Regulatory round-up

EPA fines for Permian Resources Operating, Matador Production. Texas RRC challenges EPA ozone plan. EU Net Zero Industry Act to accelerate CCS. North Sea Transition Authority team oversees CCS projects. Uganda joins Danr hub. UK launches taxonomy oversight group, releases best practice guide.

Wrongdoing and penalties

The U.S. Environmental Protection Agency (EPA), using a helicopter equipped with an infrared camera, detected VOC* and methane leaks at various sites operated by Permian Resources Operating. The company is to perform corrective actions and will pay a $610,000 penalty. A similar ‘Consent Agreement and Final Order’ was issued to Chisholm Energy Operating for storage tank emissions, along with a $440,000 penalty. Another operator, Matador Production Co. was hit with a $1.15 million fine and is to spend some $2,500,000 on remedial actions and monitoring.

* Volatile organic compounds.

The UK North Sea Transition Authority is investigating an operator for a ‘suspected failure to adhere to license obligations within agreed timescale’. The failure concerns seismic survey and work program commitments. The company faces a potential financial penalty of up to £1 million. Another recent investigation concerns a company ‘suspected of failing to meet its license’ commitments, such as shooting 3D seismic, within agreed timescales.

Pushback!

The Commissioners of the Texas Railroad Commission have unanimously voted to refer two actions by the Environment Protection Agency (EPA) to the Texas Attorney General to challenge their validity. At issue is a federal implementation plan for ambient ozone pollution. The EPA had previously disapproved the RRC’s own clean air proposal. More from the RRC.

CCS

The EU has proposed a Net Zero Industry Act to, inter alia, ‘accelerate CO2 capture’ with the aim of an annual 50Mt injection capacity by 2030, funded by ‘proportional contributions’ from EU oil and gas producers.

The UK North Sea Transition Authority has set up a team to oversee the delivery of carbon storage developments. The first carbon storage licensing round was launched in June 2022 and received 26 bids. It is expected that licenses will be offered real soon now. ‘Up to 100’ separate sites could be required for the UK to meet its domestic storage requirements.

Miscellaneous

The Petroleum Authority of Uganda has joined the PPDM-backed DANR Hub. Other members to date include the Petroleum Agency of South Africa, SKK Migas, the North Sea Transition Authority, and the Australian National Offshore Petroleum Titles Administrator.

The Central Digital and Data Office of the UK Cabinet has launched a Taxonomy Oversight Group (TOG) launched to address the ‘absence of a UK central taxonomy’ for governance across government data sources. The TOG has already produced a Taxonomy Best Practice Framework to assess taxonomies in the endorsement process. The Framework also serves as guidance for taxonomy developers. Download the Framework here.

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