Interior Department’s New Rule Targets Methane Pollution, Mandates Oil Companies to Capture Natural Gas on Public Lands.

The Interior Department has announced a rule to reduce methane pollution from drilling on public lands, a key part of President Joe Biden’s reform agenda for the federal oil program. The rule will require oil companies to pay royalties on “wasted” natural gas, which operators either vent into the air or burn off rather than capture in a pipeline and sell. It also requires drillers to commit to capturing 100 percent of the gas they produce or develop “waste minimization plans” to reduce venting and flaring outside of emergencies. The BLM will be able to delay or deny drilling permits if operators are not complying with these standards. The department estimates that the rule will generate $50 million a year in new royalties.