Country
Assessment
If the required gathering infrastructure (as discussed in the previous section) is unlikely to be available, an operator may either shut in the well or make a formal variance request to COGCC under Rule 502 of The Rules of Practice and Procedure 500 Series, 2021 . A formal variance request requires the operator to prove in a formal hearing that it would suffer undue economic hardship and that there will be no net adverse impacts from continued flaring or venting.
Under Rule 903(d) of the Environmental Impact Prevention 900 Series, 2021 , gas flared or vented needs to be metered subject to the requirements of Rules 429 and 430 of the Operations and Reporting 400 Series, 2021, or estimated and reported on a per-well basis in the operator’s monthly operations report as required by Rule 413. Regulation Number 7 of the Colorado Department of Public Health and Environment provides detailed requirements on monitoring emissions, including fugitive methane and VOCs, from upstream and midstream oil and gas operations.
According to § 34-60-121, Colorado Law, Colorado Revised Statutes, 2017 , and Rule 525 of The Rules of Practice and Procedure 500 Series, 2021 , the COGCC has powers to impose penalties on operators violating its rules, orders, or permits. The penalties depend on the duration and severity of the adverse consequences on public health, safety, or the environment. However, penalties are limited to US$15,000 a day of violation. Higher penalties are possible for behaviors such as gross negligence and willful misconduct, noncooperation of the operator, significant loss of resources, and falsified reports. Mitigating factors include self-reporting or prompt and prudent responses by the operator.
Rule 901 of the Environmental Impact Prevention 900 Series, 2021 , empowers the director of the COGCC to suspend operations or initiate immediate mitigation measures until the cause of the threat to public health, safety, welfare, the environment, or wildlife resources is identified and mitigated. Rule 210(a) of the General Provisions 200 Series, 2021 , and Rule 525 of The Rules of Practice and Procedure 500 Series, 2021 , also empower the COGCC to issue corrective actions to stop an adverse event. Rule 209(a) of the General Provisions 200 Series, 2021, empowers the director of the COGCC to require an operator to conduct tests or surveys, if necessary and reasonable, to protect and minimize adverse impacts to public health, safety, welfare, the environment, or wildlife resources. Under § 34-60-121(2), Colorado Law, Colorado Revised Statutes, 2017 , individual employees of an operator that intentionally make a false report to the COGCC may also be subject to criminal prosecution. If found guilty, an employee may be fined up to US$5,000 or sentenced to up to six months of imprisonment.
Rule 903 of the Environmental Impact Prevention 900 Series, 2021 , requires a 98 percent design efficiency for the combustion of flare gas. This requirement is in line with the Environmental Protection Agency’s national legislation (see section 20 of the case study on US federal offshore production).
No evidence regarding fiscal or emission reduction incentives could be found in the sources consulted.
No evidence regarding the use of market-based principles to reduce flaring, venting, or associated emissions in Colorado could be found in the sources consulted (but see section 22 of the case study on US federal offshore production).
The intention of the gas capture plan mentioned in Rule 903(e) of the Environmental Impact Prevention 900 Series, 2021 , is to ensure the beneficial use of the gas in the future. In areas with a limited pipeline network, the beneficial use requirement has led to solutions for gas that would otherwise have been flared. (Also, see section 24 of the case study on US federal onshore production.) In November 2022, the AQCC adopted a recovered methane rule as Part C of Regulation 22. The rule includes protocols for methane recovery projects from livestock manure management systems, municipal solid waste or landfills, wastewater treatment, coal mines, and gas utility system leaks.
Title 30 Code of Federal Regulations (CFR) § 250.1160(a) defines limits within which gas can be flared or vented. For example, the amount is limited to what is necessary for its intended purpose, or an average of 50 thousand cubic feet (mcf) a day in any calendar month. The EPA’s proposed NSPS rule requires 95 to 100 percent reductions in methane and VOC emissions from various equipment such as pneumatic devices and storage vessels.
The BSEE has the authority to regulate flaring and venting, including air emissions from them. The EPA has jurisdiction over offshore emissions as well.