EPA Issues Updated, Achievable Air Pollution Standards for Oil and Natural Gas
Half of fractured wells already deploy technologies in line with final standards, which slash harmful emissions while reducing cost of compliance
In response to a court deadline, the United States Environmental Protection Agency (USEPA) has finalized standards to reduce harmful air pollution associated with oil and natural gas production. The updated standards, required by the Clean Air Act, were informed by the important feedback from a range of stakeholders including the public, public health groups, states and industry. As a result, the final standards reduce implementation costs while also ensuring they are achievable and can be met by relying on proven, cost-effective technologies as well as processes already in use at approximately half of the fractured natural gas wells in the United States. These technologies will not only reduce 95 percent of the harmful emissions from these wells that contribute to smog and lead to health impacts, they will also enable companies to collect additional natural gas that can be sold. Natural gas is a key component of the nation’s clean energy future and the standards released today make sure that we can continue to expand production of this important domestic resource while reducing impacts to public health, and most importantly builds on steps already being taken by industry leaders.
“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 USEPA Administrator Lisa P. Jackson. “By ensuring the capture of gases that were previously released to pollute our air and threaten our climate, these updated standards will not only protect our health, but also lead to more product for fuel suppliers to bring to market. They’re an important step toward tapping future energy supplies without exposing American families and children to dangerous health threats in the air they breathe.”
When natural gas is produced, some of the gas escapes the well and may not be captured by the producing company. These gases can pollute the air and as a result threaten public health. Consistent with states that have already put in place similar requirements, the updated USEPA standards released today include the first federal air rules for natural gas wells that are hydraulically fractured, specifically requiring operators of new fractured natural gas wells to use cost-effective technologies and practices to capture natural gas that might otherwise escape the well, which can subsequently be sold. USEPA’s analysis of the final rules shows that they are highly cost-effective, relying on widely available technologies and practices already deployed at approximately half of all fractured wells, and consistent with steps industry is already taking in many cases to capture additional natural gas for sale, offsetting the cost of compliance. Together these rules will result in $11 to $19 million in savings for industry each year. In addition to cutting pollution at the wellhead, USEPA’s final standards also address emissions from storage tanks and other equipment.
Also in line with the executive order released by the president last week on natural gas development, the rule released today received important interagency feedback and provides industry flexibilities. Based on new data provided during the public comment period, the final rule establishes a phase-in period that will ensure emissions reduction technology is broadly available. During the first phase, until January 2015, owners and operators must either flare their emissions or use emissions reduction technology called “green completions,” technologies that are already widely deployed at wells. In 2015, all new fractured wells will 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.
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 a significant 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.
During the nearly 100-day public comment period, the agency received more than 150,000 comments on the proposed rules from the public, industry, environmental groups and states. The agency also held three public hearings. The updated standards were informed by the important feedback received through the public comment period, reducing implementation cost and ensuring the achievable standard can be met by relying on proven, cost-effective technologies and processes already in use.
More information: http://www.epa.gov/airquality/oilandgas
EPA Releases Draft Permitting Guidance for Using Diesel Fuel in Oil and Gas Hydraulic Fracturing
Guidance will clarify means of compliance with 2005 Amendments to the Safe Drinking Water Act
The USEPA released draft underground injection control (UIC) program permitting guidance for class II wells that use diesel fuels during hydraulic fracturing activities. USEPA developed the draft guidance to clarify how companies can comply with a law passed by Congress in 2005, which exempted hydraulic fracturing operations from the requirement to obtain a UIC permit, except in cases where diesel fuel is used as a fracturing fluid.
The draft guidance outlines for USEPA permit writers, where USEPA is the permitting authority, requirements for diesel fuels used for hydraulic fracturing wells, technical recommendations for permitting those wells, and a description of diesel fuels for USEPA underground injection control permitting. The draft guidance describes diesel fuels for these purposes by reference to six chemical abstract services registry numbers. The agency is requesting input on this description.
While this guidance undergoes public notice and comment, decisions about permitting hydraulic fracturing operations that use diesel fuels will be made on a case-by-case basis, considering the facts and circumstances of the specific injection activity and applicable statutes, regulations and case law, and will not cite this draft guidance as a basis for decision.
USEPA continues to work with states, industry and other stakeholders to help ensure that natural gas is developed safely and responsibly.
USEPA will take public comment on the draft guidance for 60 days upon publication in the Federal Register to allow for stakeholder input before it is finalized.