ENV-16-53 EPA’s Methane Agenda – Will the Oil & Gas NSPS OOOOa Regulation Affect Refining?

Description:

One June 3, 2016, EPA published NSPS OOOOa affecting the oil and gas sector. This regulation affects new, modified, or reconstructed oil and gas sources from the wellhead to the city gate, including production facilities, natural gas processing plants, and compressor stations. While clearly this particular rule does not directly apply to the refining sector, does EPA’s methane regulation agenda have the potential to affect the petroleum refining sector? There are several predominant themes in NSPS OOOOa, but the most significant are the increased focus on methane as a greenhouse gas compound and the heavy emphasis on fugitive emissions. EPA has also clearly signaled a strong preference for optical gas imaging (OGI) using infrared cameras as a means of detecting emissions, highly detailed fugitive emission monitoring plans, and the use of Next Generation approaches to recordkeeping and reporting. EPA also backed away from the concept of “skip period monitoring” and detailed fugitive emissions component counts including data tracking. EPA would have to go through a significant rulemaking effort to modify existing refinery regulations (for example, NSPS GGG/GGGa do not address these topics). EPA’s Regulatory Agenda does not list these issues as a potential topic, so it is not likely that the current Administration will propose any changes. However, it may be prudent for the refinery sector to track these developments. In addition, EPA continues to demonstrate the ability to pursue more aggressive approaches through enforcement and use those accomplishments to drive future rulemaking, something the oil & gas sector is seeing clear evidence of at this time.