On March 15, the Environmental Quality Board voted 17 to 2 to approve the final regulation reducing VOC/methane emissions from oil and natural gas operations.

Representatives of the conventional oil and gas industry voted against the regulation.  A representative of the unconventional shale gas industry voted for the regulation.

This regulation, which is a key part of DEP’s strategy to reduce greenhouse gas emissions in the Commonwealth, has been in development since early 2019.

This regulation adopts reasonably available control technology requirements and RACT emission limits for oil and natural gas sources of volatile organic compounds.  By reducing VOC emissions, methane emissions are also reduced as a co-benefit.

The new regulations would require oil and gas operators that produce above a certain threshold to use leak detection and repair (LDAR) equipment to identify (and fix) leaks, as well as use other equipment designed to reduce emissions.

The Department identified 5,039 owners or operators of approximately 31,149 facilities in this Commonwealth which may be affected by this final-form rulemaking. Approximately 3,834 of the 5,039 owners or operators may meet the definition of small business.

The Department estimates there are 30,648 well sites, 486 gathering and boosting stations, 15 processing plants, and 121 transmission stations.

The Department estimates that these owners or operators have at least 51 storage vessels at 18 facilities, 34,856 pneumatic controllers at 31,134 facilities, and 40 pneumatic pumps at 17 facilities will be subject to requirements under this final-form rulemaking.

The owners or operators of approximately 2,711 of 30,648 well sites will be required to implement instrument- based LDAR inspections or increase the current instrument-based LDAR inspection frequency under this final-form rulemaking.

The owners or operators of approximately 263 of 486 gathering and boosting stations and 1 of 15 processing plants will be required to implement a new instrument-based LDAR inspection program or will be subject to new requirements under this final-form rulemaking.

DEP's Air Quality Technical Advisory Committee, Citizens Advisory Council and Small Business Compliance Advisory Council were consulted in the development of this regulation at the proposed and final stage.

Click Here for copies of handouts related to this final regulation.

Opposition

Glendon King, the alternate for Rep. Daryl Metcalfe (R-Butler), expressed a concern DEP did not follow the provisions of Act 52 of 2016 which requires the EQB to adopt separate rulemakings covering conventional oil and gas wells.

DEP replied it does not believe Act 52 applies to this rulemaking because it is being promulgated under the state Air Pollution Control Act not the Oil and Gas Act, which is the subject of Act 52.

King voted no on the regulation because of the applicability of Act 52.

Nick Troutman, the alternate for Sen. Gene Yaw (R-Lycoming), also voted no.

Both Rep. Metcalfe and Sen. Yaw have supported legislation rolling back environmental protection standards for conventional oil and gas operators.

Supporting

James Welty, a representative of the Marcellus Shale Coalition who sits on the EQB as a member of DEP’s Citizens Advisory Council, voted to support the final regulation, however, he expressed a concern DEP’s Comment/Response Document failed to allow commenters to find specifically how their comments were responded to by DEP by indexing the commenters to the comments.

Petition To Increase Oil & Gas Well Bonding

DEP said it is still evaluating the rulemaking petitions proposing to increase bonding amounts for conventional and unconventional oil and gas wells.  Read more here.

Next Meeting

The next meeting of the EQB is May 18.  The April 19 meeting is canceled.

For available handouts and more information, visit the Environmental Quality Board webpage. Questions should be directed to Laura Griffin, Regulatory Coordinator,  laurgriffi@pa.gov, 717-772-3277.

[Posted: March 15, 2022]

3/21/2022