IPAA backs bill targeting methane rules for marginal wells
(WO) — The Independent Petroleum Association of America (IPAA) is supporting new legislation introduced by Senator Cynthia Lummis and Congressman August Pfluger aimed at easing emissions compliance requirements for low-production oil and gas wells.
The proposed “Protect Domestic Oil and Gas Small Business Act” would shift responsibility for developing performance standards for marginal wells from the federal government to individual states while maintaining broader EPA authority over industry emissions regulation.
According to IPAA, the measure is intended to address concerns that current federal methane and emissions regulations apply a one-size-fits-all framework that could make many marginal wells uneconomic to operate.
“Operating costs continue to rise, market conditions for oil and natural gas can be volatile, and changing presidential administrations create additional uncertainty,” said Edith Naegele, IPAA president and CEO. “This bill allows states to manage emissions from low production wells efficiently and effectively.”
Industry groups argue that low-production wells remain an important source of U.S. oil and gas supply while supporting jobs and tax revenues in rural producing regions.
IPAA said roughly 750,000 of the approximately one million active oil and gas wells in the U.S. qualify as low-production wells, collectively producing about 1 million bopd, or an estimated 7% to 10% of domestic oil output.
The legislation comes amid ongoing debate over methane regulations, operating costs and the long-term viability of mature and marginal U.S. oil and gas assets.
IPAA said it has advocated for a more tailored regulatory approach for marginal wells for more than a decade, arguing that lower-cost compliance frameworks are necessary to maintain production from aging assets while still addressing emissions objectives.
