A federal judge in North Dakota temporarily blocked a new federal rule aimed to curb the waste of natural gas during fossil fuel drilling while a legal challenge brought by five states against the mandate is weighed.
The U.S. Dept. of the Interior’s Bureau of Land Management (BLM) published the “Waste Prevention, Production Subject to Royalties, and Resource Conservation” rule earlier this year that would require oil and gas lease operators to take steps to avoid waste, such as implementing leak repair and detection efforts leaks and limiting gas venting and flaring.
BLM officials say the percentage of natural gas lost to venting and flaring has more than doubled as the pace of oil and gas development on public land has expanded over the past several decades. The rule's limits on flaring would generate more than $50 million in royalties each year, according to the agency.
However, officials in North Dakota, Montana, Texas, Wyoming and Utah filed a lawsuit, alleging the rule is unlawful regulation of air emissions that would undermine their authority to regulate air quality within their borders and lead to economic harm from decreased oil and gas development.
“At this preliminary stage, the plaintiffs have shown they are likely to succeed on the merits of their claim the 2024 rule is arbitrary and capricious,” U.S. District Court Judge Daniel Traynor wrote in an order Sept. 12.
Added requirements in the rule for operators, such as the inclusion of a waste management plan when applying for drilling permits, “do nothing more than delay oil and gas production in the plaintiff states that have already worked out regulatory approval from the [U.S. Environmental Protection Agency],” Traynor wrote.
EPA published a separate rule in December and another in May aimed at reducing methane emissions and expanding reporting requirements. Those rules are also facing legal challenges from some state officials. The agencies have been targeting methane because it is a “super pollutant” hastening climate change, according to EPA officials.
The judge also denied BLM’s motion to move the suit to a federal court in Wyoming.
BLM officials did not immediately respond to an inquiry about the injunction.
“North Dakota is a leader in energy production, so it only makes sense that our state would lead the court challenge of the Biden administration’s unnecessary and duplicative methane rule, and this ruling is welcome progress in stopping the overregulation that is handcuffing our domestic energy producers,” said Sen. John Hoeven (R-N.D.) in a statement.