Overview
The U.S. Environmental Protection Agency (EPA) recently released guidance that allows oil and gas operators to continue routine flaring beyond a long-established deadline. Routine flaring—the burning of natural gas during oil production—releases climate-warming methane and other harmful pollutants. The EPA itself has described ending routine flaring as “one of the most immediate and cost-effective steps” to reduce emissions. However, the new guidance effectively postpones the phase-out, giving operators a temporary reprieve. This guide explains what the guidance means, how it affects your operations, and the steps you should take to navigate the changing regulatory landscape while remaining compliant and environmentally responsible.
Prerequisites
- Understanding of current EPA methane regulations, including the New Source Performance Standards (NSPS) for the oil and gas sector.
- Knowledge of your facility’s flaring practices, including volumes, frequency, and reasons for flaring (e.g., maintenance, emergencies, or routine operations).
- Familiarity with state-level flaring rules, as some states have stricter requirements that may not be affected by the federal guidance.
- Basic awareness of methane measurement and reporting methods, such as using optical gas imaging or flow meters.
- Access to your company’s environmental compliance team or legal counsel to interpret the guidance in your specific context.
Step-by-Step Guide
1. Understanding the EPA’s Updated Flaring Guidance
The EPA’s new guidance clarifies that operators may continue routine flaring beyond the previously set deadline—without facing immediate enforcement action—provided certain conditions are met. The guidance does not eliminate the goal of ending routine flaring; rather, it extends the timeline and outlines a framework for gradual reduction. Key points include:
- No blanket exemption: Operators must still work toward eliminating routine flaring and can only continue it temporarily where alternatives are not yet feasible.
- Reporting requirements: Facilities must document flaring volumes, reasons, and efforts to capture or use the gas.
- State flexibility: States with approved clean air plans may set more stringent limits.
To comply, operators should first read the full guidance document from the EPA and compare it with any existing state or local rules. Ensure your team understands that this is not a permanent permit to flare but a transitional allowance.
2. Assessing Your Current Flaring Operations
Conduct a thorough audit of all flaring activities at your sites. Categorize flares as routine (scheduled or continuous for normal operations) or non-routine (emergency, maintenance, or upset conditions). Record:
- Volume of gas flared per month per site.
- Duration and frequency of flaring events.
- Reason for flaring (e.g., lack of pipeline capacity, processing limitations, or safety).
- Existing mitigation measures (e.g., gas capture systems, vapor recovery units, or flares with efficient combustion).
This baseline data will help you identify which flaring events can be eliminated quickly and which require longer-term infrastructure investments.
3. Evaluating Alternatives to Routine Flaring
The EPA encourages operators to pursue all cost-effective alternatives before flaring. Common options include:
- Gas capture and use: Connect to a pipeline or use the gas on-site for power generation, heating, or compression.
- Gas reinjection: Inject the gas back into the reservoir for enhanced oil recovery or storage.
- Liquefied natural gas (LNG) or compressed natural gas (CNG) for trucking: If pipeline transport is unavailable, consider small-scale liquefaction or compression.
- Lease fuel use: Use the gas to power equipment instead of diesel or other fuels.
Evaluate the technical and economic feasibility of each option for your specific sites. Use the guidance’s recommended feasibility analysis framework to document why certain alternatives are not implemented—this documentation will be critical for demonstrating good-faith efforts.
4. Documenting Compliance Under the New Framework
The guidance requires operators to maintain records that support their continued flaring. Key documentation includes:
- Flare logs with timestamps, volumes, and reasons.
- Feasibility studies for alternatives that were deemed impractical.
- Progress reports showing how the company is reducing flaring over time.
- Maintenance records for flares and gas capture equipment.
Implement a centralized tracking system (e.g., a spreadsheet or software platform) to compile data across all sites. Regularly review the data to identify trends and areas for improvement. If your state requires additional reporting, ensure your system meets those requirements as well.
5. Preparing for Future Deadlines and Expectations
Even though the EPA has extended the flaring deadline, the long-term trend is toward stricter limits. To stay ahead:
- Create a flaring reduction plan with specific milestones and timelines for each site.
- Monitor regulatory changes at both federal and state levels—some states may adopt more aggressive targets.
- Engage with industry groups to share best practices and advocate for reasonable compliance pathways.
- Invest in emerging technologies such as methane detection sensors, flare gas recovery systems, and advanced flaring control systems that minimize emissions.
By proactively reducing flaring, you can avoid last-minute scrambles and potential penalties while improving your environmental footprint.
Common Mistakes
- Assuming the guidance means “business as usual.” The extension is temporary and conditional; failing to show progress can lead to enforcement.
- Ignoring state-level requirements. Many states have independent flaring rules that are more stringent than the federal guidance. Non-compliance with state rules is not excused by the EPA action.
- Inadequate documentation. Without detailed records, you cannot prove your flaring was justified or that you are working toward alternatives. This can lead to penalties during an audit.
- Overlooking alternative feasibility for small-scale sites. Even at remote locations, solutions like CNG trucking or on-site power may be cost-effective when factoring in lost gas value.
- Failing to track methane emissions accurately. Under-reported or miscalculated flaring volumes can distort your compliance status and future reduction targets.
Summary
The EPA’s guidance allows continued routine flaring past the original deadline but requires operators to actively work toward elimination. Auditing operations, evaluating alternatives, documenting efforts, and preparing for stricter future rules are essential steps to comply and reduce methane emissions.