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10th Circuit keeps BLM methane rule on hold as case proceeds

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10th Circuit keeps BLM methane rule on hold as case proceeds

Key parts of an Obama administration rule limiting methane emissions will remain on hold after a federal appeals court rejected attempts to put the rule back in effect.

A district court order had previously allowed the U.S. Bureau of Land Management to suspend its standards, which limit methane releases from oil and natural gas operations on public and tribal lands, while the agency under the Trump administration suspends and revises the rules and while states and organizations who oppose these revisions fight them in court.

California and New Mexico, along with conservation and citizen groups, appealed the district court decision, but on June 4 the U.S. Court of Appeals for the 10th Circuit shot down that request in a divided decision.

The 10th Circuit order said the appellants did not convincingly show that the issues associated with leaving the rule on hold carried enough weight for the court to use its discretion to reverse the decision.

A dissenting opinion from one judge, however, questioned whether the motion to lift the hold — pending the ongoing appeal — should be outright denied. The dissent said the district court should have more thoroughly analyzed the situation before deciding to stay the BLM waste prevention rules. With that in mind, the dissent recommended remanding the issue to the lower court.

The Environmental Defense Fund, which is a party to the case and which has been an active proponent of rules limiting methane emissions from the oil and gas sector, expressed disappointment at the ruling.

"The Waste Prevention Rule saves natural gas, reduces toxic and smog-forming pollution, and delivers economic benefits to people across the West," Peter Zalzal, lead attorney for the Environmental Defense Fund, said in a statement. "[The] ruling is not a decision on the merits of these valuable safeguards, and we look forward to continuing our appeal to fight for these vital protections for families and communities across the West."

The 10th Circuit in its June 4 ruling also rejected a motion to dismiss the suit by California, New Mexico and other groups. The motion to dismiss was filed by oil and gas producer states Wyoming and Montana, along with pro-industry groups Western Energy Alliance and Independent Petroleum Association of America, and centered on a claim of a lack of appellate jurisdiction.

"The [lower court] order has the practical effect of granting an injunction; it results in a serious, perhaps irreparable, consequence in that the environmental benefits of the [BLM] rule will not be realized; and it can be challenged only by immediate appeal," the 10th Circuit order said in denying the motion to dismiss the appeal.

The parties have fought over the BLM rule since the White House issued an executive order in March 2017 telling the BLM, a division of the U.S. Department of the Interior, to consider suspending, revising or rescinding the rule limiting methane emissions from oil and gas producers on public lands.

The BLM in 2017 tried to postpone the implementation of the rule, which had been finalized in 2016, but a federal court ordered the BLM to reinstate the rule because the agency had not followed proper procedure. The BLM changed tactics, and in December 2017 the agency said it would suspend or delay key parts of the rule until January 2019. In February, BLM announced plans to replace the rule and opened a 60-day comment period.

The court case before the 10th Circuit deals with this iteration of the rule suspension and change.