Green Completions and the EPA

The oil and gas industry has always had an interesting relationship with the EPA. Many in the industry would rather answer to state regulators only. The EPA uses a “one size fits all” approach to regulations while state regulators, like the Railroad Commission in Texas, can pinpoint more localized issues. In other words the EPA tries to solve problems with a blunt axe, rather than a scalpel.

Gripes aside, there is no doubt that the EPA strives to protect the environment and has the power of law to pursue their agenda. Other than lobbying for change, there is no way for the oil and gas industry to avoid EPA regulations.  The only option is to prioritize Regulatory Compliance. that also could be fast tracked by utilizing a regulatory compliance software solution.

 

So how should the industry react to the EPA’s “Green Completion” requirements? In case you’re unfamiliar with the air emission regulations required under the Clean Air Act, click here to read an overview of final amendments. To summarize, the EPA requires hydraulically fractured natural gas wells to begin using special equipment to separate and contain gas from flow back that would normally be emitted into the air.

The EPA believes that these requirements are not only economically feasible, but may even have a positive effect on industry profitability. In their words, “the estimated revenues from selling the gas that currently goes to waste are expected to offset the costs of compliance, while significantly reducing pollution from this expanding industry.

It is also important to note that much of the industry has already embraced this technology on its own accord. Is it possible that the EPA and the oil and gas industry can benefit each other?  Sound off in the comments and let me know what you think.

One thing is certain: oil and gas professionals are and need to be prepared for blunt regulatory changes all the time. State regulations change even more frequently than federal regulations and it’s critical that these changes are not taken lightly. Regulatory Change Management should be considered a priority by everyone in the industry and policies and procedures should always be up to date.

 

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