U.S. Methane Fee Holds Oil and Gas Producers Accountable for Pollution

At COP29, the U.S. Environmental Protection Agency (EPA) announced a new rule that requires oil and gas producers to pay a fee for releasing excess methane emissions. The methane fee, mandated by the Inflation Reduction Act, requires violators to pay $900 per metric ton of excess methane emissions that are above the government threshold rolling up to $1,500 per metric ton starting in 2026.

In 2023, the EPA finalized a rule to cut methane emissions in the oil and gas industry from both new and existing sources. That rule requires methane leak monitoring, phasing out routine flaring from oil and gas wells, and equipment upgrades to prevent leakage.

The United States has played a key role in international efforts to address methane pollution and helped launch the Global Methane Pledge in 2021. At COP28, more than 150 countries committed to a goal to collectively cut methane emissions by at least 30% by 2030.

Following is a statement by Christina Deconcini, Director of Government Affairs, World Resources Institute:

“This new methane rule is a key step for the United States to protect human health and address the climate crisis. For the first time, the rule requires the U.S. oil and gas industry to pay for excessive amounts of methane pollution which harms human health and is a potent greenhouse gas. An EPA analysis found that the reduction of methane emissions could avert thousands of early deaths, prevent 97,000 cases of asthma symptoms, and save 35,000 lost school days a year. 

“The American people value clean air and healthy communities. If Donald Trump attempts to rescind the rule when he takes office, he would be putting Americans at risk.”