Flared-gas mining projects face tighter methane accounting rules

Mining operations powered by gas that would otherwise be flared at oil wells face new measurement requirements that replace assumed combustion efficiency figures with metered data.

The premise of these projects is that burning gas in a generator destroys more methane than an open flare, producing a lower-emissions outcome than the counterfactual. The new rules require operators to prove that in practice.

Continuous monitoring equipment must be installed at the point of combustion, with data retained and made available to inspectors. Early adopters report the equipment cost is modest relative to site capital but the reporting burden is not.

Operators who can document high destruction efficiency stand to benefit. Several are already using verified data to market lower-carbon hashrate to buyers with emissions reporting obligations of their own.

The rules also close a gap on venting during maintenance, which had been excluded from most voluntary reporting frameworks.

Trade groups have asked for a longer phase-in for small sites, arguing that per-site monitoring costs fall disproportionately on marginal wells.