Senator Marshall Blasts Biden-Harris Methane Emissions Rule

Washington, D.C.- U.S. Senator Roger Marshall, M.D. slammed the Biden-Harris Administration’s new rule that would tax methane emissions from the oil and gas sector.

“In his final days in the Oval Office, Joe Biden has sadly doubled down on attacks on our oil and gas producers,” Senator Marshall said. “This ill-advised move by the Biden-Harris Administration will cripple small producers and their operations. Kansans spoke loudly on Election Day that they want to unleash domestic energy, and my message to the producers impacted by this Administration’s anti-energy policies and unnecessary newly imposed fees is clear: help is on the way.”

This week, the EPA announced the finalized the rule for the Waste Emissions Charge, a provision included in the Inflation Reduction Act of 2022. The fee will start at $900 per metric ton of methane emitted over a specific performance level reported in 2024. In subsequent years, the fee will increase. In 2025, it will grow to $1,200 per metric ton. In 2026, it will increase to $1,500 per ton. Each subsequent year, the fee will continue to rise, according to the EPA.

Background: 

• Marginal wells, or stripper wells, are low-production wells that average 15 barrels of oil or fewer. These are often family-owned operations with around 15 employees or fewer. Marginal wells produce almost 7.5% of entire U.S. oil production, and about 90% of wells in Kansas are defined as marginal. The oil and natural gas industry in Kansas supports over 118,000 jobs and over $3 billion in family income annually.
• The methane emission tax is doubly burdensome in that it would first require oil and gas producers to purchase and install monitoring equipment. Most, if not all marginal wells in Kansas do not have the equipment installed to monitor methane emissions. This additional cost would likely make Kansas marginal wells unprofitable, effectively taking them out of production and disincentivizing producers to drill new wells.  
• Earlier in 2024, the EPA finalized a rule that created intentionally burdensome performance standards for new and reconstructed oil and gas wells. In response, Senator Marshall, along with Senator Daines (MT) and others, filed a joint resolution of disapproval in effort to stop the regulations from going into effect. 
• In 2021, Senator Marshall introduced the Marginal Well Protection Act. This bill, co-introduced with Senators Cruz (TX), Moran (KS), Lankford (OK), Daines (MT), and Inhofe (OK), would exempt operators of a facility that produces fewer than 15 barrels of oil per day or less than 90,000 cubic feet of natural gas per day.