Methane Waste Prevention Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 2711 To amend the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.) to require the Secretary of the Interior to issue regulations to reduce and prevent gas waste and to enhance gas meas- uring and reporting, to codify a final rule of the Environmental Protec- tion Agency regarding certain emission standards for the oil and natural gas sector, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 14, 2019 Ms. DEGETTE (for herself, Mr. GRIJALVA, Mr. LOWENTHAL, Ms. HAALAND, and Mr. LUJA´N) introduced the following bill; which was referred to the Committee on Natural Resources, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.) to require the Secretary of the Interior to issue regulations to reduce and prevent gas waste and to enhance gas measuring and reporting, to codify a final rule of the Environmental Protection Agency regarding certain emission standards for the oil and natural gas sector, and for other pur- poses. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 19:40 May 25, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2711.IH H2711 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 2711 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Methane Waste Pre- 2 vention Act of 2019’’. 3 SEC. 2. CODIFICATION OF FINAL RULE. 4 The amendments to the Code of Federal Regulations 5 made pursuant to the final rule of the Environmental Pro- 6 tection Agency, titled ‘‘Oil and Natural Gas Sector: Emis- 7 sion Standards for New, Reconstructed, and Modified 8 Sources’’ and published in the Federal Register on June 9 3, 2016 (81 Fed. Reg. 35824), shall have the same force 10 and effect of law as if such amendments had been enacted 11 by an Act of Congress, except that the Administrator of 12 the Environmental Protection Agency may revise such reg- 13 ulations, as provided for under the Clean Air Act, if such 14 revision would result in a reduction in gas release. 15 SEC. 3. GAS WASTE REDUCTION AND ENHANCEMENT OF 16 GAS MEASURING AND REPORTING. 17 (a) IN GENERAL.—Title I of the Federal Oil and Gas 18 Royalty Management Act of 1982 (30 U.S.C. 1711 et 19 seq.) is amended by adding at the end the following: 20 ‘‘SEC. 118. GAS WASTE REDUCTION AND ENHANCEMENT OF 21 GAS MEASURING AND REPORTING. 22 ‘‘(a) REGULATIONS FOR PREVENTING AND REDUC- 23 ING WASTE OF GAS VIA VENTING, FLARING, AND FUGI- 24 TIVE RELEASES.— 25 VerDate Sep 11 2014 21:18 May 28, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2711.IH H2711 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 2711 IH ‘‘(1) REQUIREMENT TO ISSUE REGULATIONS.— 1 Not later than 2 years after the date of enactment 2 of the Methane Waste Prevention Act of 2019, the 3 Secretary shall issue regulations pursuant to the 4 Secretary’s authority under the Mineral Leasing 5 Act, the Federal Land Policy and Management Act 6 of 1976, the Indian Mineral Leasing Act of 1938, 7 and other statutes authorizing the Secretary to regu- 8 late oil and gas activities on Federal land and In- 9 dian lands, that establish requirements for reducing 10 and preventing the waste of gas, including by vent- 11 ing, flaring, and fugitive releases, from covered oper- 12 ations. 13 ‘‘(2) CONTENT OF REGULATIONS.—The regula- 14 tions shall, with respect to covered operations— 15 ‘‘(A) require that, beginning not later than 16 3 years after the date of enactment of the 17 Methane Waste Prevention Act of 2019, each 18 operator captures at least 85 percent of all gas 19 produced in each year from each onshore well 20 that is subject to a mineral leasing law; 21 ‘‘(B) require that, beginning not later than 22 5 years after the date of enactment of the 23 Methane Waste Prevention Act of 2019, each 24 operator captures at least 99 percent of all gas 25 VerDate Sep 11 2014 19:40 May 25, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2711.IH H2711 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 2711 IH produced in each year from each onshore well 1 that is subject to a mineral leasing law; 2 ‘‘(C) require flaring of gas, rather than 3 venting, in all instances in which gas is not cap- 4 tured; 5 ‘‘(D) require that every application for a 6 permit to drill a production well— 7 ‘‘(i) demonstrate sufficient infrastruc- 8 ture and capacity is in place to capture the 9 expected quantity of produced gas from the 10 well; and 11 ‘‘(ii) be published with an opportunity 12 for a public comment period of at least 30 13 days; 14 ‘‘(E) beginning not later than 2 years after 15 the date of enactment of the Methane Waste 16 Prevention Act of 2019, prohibit all new and 17 refractured production wells from flaring; 18 ‘‘(F) require the operator of any covered 19 operation that routinely flares gas before the ef- 20 fective date of a regulation prohibiting flaring 21 issued pursuant to subparagraph (E) to submit 22 a gas capture plan to the Secretary not later 23 than 180 days before such effective date that 24 ensures that such operator will meet the re- 25 VerDate Sep 11 2014 19:40 May 25, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2711.IH H2711 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 2711 IH quirements described in subparagraphs (A) and 1 (B); 2 ‘‘(G) set performance standards for newly 3 installed equipment based on modern equipment 4 that minimize gas loss from— 5 ‘‘(i) storage tanks; 6 ‘‘(ii) dehydrators; 7 ‘‘(iii) compressors; 8 ‘‘(iv) open-ended valves or lines; 9 ‘‘(v) pumps; and 10 ‘‘(vi) such other equipment as the 11 Secretary determines appropriate to reduce 12 and prevent gas release; 13 ‘‘(H) require that operators replace exist- 14 ing equipment within one year of the publica- 15 tion date of performance standards established 16 under subsection (G); 17 ‘‘(I) require the replacement of all high- 18 bleed gas-actuated pneumatic devices with low- 19 bleed or no-bleed devices not later than 180 20 days after the date of issuance of the regulation 21 enacted under subparagraph (A); 22 ‘‘(J) set performance standards based on 23 modern procedures and equipment that mini- 24 mize gas loss from— 25 VerDate Sep 11 2014 19:40 May 25, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2711.IH H2711 pamtmann on DSKBFK8HB2PROD with BILLS 6 •HR 2711 IH ‘‘(i) downhole maintenance; 1 ‘‘(ii) liquids unloading; 2 ‘‘(iii) well completion; and 3 ‘‘(iv) such other procedures as the 4 Secretary determines appropriate to reduce 5 and prevent gas release; 6 ‘‘(K) require all operators to have leak de- 7 tection programs with regularly scheduled in- 8 spections that assess the entire covered oper- 9 ation using an infrared camera or other equip- 10 ment with methods that provide overall at least 11 equivalent sensitivity and effectiveness in de- 12 tecting leaks on a timely basis; 13 ‘‘(L) require any leaks found to be re- 14 paired promptly, and in any case not later than 15 4 weeks after the discovery of the leak, except 16 where exceptional circumstances warrant an ex- 17 tension of not more than 8 additional weeks; 18 and 19 ‘‘(M) require recordkeeping for— 20 ‘‘(i) equipment maintenance; 21 ‘‘(ii) leak detection and repair; 22 ‘‘(iii) venting events; 23 ‘‘(iv) flaring events; and 24 VerDate Sep 11 2014 19:40 May 25, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2711.IH H2711 pamtmann on DSKBFK8HB2PROD with BILLS 7 •HR 2711 IH ‘‘(v) such other operations as the Sec- 1 retary determines appropriate to reduce 2 and prevent gas release. 3 ‘‘(b) GAS MEASURING, REPORTING, AND TRANS- 4 PARENCY REQUIREMENTS.— 5 ‘‘(1) IN GENERAL.—The Secretary shall, not 6 later than one year after the date of enactment of 7 the Methane Waste Prevention Act of 2019, issue 8 regulations requiring each operator to measure and 9 report, with respect to all gas subject to the mineral 10 leasing laws, all such gas produced, consumed on 11 site, or lost through venting, flaring, or fugitive re- 12 leases. 13 ‘‘(2) MEASURING AND REPORTING REQUIRE- 14 MENTS.—To account for all gas referred to in para- 15 graph (1), the Secretary shall issue regulations re- 16 quiring each operator to— 17 ‘‘(A) measure all production and disposi- 18 tion of gas with such accuracy that fugitive gas 19 releases can be calculated; 20 ‘‘(B) install metering devices to measure 21 all flared gas; and 22 ‘‘(C) report to the Secretary the volumes of 23 gas measured under the requirements described 24 in subparagraph (A), including— 25 VerDate Sep 11 2014 19:40 May 25, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2711.IH H2711 pamtmann on DSKBFK8HB2PROD with BILLS 8 •HR 2711 IH ‘‘(i) all new measured values for pro- 1 duction and disposition, including vented 2 and flared volumes; and 3 ‘‘(ii) values for fugitive releases based 4 on guidelines for their calculation estab- 5 lished by the Secretary in such regulations. 6 ‘‘(3) TRANSPARENCY.—The Secretary shall 7 make all new data produced under the requirements 8 established by the Secretary under this subsection, 9 including calculated fugitive releases and volumes of 10 gas lost to venting and flaring, publicly available 11 through the internet— 12 ‘‘(A) without a fee or other access charge; 13 ‘‘(B) in a searchable, sortable, and 14 downloadable manner, to the extent technically 15 possible; and 16 ‘‘(C) as soon as technically practicable 17 after the report by the operator is filed. 18 ‘‘(c) APPLICATION.—Except as otherwise specified in 19 this section, the requirements established by the Secretary 20 under this section shall apply to— 21 ‘‘(1) the construction and operation of any cov- 22 ered operation initiated, including the refracturing of 23 existing wells, on or after the date of the issuance 24 of regulations under this section; and 25 VerDate Sep 11 2014 21:18 May 28, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2711.IH H2711 pamtmann on DSKBFK8HB2PROD with BILLS 9 •HR 2711 IH existing wells, on or after the date of the issuance 1 of regulations under this section; and 2 ‘‘(2) after the end of the 1-year period begin- 3 ning on the date of the issuance of such regulations, 4 any covered operation initiated before the date of the 5 issuance of such regulations. 6 ‘‘(d) ENFORCEMENT MECHANISMS.— 7 ‘‘(1) IN GENERAL.—The Secretary shall include 8 in the regulations issued under this section con- 9 sistent enforcement mechanisms for covered oper- 10 ations that are not in compliance with the require- 11 ments established by the regulations. 12 ‘‘(2) REQUIREMENTS.—The Secretary shall in- 13 clude in the enforcement mechanisms described in 14 paragraph (1)— 15 ‘‘(A) civil penalties for unauthorized vent- 16 ing and flaring, which shall— 17 ‘‘(i) apply in lieu of the penalties and 18 related provisions under section 109; and 19 ‘‘(ii) include production restrictions 20 and civil monetary penalties equivalent to 21 3 times the market value of the vented or 22 flared gas; and 23 VerDate Sep 11 2014 19:40 May 25, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2711.IH H2711 pamtmann on DSKBFK8HB2PROD with BILLS 10 •HR 2711 IH ‘‘(B) civil penalties that apply to non- 1 compliance with other new or existing proce- 2 dures, which shall— 3 ‘‘(i) apply in addition to or in lieu of 4 the penalties and related provisions under 5 section 109; 6 ‘‘(ii) include production restrictions or 7 monetary penalties, or both; and 8 ‘‘(iii) in the case of monetary pen- 9 alties, be proportional to market condi- 10 tions. 11 ‘‘(e) DEFINITIONS.—In this section: 12 ‘‘(1) CAPTURE.—The term ‘capture’ means the 13 physical containment of natural gas for transpor- 14 tation to market or productive use of natural gas, 15 and includes reinjection and royalty-free on-site 16 uses. 17 ‘‘(2) COVERED OPERATIONS.—The term ‘cov- 18 ered operations’ means all oil and gas operations 19 that are subject to mineral leasing law or title V of 20 the Federal Land Policy and Management Act of 21 1976 (30 U.S.C. 1761 et seq.), regardless of size, in- 22 cluding production, storage, gathering, processing, 23 and handling operations. 24 VerDate Sep 11 2014 19:40 May 25, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2711.IH H2711 pamtmann on DSKBFK8HB2PROD with BILLS 11 •HR 2711 IH ‘‘(3) FLARE AND FLARING.—The terms ‘flare’ 1 and ‘flaring’ mean the intentional and controlled 2 burning of gas that occurs in the course of oil and 3 gas operations to limit release of gas to the atmos- 4 phere. 5 ‘‘(4) FUGITIVE RELEASE.—The term ‘fugitive 6 release’ means the unintentional and uncontrolled 7 release of gas into the atmosphere in the course of 8 oil and gas operations. 9 ‘‘(5) GAS CAPTURE PLAN.—The term ‘gas cap- 10 ture plan’ means a plan that includes specific goals, 11 including equipment and timelines, for capturing, 12 gathering, and processing gas produced under an oil 13 or gas lease. 14 ‘‘(6) GAS RELEASE.—The term ‘gas release’ in- 15 cludes all gas that is discharged to the atmosphere 16 via venting or fugitive release. 17 ‘‘(7) VENT AND VENTING.—The terms ‘vent’ 18 and ‘venting’ mean the intentional and controlled re- 19 lease of gas into the atmosphere in the course of oil 20 and gas operations.’’. 21 (b) CLERICAL AMENDMENT.—The table of contents 22 in section 1 of such Act is amended by inserting after the 23 item relating to section 117 the following: 24 ‘‘Sec. 118. Gas waste reduction and enhancement of gas measuring and report- ing.’’. VerDate Sep 11 2014 19:40 May 25, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6211 E:\BILLS\H2711.IH H2711 pamtmann on DSKBFK8HB2PROD with BILLS 12 •HR 2711 IH (c) UPDATES.—The Secretary of the Interior shall 1 update the regulations required by the amendments made 2 by this section when the Secretary determines appropriate, 3 but no less frequently than once every ten years, to reflect 4 new information regarding gas waste, the impacts of that 5 waste, and the availability of technologies and perform- 6 ance measures to reduce gas waste. 7 (d) APPLICATION OF PRIOR RULE.—The final rule 8 entitled ‘‘Waste Prevention, Production Subject to Royal- 9 ties, and Resource Conservation’’, as published in the Fed- 10 eral Register November 18, 2016 (81 Fed. Reg. 83008), 11 is hereby reinstated, and each of its provisions shall apply 12 unless and until the effective date of a subsequent final 13 rule promulgated under the amendment made [Text truncated for display. Full text available on Congress.gov.]