Industries Oppose Natural Gas Tax
Friday, September 10, 2021

The American Petroleum Institute and 130 energy, manufacturing, business, and labor trade organizations across the natural gas and oil supply chain sent a letter Tuesday to the U.S. Senate Committee on Environment and Public Works opposing the inclusion of a fee on methane emissions as part of the budget reconciliation package.

The letter addressed to the committee's chairman Senator Thomas R. Carper (D-DE) and ranking member Senator Shelley Moore Capito (R-WV), warns that a methane fee “could jeopardize affordable and reliable energy with likely little reduction in greenhouse gas emissions.” Among the letter's signatories are the ND Petroleum Council, the Greater North Dakota Chamber and the Western Dakota Energy Association. In the letter, the trade groups led by API, voiced their collective concern.

"The undersigned organizations, on behalf of their diverse memberships and representing a substantial cross-section of the U.S. economy as producers, distributors, and users of oil, natural gas, and natural gas liquids, join together to oppose the Methane Emissions Reduction Act due to the adverse environmental and economic impacts it will likely cause and because methane emissions are already being mitigated via appropriate regulatory programs."

API notes that as a result of technology and efficiency measures, emissions relative to production in five of the seven largest producing basins were down nearly 70 percent between 2011 and 2019 and are expected to continue to trend downward. Click here to read the full letter.

ND Senator Kevin Cramer also sent a letter to Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi urging opposition to the methane fee. In a press release Cramer said, “If passed, these measures will lead to job loss and reduce funding for schools, parks, and other programs directly and indirectly funded by industry royalties and taxes. Most ironically, these proposals would increase global emissions by making us dependent on dirtier foreign sources of energy."

Click here to read Senator Cramer's full statement and letter. Click here to read an article about the proposed rule in the Williston Herald.

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