IPAA Statement on Negative Impact of EPA Regulations Ahead of Energy and Commerce Hearing

IPAA Statement on Negative Impact of EPA Regulations Ahead of Energy and Commerce Hearing

Environment, Manufacturing, and Critical Materials Subcommittee Addresses “Protecting Clean American Energy Production and Jobs by Stopping EPA’s Overreach”

WASHINGTON – Independent Petroleum Association of America (IPAA) President and CEO Jeff Eshelman released the following statement ahead of the House Energy and Commerce Committee hearing on Wednesday, January 10 at 10:00 a.m. ET examining Environmental Protection Agency (EPA) actions affecting American oil and natural gas operations, particularly those regulations and programs related to methane emissions:

IPAA President & CEO Jeff Eshelman: “IPAA appreciates the committee’s review of this important issue – the EPA’s overbearing regulatory regime will undoubtedly harm America’s oil and natural gas producers, increase energy supply costs and harm the economy. It is estimated that EPA’s recently finalized methane rules will lead to the shutdown of 300,000 of the nation’s 750,000 low production wells. The federal government should not use the regulatory process to eliminate much needed sources of energy. Independent oil and natural gas producers are committed to effectively managing their methane and volatile organic compounds (VOC) emissions. At issue is developing appropriate techniques that reflect both the emissions profile and the economic challenges of each segment of the industry from large to small.”


In Wednesday’s hearing, the Committee will hear from three independent producers:

  • Mr. Drew Martin, Managing Member and Director of Finance, Miller Energy;
  • Mr. Patrick Montalban, Chairman and CEO, Montalban Oil and Gas Operations;
  • Mr. Mike Oestmann, President and CEO, Tall City Energy

The Methane Emissions Reduction Program (Methane Tax) that was included in the Inflation Reduction Act passed by Congress complicates industry efforts to plan and comply with EPA’s rule to address emissions from oil and natural gas production. The tax was passed without any committee hearings, expert testimony, or impact analysis on prices to consumers, impact on domestic production, or impact on industrial manufacturing consumers.

In December, IPAA held a webinar on the Methane Emissions Reduction Program: “’Walks Like a Tax, Talks Like a Tax’ – Examining the EPA’s New Methane Tax” – it can be viewed here.

IPAA’s recent comments on methane regulations including producer feedback on the EPA’s Subpart OOOOb and OOOOc methane regulatory package, Subpart W (the Greenhouse Gas Reporting Rule) and implementation of the Methane Emissions Reduction Program (Methane Tax) can be found at IPAA.org/methane.