Reconsideration of Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review; Correction
Published Date: 1/17/2025
Proposed Rule
Summary
The EPA is fixing some numbers in its recent plan to update pollution rules for oil and natural gas companies. This correction helps make sure the paperwork and cost estimates are accurate. Companies in this sector should check the changes and send their comments by March 3, 2025.
Analyzed Economic Effects
2 provisions identified: 0 benefits, 2 costs, 0 mixed.
New paperwork costs for oil & gas
If you are an oil or natural gas owner or operator, the EPA estimates 48 respondents will face new recordkeeping and reporting requirements over 2023–2025. The rule estimates an average annual burden of 83 person-hours and an average annual cost of $4,374 per affected owner/operator, with the total estimated burden of 169 hours per year and total cost of $15,444 per year (including $6,576 in capital or O&M). Responding is mandatory under CAA section 114 (42 U.S.C. 7414(a)).
Extra reporting for extended flaring
If EPA allows an associated gas extended flaring allowance for ‘‘exigent circumstances,’’ owners/operators would need additional records and annual reports. The EPA estimates an incremental burden of 2 hours per flaring event and an average annual cost of $120 per flaring event over 2024–2026, and expects that at most 16% of flaring events could require extensions beyond 48 hours.
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