On August 6, the New Mexico Departments of Environment (NMED) and Energy, Minerals and Natural Resources (EMNRD) held a public meeting to present on the recently released draft rules regulating waste, volatile organic compounds (VOCs) and oxides of nitrogen (NOx). These are two separate rules being proposed concurrently with coordination between the two agencies, NMED an EMNRD. NMED is crafting regulations from an air pollution standpoint and EMNRD from the standpoint of preventing the waste of resources. The rules aim to prevent and reduce methane emissions from the oil and natural gas industry.
NMED Draft Ozone Precursor Emissions Rule:
The draft rule establishes emissions standards for VOCs and NOx emissions from the oil and natural gas industry. Although the rule does not regulate methane directly, VOC control has a co-benefit of reducing methane emissions. It will apply to new and existing oil and natural gas operations in Chavez, Doña Ana, Eddy, Lea, Rio Arriba, Sandoval, and San Juan counties. Requirements are included to reduce VOCs and NOx emissions from several types of equipment and processes, including: hydrocarbon liquid loading/unloading, pig launching/receiving, glycol dehydrators, engines, equipment leaks, heaters, storage tanks, well workovers, gas well liquids unloading, compressor seals, pneumatic controllers, and evaporative ponds. Stripper wells and low emitting facilities have exemptions, but still require monitoring of actual oil and gas throughput, emissions tracking for new and existing individual facilities and affirmative requirements to maintain equipment to prevent emissions. The rule sets lower emission standards than current federal and state regulations. For example, for hydrocarbon liquid loading/unloading, no federal or state standard currently exist and the proposed rule requires 95% control.
NMED is specifically seeking feedback on Alternative Monitoring Strategies (AMS) for to-be-developed technology to have an onramp into the rule and on how to ensure AMS Are enforceable, effective, and equivalent. They want to promote the use of innovative technology.
EMNRD Draft Waste Rule:
Phase 1 of the draft rule focuses on Data and Reporting. The goal is to have accurate data reported to establish a baseline and enforceable goals to reduce natural gas waste. The rule defines waste to include gas that is vented or flared. Operators are required to measure and report all venting and flaring during operations, with an exemption for venting and flaring during emergencies, and flexibility is provided for stripper wells. Operators must also disclose venting and flaring to mineral interest owners who own a share of the natural gas.
Phase 2 of the draft rule focuses on a Gas Capture Plan. Starting from the current level of natural gas waste identified in Phase 1, each operator must reduce their waste by a fixed amount each year to achieve a gas capture rate of 98% by December 31, 2026. This applies to upstream and midstream operators and includes design standards for gathering pipelines. Each operator can decide how it will meet the target. The rule incentivizes methane detection flyovers by giving credits to operators who detect and fix methane leaks in their own facilities and inform other operators of leaks discovered with a program called Advanced Leak and Repair Monitoring (ALARM). If operators do not meet the gas capture targets, OCD enforcement is authorized to require operators to pay penalties, curtail or shut-in production, and deny drilling permits.
Get your comments in by September 16 if you have anything to add including regarding how to allow room for innovative technologies or if you have any comments on the proposed exemptions. The draft rules are expected to be finalized in Sept/Oct.
For more information:
NMED’s Draft Rule and fact sheet is available here: https://www.env.nm.gov/new-mexico-methane-strategy/public-participation/
EMNRD’s Draft Rule and fact sheet is available here: http://www.emnrd.state.nm.us/ocd/documents/naturalgaswastedraftrules-july202020.pdf and here: http://www.emnrd.state.nm.us/OCD/documents/methaneFAQFinal.pdf.
Or contact Jenni Wood at Jenni@BrightSkyENV.com