Texas Files Comments on Rules That Could Stifle Oil and Gas Industry

AUSTIN – The Railroad Commission of Texas joined the Texas Commission on Environmental Quality in filing comments this week on the Environment Protection Agency’s (EPA) proposed [supplemental rule (Federal Register :: Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review) to regulate methane and greenhouse gas emissions in the oil and gas industry.

In the comments, the state expresses concerns that the proposed rule exceeds EPA’s statutory authority under the Clean Air Act and will significantly limit domestic energy supply. At a time of energy fluctuations due to international conflict, the United States cannot afford to clamp down on its most important oil and gas producing state.

Texas also commented that the proposal also lays out unrealistic assumptions and artificially high metrics to estimate the climate benefits of the rule, whereas in practice, the rule would place an unjustifiable burden on states and the energy industry for little real benefit to the global climate.

In addition, the RRC is concerned that EPA did not provide sufficient time for affected stakeholders to review and comment on the extreme breadth of its proposal. The proposed rule was published immediately before the holiday season, on December 6, 2022, amidst several other significant regulatory proposals. Despite receiving numerous requests to extend the comment period, EPA declined to provide additional time.

“The EPA’s overreaching methane rules and unrealistic timeline are yet another example of the Biden administration’s attempt to shut down the oil and gas industry in Texas,” said RRC Chairman Christi Craddick. “I stand with my fellow Railroad Commissioners and partners at the Texas Commission on Environmental Quality in opposition to this attack on the industry that provides so much to our state.”

“President Biden’s EPA continues its relentless fight to shut down oil and gas. The EPA’s proposed rule on methane will make reliable energy scarcer and more expensive at a time when we desperately need more of it," said RRC Commissioner Wayne Christian. “From killing the Keystone XL pipeline project, to freezing federal leasing, to supporting ESG, to implementing onerous regulations, Biden is why energy is so expensive. An unburdened and unleashed Texas oil and gas industry is the path to energy security. We only need the administration to get out of the way! If the EPA moves forward, it’s imperative that Texas and other states challenge them in the court and those rules get thrown out.”

“The EPA methane rule is yet another example of the Biden Administration saying one thing and doing another,” said RRC Commissioner Jim Wright. “In his State of the Union remarks, President Biden placed special emphasis on the need to increase domestic manufacturing, lower utility bills, and create American jobs. Unfortunately, the EPA’s methane rule will have the opposite effect. Not only does this rule threaten Texas energy production, it does so by disproportionately impacting small and medium producers who live and work in their community, buy supplies, hire locally, and are important contributors to their local economies.”

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