EPA proposes letting new oil wells flare associated gas rather than pipe it to sales lines

EPA proposes letting new oil wells flare associated gas rather than pipe it to sales lines

The Environmental Protection Agency on Thursday proposed ending its requirement that new oil wells capture associated gas, the natural gas that comes up with the oil, by sending it to a sales pipeline, using it on site or reinjecting it. Operators could instead route that gas to a flare or control device that cuts emissions by at least 95%.

The requirement comes from a rule EPA finalized in March 2024 that phased out routine flaring at new oil wells. Wells that began construction after that rule took effect on May 7, 2024, got two years to adjust. Since May 7, they have not been allowed to flare routinely, even with a certification that none of the capture options is technically feasible.

The proposed rule would make 95% control the standard, and at low-producing well sites only where that gas carries 20 tons or more of methane a year. It would cover new, modified and reconstructed wells, and existing wells through EPA's guidelines for state plans. Sales lines and other uses would still count, as long as any leftover gas meets the 95% standard. The associated gas change is one part of a broader proposal that would also end EPA's Super Emitter Program and revise other 2024 requirements.

The 2024 rule assumed new wells would sit within 50 miles of existing infrastructure, according to EPA. The agency now says compliance hinged on pipeline companies the rule does not regulate, which many well operators do not own and cannot compel to expand. EPA also said it likely overstated the emission cuts, because many operators kept flaring under the rule's exceptions, and underestimated costs.

The proposal cites wells in undeveloped areas 25 miles or more from any gathering line, where no pipeline company will build until enough wells justify the cost.

Operators made a similar case to EPA's deputy administrator at the Resource Development Council's annual luncheon in Anchorage in June, as Alaska News reported then. The official said operators had cited downstream outages, sudden surges beyond capacity and a lack of infrastructure, according to a recording of that meeting.

North Slope producers already reinject large volumes of associated gas. "So every day in Hilcorp-operated fields, we handle, compress, and re-inject 9 billion cubic feet of gas," Luke Saugier, a senior vice president of Hilcorp Alaska, told the Alaska State House Finance Committee on May 29.

Comments are due Dec. 16. The notice lists conflicting dates for the virtual public hearing: the DATES section sets it for Nov. 13, while the supplementary information section sets it for Nov. 16.