Click here to watch Sen. Barrasso’s Remarks.
WASHINGTON, D.C.— Today, U.S. Senator John Barrasso (R-WY), chairman of the Senate Energy and Natural Resources Subcommittee on Public Lands, Forests, and Mining, delivered the following opening statement at the subcommittee’s oversight hearing on the Bureau of Land Management’s (BLM) proposed venting and flaring rule for natural gas from oil wells on federal and Indian land.
The BLM issued its proposed rule, titled “Waste Prevention, Production Subject to Royalties, and Resource Conservation,” on Feb. 8, 2016.
The hearing featured testimony from Deputy Assistant Secretary for Land and Minerals Management Amanda Leiter of the Department of the Interior; Wyoming Department of Environmental Quality Director Todd Parfitt; the Honorable James “Mike” Olguin, councilman of the Southern Ute Indian Tribe; Mr. Mark Boccella, Americas Business Development Manager of Optical Gas Imaging at FLIR Systems; and Western Energy Alliance Vice President of Government and Public Affairs Kathleen Sgamma. Click here for more information on their testimony.
Senator Barrasso’s opening remarks:
“This afternoon, the Public Lands Subcommittee will hold an oversight hearing on the Bureau of Land Management’s so-called ‘waste prevention’ rule.
“The stated purpose of the rule is to reduce venting and flaring of natural gas that is produced from oil wells on federal and Indian land.
“I think it’s fair to say that we all want to reduce unnecessary venting and flaring of natural gas.
“Even the proposed rule: ‘recognizes that…operators do not want to waste gas.’ That’s written in the rule.
“Unnecessary venting and flaring reduces revenue to taxpayers—as well as states, tribes, and the federal government.
“Venting and flaring is also bad for the environment.
“So the question is not whether we should take steps to reduce unnecessary venting and flaring.
“The question is what’s the most cost-effective way of doing so? And who is best positioned to lead this effort—producers, states, tribes, or Washington?
“I question whether Washington should play any role in this area.
“But even those—who believe Washington has a role to play—they question whether BLM has the legal authority to regulate air quality.
“Air quality is the responsibility of the EPA, the states, and some tribes, like the Southern Ute— not the BLM.
“I suspect that’s why Secretary Jewell sent Ms. Leiter—an accomplished law professor on leave at the Department—to testify here today.
“The administration knows it will need to employ legal gymnastics to defend this rule.
“I also have practical questions related to the BLM’s proposed rule.
“For example, if the BLM truly wants to reduce flaring, then why isn’t it taking steps to put its own house in order?
“In other words, why isn’t BLM taking steps to account for and address delays in permitting of natural gas pipelines?
“As the proposed rule explains: ‘the primary means to avoid flaring…gas from oil wells is to capture, transport, and process that gas for sale, using the same technologies that are used for natural gas wells.’
“Specifically—‘gas-gathering infrastructure.’
“Now this consists of small pipelines that ship natural gas from oil wells to processing plants.
“According to the BLM, flaring takes place in areas: ‘with existing capture infrastructure,
but where the rate of new-well construction is outpacing the infrastructure capacity.’
“Flaring also occurs in areas: ‘where capture and processing infrastructure
has not yet been built out.’
“One reason for the lack of sufficient infrastructure is BLM’s permitting process.
“For years, oil and gas producers have reported long delays in obtaining permits for gas gathering lines on federal land.
“To this date, BLM is still unable to produce a complete list of the pending permits—just a list of the permits—for natural gas gathering lines on federal land.
“The data that is available isn’t promising.
“As of April 8, 2016, over half of the 832 applications for rights-of-way for oil and gas pipelines had been pending with BLM for more than two years.
“More than two years. To me, this is inexcusable.
“It’s why any final rule must include a means by which BLM can readily account for and promptly address delays in permitting gas gathering lines on federal land.
“I understand the administration wants to finalize this rule in June. But now is not the time to set an artificial schedule.
“Over the last 18 months, the West has seen devastating jobs losses. Wyoming alone has lost over 4,800 oil and gas jobs.
“The New York Times highlighted this yesterday, Wednesday April 13, 2016 with a story: ‘Hard Times Return for Wyoming’ ‘Slumping energy prices and coal bankruptcies tear at thin safety net.’
“A rule that is rushed out the door will only make this situation worse and make it more difficult for these folks to get back to work.
“Ms. Leiter—I think it’s important the BLM understand that.
“At this point, I would like to welcome our witnesses.
“Joining us this afternoon is Ms. Amanda Leiter, Deputy Assistant Secretary for Land and Minerals Management at the Department of the Interior;
“Mr. Todd Parfitt, Director of the Wyoming Department of Environmental Quality;
“The Honorable James “Mike” Olguin, Councilman of the Southern Ute Indian Tribe;
“Mr. Mark Boccella, Americas Business Development Manager of Optical Gas Imaging at FLIR Systems; and
“Ms. Kathleen Sgamma Vice President of Government and Public Affairs at the Western Energy Alliance.
“Welcome to you all and I look forward to your testimony.”
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