A recent ruling by U.S. District Judge Daniel Traynor in North Dakota has halted a new Biden administration rule that aimed to curb the venting and flaring of natural gas at oil wells. The judge issued a temporary block on the rule, citing that at this initial stage, the plaintiffs, including North Dakota, Montana, Texas, Wyoming, and Utah, have demonstrated a likelihood of succeeding in their argument that the rule is arbitrary and capricious.
The legal challenge against the rule asserts that it would impede oil and gas production and alleges that the Bureau of Land Management of the Interior Department is exceeding its regulatory authority concerning non-federal minerals and air pollution. The Bureau of Land Management contends that the rule is designed to diminish gas wastage, potentially resulting in more than $50 million in additional payments to royalty owners if enforced.
Judge Traynor critiqued the rule as merely adding another federal regulatory layer on top of existing regulations. Natural gas is often a byproduct of oil extraction and is typically vented or flared due to its lower profitability compared to oil, unless specific equipment is in place to capture it. Methane, a primary component of natural gas, is considered a potent climate pollutant, being more impactful in the short term than carbon dioxide.
While North Dakota’s well operators have notably reduced flaring rates in recent years, they still hover around 5%. Achieving further reductions necessitates the implementation of infrastructure for capturing, transporting, and utilizing the gas. Politicians in North Dakota have applauded the court’s decision, with State Attorney General Drew Wrigley criticizing the Biden-Harris administration for what he perceives as excessive regulatory actions that could undermine the state’s energy production capabilities. The Bureau of Land Management has opted not to comment on the ruling.
