US EPA extends deadline for oil producers on methane flaring, emission reporting

The US Environmental Protection Agency is providing upstream oil and gas operators more time to comply with regulations on methane flaring and combustion devices, extending a deadline 180 days from what was set in a July 2025 interim final rule.

The new final rule largely keeps intact other compliance deadlines that were set in the interim final rule, providing 360 days from the effective date for producers to submit annual reports on methane emissions. The new rule, issued Nov. 26, takes effect upon publication in the Federal Register, meaning the reporting compliance deadline is pushed out from August 2025 to November 2026.

The EPA's move was praised by the American Petroleum Institute.

"We commend EPA for its thoughtful and timely work to finalize a rule that supports innovation while balancing environmental progress and meeting the world's growing energy needs," an API spokesperson said in a Dec. 1 statement. "Smart regulations are essential to sustaining our industry's progress in reducing methane emissions."

EPA's final rule, released Nov. 26, pushes out compliance deadlines for the agency's 2024 rule on new source performance standards and emission guidelines for oil and gas operations under the Clean Air Act. The standards are outlined in Section 111 of the law, subparts OOOO b and c, according to an EPA fact sheet.

The compliance deadline delay comes after the EPA said in March that it is "reconsidering" the underlying 2024 methane requirements, as part of a major deregulatory push. The agency's 2024 New Source Performance Standard required oil and gas facilities to cut emissions of volatile organic compounds and methane from new and modified sources. Oil and gas producers were required to detect and prevent equipment leaks, end routine flaring and curb "super emitting" events.

The agency in September told a federal appeals court considering challenges to the rule that the "reconsideration is ongoing."

Rule challenged in court

EPA's interim final rule extending the deadlines also faces challenges by environmental groups at the US Court of Appeals for the District of Columbia Circuit.

After taking comments on the interim final rule, EPA determined that "the targeted revisions to compliance deadlines" set out in the interim final rule "are necessary, appropriate, and consistent with the purposes of the 2024 final rule" and the Clean Air Act, the agency said in the final rule document.

Supply chain issues and logistical concerns affecting the measurement of net heating value and continuous monitoring of methane flares were raised by the oil and gas industry, and independent producers specifically, EPA pointed out. Net heating value is an indicator of flare performance and combustion efficiency, showing that when flares are not maintained, methane is vented into the atmosphere without combustion.

EPA agreed with independent producers and others who said that additional time is needed to comply with the flaring requirements. The interim final rule had a flaring compliance deadline of 120 days after it was issued, which would have been Nov. 28. The new final rule extends the deadline to 180 days after the new effective date.

"Although some commenters requested longer extensions, we believe that an additional extension of 180 days is appropriate. Based on experience implementing this NSPS and similar regulatory provisions, we believe that an additional 180-day relief period should be sufficient to resolve the supply chain and logistical issues" identified by commenters, EPA said.

EPA said in a Nov. 26 press release that the "more realistic timelines" in the new final rule will affect hundreds of thousands of oil and gas sources and save an estimated $750 million in compliance costs over 11 years.

"By finalizing compliance extensions, EPA is ensuring unrealistic regulations do not prevent America from unleashing energy dominance," said EPA Administrator Lee Zeldin.

Environmental Defense Fund criticized the final rule for delaying implementation of methane standards that are already working to reduce pollution. By extending the compliance deadline from the original 2024 rule, "the rule released today means millions of Americans will be exposed to dangerous pollution for another year and a half, for no good reason," said Grace Smith, senior attorney at EDF.