Lost Revenue of Natural Gas on Tribal, Federal Lands Tops $63 Million
Waste360 Staff
As the world looks to reduce greenhouse gas emissions, new research indicates the amount and value of wasted natural gas on tribal lands. Analysis from Synapse estimated that the royalty value lost in not capturing emissions on federal and tribal lands in 2019 was $63.6 million. "Federal and tribal governments collect royalties for natural gas produced on leased federal and tribal lands," the report explained. "Royalties are assessed at the point-of-sale, according to the sales price of the gas." The analysis noted federal efforts to reduce wasted gas and address methane emissions from natural gas production, with the most notable measures coming from the Bureau of Land Management (BLM) proposed rulemaking. Synapse's analysis also considered the lost state revenue from taxes collected on natural gas operations on federal lands. The top six states with the highest volume of wasted natural gas resources lost 157 Bcf from federal and tribal lands in 2019, for a total of $18.8 million in 2019. "The potential sales revenue of wasted natural gas on federal and tribal lands in 2019 was $509 million, which could have met the yearly needs of 2.2 million households," the report stated. Leaks contributed to 46 percent of lost gas, with 54 percent lost to flaring. New Mexico, North Dakota, Wyoming, Utah, Pennsylvania, and Colorado were noted as having the highest natural gas volume lost. Read the entire report here.