Regulations could potentially cripple Ky.’s independent oil and gas producers, KOGA claims
FRANKFORT, KY. (Aug. 17, 2016) – The Kentucky Oil and Gas Association has joined a multi-state coalition challenging the Environmental Protection Agency on regulation of methane emissions.
Led by the Independent Petroleum Association of America (IPAA), KOGA joins 16 industry partners in both a legal challenge filed in the D.C. Circuit Court of Appeals and a petition for reconsideration with the EPA. The actions are in response to new oil and natural gas production regulations – Subpart OOOOa – targeting industry methane emissions. These new regulations will have little to no environmental benefit, potentially exceed the authority of the EPA under the Clean Air Act, and most importantly, could be economically devastating to Kentucky’s independent oil and natural gas operators.
“Kentucky’s oil and natural gas producers primarily operate low-volume, low-pressure facilities,” said KOGA President Maurice Royster. “These new regulations will have little to no environmental benefit, but will be particularly onerous for our small business men and women producing energy here in Kentucky. We hope the EPA will reconsider their decision, but are prepared to legally defend our industry if they will not.”
In addition to the legal challenges filed by industry affiliates, KOGA would like to recognize the efforts of a coalition of state organizations and agencies challenging these burdensome new regulations. Kentucky’s Office of the Attorney General and the state Energy and Environment Cabinet are among 14 states and state agencies filing suit in the D.C. Circuit to defend their oil and natural gas producing industry from federal overreach.
KOGA responds to ICR
KOGA has also recently submitted comments on an Information Collection Request (ICR) issued by the EPA in an attempt to learn more about the oil and natural gas industry. In KOGA’s response, Technical and Regulatory Committee Co-Chair Rudy Vogt describes the burden the ICR would place on small operators. Compliance with stringent EPA-mandated reporting requirements will have a damaging effect on the industry, already constricted by economic pressures. The end result of information attained through the ICR will not justify the economic distress it will cause to Kentucky’s small operators. According to Vogt, “Our concern is making sure the EPA does not mandate our operators out of business. We will be paying close attention as this process moves forward.”
The oil and natural gas industry in Kentucky supports more than 9,000 jobs and over $1 billion in economic activity. KOGA was formed in 1931 to represent the interests of Kentucky’s independent crude oil and natural gas operators. America’s independent energy production is a tremendous economic and national security asset.