U.S. oil and natural gas trade groups are calling foul on a proposal by federal officials to collect royalties on gas that is vented or flared.


The proposal, first announced in November, would replace what the Bureau of Land Management (BLM) called an “outdated” and “ill-suited” ruling that came about before the boom of unconventional exploration and production activities. 

The new ruling is meant to curb methane pollution from oil and gas operations on federal and tribal lands. Regulations also would prevent “undue waste,” in part by imposing royalties on vented or flared natural gas. 

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In response, energy advocates last month sent proposed revisions for BLM to consider in the final rulemaking. The trade groups included the American Petroleum...