Ryan Whaley Coldiron Shandy

On November 8, 2010, the Environmental Protection Agency (“EPA”) Administrator, Lisa Jackson, signed a rule that finalizes the federal greenhouse gas (“GHG”) reporting requirements for the oil & gas industry. 

Beginning January 1, 2011, oil & gas facilities that emit more than 25,000 tons of carbon dioxide equivalent (also called “CO₂e”) per year will have to monitor and report all of their GHG emissions to the EPA.  The monitoring and reporting must include annual methane (CH₄) and CO₂ emissions from equipment leaks and venting; emissions of CO₂, CH₄, and nitrous oxide (N₂O) from gas flaring; stationary and portable combustion emissions associated with onshore production; and combustion emissions from stationary equipment involved in natural gas distribution.  The first annual reports will be due to the EPA on March 31, 2012.

The EPA will next publish the final rule in the Federal Register.  The rule will become effective either thirty (30) days after publication in the Federal Register or on December 31, 2010, whichever date comes first.