Economy

Economic Commentary

Economic Calendar

Global Economies

Global Economic Calendar

EPA Ordered to Give Methane Emissions Ruling

A U.S. federal appeals court in Washington, D.C., says the Environmental Protection Agency overstepped his authority in trying to delay implementation of a new rule requiring oil and gas companies to monitor and reduce methane leaks.

In a split decision Monday, the three-judge panel from the U.S. Court of Appeals for the District of Columbia Circuit ordered the EPA to move forward with the Obama-era requirement that aims to reduce planet-warming emissions from oil and gas operations.

EPA administrator Scott Pruitt announced in April that he would delay by 90 days the deadline for oil and gas companies to follow the new rule, so that the agency could reconsider the measure. The American Petroleum Institute, the Texas Oil and Gas Association and other industry groups had petitioned Pruitt to scrap the requirement, which had been set to take effect in June.

Last month, Pruitt announced he intended to extend the 90-day stay for two years. A coalition of six environmental groups opposed the delay in court, urging the appeals judges to block Pruitt's decision.

In a detailed 31-page ruling, the court disagreed with Pruitt's contention that industry groups had not had sufficient opportunity to comment before the 2016 rule was issued. The judges also said Pruitt lacked the legal authority to delay the rule from taking effect.

EPA spokeswoman Amy Graham said the agency was reviewing the court's opinion and examining its options. The EPA could seek to appeal the matter to the Supreme Court.

Natural gas is largely made up of methane, a potent greenhouse gas that traps dozens of times more heat in the planet's atmosphere than the same amount of carbon dioxide. Environmental groups argue that actual methane emissions from leaks and intentional venting at fossil-fuel operations are many times greater than what is now publicly reported.