07.29.15

Lowenthal, Grijalva Lead More Than a Dozen Democrats in Introducing Bill to Limit Natural Gas Waste, Ensure Fair Taxpayer Return

Washington, D.C. – Energy and Mineral Resources Subcommittee Ranking Member Alan S. Lowenthal (D-Calif.), Natural Resources Committee Ranking Member Raúl M. Grijalva (D-Ariz.) and 11 cosponsors introduced a bill today to reduce the waste of natural gas on federal oil and gas leases due to venting, flaring, and leaks. The Natural Gas Environmental and Economic Security Act establishes strong rules to cut down on lost natural gas and protects taxpayers by requiring royalties be paid on all gas produced, even gas lost or used at the wellhead. 

In 2013 alone, enough gas was wasted on federal land to meet the heating and cooking needs of 1.6 million American homes, according to the Environmental Defense Fund. The Government Accountability Office has estimated that charging royalties on all produced gas could result in up to $58 million in additional revenues to taxpayers every year. Vented and leaked gas produces the greenhouse gas equivalent of 5.6 million cars.

“Oil and gas companies have been let off the hook for far too long for venting and flaring natural gas on our public lands and waters,” said Rep. Lowenthal. “The Natural Gas Environmental and Economic Security Act will ensure that oil and gas companies are held accountable for every ounce of taxpayer resources lost and any damage they cause to our environment.”

“This bill protects the environment and American taxpayers at the same time,” Rep. Grijalva said. “No matter how you feel about the environmental and economic impacts of our changing domestic energy market – and I feel we need to do more to protect families and communities from those impacts – I think everyone can agree these resources shouldn’t float away because of lax oversight. We have an opportunity here to create a more efficient and environmentally friendly natural gas sector, and we should take advantage as soon as possible.”

“This comprehensive bill carries forward several much-needed actions to modernize energy development on our federal lands and reign in the needless waste of natural gas resources,” said Chase Huntley, Senior Director of Government Relations for the Wilderness Society. “For too long, the American people have seen their resources wasted through preventable venting and flaring and it is good to see new leadership in Congress on this issue.”

"By charging royalties for lost gas and laying out stringent rules for the Interior Secretary to enact, this commonsense legislation will help tackle waste from the oil and gas industry. It's time industry's taxpayer subsidized free reign comes to an end," said Athan Manuel, Director of Sierra Club’s Lands Protection Program.

The House bill’s full list of cosponsors is below.

Alan S. Lowenthal (D-Calif.)

Raúl M. Grijalva (D-Ariz.)

Eleanor Holmes Norton (D-D.C.)

Ruben Gallego (D-Ariz.)

Donald S. Beyer, Jr. (D-Va.)

Mark Pocan (D-Wis.)

Jared Polis (D-Colo.)

Matt Cartwright (D-Pa.)

Paul D. Tonko (D-N.Y.)

Kathy Castor (D-Fla.)

Mike Honda (D-Calif.)

Chris Van Hollen (D-Md.)

Betty McCollum (D-Minn.)