H.R. 10065: Methane Pollution Accountability Act

This bill would change how royalties are calculated for natural gas produced on federal lands and the outer continental shelf. In general, for new leases issued after the bill becomes law, companies would have to pay royalties on all gas produced, including gas that is:

• vented,
• flared, or
• lost because of negligent releases from equipment during upstream operations.

The bill includes some exceptions. Royalties would not be charged for gas that is:

• vented or flared during an emergency for no more than 48 hours, if the situation poses a danger to human health, safety, or the environment;
• used on the lease area, unit, or communitized area for the benefit of that operation; or
• “unavoidably lost.”

The bill would also direct the Bureau of Land Management to enforce a 2024 federal rule on waste prevention, royalty assessments, and resource conservation. At the same time, it would block the agency from finalizing a 2026 proposed rule on royalties for oil and gas lost from onshore federal and Indian leases, and it would block any other rule that changes the 2024 rule unless the agency certifies that the change would either:

• further reduce natural gas waste from oil and gas leases, or
• improve air quality and public health.

In practical terms, the bill is aimed at making sure companies pay royalties on more of the gas they produce from federal leases, including gas that is wasted or released, while preserving some emergency and operational exceptions.

Relevant Companies

• None found