EPA to hit oil and gas companies with 'methane fee' for drilling waste — but will it last?

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Methane,EPA

Oil and natural gas companies will have to pay a federal fee if they emit methane above certain levels under a rule being finalized by the Biden administration that incoming Trump officials are likely to reverse.

Washington — Oil and natural gas companies for the first time will have to pay a federal fee if they emit dangerous methane above certain levels under a rule being made final by the Biden administration.The Environmental Protection Agency rule follows through on a directive from Congress included in the 2022 climate law. The new fee is intended to encourage industry to adopt best practices that reduce emissions of methane - the primary component of natural gas - and thereby avoid paying.

The fee, formally known as the Waste Emissions Charge, will encourage early deployment of available technologies to reduce methane emissions and other harmful air pollutants, Regan said. The fee 'is the latest in a series of actions under President Biden's methane strategy to improve efficiency in the oil and gas sector, support American jobs, protect clean air and reinforce U.S. leadership on the global stage,' he said.

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