Navigating US Methane Regulations: Qube’s Continuous Monitoring Solutions for Proactive Compliance
Author: Ben Montgomery, Gretchen Kern
TL;DR
Evolving Regulations: Methane emissions regulations, including EPA Quad Ob/Oc, SEP, and WEC mandated by the IRA, are increasingly stringent and require proactive compliance strategies.
Super Emitter Program: Events exceeding 100 kg/hr methane emissions require a fast response and reporting, risking penalties and public exposure.
Subpart W Revisions: More empirical data for reporting and additional source categories are included, affecting Waste Emission Charge (WEC) calculations.
BLM’s Waste Prevention Rule for Federal Lands: Allows use of continuous monitoring to comply with the LDAR requirements.
Qube’s Continuous Monitoring (CM) Technology: CM technologies can be used to meet these new and updated regulations. Qube’s solutions provide real-time emission measurement, reducing liabilities while enhancing environmental and regulatory performance. The EPA has accepted Qube’s application as a CM system and it is currently in review.
Methane is significantly linked to global climate change and thus operators face increasing scrutiny to quantify and reduce. Evolving regulations demand operator compliance to ensure efficient and cost-effective operations. Qube, a leader in continuous methane monitoring, helps clients across industries, including oil and gas, meet these regulatory challenges. By closely tracking the regulatory landscape, Qube adapts its solutions to support operational compliance. Our team, led by regulatory experts like Gretchen Kern, ensures that Qube stays at the forefront of methane emission regulations. This article outlines key U.S. methane regulations and highlights how Qube’s technology reduces emissions, safeguards profitability, and supports future regulatory compliance, once approved.
Figure 1. US methane emissions regulations overseen by EPA, Congress and the Bureau of Land Management (BLM).
EPA’s NSPS Quad Ob/Oc Rules
The New Source Performance Standards (NSPS) under Subpart OOOOb (Quad Ob) and OOOOc (Quad Oc) are key regulations targeting methane and volatile organic compounds (VOCs). These rules were finalized on March 8, 2024, and apply to both new (Quad Ob) and existing (Quad Oc) sources across the oil and gas value chain, setting stringent emissions guidelines:
Quad Ob
Quad Ob (new, modified, or reconstructed facilities post-December 6, 2022) requires frequent leak detection, and allows approved advanced monitoring technologies, including aerial screening and 7-day and 90-day rolling averages and action levels for continuous monitoring systems to streamline this requirement. Qube supports clients to address these regulations by providing EPA-compliant rolling averages via its dashboard.
Quad Oc
Quad Oc mirrors Quad Ob's requirements but focuses on existing sources (on or before December 6, 2022). States must submit compliance plans to the EPA by March 2026, with full implementation expected by 2029. Notably, states like California, Colorado, and New Mexico, which already have methane rules, may need to amend their rules to align with federal standards. Ultimately, the EPA will decide whether to approve a state’s plan or reject it and draft a Federal Implementation Plan (FIP) for that state. Many states are likely to adopt the alternative technology guidelines exactly as written in Quad Oc, resulting in greater consistency in emission requirements nationwide.
Super Emitter Program (SEP)
Under both Quad Ob and Oc, the Super Emitter Program (SEP) mandates operators to address any detected emissions event exceeding 100 kg/hr of methane. These events, identified through approved third-party remote sensing, must be reported to the EPA within 15 days.
Key Provisions:
Events must be detected by certified third parties (e.g., satellites or mobile platforms).
Operators can use continuous monitoring to track, time bound and respond to these events, mitigating liability.
Qube’s continuous monitoring systems help customers detect trending towards super emitters early, reducing the risk of third-party identification, and enabling proactive emission control strategies and mitigating the reputational risk of non-compliance.
Inflation Reduction Act (IRA) and Waste Emissions Charge (WEC)
The Inflation Reduction Act (IRA) of August 2022 introduced the Methane Emissions and Waste Reduction Incentive Program, reinforcing the EPA’s authority to penalize methane emissions.
Waste Emission Charge (WEC): Applicable starting in 2025, this charge will impose a fee on methane emissions exceeding prescribed limits, incentivizing operators to adopt low-emission technologies. By providing continuous monitoring, Qube ensures customers can prove the duration and scope of leaks, which may reduce the overall penalty liability under the WEC.
Subpart W Revisions (Effective 2025)
Subpart W of the Greenhouse Gas Reporting Program (GHGRP) governs emissions reporting across the oil and gas value chain. The 2024 revisions, driven by the IRA, mandate the use of empirical data for more accurate methane quantification.
Notable Changes: Other Large Release Events (OLRE): Under Subpart W, operators must report emission events (excluding blowdowns) that exceed 100 kg/hr (if from sources that are not included in Subpart W), as well as events with emission rates of 100 kg/hr greater than the emissions estimates from sources that are accounted for in Subpart W. Qube’s continuous monitoring systems are capable of identifying emission trends to rapidly find and fix these events before exceedances happen. Furthermore, if a large release event occurs, Qube’s alarm capabilities notify operations personnel to investigate and react as soon as possible. This results in resolution faster than the 91-day duration that must be reported when detected by other methods such as OGI surveys or third-party inspections.
Waste Prevention Rules for Federal Land
The Bureau of Land Management’s statutory authority is to “use all reasonable precautions to prevent waste of oil or gas developed in the land” and “lessees are liable for royalty payments on gas wasted from the lease site”. However, when the operator has complied with the LDAR requirements in §§ 3179.100, 3179.101, leaks are considered unavoidable and § 3179.42(b) royalty is not due on any unavoidably lost oil or gas. Operators can apply to use continuous monitoring technologies, like Qube, to comply with LDAR requirements.
Qube’s CM solutions provide operators with real-time data, helping them stay compliant with evolving methane regulations like EPA’s Quad Ob/Oc, SEP, and Subpart W, and BLM’s Waste Prevention Rule. By offering accurate emission quantification and proactive detection of super emitter events, Qube reduces the risk of penalties and costly third-party reporting. Qube submitted its application to the EPA as an approved CM technology and is currently in review. As regulations become more stringent, Qube ensures customers meet their compliance goals, protect their bottom line, and maintain operational efficiency through advanced, data-driven monitoring technology.