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BLM’s Methane and Waste Prevention rule hurts American consumers and local economies


Reid Porter | porterr@api.org | 202.682.8114



WASHINGTON, February 23, 2017 – Colorado Petroleum Council Executive Director Tracee Bentley urged the U.S. Senate to follow the House and support a disapproval resolution on the Bureau of Land Management’s (BLM) Methane and Waste Prevention rule because the flawed rule doesn’t improve upon U.S. successes in methane emissions reductions and could negatively impact American consumers, local revenues and energy security.

“Despite our industry’s success in reducing methane emissions, the BLM has imposed a flawed regulation that adds significant costs and reduces local revenues, without corresponding environmental or consumer benefits,” said Bentley. “We urge the Senate to support the disapproval resolution passed by the House. The BLM’s rule doesn’t support the continued successes in methane emissions reductions and could have a negative impact on consumers and local economies.” 

The added costs of compliance with the BLM rule could result in up to 40 percent of federal wells that flare being permanently shut in – as they would become uneconomical to produce, according to an analysis by Environmental Resources Management. Even a one percent loss of royalties could result in lost federal revenues of over 14 million dollars – far more than the 3 million to 10 million dollars, in additional incremental royalties estimated by the Bureau of Land Management. Many western states, which will be most impacted, submitted comments to the BLM to express their economic and environmental concerns with the rule.

“Companies in Colorado operate under some of the most stringent rules in the country to produce clean, safe, affordable energy while being good environmental stewards,” said Bentley. “These declining revenues would directly impact state and local governments. Such a drop in production would reduce the availability of affordable energy to consumers.

“The oil and natural gas industry has proven that we can protect the environment, grow our economy, add to state and local revenues, and has simultaneously helped save the average American family an average of $1,337 per year.”

The Colorado Petroleum Council is a division of API, which represents all segments of America’s oil and natural gas industry. Its more than 625 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 30 million Americans.

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