A federal mandate aimed at curbing methane emissions and reducing natural gas waste on federal lands has been temporarily suspended by a U.S. District Court Judge.
The Biden-Harris administration's rule, which was introduced in April, has been put on hold in five states, including North Dakota, Montana, Texas, Wyoming, and Utah.
According to Conservative Daily News, the states in question have argued that the rule, which obliges oil and gas companies to establish waste reduction plans and leak detection programs on public lands, is an overreach of federal authority and infringes on state rights. The rule in dispute mandates operators to limit the venting, flaring, and leaking of natural gas during oil extraction processes. This is part of the Biden-Harris administration's climate agenda, which aims to reduce emissions like methane, the primary component of natural gas.
Judge Daniel Traynor, in his ruling, stated that the states are likely to succeed in their claim because the 2024 Rule is "arbitrary and capricious." He further noted that several aspects of the rule are "inadequately explained" and "contradictory," as reported by the North Dakota Monitor. This regulation affects federal and tribal territories, with the majority of oil and gas extraction on tribal lands in North Dakota taking place in the Fort Berthold Reservation.
The Bureau of Land Management (BLM), under the Department of the Interior, argued that venting and flaring natural gas wastes public and Native American resources, reduces significant royalty revenues for taxpayers, tribes, and states, and exacerbates climate change. However, Judge Traynor countered that the BLM does not have the authority to control air quality, a power reserved for the Environmental Protection Agency and the states by the Clean Air Act.
North Dakota challenged the rule, asserting it infringed on state sovereignty and would decrease state revenue from oil and gas production. Meanwhile, the BLM estimated that the rule could generate over $50 million in tax revenue. Traynor further questioned the economic benefit of the rule, stating that it "offers no rationale why flaring is more economically productive than venting."
The North Dakota Petroleum Council hailed the decision as a victory for the oil industry. They argued that the rule would have imposed stringent flaring limits and costly compliance requirements, particularly burdening smaller operators. Echoing this sentiment, Republican North Dakota Gov. Doug Burgum praised the court's temporary injunction, accusing the Biden administration of overreaching on federal land oil and gas production regulations.
The White House, Burgum, and the North Dakota Petroleum Council have yet to respond to requests for comment from the Daily Caller News Foundation. This case underscores the ongoing tension between federal and state authority, as well as the economic and environmental implications of oil and gas regulation.
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