IRRC Unanimously Approves Part I Of Final Reg. Reducing VOC/Methane Emissions From Unconventional Shale Gas Facilities; DEP Moves To Avoid Federal Highway Funding Sanctions

On July 21, the Independent Regulatory Review Commission voted unanimously 5 to 0 to approve Part I of final Environmental Quality Board regulations reducing volatile organic compounds and methane emissions from unconventional (shale gas) wells and facilities. 

The provisions of an earlier final regulation were changed to remove requirements covering conventional, low-producing, oil and gas wells and resubmitted to the IRRC as Part I of the final rule.

Several DEP officials have said the agency plans to submit Part II of the regulation covering conventional, low-producing, oil and gas wells to the Environmental Quality Board for action “soon.”

Krishnan Ramamurthy, DEP Deputy Secretary for Waste, Air, Radiation and Remediation, told the EQB in order to have a complete SIP [State Implementation Plan] revision meeting the mandatory requirements of EPA, Pennsylvania must cover both conventional and unconventional oil and gas facilities sources. 

The Preamble to the revised rulemaking says “... the Department will develop a separate rulemaking for the RACT requirements for sources of VOC emissions installed at conventional well sites” since the regulations covering oil and gas facilities are being promulgated to attain both the federal 2008 and 2015 ozone standard.

“Once promulgated, the separate rulemaking for sources of VOC emissions installed at conventional well sites will also be submitted as a SIP [State Implementation Plan] revision.

“The Department is working toward completing both submittals by December 16, 2022, to avoid the Federal Highway sanctions.”

Background - Emissions Reductions

Because conventional wells were removed, the regulation only results in reducing methane emissions by 20 percent and volatile organic compound emissions by 24 percent of the original combined regulation covering unconventional and conventional oil and gas facilities.

DEP’s Regulatory Analysis Forms in March and the one given to the EQB for the June meeting show these anticipated reductions in emissions--

-- Volatile Organic Compound Reductions--

-- Conventional-- 9,136 tons

-- Unconventional (shale gas)-- 2,864 tons

-- Methane Reductions--

-- Conventional-- 175,788 tons

-- Unconventional (shale gas)-- 45,278 tons

Because DEP separated the regulation, it was the first time they documented how significant the volume of methane and volatile organic compound emission reductions from conventional oil and gas facilities are under the same requirements.

Krishnan Ramamurthy, DEP Deputy Secretary for Waste, Air, Radiation and Remediation, explained it this way--  “Conventional wells [were] pretty much exempted from any permitting requirements, regulatory requirements.  For the first time we are addressing those.  That’s why you have a higher baseline emissions being computed.”

He noted unconventional (shale) gas emissions have been regulated by DEP under permit requirements, and that’s why their baseline emissions are much lower than conventional facilities.

Ramamurthy also said the final regulation does not change the substance of how Reasonably Available Control Technology requirements are set for unconventional and conventional oil and gas facilities.

It is applied equally to both, not making it a substantively different rulemaking.

Background - Procedural

The Board had adopted a final regulation on reducing VOC/methane emissions from both unconventional and conventional oil and gas facilities in March, however, DEP temporarily withdrew the regulation from the Independent Regulatory Review Commission in May.

An objection to that regulation was raised by the Republicans on the House Environmental Resources and Energy Committee questioning whether the regulation met the requirements of a 2016 law (Act 52) requiring separate regulations for conventional oil and gas operations.  Read more here.

The original final regulation did not distinguish between conventional and unconventional sources of emissions, but set a threshold above which oil and gas facility sources of VOCs/methane would be regulated.

In the executive summary of the revised regulation applying to only unconventional shale gas facilities DEP maintains “...Act 52 applies to rulemakings promulgated under title 58 Pa.C.S. Since this final-form rulemaking is being promulgated under the APCA [state Air Pollution Control Act] in Title 35, the requirements of Act 52 do not apply.

“Even so, the Board amended this final-form rulemaking to clarify that the control measures are only applicable to unconventional sources of VOC emissions.”

On July 11, Republicans on the House Environmental Resources and Energy Committee approved a letter to the IRRC saying they needed more time to review the final regulation.  Read more  here.

The Senate Environmental Resources and Energy Committee will also have a chance to review the IRRC approval.

Related Articles:

-- Gov. Wolf, Senate, House Republicans Again Fail To Hold Conventional Oil & Gas Drillers Accountable For Protecting The Environment, Taxpayers On Hook For Billions [PaEN]

-- DEP Concerned About Impact Of New Law Blocking Conventional Oil & Gas Well Bonding On New Federal Well Plugging Funds, Regulating Waste Injection Wells  [PaEN]

-- Sen. Yaw To Deny Counties Act 13 Drilling Impact Fee Revenue If They Make Only 99% Of Their Land Area Available For Shale Gas Development [PaEN]

[Posted: July 21, 2022]  PA Environment Digest