Erasure of Information: You also have the right in certain circumstances to ask us to restrict processing of your personal information or to erase your personal information. Where you have consented to our use of your personal information, you can withdraw your consent at any time.

You can make a request to exercise any of these rights by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

  • Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.
  • Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.

California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

For non-EU/Swiss residents, if you would like to know what personal information we have about you, you can send an e-mail to privacy@jdsupra.com. We will be in contact with you (by mail or otherwise) to verify your identity and provide you the information you request. We will respond within 30 days to your request for access to your personal information. In some cases, we may not be able to remove your personal information, in which case we will let you know if we are unable to do so and why. If you would like to correct or update your personal information, you can manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard. If you would like to delete your account or remove your information from our Website and Services, send an e-mail to privacy@jdsupra.com.

Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

If you have any questions about this Privacy Policy, the practices of this site, your dealings with our Website or Services, or if you would like to change any of the information you have provided to us, please contact us at: privacy@jdsupra.com.

JD Supra Cookie Guide

As with many websites, JD Supra's website (located at www.jdsupra.com) (our "Website") and our services (such as our email article digests)(our "Services") use a standard technology called a "cookie" and other similar technologies (such as, pixels and web beacons), which are small data files that are transferred to your computer when you use our Website and Services. These technologies automatically identify your browser whenever you interact with our Website and Services.

How We Use Cookies and Other Tracking Technologies

We use cookies and other tracking technologies to:

  1. Improve the user experience on our Website and Services;
  2. Store the authorization token that users receive when they login to the private areas of our Website. This token is specific to a user's login session and requires a valid username and password to obtain. It is required to access the user's profile information, subscriptions, and analytics;
  3. Track anonymous site usage; and
  4. Permit connectivity with social media networks to permit content sharing.

There are different types of cookies and other technologies used our Website, notably:

  • "Session cookies" - These cookies only last as long as your online session, and disappear from your computer or device when you close your browser (like Internet Explorer, Google Chrome or Safari).
  • "Persistent cookies" - These cookies stay on your computer or device after your browser has been closed and last for a time specified in the cookie. We use persistent cookies when we need to know who you are for more than one browsing session. For example, we use them to remember your preferences for the next time you visit.
  • "Web Beacons/Pixels" - Some of our web pages and emails may also contain small electronic images known as web beacons, clear GIFs or single-pixel GIFs. These images are placed on a web page or email and typically work in conjunction with cookies to collect data. We use these images to identify our users and user behavior, such as counting the number of users who have visited a web page or acted upon one of our email digests.

JD Supra Cookies. We place our own cookies on your computer to track certain information about you while you are using our Website and Services. For example, we place a session cookie on your computer each time you visit our Website. We use these cookies to allow you to log-in to your subscriber account. In addition, through these cookies we are able to collect information about how you use the Website, including what browser you may be using, your IP address, and the URL address you came from upon visiting our Website and the URL you next visit (even if those URLs are not on our Website). We also utilize email web beacons to monitor whether our emails are being delivered and read. We also use these tools to help deliver reader analytics to our authors to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

Analytics/Performance Cookies. JD Supra also uses the following analytic tools to help us analyze the performance of our Website and Services as well as how visitors use our Website and Services:

  • HubSpot - For more information about HubSpot cookies, please visit legal.hubspot.com/privacy-policy.
  • New Relic - For more information on New Relic cookies, please visit www.newrelic.com/privacy.
  • Google Analytics - For more information on Google Analytics cookies, visit www.google.com/policies. To opt-out of being tracked by Google Analytics across all websites visit http://tools.google.com/dlpage/gaoptout. This will allow you to download and install a Google Analytics cookie-free web browser.

Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit http://www.aboutcookies.org which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at: privacy@jdsupra.com.

- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.