EPA Finalizes First-Ever Methane Fee on Large Oil and Gas Firms, Starting at $900 per Ton

Nov 12, 2024, 01:15 PM

The Biden administration has finalized a regulation that imposes a fee on methane emissions from oil and gas producers in the United States for the first time. The Environmental Protection Agency announced on Tuesday that large oil and natural gas companies will be required to pay a federal fee if they emit methane above certain levels. The fee, starting at $900 per metric ton in 2024, will increase to $1,500 by 2026. This move targets large oil and gas producers and aims to curb emissions of the potent greenhouse gas as part of broader efforts to address climate change. The rule applies to methane emissions from oil wells and drilling waste.