BISMARCK, N.D. — A federal judge in North Dakota has issued a temporary injunction against a new federal rule designed to curb the venting and flaring of natural gas at oil wells.
U.S. District Judge Daniel Traynor stated that the plaintiffs are likely to prevail on their argument that the 2024 Rule is arbitrary and capricious.
The states of North Dakota, Montana, Texas, Wyoming, and Utah challenged the rule, contending that it would impede oil and gas production and that the Bureau of Land Management is exceeding its authority concerning non-federal minerals and air quality regulations.
The Bureau of Land Management claims that the rule aims to minimize gas waste, potentially resulting in over $50 million in additional royalty payments to stakeholders if enforced.
However, Judge Traynor asserted that the rules merely introduce an additional layer of federal oversight on top of existing regulations.
In oil extraction, natural gas often emerges as a byproduct. Due to its lower profitability compared to oil, it is often vented or flared unless appropriate technology is utilized for capture.
Methane, the primary component of natural gas, is recognized as a short-term climate “super pollutant,” significantly more potent than carbon dioxide.
Operators in North Dakota have made substantial progress in reducing flaring rates in recent years, although current figures still remain around 5%. Further reductions necessitate adequate infrastructure for capturing, transporting, and utilizing the gas.
North Dakota lawmakers praised the decision.
State Attorney General Drew Wrigley remarked that federal efforts to overregulate threaten the state’s energy production capabilities.
The Bureau of Land Management declined to provide further comment.
