FILE - A flare burns natural gas at an oil well in Watford City, N.D., Aug. 26, 2021. 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.Methane is a climate “super pollutant” that is far more potent in the short term than carbon dioxide and is responsible for about one-third of greenhouse gas emissions.
As outlined by the EPA, excess methane produced in 2024 could result in a fee of $900 per ton, with fees rising to $1,200 per ton in 2025 and $1,500 per ton by 2026. Industry groups are likely to challenge the rule, including any effort to impose a retroactive fee.new EPA rule on methane emissions imposed this year.
Many large oil and gas companies already meet or exceed methane-performance levels set by Congress under the climate law, meaning they are unlikely to be forced to pay the new fee, Regan and other officials said. Like the earlier methane rule, the new fee faces a near-certain legal challenge from industry groups. The American Petroleum Institute, the oil and gas industry’s largest lobbying group, called a fee proposed earlier this year a “punitive tax increase” that “undermines America’s energy advantage.’'
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