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U.S. Supreme Court Allows Use of Social Cost of Carbon

The Bureau of Land Management on Sept. 18 issued final revisions to an Obama-era rule aimed at reducing the waste of methane, a potent global warming pollutant, from venting, flaring, and leaks during oil and natural gas drilling operations. The final rule largely re-establishes the requirements that were in place before the 2016 rule, which, the agency said, was unnecessarily burdensome and duplicative with existing regulations. The move follows a sweeping executive order that President Trump issued last year aimed to undo the prior administration’s climate regulations and agency actions that potentially burden domestic energy development. BLM estimates that 73 percent of wells on federal leases are considered marginal or low-producing wells, which would have suffered due to additional compliance costs without the revisions. Those wells supported $2.9 billion in economic activity in 2015, the agency said. The rollback is estimated to save as much as $2.08 billion over 10 years due to reduced compliance costs. The rule comes on the heels of the U.S. Environmental Protection Agency’s proposal to curtail monitoring requirements for leaks of methane from drilling operations.

September 18, 2018
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