Senators James Lankford (R-OK) and Roger Marshall, M.D, (R-KS) led a group of colleagues in introducing the Marginal Well Protection Act to prevent the Environmental Protection Agency (EPA) from levying excessive methane emission fees for wells that produce less than 15 barrels of oil and less than 90 Mcf (90,000 cubic feet) of natural gas per day.
Marginal wells are small, often family-owned wells with around 15 employees or fewer. Marginal wells produce almost 7.5 percent of the entire US oil production supply. Joining Lankford and Marshall in introducing the bill were Senators Ted Cruz (R-TX), Jerry Moran (R-KS), Steve Daines (R-MT), and Jim Inhofe (R-OK).
“Biden has made it clear he wants to get rid of good-paying energy jobs to force his radical climate-change agenda,” said Lankford. “Many Oklahomans participate in the small-scale oil and gas production that Democrats in Congress are proposing to punish with a job-destroying methane fine. My colleagues and I want to make sure we protect our American energy independence, especially the smaller oil and gas operations, from crushing methane fees.
He said if the Biden administration is successful at killing small oil and gas producers, the country will have to purchase more oil and gas from overseas. Lankford said an American President should prefer American jobs.
“Unfortunately this President prefers that we beg for more oil from OPEC and Russia rather than unleash American energy production,” he added.
“Thousands of Kansans rely on our oil and natural gas industry to provide for their families, and small producers simply can’t withstand the financial burden that comes with excess emission fees,” said Marshall.
He called it the Democrats’ war on America’s oil and gas industry and said the President’s policies are disastrous.
Sen. Inhofe said the marginal well producers are vital to the economy.
“Marginal well owners are often small, family-owned businesses that should not be hit with unprecedented, hefty “fees” that are really new taxes on oil and gas. However, that’s exactly what the Biden administration and Democrats plan to do—inflict heavy methane emissions fees that would be detrimental to countless American businesses.”
The Senator said the Marginal Well Protection Act would block the large tax hike from going into effect.
Sen. Cruze called the tax another effort by Biden to create ineffective and unnecessary regulatory burdens.
“On Day One, President Biden declared war on Made in Montana energy, and now Montana small businesses and Montana families are paying the price. This bill protects Montana small oil and gas businesses from burdensome fees and reporting and supports Montana jobs and communities. I’ll keep fighting back against Biden’s anti-energy policies and fighting for Montana energy,” said Daines.
“Rather than trying to increase energy production here in the US and working to counter rising energy prices, the Biden administration is fixated on constraining domestic oil and gas production ,” said Moran. “This legislation will shield small wells, which are often family-owned, from excessive, punitive fees—protecting Kansas producers and helping the US be more energy independent.”
