Council of theEuropean Union
Brussels, 15 December 2022
(OR. en)16043/22
Interinstitutional File:
2021/0423(COD)
ENER 686
CLIMA 677
ENV 1310
IND 560
COMPET 1036
RECH 663
AGRI 717
RELEX 1734
CODEC 2019
NOTE
From:
To:

Permanent Representatives Committee (Part 1)
CouncilNo. prev. doc.:

15756/22

No. Cion doc.:

15063/1/21 REV 1 +RE1CO1 + ADD1-ADD4

Subject:

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND
OF THE COUNCIL on methane emissions reduction in the energy sector
and amending Regulation (EU) 2019/942- General approachI.

INTRODUCTION

The Commission presented the proposal for a Regulation on methane emissions reduction in theenergy sector on 15 December 2021, as a second part of the ‘Fit for 55’ legislative proposals thataims to implement the European Green Deal with a view to achieving climate neutrality in theUnion by 2050. It was submitted together with the Regulation and Directive on the internal markets
for renewable and natural gases and for hydrogen (Gas Package) as a part of new EU framework to
decarbonise gas markets, promote hydrogen and reduce methane emissions.

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II.

WORK WITHIN THE EUROPEAN PARLIAMENT AND OTHER UNION BODIESIn the Parliament, the proposal has been referred to the Committee on Environment, Public Healthand Food Safety, and the Industry, Research and Energy Committee. The committees appointed two
rapporteurs: Jutta Paulus (Greens/EFA) and Silvia Sardone (ID). The European Economic andSocial Committee delivered its opinion on 19 May 2022, while the Committee of the Regionsdelivered its opinion in the 151st plenary session, 10-12 October 2022.

III. WORK WITHIN THE COUNCIL
The Regulation, together with its impact assessment, was presented to the Working Party on Energy
on 7 February 2022. Further meetings of the Energy Working Party during the first half of 2022,
under the French Presidency, gave way to changes reflected in the first revision of the proposal
published on 20 April 2022. The overall progress was summarized in the report published on 10
June 2022. In July, the Czech Presidency continued with negotiations on the working party level
and their outcomes reflected to the second and third revision in the following months. The thirdrevision was also submitted to the Coreper on 26 October 2022 in order to ask for guidelines on the
new LDAR approach and on other most pressing issues. The fourth and fifth revisions followedreflecting most of the concerns raised by the Member States. The latest political discussions on thefifth and sixth revisions of the text took place in the Coreper on 7 December and 13 December
2022. Considering the broad support for the text, and the comments made, the Presidency prepared
a compromise proposal for the general approach in view of the TTE Council of 19 December 2022.
Delegations are invited to consider the changes in the compromise proposal:•

In recital 61a, “and contradictions” was added to clarify the outcomes to be avoided when
preparing delegated acts on standards and harmonisation. It was also clarified, that theCommission should reflect not only existing European Standards, but also International ones.

•

In Article 2, definition 17c, a technical correction was done replacing the term “treatment” by
the term “processing” that is being used throughout the text.

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•

In Article 18, paragraph 1a, a technical correction was done changing plural to singular in theterm “Member States”.

•

In Article 33, paragraph 2a was moved to 1a in order to logically follow the sequence ofprovisions of that article, and it was slightly redrafted to reflect the requests of delegations.
Corresponding recital 66a was updated accordingly.

IV.

CONCLUSION

In light of the above, the Council is invited to examine the Presidency compromise text as set out in
the Annex to this Note, and reach an agreement on the Council's general approach, with the view tothe forthcoming negotiations with the European Parliament.

In this latest compromise proposal, new texts are bold underline and deleted texts are strikethroughcompared to doc. 15756/22. The texts added in other, previous, revisions are bold and deletions
made are strikethrough.

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2022/0423 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
on methane emissions reduction in the energy sector and amending Regulation (EU) 2019/942(Text with EEA relevance)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article
194(2) 192(1) thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Economic and Social Committee1,
Having regard to the opinion of the Committee of the Regions2,
Acting in accordance with the ordinary legislative procedure,
Whereas:(1)

Methane, the main component of natural gas, is second only to carbon dioxide in its overall
contribution to climate change and is responsible for approximately a third of current
warming.

1
2

OJ C , , p. .
OJ C , , p. .

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(2)

On a molecular level, Aalthough methane remains in the atmosphere for a shorter period
has a shorter average atmospheric residence time (10 to 12 years) than carbon dioxide(hundreds of years), its greenhouse effect on the climate is more significant and it
contributes to ozone formation which is a potent air pollutant that causes serious healthproblems. The amount of methane in the atmosphere globally has risen sharply over the last
decade.

(3)

According to recent estimates by the United Nations Environment Programme and the
Climate and Clean Air Coalition, methane emission reductions of 45% by 2030, based on
available targeted measures and additional measures in line with the United Nations (‘UN’)
priority development goals, could avoid 0.3°C of global warming by 2045.

(4)

According to the Union’s greenhouse gas (‘GHG’) inventories data, the energy sector isestimated to be responsible for 19% of methane emissions within the Union. This does notinclude methane emissions linked to the Union’s fossil energy consumption which are
occurring outside the Union.

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(5)

The European Green Deal combines a comprehensive set of mutually reinforcing measuresand initiatives aimed at achieving climate neutrality in the Union by 2050 at the latest. The
European Green Deal Communication3 indicates that the decarbonisation of the gas sector
will be facilitated, including by addressing the issue of energy-related methane emissions.
The Commission adopted an EU strategy to reduce methane emissions (‘the Methane
Strategy’) in October 2020 setting out measures to cut methane emissions in the EU,
including in the energy sector, and internationally. In Regulation (EU) 2021/11194(‘European Climate Law’), the Union has enshrined into legislation the target of economywide climate neutrality by 2050 at the latest and also established a binding Union domestic
reduction commitment of net greenhouse gas emissions (emissions after deduction ofremovals) of at least 55% below 1990 levels by 2030. To achieve that level of GHG
emission reductions, methane emissions from the energy sector should decrease by around
58% by 2030 compared to 2020.

(6)

Methane emissions are included in the scope of the Union greenhouse gas reduction targets
for 2030 set out in the European Climate Law and the binding national emission reduction
targets under Regulation (EU) 2018/8425. However, there is currently no Union level legal
framework setting out specific measures for the reduction of anthropogenic methane
emissions in the energy sector. In addition, whilst Directive 2010/756 on industrial emissions
covers methane emissions from the refining of mineral oil and gas, it does not cover otheractivities in the energy sector.

3
4
5

6

COM(2019) 640 final.
Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021
establishing the framework for achieving climate neutrality and amending Regulations (EC)No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021).
Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018
on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030
contributing to climate action to meet commitments under the Paris Agreement andamending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018).
Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010
on industrial emissions (integrated pollution prevention and control) (OJ L 334,
17.12.2010).

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(7)

In this context, this Regulation should apply to the reduction of methane emissions in oil andfossil gas upstream exploration and production, fossil gas gathering and processing, gastransmission, distribution, underground storage and liquefied natural liquid fossil gas (LNG)
terminals, as well as to operating underground and surface coal mines, closed andabandoned underground coal mines.

(8)

Rules for accurate measurement, monitoring, reporting and verification of methane
emissions in the oil, gas and coal sectors, as well as for the abatement of those emissions,
including through leak detection and repair surveys and restrictions on venting and flaring,should be addressed by an appropriate Union legal framework. Such a framework should
contain rules to enhance transparency with regard to fossil energy imports into the Union,
thus improving the incentives for a wider uptake of methane mitigation solutions across theglobe.

(9)Compliance with the obligations under this Regulation is likely to require investments byregulated operators and the costs associated with such investments should be taken into
account in tariff setting, subject to efficiency principles.

(10)

Each Member State should appoint at least one competent authority to oversee that operators
effectively comply with the obligations laid down in this Regulation and should notify theCommission about such appointment and any changes thereof. The competent authorities
appointed should take all the necessary measures to ensure compliance with this Regulationin accordance with the tasks specifically attributed to them therein the requirements set
out in this Regulation. Taking into account the cross-border character of energy sector
operations and methane emissions, competent authorities should cooperate with each otherand the Commission. In this context, the Commission and the competent authorities of theMember States should form together a network of public authorities applying thisRegulation to foster close cooperation, with the necessary arrangements for exchanging
information and best practices and allow for consultations.

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(11)

In order to ensure a smooth and effective implementation of the obligations laid down in thisRegulation, the Commission supports Member States through the Technical Support
Instrument7 providing tailor-made technical expertise to design and implement reforms,
including those promoting the reduction of methane emissions in the energy sector. The
technical support, for example, involves strengthening of administrative capacity,
harmonising the legislative frameworks and sharing of relevant best practices.

(12)

In order to ensure the performance of their tasks, operators should provide the competentauthorities with all assistance necessary. In addition, operators should take all the necessary
actions identified by the competent authorities within the period determined by thecompetent authorities or any other period agreed with the competent authorities.

(12a) Taking into account the cross-border character of energy sector operations andmethane emissions, competent authorities should cooperate with each other and theCommission. In this context, the Commission and the competent authorities of theMember States should form together a network of public authorities applying thisRegulation to foster close cooperation, with the necessary arrangements for exchanging
information and best practices and allow for consultations.

7Regulation (EU) 2021/240 of the European Parliament and of the Council of 10 February
2021 establishing a Technical Support Instrument (OJ L 57, 18.2.2021).

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(13)

The main mechanism available to the competent authorities should be inspections, including
examination of documentation and records, emissions measurements and site checks.
Inspections should take place regularly, on the basis of an appraisal of the environmental
risk conducted by the competent authorities. In addition, inspections should be carried out toinvestigate substantiated complaints and occurrences of non-compliance and to ensure that
repairs or replacements of components and mitigation measures are carried out inaccordance with this Regulation. Where they identify a serious breach of the requirements ofthis Regulation, competent authorities should issue a notice of remedial actions to be takenby the operator. Alternatively, the competent authorities may decide to instruct theoperator or mine operator to submit to their approval a set of remedial actions toaddress the breaches. Competent authorities should keep records of the inspections and therelevant information should be made available in accordance with Directive 2003/4/EC of
the European Parliament and of the Council8.

(14)

In light of the proximity of some methane emission sources to urban or residential areas,
natural or legal persons harmed by breaches of this Regulation should be able to lodge duly
substantiated complaints with the competent authorities. Complainants should be kept
informed of the procedure and decisions taken and should receive a final decision within areasonable time of lodging the complaint.

8

Directive 2003/4/EC of the European Parliament and of the Council of 28 January 2003 on
public access to environmental information and repealing Council Directive 90/313/EEC(OJ L 41, 14.2.2003).

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(15)

A robust verification framework can improves the credibility of reported data. In addition,
the level of detail and technical complexity of methane emissions measurements requires
proper verification of methane emissions data reported by operators and mine operators.
While self-verification is possible, third party verification ensures greater independence andtransparency. In addition, it allows for a harmonized set of competences and level ofexpertise that may not be available to all public entities. Verifiers should be accredited byaccreditation bodies in accordance with Regulation (EC) 765/2008 of the European
Parliament and of the Council9 or otherwise authorised in a manner comparable toRegulation (EC) 765/2008 of the European Parliament and of the Council.

(15a) Independent accredited verifiers should thus ensure that emissions reports prepared byoperators and mine operators are correct and in compliance with the requirements set out inthis Regulation. They should review the data in the emissions reports to assess theirreliability, credibility and accuracy against clear and harmonised measurement andquantification specifications. In the interest of harmonization and data reliability,
credibility, accuracy and comparability, such specifications may be based or set bymeans of European standards or, in the absence of such standards, International
standards. In the absence of suitable European standards, the Commission should
consider requesting the relevant European standardisation organisations to adopt suchstandards in accordance with Regulation (EU) No 1025/2012 of the European
Parliament and of the Council10. free and publicly available European or international
standards developed by independent bodies and made applicable by the Commission. The
Commission should thus be empowered to adopt delegated acts for the purpose of
establishing incorporating and setting out the applicability of such European orinternational standards such specifications.

910Regulation (EC) No 765/2008 of the European Parliament and of the Council of 9 July 2008
setting out the requirements for accreditation and market surveillance relating to themarketing of products and repealing Regulation (EEC) No 339/93 (OJ L 218, 13.8.2008).
Regulation (EU) No 1025/2012 of the European Parliament and of the Council of 25
October 2012 on European standardisation, amending Council Directives 89/686/EEC and93/15/EEC and Directives 94/9/EC, 94/25/EC, 95/16/EC, 97/23/EC, 98/34/EC, 2004/22/EC,
2007/23/EC, 2009/23/EC and 2009/105/EC of the European Parliament and of the Council
and repealing Council Decision 87/95/EEC and Decision No 1673/2006/EC of the European
Parliament and of the Council (OJ L 316, 14.11.2012, p. 12).

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(15b) Verifiers are separate from competent authorities and should be independent from theoperators and mine operators, who should provide them with all assistance necessary toenable or facilitate the performance of the verification activities, notably as regards access tothe premises and the presentation of documentation or records.
(16)

The information in the emission reports submitted to the competent authorities should be
provided to the Commission in view of a verification role to be attributed to In performing
their obligations and exercising their powers under this Regulation, verifiers, thecompetent authorities and the Commission should consider the information madeavailable internationally, for example by the International Methane Emissions
Observatory (IMEO), in particular with regards to methodologies for data aggregation andanalysis and verification of methodologies and statistical processes employed by companies
operators or mine operators to quantify their emissions reported data. The reference
criteria in that respect may include the OGMP standards and guidance documents. The
information produced by the IMEO should be made available to the public and theCommission should use such information to address any identified shortcomings withregards to the measurement, reporting and verification of methane emissions data.

(17)

The IMEO was set up in October 2020 by the Union in partnership with the United Nations
Environmental Programme, the Climate and Clean Air Coalition and the International
Energy Agency, and launched at the G20 Summit in October 2021. The IMEO has beentasked with collecting, reconciling, verifying and publishing anthropogenic methane
emissions data at a global level. The IMEO is part of the United Nations Environment
Programme, which concluded a Memorandum of Understanding with the European Union.
Its role is crucial for verification of methane emissions data in the energy sector andappropriate relations should be established in order to put into effect the entrustment ofverification tasks. As the IMEO is not a Union body and is not subject to Union law, it isessential to provide that IMEO takes appropriate measures to ensure the protection of theinterests of the Union and its Member States.

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(18)

As party to the United Nations Framework Convention on Climate Change (UNFCCC) and
the Paris Agreement, the Union is required to provide annually an inventory report ofanthropogenic greenhouse gas emissions constituting an aggregate of the member Statesnational greenhouse gas inventories, prepared using good practice methodologies acceptedby the Intergovernmental Panel on Climate Change (IPCC).

(19)

Regulation (EU) 2018/1999 of the European Parliament and of the Council11 requires
Member States to report greenhouse gas inventory data to the Commission and to reporttheir national projections. Pursuant to Article 17(2) of Regulation (EU) 2018/1999 reportingis to be undertaken using UNFCCC reporting guidelines, and is often based on default
emission factors rather than direct source-level measurements, implying uncertainties on theorigin, frequency and magnitude of emissions.

(20)

Country data reported pursuant to UNFCCC reporting provisions is submitted to the
UNFCCC secretariat according to different tiers of reporting in line with the IPCC
guidelines. In this context, the IPCC generally suggests using higher tier methods for thoseemission sources which have a significant influence on a country’s total inventory ofgreenhouse gases in terms of absolute level, trend or uncertainty.

11

Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December
2018 on the Governance of the Energy Union and Climate Action, amending Regulations(EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council,
Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and2013/30/EU of the European Parliament and of the Council, Council Directives
2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of theEuropean Parliament and of the Council (OJ L 328, 21.12.2018, p. 1).

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(21)

A tier represents a level of methodological complexity. Three tiers are available. Tier 1
methods typically use IPCC default emission factors and require the most basic, and leastdisaggregated, activity data. Higher tiers usually utilise more elaborate methods and sourcespecific, technology-specific, region-specific or country-specific emission factors, which areoften based on measurements, and normally require more highly disaggregated activity data.
Specifically, tier 2 requires country-specific, instead of default, emission factors to be used,while tier 3 requires plant-by-plant data or measurements and comprises the application of arigorous bottom-up assessment by source type at the individual facility level. Progressing
from tier 1 to tier 3 represents an increase in the certainty of measurements of methanerelated emissions12.

(22)

Member States have different practices as concerns the tier level at which they report theirenergy related methane emissions to the UNFCCC. Reporting at tier 2 for large emission
sources is in line with IPCC reporting guidelines as tier 2 is considered a higher tier method.
Consequently, estimation methodologies and reporting of energy related methane emissions
varies across Member States, and reporting at the lowest, tier 1, level is still very common inseveral Member States for methane emissions from coal, gas and oil.

12

IPCC (2019) 2019 Refinement to the 2006 IPCC guidelines for national greenhouse gas
inventories.

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(23)

Currently, voluntary industry-led initiatives remain the principal course of action formethane emissions quantification and mitigation in many countries. A key energy sector led
initiative is the Oil and Gas Methane Partnership (‘OGMP’), a voluntary initiative on
measuring and reporting of methane emissions created in 2014 by the United Nations
Environmental Programme (UNEP) and the Climate and Clean Air Coalition (CCAC), in
whose board the Commission is represented. The OGMP focuses on establishing bestpractices to improve the availability of global information on methane emissions
quantification and management and to drive mitigation actions to reduce methane emissions.
To date, over 60 companies have signed up to OGMP, covering 30% of global oil and gas
production and assets in five continents. The OGMP’s work on developing standards andmethodologies involves governments, civil society and business. The OGMP 2.0 frameworkis the latest iteration of a dynamic methane emissions standard and it can provide a suitablebasis for methane emissions standards, based on sound scientific norms.

(24)

Against this background, it is necessary to improve the measurement and quality of reported
data of methane emissions, including on the main sources of methane emissions associatedwith energy produced and consumed within the Union. Moreover, the availability of sourcelevel data and robust quantification of emissions should be ensured, thereby increasing thereliability of reporting as well as the scope for appropriate measures for mitigation.

(25)

For measuring and reporting to be effective, oil, and gas and coal companies should be
required to measure and report methane emissions by source, and to make aggregated data
available to Member States in order for Member States to be able to improve the accuracy of
their inventories reporting. In addition, effective verification of company reported data isnecessary and, to minimise the administrative burden for operators, reporting should beorganised on an annual basis.

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(26)

This Regulation builds on the latest OGMP 2.0 framework insofar as it meets the criteria
referred to in Recitals 24 and 25, to contribute towards the collection of reliable and robust
data that would form a sufficient basis for monitoring methane emissions and if necessary tobuild additional action to further curb methane emissions.

(27)

The latest OGMP 2.0 framework has five levels of reporting. Source-level reporting begins
at level 3, which is considered comparable with UNFCCC tier 3. It allows generic emission
factors to be used. OGMP 2.0 level 4 reporting requires direct measurements of source-levelmethane emissions. It allows the use of specific emission factors. OGMP 2.0 level 5
reporting requires the addition of complementary site-level measurements. In addition, the
OGMP 2.0 framework requires companies to report direct measurements of methane
emissions within three years of joining OGMP 2.0 for operated assets and within five years
for non-operated assets. Building on the approach taken in OGMP 2.0 with regard tosource-level reporting and taking into account that a large number of Union companies had
already signed up to OGMP 2.0 in 2021, Union operators should be required to deliver
direct source-level measurements of their emissions within 24 months for operated assets
and within 36 months for non-operating assets. In addition to source level quantification,site-level quantification allows assessment, verification and reconciliation of source-level
estimates aggregated by site, thereby providing improved confidence in reported emissions.
As in OGMP 2.0, this Regulation requires site-level measurements to reconcile source-levelmeasurements. A harmonised approach requires standardised specifications to conduct
direct measurements or quantification for gas infrastructure which may be based or
set by means of European standards or, in the absence of such standards, International
standards. In the absence of suitable European standards, the Commission should
consider requesting the relevant European standardisation organisations to adopt suchstandards in accordance with Regulation (EU) No 1025/2012 of the European
Parliament and of the Council. The Commission should thus be empowered to adopt
delegated acts for the purpose of establishing such specifications.

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(28)

According to data from the Union’s GHG inventory, more than half of all direct energy
sector methane emissions is due to unintentional release of emissions into the atmosphere. In
the case of oil and gas, that represents the largest share of methane emissions.

(29)

Unintentional leaks of methane into the atmosphere can occur during drilling, extraction as
well as during processing, storage, transmission and distribution to end-use consumers. They
can also occur in inactive, temporarily plugged and permanently plugged andabandoned oil or gas wells. Some emissions result from imperfections in, or ordinary wear
and tear of, technical components such as joints, flanges and valves, or from damaged
components, for example in the case of accidents. Corrosion or damage can also cause leaks
from the walls of pressurised equipment.

(30)

While venting of methane is typically intentional, resulting from processes or activities anddevices designed for that purpose, it can also be unintentional, as in the case of amalfunction.

(31)

In order to reduce those emissions, operators should take all appropriate mitigation
measures available to them to minimise methane emissions in their operations.

(32)

More specifically, methane emissions from leaks are most commonly reduced by methaneleak detection and repair (‘LDAR’) surveys, carried out to identify leaks and followed byrepair of such leaks. Operators should therefore conduct at least periodic LDAR surveys andthese should also cover surveying of components that vent methane, to survey for
unintentional venting of methane.

(33)

For that purpose, a harmonised approach to ensure a level-playing field for all operators in
the Union should be set up. That approach should include minimum requirements for LDAR
surveys, while leaving an adequate degree of flexibility to Member States and operators.
This is essential to allow innovation and the development of new LDAR technologies andmethods, thus preventing the lock-in of technology, to the detriment of environmental
protection. New technologies and detection methods continue to emerge and Member Statesshould encourage innovation in this sector, so that the most accurate and cost-effective
methods can be adopted.

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(33a) A harmonised approach requires standardised specifications to identify or detect
methane releases using different instruments and technologies and which may be basedor set by means of European standards or, in the absence of such standards,
International standards. In the absence of suitable European standards, theCommission should consider requesting the relevant European standardisation
organisations to adopt such standards in accordance with Regulation (EU) No
1025/2012 of the European Parliament and of the Council. The Commission should
thus be empowered to adopt delegated acts for the purpose of establishing suchmethodologies and procedures specifications.
(34)

Obligations on LDAR surveys should reflect a number of good practices. LDAR surveys
should be primarily aimed at finding and fixing leaks, rather than quantifying them, andthose areas with a higher risk of leaks should be checked more frequently; the frequency ofsurveys should be guided not only by the need to repair components from which methane isescaping above the methane emission threshold but also by operational considerations,taking into account risks to safety. Thus, where a higher risk to safety or higher risk ofmethane losses is identified, the competent authorities should be allowed to recommend
impose changes in LDAR programme such as a higher frequency of surveys for the
relevant components.; all leaks irrespective of size should be recorded and monitored, as
small leaks can develop into larger ones; leak repairs should be followed by confirmationthat they have been effective; I in order to allow for future, more advanced methane
emissions detecting technologies to be used, the size of methane loss at or above which a
repair is warranted should be specified, while allowing operators the choice of detection
devices. Where appropriate, continuous monitoring may be used in the context of thisRegulation.

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(34a) Repair or replacement should take place immediately after detection or as soon as
possible thereafter. Albeit the need to consider exceptional safety, administrative andtechnical aspects, the necessary evidence to justify any delays in repair should be
provided. Moreover, all leaks irrespective of size should be recorded and monitored, as
small leaks can develop into larger ones; leak repairs should be followed byconfirmation that they have been effective.
(34b) Small connected systems as defined in Directive (EU) 2019/944 may face security ofsupply and grid stability issues in the case of a system shutdown. Therefore, to avoid
such risks for the security of supply, repair or replacement works should be carriedout when the next shutdown is scheduled.
(34a) It is in the interest of the functioning of the internal market to have standards which havebeen harmonised at Union level. Once the reference to such a standard has been publishedin the Official Journal of the European Union, compliance with it should raise apresumption of conformity with the corresponding requirements set out in the implementing
measure adopted on the basis of this Regulation, although other means of demonstratingsuch conformity should be permitted. In line with Article 10 of Regulation 1025/2012, theEuropean Commission can request European standardisation organisations to develop
technical specifications, European standards and harmonised European standards. One of
the main roles of standards should be to help operators in applying the implementing
measures adopted under this Regulation(35)

Venting consists ofis the release of uncombusted methane into the atmosphere either
intentionally from processes or activities or devices designed to do it, or unintentionally inthe case of a malfunction. In light of its potent GHG emission effect, venting should bebanned except in the case of emergencies, malfunction or during certain specific events
where some venting is unavoidable and strictly necessary. To ensure that operators do
not use equipment designed to vent, technology standards should be adopted that allow
for the use of lower-emitting alternatives.

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(36)

Flaring is the controlled combustion of methane for the purpose of disposal in a device
designed for said combustion. When carried out during the normal production of oil and gas
or fossil gas and as a result of insufficient in the absence of sufficient facilities or amenablegeology to re-inject the produced gas methane, utilise it on-site, or dispatch it to a market,
flaring it is considered as routine flaring. Routine flaring should be banned. Flaring should
only be permissible when it is the only alternative to venting and where venting is notprohibited. Venting is more harmful to the environment than flaring as the released gas
typically contains high-levels of methane, whereas flaring oxidises methane into carbon
dioxide which has a lower global warming potential.

(37)

Using flaring as an alternative to venting requires that flaring devices are efficient at
combusting methane. For that reason, a combustion efficiency requirement should also be
included for the cases in which flaring is admissible. Use of an auto-igniter or pilot
burners, which give more reliable ignition as they are not affected by wind, should also be
required.

(38)

Re-injection, utilisation on-site or dispatch of the methane to a market should always be
preferable to flaring - and therefore venting - of methane. Operators that vent should provide
proof to the competent authorities that neither re-injection, utilisation on-site or dispatch of
the methane to a market nor flaring were possible and operators that flare should provide
proof to the competent authorities that re-injection, utilisation on-site or dispatch of themethane to a market was not possible.

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(39)

Operators should notify major venting and flaring events without delay to the competentauthorities and submit annually more comprehensive reports on all venting and flaring
events. They should also ensure that equipment and devices comply with the standards laid
down in Union law European standards or, in the absence of such standards,
International standards. In the absence of suitable European standards, theCommission should consider requesting the relevant European standardisation
organisations to adopt standards in accordance with Regulation (EU) No 1025/2012 of
the European Parliament and of the Council. The Commission should thus beempowered to adopt delegated acts for the purpose of incorporating and setting out theapplicability of such standards.

(40)

Methane emissions from inactive, temporarily plugged and permanently plugged andabandoned oil and gas wells pose public health, safety and environmental risks. Therefore,monitoring, including quantification and pressure monitoring, where such monitoring
equipment exists on wellheads, and reporting obligations should still apply and those wells
and well sites should be reclaimed and remediated. In such cases, Member States shouldhave a predominant role, in particular to establish an inventories and mitigation plans.

(40a) The number of inactive wells, temporarily plugged wells and permanently plugged andabandoned wells located on the territory of the Member States vary significantly, withsome Member States having a very high density of these wells on their territories.
Those Member States with very high number of wells located on their territory should
therefore be allowed to apply a more gradual approach to fulfilling obligations
regarding the establishment of inventories of all of inactive wells, temporarily plugged
wells and permanently plugged and abandoned wells and their updates on theirterritory or under their jurisdiction in order to ensure the proportionality of the costs
and administrative burden associated with the inventory of these wells.

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(40b) Operators or, where appropriate, licensees or owners, should reduce the methane leaks
from wells to as low as reasonably practicable levels, meaning to the point where thecost of further leak reduction would be grossly disproportionate to the benefits of such
reduction in curbing methane emissions to the atmosphere. The reasonable
practicability of leak reduction measures should be kept under review in the light of
new knowledge and technology developments. In assessing whether the time, cost andeffort would be grossly disproportionate to the benefits of further reducing methaneleaks, regard should be had to best practice compatible with the repair operations
being considered, as well as the overall efforts that can be taken at Union level toreduce methane leaks from other sources in the energy sector.
(40c) It follows from available scientific data that the potential of methane leakage from
offshore wells to reach the surface decreases with water depth, and that deeper leakage
has less potential to reach the atmosphere since it is absorbed or oxidised as it ascends
the water column. Research surveys suggest that methane does not reach the surface
from water depths greater than 150m under normal circumstances. However, in
specific circumstances such as blow-out accidents during oil and gas operations,presence of oil leaks or hydrates, methane may reach the atmosphere to some degree
even from greater depths. The environmental impact assessments conducted before
drilling can indicate such situations where methane can leak to the atmosphere, orsuch conditions can arise accidentally during operations. Considering that theresources necessary to survey and intervene in offshore wells are higher in comparison
to onshore wells and other parts of the energy sector, and that these resources increase
with increasing water depth and distance from shore, exemptions from the obligations
under this regulation should be considered for offshore wells located at water depth
between 200 meters and 700 meters, unless there is a documented risk of migration of
methane leaks to the atmosphere .

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(41)

EU GHG inventory data shows that coalmine methane emissions are the biggest single
source of methane emissions in the Union’s energy sector. In 2019, direct emissions fromthe coal sector represented 31% of methane emissions, almost equal to the percentage ofdirect methane emissions from fossil gas and oil combined, of 33%.

(42)

Currently, there is no Union-wide specific regulations limiting methane emissions from thecoal sector, despite availability of a wide array of mitigation technologies. There is no Union
or international coal-specific monitoring, reporting and verification standard. In the Union,
reporting of methane emissions from the coal industry is part of the GHG emission reportingby Member States and data from underground mines is also included in the European
Pollutant Release and Transfer Register established by Regulation (EC) No 166/200613.

(43)

Methane emissions are primarily linked to underground mining activities, both in active andabandoned mines14. In active underground mines, methane concentration in the air is
continuously controlled, as it constitutes a health and safety hazard. In the case ofunderground coal mines, the vast majority of the methane emissions occur throughventilation and drainage or degasification systems, which represent the two main ways oflowering methane concentrations in a mine’s airways.

13

14

Regulation (EC) No 166/2006 of the European Parliament and of the Council of 18 January
2006 concerning theestablishment of a European Pollutant Release and Transfer Register and amending Council
Directives 91/689/EEC and 96/61/EC (OJ L 33, 4.2.2006)(2020) N. Kholod et al Global methane emissions from coal mining to continue growing
even with declining coal production, Journal of Cleaner Production, Volume 256, 120489

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(44)

Once production is halted and a mine is closed or abandoned, it continues to releasemethane, referred to as abandoned mine methane (AMM). These emissions typically occur
at well-defined point sources, such as ventilation shafts or pressure-relief vents. With
increased climate ambition and shifting energy production to less carbon-intensive energy
sources, AMM emissions are likely to increase in the Union. It is estimated that even 10
years after mining is ceased, methane from non-flooded mines continues to be emitted at
levels attaining approximately 40% of emissions recorded at the time of closure15.
Moreover, treatment of AMM remains fragmented due to different ownership and
exploitation rights and obligations across the EU. Member States should thus establish
inventories of closed and abandoned coal assets underground coal assets mines whereoperations have ceased since … [50 years prior to the date of entry into force of thisRegulation] and, either them or the identified responsible party, should be required to install
devices for measurement of methane emissions.

15(2020) N. Kholod et al Global methane emissions from coal mining to continue growing
even with declining coal production, Journal of Cleaner Production, Volume 256, 120489

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(45)

Operating surface coal mines in the Union produce lignite and emit less methane thanunderground coal mines. Lignite mines in the EU are predominantly opencast surface
mines, with the exception of one lignite underground mine in one Member State.
According to the Union GHG inventory, in 2019 operating surface mines emitted 166
kilotonnes compared to 828 kilotonnes for underground coal mines16. Measurement of
surface coal mine methane emissions is challenging due to their diffuse nature over a wide
area. Therefore, and despite available technology17, emissions from surface mines are rarely
measured. Methane emissions from surface mines can be derived using basin-specific coalemission factors18 and, with greater precision, using mine- or deposit-specific emission
factors, since coal basins have deposits with different methane-bearing capacity19. Emission
factors can be derived from measuring gas content of the seams sampled from exploration
borehole cores20. Mine operators should thus perform measurements quantification of
methane emissions in surface coal mines using such emission factors.

(46)

Therefore, mine operators should perform continuous measurement and quantification of
methane emissions from ventilation shafts in underground coal mines, continuous
measurement of vented and flared methane in drainage stations and use specific emission
factors as regards surface coal mines. They should report that data to the competentauthorities.

16
17
18
19
20

Methane emissions for the energy sector in Kilotonnes, disaggregated by emission categorysource, as reported to UNFCC in April 2021 by EEA on behalf of the EU
Best Practice Guidance for Effective Management of Coal Mine Methane at National Level:
Monitoring, Reporting, Verification and Mitigation, ECE Energy Series No. 71, UNECE
2021 (Forthcoming)
2006 IPCC guidelines for national greenhouse gas inventories.
Bilans Zasobow Zloz Kopalin, stan na 31.12.2020’, State Geological Surowce mineralne(pgi.gov.pl)
Best Practice Guidance for Effective Management of Coal Mine Methane at National Level:
Monitoring, Reporting, Verification and Mitigation, ECE Energy Series No. 71, UNECE
2021 (Forthcoming)

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(47)

Currently, mitigation of methane emissions can be best achieved in operating and closed or
abandoned underground coal mines. Effective mitigation of methane emissions fromoperating and closed or abandoned surface mines is currently limited by technology.
However, in order to support research and development on mitigation technologies of such
emissions in the future, there should be effective and detailed monitoring, reporting, andverification of the scale of those emissions.

(48)

Operating U underground mines are either thermal or coking coal mines. Thermal coal isused primarily as an energy source and coking coal is used as a fuel and as a reactant in theprocess of steelmaking. Both coking coal and thermal coal mines should be subject tomeasuring, reporting and verification of methane emissions. Mitigation of methane
emissions should be implemented through a phase out of venting and flaring.

(49)

For operating underground coal mines, mitigation of methane emissions should be
implemented through a phase out of venting and flaring. For c Closed or abandoned
underground coal mines should be subject to measuring, reporting and verification of
methane emissions. For mitigation of methane emissions in those mines, while flooding
the mine can prevent methane emissions, this is not systematically done and hasenvironmental risks. Venting and flaring in these mines should also be phased out. As
geological constraints and environmental considerations prevent a one-size-fits-all approachto mitigate methane emissions from abandoned underground coal mines21, Member Statesshould establish their own mitigation plan, taking into consideration those constraints andthe technical feasibility of AMM mitigation.

21

Best Practice Guidance for Effective Methane Recovery and Use from Abandoned Mines(UNECE, 2019)

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(50)

Following a Commission proposal, on 28 June 2021, the Council adopted the new legal
base of the Research Fund for Coal and Steel22 which foresees support for research andinnovation for repurposing of the formerly operating coal mines or coal mines in theprocess of closure and related infrastructure in line with the overall objective of moving
away from the coal and the Just Transition Mechanism. In this context, one of the main
objectives for the new Research Fund for Coal and Steel programme for the coming years
will be to minimise the environmental impacts of coal mines in transition, in particular withregard to methane emissions.

(51)

The Union is dependent on imports for 70% of its hard coal consumption, 97% of its oil
consumption, and 90% of its fossil gas consumption. There is no precise knowledge on themagnitude, origin or nature of methane emissions linked to fossil energy consumed in theUnion but occurring in third countries.

(52)

Global warming effects caused by methane emissions are cross-border. Although somefossil energy producing countries are beginning to act domestically to reduce methane
emissions from their energy sectors, many operators importing fossil energy to the Union
exporters are not subject to any regulations in the country of origin of this energy theirrespective domestic markets. Such operators need clear incentives to act on their methane
emission, hence transparent information on methane emissions should be made available tothe markets.

22

Council Decision (EU) 2021/1094 of 28 June 2021 amending Decision 2008/376/EC on the
adoption of the Research Programme of the Research Fund for Coal and Steel and on themultiannual technical guidelines for this programme, OJ L 236/69. Council Decision (EU)2021/1207 of 19 July 2021 amending Decision 2003/77/EC laying down multiannual
financial guidelines for managing the assets of the ECSC in liquidation and, on completionof the liquidation, the Assets of the Research Fund for Coal and Steel. Council Decision(EU) 2021/1208 of 19 July 2021 amending Decision 2003/76/EC establishing the measuresnecessary for the implementation of the Protocol, annexed to the Treaty establishing theEuropean Community, on the financial consequences of the expiry of the ECSC Treaty andon the Research Fund for Coal and Steel, OJ L 261/54.

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(53)

Currently there is limited accurate data (UNFCCC Tier 3 or equivalent) on international
methane emissions. Many countries exporting fossil energy exporting countries have so far
not submitted full inventory data to the UNFCCC. At the same time, there is evidence oflarge increases of methane emissions from oil and gas production activities globally from 65
to 80 Mt/year in the last 20 years23.

(54)

As announced in the Communication on the EU Methane Strategy24, the Union is committed
to working in cooperation with its energy partners and other key fossil energy importing
countries to tackle methane emissions globally. Energy diplomacy on methane emissions has
already yielded important outcomes. In September 2021, the Union and the United States
announced the Global Methane Pledge, which represents a political commitment to reduce
global methane emissions by 30% by 2030 (from 2020 levels), launched at the UN Climate
Change Conference (COP 26) in November 2021 in Glasgow. Over one hundred countries
have committed their support, representing nearly half of global anthropogenic methane
emissions. The Global Methane Pledge includes a commitment to move towards using best
available inventory methodologies to quantify methane emissions, with a particular focus onhigh emission sources.

(55)

Further, the International Methane Emissions Observatory (IMEO) will play an importantand lead role to increase transparency on global energy sector methane emissions. Support
for setting up the IMEO was provided by the Council in its January 2021 conclusions on
Climate and Energy Diplomacy25.

23
24
25

Global Assessment of Oil and Gas Methane 1 Ultra-Emitters; T. Lauvaux, C. Giron, M.
Mazzolini, A. d’Aspremont, R. Duren, D. Cusworth, D. Shindell, P. Ciais; April 2021.
COM(2020) 663 final
5263/21 TI/eb 1 RELEX.1.C

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(56)

The Commission will work with the IMEO to set up a ‘Methane Supply Index’, as explicitly
referred to in the Communication on the EU Methane Strategy26. It would provide methane
emission data from different sources of fossil energy from around the globe - including fromsource-level estimations and measurements as well as from aerial/satellite monitoring thereby empowering buyers of fossil energy to make informed purchasing decisions on thebasis of the methane emissions of fossil energy sources.

(57)

In parallel to continuing its successful diplomatic work to achieve such global commitments,
the Union is further encouraging significant methane emissions abatement globally, and inparticular in the countries supplying fossil energy to the Union.

(58)

Therefore, importers of fossil energy to the Union should be required to provide Member
States with information on measures related to measurement, reporting and mitigation of
methane emissions undertaken by exporters, in particular the application of regulatory or
voluntary measures to control their methane emissions, including measures such as leakdetection and repair surveys or measures to control and restrict venting and flaring of
methane. The levels of measurement and reporting set out in the information requirements
applied to importers correspond to the ones to be required from Union operators in thisRegulation, as outlined in Recitals 24 to 26 and 46. The information on measures to control
methane emissions is not more burdensome than that required from Union operators.

26

COM(2020) 663 final

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(59)

Member States should communicate that information to the Commission. On the basis ofthat information, the Union should set up and manage a transparency database for fossil
energy imports into the Union, detailing whether the exporting companies have signed up to
the OGMP for oil and gas companies and to the extent that it is set up, an equivalent,internationally or Union recognised standard for coal companies. Such information should
demonstrate the degree of commitment of companies in exporting countries to measure,report and have verified their methane emissions according to tier 3 methods of UNFCCC
reporting. Such a transparency database would serve as a source of information for thepurchasing decisions of importers of fossil energy to the Union as well as for otherstakeholders and the public. The transparency database should also reflect the efforts
undertaken by companies in the Union and companies exporting fossil energy to the Union
to measure and report as well as reduce their methane emissions. It should also include
information on the measurement, reporting and mitigation regulatory actions by countries
where fossil energy is produced.

(60)

In addition, the Union should put in place a global methane emitters global monitoring tool,
providing information on the magnitude, recurrence and location of high methane-emitting
sources. This should further encourage real and demonstrable results from theimplementation of methane regulations and effective mitigation actions by companies in theUnion and companies supplying fossil energy to the Union. The tool should pool data fromseveral certified data providers and services, including the Copernicus component of the EU
Space Programme and the IMEO. The tool should inform the Commission’s bilateraldialogues with the countries concerned to discuss the different scenarios envisaged formethane emissions policies and measures.

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(61)

In combination, the methane transparency database and the methane emitters global
monitoring tool measures referred to in Recitals 58 to 60 should enhance transparency forbuyers, enabling them to make informed sourcing decisions and improve the possibility ofwider uptake of methane mitigation solutions across the globe. In addition, they should
further incentivise international companies to sign up to international methane measurement
and reporting standards such as OGMP or to adopt effective measurement, reporting andmitigation measures. These measures are designed as the basis for a stepwise approach toincrease the level of stringency of the measures applicable to imports. The Commission
should thus be empowered to amend or add to the reporting requirements of importers.
Furthermore, the Commission should evaluate the implementation of those measures and, if
it deems appropriate, submit proposals for review to impose more stringent measures onimporters and to ensure a comparable level of effectiveness of measures applicable in third
countries to monitor, report, verify and mitigate methane emissions. The evaluation shouldtake into account the work undertaken by the IMEO, including the Methane Supply Index,
the transparency database and the global methane emitter monitoring tool. Should theCommission find it appropriate to increase the level of stringency of the measures applicable
to imports, it is of particular importance that the Commission carries out appropriate
consultations during its preparatory work including consulting relevant third countries.

(61a) To ensure a harmonised approach based on common specification, the Commission
should be empowered to adopt delegated acts that comply with the requirements of thisregulation and avoid redundancy with, and contradictions to, existing suitable
European or International standards. In the absence of such suitable European
standards, the Commission should consider requesting the relevant European
standardisation organisations to adopt such standards in accordance with Regulation(EU) No 1025/2012 of the European Parliament and of the Council.

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(62)

Member States should ensure that infringements of this Regulation are sanctioned byeffective, proportionate and dissuasive penalties, which may include fines and periodic
penalty payments, and take all measures necessary to ensure that they are implemented. Inorder to play a significant deterrent effect, penalties should be adequate to the type of
infringement, to the possible advantage for the operator and to the type and gravity of theenvironmental damage, impact on human safety and public health. When imposing
penalties, due regard should be given to the nature, gravity and duration of the infringement
in question. The imposition of penalties should be proportionate and should comply with
Union and national law, including with applicable procedural safeguards and with theprinciples of the Charter of fundamental rights.

(63)

In order to ensure more consistency, a list of the types of infringements that should be
subject to penalties should be set out. In order to facilitate the more consistent application ofpenalties, common non-exhaustive and indicative criteria for the application of penalties
should be set out. The deterrent effect of penalties should be reinforced by the possibility to
publish the information related to the penalties imposed by Member States, in compliancewith the data protection requirements set out in Regulations (EU) 2016/67927 and (EU)2018/1725 of the European Parliament and the Council28subject to compliance with
Union law on the protection of personal data where the penalties are imposed onnatural persons.

27

28

Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016
on the protection of natural persons with regard to the processing of personal data and on
the free movement of such data, and repealing Directive 95/46/EC (General Data
Protection Regulation) (OJ L 119, 4.5.2016, p. 1).
Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October
2018 on the protection of natural persons with regard to the processing of personal data by
the Union institutions, bodies, offices and agencies and on the free movement of such data,
and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC (OJ L 295,
21.11.2018, p. 39).

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(64)

As a result of the provisions requiring investments by regulated operators to be taken into
account in tariff setting, Regulation (EU) 2019/942 of the European Parliament and of theCouncil29 should be amended to entrust ACER with the task of making available a set ofindicators and reference values for the comparison of unit investment costs linked tomeasurement, monitoring, reporting, verification and abatement of methane emissions forcomparable projects.

(65)

In order to define the elements of the phase out of venting and flaring in coking coal mines,
the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of
the European Union should be delegated to the Commission to supplement this Regulation
by setting out restrictions on venting methane from ventilation shafts for coking coal mines.
In addition, in order to allow for further information to be required from importers, as
proved necessary, the power to adopt acts in accordance with Article 290 of the Treaty on
the Functioning of the European Union should be delegated to the Commission to
supplement this Regulation by amending or adding to the information to be provided byimporters. It is of particular importance that the Commission carry out appropriate
consultations during its preparatory work, including at expert level, and that those
consultations be conducted in accordance with the principles laid down in theInterinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, toensure equal participation in the preparation of delegated acts, the European Parliament andthe Council receive all documents at the same time as Member States' experts, and theirexperts systematically have access to meetings of Commission expert groups dealing withthe preparation of delegated acts.

29

Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019
establishing a European Union Agency for the Cooperation of Energy Regulators (OJ L 158,
14.6.2019).

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(66)

In order to ensure uniform conditions for implementation, implementing powers should beconferred on the Commission to adopt detailed rules with regard to common formats forreporting, in accordance with Article 291 of the Treaty on the Functioning of the European
Union. Those powers should be exercised in accordance with Regulation (EU) No 182/2011of the European Parliament and of the Council30.

(66a) In order to fulfil the objectives of this Regulation and to contribute to the goal set out
in the Global Methane Pledge to reduce global methane emissions by 30% until 2030,
the European Union should consider extending the requirements set out in thisRegulation to imports from third countries. By [12 months after the date of entry into
force of this Regulation], the European Commission should submit to the European
Parliament and the Council a report on the implications of a possible extension of therequirements under this Regulation to the energy supply chain and production of fossil
fuels imported into the Union. When preparing the report, the European Commission
should put particular focus on the methane mitigation potential, consequences forenergy prices, security of energy supply and availability of energy resources on the EU
market. Depending on the outcome of that report and as part of the review of thisRegulation, the Commission should consider submitting appropriate legislative
proposals to extend the scope of this Regulation and its requirements and standards
accordingly to importers of the relevant products to the Union.

30

Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16
February 2011 laying down the rules and general principles concerning mechanisms forcontrol by Member States of the Commission’s exercise of implementing powers (OJ L 55,
28.2.2011, p. 13).

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(67)

Operators and competent authorities should be given a reasonable period in order to take thenecessary preparatory actions to meet the requirements of this Regulation.

(68)

Since the objective of this Regulation, namely the accurate measurement, monitoring,
reporting, verification and the reduction of methane emissions in the energy sector, cannot
be achieved by the Member States individually and can therefore, by reason of its scale, bebetter achieved at Union level, the Union may adopt measures, in accordance with theprinciple of subsidiarity as set out in Article 5 of the Treaty on European Union. In
accordance with the principle of proportionality, as set out in that Article, this Regulation
does not go beyond what is necessary in order to achieve that objective,

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HAVE ADOPTED THIS REGULATION:

Chapter 1
General Provisions
Article 1
Subject matter and scope
1.

This Regulation lays down rules for the accurate measurement, quantification, monitoring,
reporting and verification of methane emissions in the energy sector in the Union, as well as
the abatement of those emissions, including through leak detection and repair surveys, repair
obligations and restrictions on venting and flaring. This Regulation also lays down rules
on tools ensuring transparency of methane emissions from imports of fossil energy into theUnion.

2.

This Regulation applies to:(a)oil and fossil gas upstream exploration and production, including inactive wells,
temporarily plugged wells, permanently plugged and abandoned wells, and fossil
gas gathering and processing;(b)fossil and/or renewable gas transmission, distribution (excluding ept meteringsystems at final consumption points and service lines between the distribution
network and metering system), underground storage and liquid liquefied gas (LNG)
terminals operating with fossil and/or renewable (bio-or synthetic) methane;(c)operating underground and surface coal mines, closed underground coal mines andabandoned underground coal mines.

3.

This Regulation applies to methane emissions occurring outside the Union in what relates toimporter information requirements, to the methane transparency database and to the methane
emitters monitoring tool.

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Article 2
Definitions
For the purposes of this Regulation, the following definitions apply:(1)‘methane emissions’ means all direct emissions occurring from all components that arepotential sources of methane emissions, whether as a result of intentional or unintentional
venting, incomplete combustion in flares or from other components and unintentional leaks;(1a) ‘transmission’ means transmission as defined in point (3) of Article 2 of Directive
2009/73/EC of the European Parliament and of the Council31 [to be adapted as per
ongoing recast proposal];(2)‘transmission system operator’ means transmission system operator as defined in point (4)of has the meaning attributed to it by [Article 2(4) of Directive 2009/73/EC of the European
Parliament and of the Council32] [to be adapted as per ongoing recast proposal];(2a) ‘distribution’ means distribution as defined in point (5) of Article 2 of Directive
2009/73/EC [to be adapted as per ongoing recast proposal];(3)‘distribution system operator’ means distribution system operator as defined in point (6)of has the meaning attributed to it by [Article 2(6) of Directive 2009/73/EC] [to be adapted as
per ongoing recast proposal];(4)‘operator’ means any natural or legal person who operates or controls an asset or, where
provided for in national legislation, to whom decisive economic power over the technicalfunctioning of an asset has been delegated;

31
32

Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009
concerning common rules for the internal market in natural gas and repealing Directive
2003/55/EC (OJ L 211, 14.8.2009, p. 94).
Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009
concerning common rules for the internal market in natural gas and repealing Directive
2003/55/EC (OJ L 211, 14.8.2009, p. 94).

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(5)

‘mine operator’ means any natural or legal person who operates or controls a coal mine or,where provided for in national legislation, to whom decisive economic power over thetechnical functioning of a coal mine has been delegated;(5a) ‘component’ means any part or element of equipment used in oil or gas sites orinfrastructure that could be the source of fugitive emissions or venting of methane,
including but not limited to, valves, connectors and flanges, open-ended lines, pressure
release valves, thief hatches, walls of vessels or pipes aboveground or underground
pipelines;(5b) ‘site’ means a collection of components with some relation to one another as a
subdivision of an asset, including but not limited to a production battery, compressor
station, processing plant, transmission station, pipeline segment, a pipeline network, or aliquefaction plant;(6)‘verification’ means the activities carried out by a verifier to assess the conformity of thereports transmitted by the operators and mine operators;(7)‘verifier’ means a legal person different from the competent authorities appointed inaccordance with Article 4 of this Regulation which carries out verification activities andwhich is accredited by a national accreditation body pursuant to Regulation (EC) No
765/2008 or a natural person otherwise authorised, without prejudice to Article 5(2) of that
Regulation, at the time a verification statement is issued;(7a) ‘quantification’ means operations to determine the quantity of methane emissions, basedon direct measurements and only where those are not feasible, based on a combination of
direct measurements and other methods such as simulation tools and other detailed
engineering calculations or a combination of such methods.
(8)‘source’ means a component or a geological structure that releases methane into theatmosphere whether intentionally or unintentionally, intermittently or persistently;

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(9)

‘asset’ means a business or operating unit, which can be composed of several facilities orsites, including assets under the operational control of the operator (operated assets) andassets which are not under the operational control of the operator (non-operated assets);(10) ‘emission factor’ means a coefficient that quantifies the emissions or removals of a gas perunit of activity, which is often either based on a sample of measurement data or othermethods such as simulation tools and detailed engineering calculations, averaged todevelop a representative rate of emission for a given activity level under a given set ofoperating conditions;(11) ‘generic emission factor’ means a standardised emission factor for each type of emission
source which is derived from inventories or databases, but in any case not verified throughdirect measurements;(12) ‘specific emission factor’ means an emission factor derived from direct measurements;(13) ‘direct measurement’ means measurement of the methane emission at source-level with amethane measuring devices allowing to obtain credible estimates of parameters needed
for the quantification of methane emission rates device;(14) ‘site-level methane emissions’ means all sources of emissions within an asset entire site;(15) ‘site-level measurement’ means a top-down measurement that captures a complete
overview of the emissions occurring across an entire site, or in the case of including, for apipeline network, the emissions from segments of such a network, and typically involves
the use of sensors mounted on a mobile platform, such as vehicles, drones, aircrafts, boats andsatellites or other means to capture a complete overview of emissions across an entire site;(16) ‘undertaking’ means a natural or legal person carrying out at least one of the following
functions activities: upstream oil and fossil gas exploitation, exploration and production,
fossil gas gathering and processing and gas transmission, distribution and undergroundstorage, including LNG with regard to liquified gas terminals;

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(17) ‘leak detection and repair survey’ means a survey to identify sources of methane emissions,
including and detect sources of methane leaks and other unintentional methane emissions
venting;(17a) ‘remoteType 1 LDARleak detection and repair survey’ means a leak detection and repair
survey undertaken with a minimum detection limit and a minimum leak threshold of7000 parts per million or [17] grams per hour and a minimum leak threshold of [17] grams
per hour;(17b) ‘contactType 2 LDARleak detection and repair survey’ means a leak detection and repair
survey undertaken with a minimum detection limit of [10] parts per million or [8.30.15]
milligrams per hour and a minimum leak threshold of [500] parts per million or [0.151]
grams per hour for aboveground components, minimum detection limit and a minimum
leak threshold of 3000 parts per million or 5 grams/hour for underground components
and for offshore components above the sea level and minimum detection limit and aminimum leak threshold of 7000 parts per million or 17 grams/hour for offshore
components below the sea level and below the seabed;(17c) ‘Production location’ means a location where fossil gas or oil is extracted from theunderground and where no treatment processing takes place;(17d) ‘Processing’ means processes which are used to treat fossil gas and oil, such as theseparation of fossil gas and oil from production water;(17e) ‘Leak detection rate’ means the relative number of leakages detected by performing
type 2 LDAR survey over all components that can possibly leak in a given period.
(17fca) ‘shutdown’ means a situation where a system site or part of its components is shut
down from normal operating conditions and where complete or partial pressure
reduction is required prior to initiating repair and maintenance works;

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(18) ‘venting’ means the direct release of uncombusted methane into the atmosphere either
intentionally from processes, activities or devices designed for such a purpose, or
unintentionally in the case of a malfunction or geological constraints;(19) ‘flaring’ means the controlled combustion of methane for the purpose of disposal in a device
designed for said combustion;(20) ‘emergency’ means a temporary, unexpected, infrequent situation in which the methane
emission is unavoidable and necessary to prevent an immediate and substantial adverse
impact on human safety, public health or the environment, but does not include situations
arising from or related to the following events:(a)failure of the operator to install appropriate equipment of sufficient capacity for the
expected or actual rate and pressure of production;(b)

failure of the operator to limit production where the production rate exceeds thecapacity of the related equipment or gathering system, except where the excess
production is due to a downstream emergency, malfunction, or unscheduled repair andlasts for no longer than eight hours from the time of notification of the downstream
capacity issue;(c)scheduled maintenance;(d)operator negligence;(e)repeated failures, that is to say four or more failures within the preceding 30 days, of thesame piece of equipment;(21) ‘malfunction’ means a sudden, unavoidable failure or breakdown of equipment beyond thereasonable control of the operator that substantially disrupts operations but does not include a
failure or breakdown that is caused entirely or in part by poor maintenance, careless operationor other preventable equipment failure or breakdown;

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EN(22) ‘routine flaring’ means flaring during the normal production of oil or fossil gas and in theabsence of sufficient facilities or amenable geology to re-inject methane, utilise it on-site, or
dispatch it to a market;(23) ‘flare stack’ means a device equipped with a burner used to flare methane;(23a) ‘destruction and removal efficiency’ means the mass percentage of methane that is
destroyed or removed after the combustion has ceased relative to the quantity ofmethane entering the flare;(24) ‘Inactive well’ means an exploration or production oil or gas well or well site, onshore or
offshore, where operations for exploration or production have ceased for at least one year. It
shall does not include temporarily plugged wells, permanently plugged and abandoned
wells, as defined in this Regulation, nor wells drilled in order to establish the existence of a
possible hydrocarbons deposit or to acquire information in order to delimit an establisheddeposit, provided no deposit was found to exist.;(24a) ‘Permanently plugged and abandoned well’ means an oil or gas well or well site,
onshore or offshore, which has been plugged and will not be re-entered, where all
installations associated with the well have been removed and operations have been
terminated in accordance with regulatory requirements and where documentation
adequate to demonstrate that there are no methane emissions from that well or well site
can be provided as established in Annex IV.;(24b) ‘Temporarily plugged well’ means an oil or gas well or well site, onshore or offshore,
where primary and secondary well barriers have been installed to isolate all potential flow
zones exposed by the well and where a wellhead is still installed and access to the well isstill provided for;(25) ‘remediating’ means the process of cleaning up contaminated water and soil;(26) ‘reclaiming’ means the process of returning a well or well site to having soil and vegetation
conditions similar to those that existed before it was disturbed;

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EN(27) ‘coal mine’ means a site where coal mining occurs or has occurred, including lands,
excavations, underground passageways, shafts, slopes, tunnels and workings, structures,
facilities, equipment, machines and tools situated on the surface or underground and used in,or resulting from the work of extracting lignite, subbituminous coal, bituminous coal, or
anthracite from its natural deposits in the earth by any means or method, including the workof preparing the coal to be extracted;(28) ‘operating coal mine’ means a coal mine where the majority of its revenue comes from thework of extracting lignite, subbituminous coal, bituminous coal or anthracites, and where atleast one of the following conditions apply:(a)mine development is underway.

(b)coal has been produced within the last 90 days.

(c)mine ventilation fans are operative.

(29) ‘underground coal mine’ means a coal mine where coal is produced by tunnelling into theearth to the coalbed, which is then mined with underground mining equipment such as cutting
machines and continuous, longwall and shortwall mining machines, and transported to thesurface;(30) ‘surface coal mine’ means a coal mine where coal lies near the surface and can be extracted
by removing the covering layers of rock and soil;(31) ‘ventilation shaft’ means a vertical passage used to move fresh air underground or to remove
methane and other gases from an underground coal mine;(32) ‘drainage station’ means a station collecting methane from a coal mine gas drainage system;(33) ‘drainage system’ means a system, which may comprise multiple methane sources and which
drains methane-rich gas from coal seams or surrounding rock strata and transports it to adrainage station;

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EN(34) ‘post-mining activities’ are activities carried out after coal has been mined and brought to thesurface, including coal handling, processing, storage, and transport;(35) ‘continuous measurement’ means a measurement where the reading is taken at least every
minute;(36) ‘ventilation air methane’ means methane emitted from coal seams and other gas-bearing strata
and which enters the ventilation air and is exhausted from the ventilation shaft;(37) ‘coal deposit’ is an area of the land containing significantly mineable concentrations andquantities of coal, defined according to the Member State’s methodology on documenting
geological mineral deposits;(38) ‘closed coal mine’ means a coal mine which where coal production has ceased and is notexpected to occur in the future is no longer in operation but, which is closed pursuant tothe applicable licensing requirements or other regulations and for which anwith an
identified operator, owner or licensee has still an active permit and closed according to theapplicable licensing requirements or other regulations;(39) ‘abandoned coal mine’ means a coal mine where coal production has ceased which is nolonger in operation where but for which an operator, owner or licensee cannot be identified
as subject to the obligations under an active permit, or that has not been closed in a
regulated manner;(39aa) ‘alternative use of an abandoned coal mine’ means the use of the subsurface mine
infrastructure and coal mining equipment for purposes other than coal production,
including the development of geothermal and heat storage projects in flooded mines,
and hydropower applications in non-flooded mines.
(39a) ‘coal mining equipment in closed or abandoned coal mine’ means any equipment thatremains linked to the methane-bearing strata, including but not limited to gob vents anddrainage pipes.;

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EN(40) ‘coking coal mine’ means a mine where at least 50% of the production output averaged overthe last three available years is coking coal, as defined in Annex B of Regulation (EC) no1099/2008 of the European Parliament and of the Council33;(41) ‘importer’ means a natural or legal person established in the Union who, in the course of acommercial activity, places fossil energy gas, oil or coal from a third country on the Union
market. It includes a including any natural or legal person established in the Union who
has been appointed by an importer to carry out acts and formalities required under
Chapter 5 of this Regulation.
(42) ‘European standard’ means a standard as defined in point (b) of point 1 of Article 2 ofRegulation (EU) No 1025/2012;(43) ‘International standard’ means a standard as defined in point (a) of point 1 of Article 2 ofRegulation (EU) No 1025/2012;

Article 3
Costs of regulated operators
1.

When fixing or approving transmission or distribution tariffs or the methodologies to be usedby transmission system operators, distribution system operators, LNG terminal operators orother regulated companies including where applicable underground gas storage operators,
regulatory authorities shall take into account the costs incurred and investments made tocomply with the obligations under this Regulation, insofar as they are efficiently andtransparently incurred. correspond to those of an efficient and structurally comparable
regulated operator. The unit investment costs referred to in paragraph 2 may be used by
the regulatory authorities to benchmark the costs incurred by the operators.

33

Regulation (EC) No 1099/2008 of the European Parliament and of the Council of 22
October 2008 on energy statistics (OJ L 304, 14.11.2008, p. 1)

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2.

Every three years, the European Union Agency for the Cooperation of Energy Regulators(ACER) shall establish and make publicly available a set of indicators and correspondingreference values for the comparison of unit investment costs linked to measurement,
monitoring, reporting, verification and abatement of methane emissions for comparable
projects. The relevant regulatory authorities and the regulated operators shall provide
ACER with all the data necessary for that comparison.

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ENChapter 2
Competent authorities and independent verification
Article 4Competent authorities
1.

Each Member State shall designate one or more competent authorities responsible formonitoring and enforcing the application of this Regulation.
Member States shall notify the Commission of the names and contact details of the competentauthorities by … [3 96 months after the date of entry into force of this Regulation]. Member
States shall notify the Commission without delay of any changes to the names or contact
details of the competent authorities.

2.

The Commission shall make a list of the competent authorities publicly available and shallregularly update that list.

3.

Member States shall ensure that the competent authorities have adequate powers andresources to perform the obligations set out in this Regulation.

Article 5
Tasks of the competent authorities
1.

The competent authorities shall take the necessary measures to ensure compliance with thisRegulation in accordance with the tasks specifically attributed to them therein therequirements set out in this Regulation.

2.

Operators and mine operators shall provide the competent authorities with all assistancenecessary to enable or facilitate the performance of the tasks of the competent authorities
referred to in this Regulation, notably as regards access to the premises and sites, thepresentation of documentation or records and, in case the site is located offshore, transport
to or from the site.

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3.

The competent authorities shall cooperate with each other and with the Commission and asnecessary may cooperate with authorities of third countries, in order to ensure compliancewith this Regulation. The Commission may shall set up a network of competent authorities tofoster cooperation, with the necessary arrangements for exchanging information on
monitoring, regulating and compliance and best practices and allow for consultations.

4.

Where reports are to be made public in accordance with this Regulation, the competentauthorities shall make them publicly available and free of charge, on a designated website andin freely accessible, downloadable and non-editable (read only) format.
Where information is kept confidential in accordance with Article 4 of Directive 2003/4/EC
or where necessary under Union law on the protection of personal data, the competentauthorities shall indicate the type of information that has been withheld and the reason
therefor.

Article 6Inspections
1.

The competent authorities shall carry out periodic inspections based on a risk assessment tocheck the compliance of operators or mine operators with the requirements set out in thisRegulation. Subject to paragraphs 2 and 3, T the competent authorities may decide on
the scope and frequency of the periodic inspections, based on an assessment of risks
associated with each site, such as environmental, human safety and public health risks,
as well as any identified breaches of this Regulation. The first inspection shall becompleted by … [18 21 months after the date of entry into force of this Regulation].

2.

Inspections shall include, where relevant, site checks or field audits examination of
documentation and records that demonstrate compliance with the requirements of thisRegulation, methane emissions detection and concentration measurements and any follow-up
action undertaken by or on behalf of the competent authority to check and promotecompliance of sites or facilities with the requirements of this Regulation.

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Where an inspection has identified a serious breach of the requirements of this Regulation, thecompetent authorities shall issue a notice of remedial actions with clear deadlines to beundertaken by the operator or mine operator, as part of the report referred to in paragraph 5.
Alternatively, the competent authorities may decide to instruct the operator or mine
operator to submit to their approval a set of remedial actions to address the breaches
identified within one month from the conclusion of the inspection. Those actions shall be
included in the report referred to in paragraph 5.
3.

After the first inspection referred to in paragraph 1, the competent authorities shall draw up
programmes for routine inspections based on a risk assessment. The period between
inspections shall be based on an appraisal of the environmental risk, human safety andpublic health risks and shall not exceed two five years. Where an inspection has identified aserious breach of the requirements of this Regulation, the subsequent inspection shall takeplace within one year.

4.

Without prejudice to periodic inspections, Tthe competent authorities shall carry out nonroutine inspections:(a)to investigate substantiated complaints referred to in Article 7 and occurrences of noncompliance as soon as possible after the date the competent authorities become aware ofsuch complaints or non-compliance;(b)

to ensure, where deemed relevant by the competent authorities, that leak repairs or
replacements of components were carried out in accordance with Article 14 and thatmitigation measures were implemented in accordance with Articles 18, 22 and 26.

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5.

Following each inspection, the competent authorities shall prepare a report describing thelegal basis for the inspection, the procedural steps followed, the relevant findings andrecommendations for the further actions by the operator or mine operator. Where
appropriate, the competent authorities may prepare one report covering multiple
inspections of components, assets or sites of the same operator or mine operator
provided such inspections are done in the same inspection period.
The report shall be notified to the operator or mine operator concerned and made publicly
available within two months of the date of the inspection. Where the report was triggered by acomplaint made in accordance with Article 7, the competent authorities shall notify thecomplainant once the report is publicly available.
The report shall be made publicly available by the competent authorities in accordance withsubject to Article 7 of Directive 2003/4/EC. Where information is kept confidential falls
under an exception in accordance with Article 4 of Directive 2003/4/EC, the competentauthorities shall indicate in the report the type of information that has been withheld and thereason thereof.

6.

Member States may enter into formal agreements with appropriate Union agencies orother suitable bodies where available for the provision of specialist expertise to support
the competent authority in carrying out the functions attributed to them by this article.
For the purposes of this paragraph a body shall not be deemed suitable where its
objectivity may be compromised by a conflicts of interest.

76.

Operators and mine operators shall take all the necessary actions set out in the reportreferred to in paragraph 5 within the period determined by the competent authorities or any
other period agreed with the competent authorities. Where the inspection report referred
to in paragraph 5 concludes that the operators or mine operators do not comply with therequirements of this Regulation, operators and mine operators shall take all thenecessary actions to bring their operations into compliance with the Regulation. The
actions shall be taken within the period determined by the competent authorities or any
other period agreed with the competent authorities.

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Article 7
Complaints lodged with the competent authorities
1.

Any natural or legal person which considers that it has suffered injury as a result of a breachof the requirements of this Regulation by operators or mine operators, may lodge a written
complaint with the competent authorities on a possible breach of the requirements of thisRegulation by operators or mine operators.

2.

The complaints shall be duly substantiated and contain sufficient evidence of the alleged
breach and of the injury resulting therefrom.

3.

Where it becomes apparent that the complaint does not provide sufficient evidence to justify
pursuing an investigation, the competent authorities shall inform the complainant of thereasons for their decision not to pursue an investigation. This paragraph shall not apply
where complaints that are not sufficiently substantiated are repeatedly lodged and forthat reason deemed abusive by the competent authorities.

4.

Without prejudice to the rules applicable pursuant to national law and paragraph 3, thecompetent authorities shall keep the complainant informed of the steps taken in the procedure
and, where applicable, inform them of appropriate alternative forms of redress, such as
recourse to national courts or any other national or international complaints procedure.

5.

Without prejudice to the rules applicable pursuant to national law and on the basis ofcomparable procedures, the competent authorities shall establish and make publicly available
indicative periods to take a decision on complaints.

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Article 8
Verification activities and verification statement
1.

Verifiers shall assess the conformity of the emissions reports submitted to them by operatorsor mine operators in accordance with this Regulation. They shall assess the conformity of thereports with the requirements laid down in this Regulation and review all data sources andmethodologies used in order to assess their reliability, credibility and accuracy, in particular
the following points:(a)the choice and employment of emission factors;(b)

the methodologies, calculations, samplings, statistical distributions and levels ofmateriality leading to the determination of methane emissions;(c)any risks of inappropriate measuring or reporting;(d)

any quality control or quality assurance systems applied by the operators or mine
operators.

2.

In carrying out the verification activities referred to in paragraph 1, verifiers shall use free andpublicly available European or international standards the specifications for methane
emissions measurement, quantification as made applicable by the Commission andmitigation established in accordance with paragraph 5Article 29a. Until such date where theapplicability of those standards is determined by the Commission, verifiers shall use existing
European or international standards for quantification and verification of greenhouse gas
emissions. Where no international or European standards are available methodologies
specifications are established, operators or mine operators shall provide information to
the verifiers on the relevant standards or methodologies used by the operators, for the
purpose of verification activities.
Verifiers may conduct site checks to determine the reliability, credibility and accuracy of thedata sources and methodologies used.

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3.

Verifiers shall issue a verification statement verifying the conformity of the emissions reportand specifying the verification work carried out, once their assessment concludes withreasonable assurance that the emissions report complies with the requirements of thisRegulation.
The verifiers shall only issue the verification statement where reliable, credible and accurate
data and information enable the methane emissions to be determined with a reasonable degreeof certainty and provided the reported data is coherent with the estimated data, complete andfree of inconsistencies.
Where the assessment concludes that the emissions report does not comply with therequirements of this Regulation, the verifiers shall inform the operator or the mine operator
thereof and provide reasoned feedback to the operator or the mine operator in light ofrecognized standards. Tthe operator or the mine operator shall submit a revised emissions
report to the verifier without delay.

4.

Operators and mine operators shall provide the verifiers with all the assistance necessary toenable or facilitate the performance of the verification activities, notably as regards access tothe premises sites and the presentation of documentation or records.

5.

The Commission shall be empowered to adopt delegated acts in accordance with Article 31 to
supplement this Regulation by incorporating and setting out the applicability of European orinternational standards on methane emissions quantification and measurement for the
purposes of this Regulation.

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Article 9
Independence and accreditation or authorisation of verifiers
1.

Verifiers shall be independent from the operators and mine operators and shall carry out theactivities required under this Regulation in the public interest. For that purpose, neither theverifiers nor any part of the same legal entity shall be an operator or mine operator, the ownerof an operator or mine operator, or be owned by them, nor shall the verifiers have relations
with operators or mine operators that could affect their independence and impartiality.

2.

Verifiers, that are legal persons shall be accredited by a national accreditation body pursuant
to Regulation (EC) No 765/2008.

2a.

For the purposes of this Regulation, the national accreditation body accreditation ofverifiers shall be carried y out its functions in accordance with the relevant harmonised
standard pursuant to Regulation (EC) No 765/2008 applicable to conformity assessment
bodies.

3.

Where no specific provisions concerning the accreditation of verifiers are laid down in thisRegulation, the relevant provisions of Regulation (EC) No 765/2008 shall apply.

3a.

Member State may decide to authorise verifiers that are natural persons for the purposeof this Regulation. The authorisation of those verifiers shall be entrusted to a national
authority other than the national accreditation body appointed pursuant to Article 4(1)of Regulation (EC) No 765/2008.

3b.

Where a Member State decides to use the option laid down in paragraph 3a, it shallensure that the national authority concerned meets the requirements of this Regulationand provides the Commission and the other Member States with all the documentary
evidence necessary for the verification of the competence of the verifiers it authorises
under paragraph 3a required documentary evidence in accordance with Article 5(2) ofRegulation (EC) No 765/2008.

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Article 10
Use and sharing of information and efficient exchange of data International Methane Emissions
Observatory
1.

Provided the interest of the Union is protected, In performing their obligations andexercising their powers under this Regulation, verifiers, the competent authorities andthe Commission shall consider relevant internationally available the information madeavailable by the International Methane Emissions Observatory shall be attributed averification role with respect to methane emissions data, in particular with regard to thefollowing tasks:, in particular with regards to the following:(a)aggregation of methane emissions data in accordance with appropriate statisticalmethods;(b)

verification validation of methodologies and statistical processes employed bycompanies to quantify methane emissions data;(c)development of data aggregation and analysis methodologies in accordance with
scientific and statistical good practice to ensure a higher level of accuracy of emission
estimates, with appropriate characterization of the uncertainty;(d)publication of aggregated company reported data by core source and by level ofreporting, classified by operated and non-operated assets, in compliance withcompetition and confidentiality requirements;(e)reporting of findings on major discrepancies between data sources, contributing to build
more robust scientific methodologies.

2.

The Commission may submit publicly available methane emissions data to the International
Methane Emissions Observatory, as made available to it by the competent authorities inaccordance with this Regulation.

3.

The information produced by the International Methane Emissions Observatory shall bemade available to the public and the Commission.

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Chapter 3
Methane emissions in the oil and gas sectors
Article 11
Scope
This Chapter applies to the activities within the E Union referred to in points (a) and (b) of Article
1(2).

Article 12
Monitoring and reporting1.

By … [182 months from the date of entry into force of this Regulation)], operators shallsubmit a report to the competent authorities containing the quantification of source-levelmethane emissions estimated using at least generic but source-specific emission factors forall sources. Operators may choose to submit at that stage a report according to therequirements in paragraph 2.

2.

By … [24 months from the date of entry into force of this Regulation], operators shall also
submit a report to the competent authorities containing direct measurements quantificationof source-level methane emissions for operated assets. Reporting at such level may involvethe use of source-level measurement and sampling as the basis for establishing specificemission factors used for emissions estimation quantification.

3.

By … [36 months from the date of entry into force of this Regulation] and by 30 March 31
May every year thereafter, operators shall submit a report to the competent authorities
containing direct measurements quantification of source-level methane emissions for
operated assets referred to in paragraph 2, complemented by measurements of site-levelmethane emissions, thereby allowing improving the assessment and verification of thesource-level estimates aggregated by site.

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Before submission to the competent authorities, operators shall ensure that the reports set out
in this paragraph are assessed by a verifier and include a verification statement issued inaccordance with Articles 8 and 9.
4.

By … [36 months from the date of entry into force of this Regulation], undertakings
established in the Union shall submit a report to the competent authorities of the Member
State where the asset is located containing direct measurements quantification of sourcelevel methane emissions for non-operated assets provided these have not already beenreported by an operator in response to the obligation under paragraph 2. Reporting at
such level may involve the use of source-level measurement and sampling as the basis forestablishing specific emission factors used for emissions estimation.

5.

By … [48 months from the date of entry into force of this Regulation] and by 30 March 31
May every year thereafter, undertakings established in the Union shall submit a report to thecompetent authorities of the Member State where the asset is located containing direct
measurements quantification of source-level methane emissions for non-operated assets as
set out in paragraph 4, provided these have not already been reported by an operator in
response to the obligation under paragraph 3 complemented by measurements of site-levelmethane emissions, thereby allowing assessment and verification of the source-level estimatesaggregated by site.
Before submission to the competent authorities, undertakings shall ensure that the reports set
out in this paragraph are assessed by a verifier and include a verification statement issued inaccordance with Articles 8 and 9.

6.

The reports provided for in this Article shall cover the last available calendar year period andinclude at least the following information:(a)emission source type and location;(b)data per detailed, individual, emission source type;(c)

detailed information on the quantification methodologies employed to measure methane
emissions;

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(d)

all methane emissions for operated assets;(e)share of ownership and methane emissions from non-operated assets multiplied by theshare of ownership;(f)a list of the entities with operational control of the non-operated assets.

The Commission shall, by means of implementing acts, lay down a reporting template for thereports under paragraphs 2, 3, 4 and 5 taking into account Common Reporting Tables("CRT") for the electronic reporting of greenhouse gas emissions under the UNFCCC
the national inventory reports already in place and the latest OGMP 2.0 technical guidance
documents and reporting templates of the Oil and Gas Methane Partnership (‘OGMP’).
Those implementing acts shall be adopted in accordance with the procedure referred to in
Article 32(2). [Until the adoption of the relevant implementing acts, operators shall may
use the latest OGMP technical guidance documents and reporting templates of the Oil
and Gas Methane Partnership OGMP 2.0, for upstream and for mid and downstream
operations, as applicable.]
7.

For site-level measurements referred to in paragraphs 3 and 5, appropriate quantification best
available appropriate quantification technologies shall be used, taking into account net
economic and environmental benefits. which can provide such measurements.

8.

In the case of significant discrepancies between the emissions quantified using source-level
methods and those resulting from site-level measurement, additional measurements shall be
carried out within the same reporting period. O operators or undertakings, as applicable,
shall provide justification for the discrepancy. Where the discrepancy is not due to theuncertainty of the quantification technology used, the competent authority ies may
request an additional measurement within the same reporting a reasonable period of
maximum 6 months as set by that e competent authority.

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9.

Methane emissions direct measurements or quantification for gas infrastructure shall be
conducted according to appropriate European (CEN) or international (ISO) standards formethane emissions quantification using the specifications established in accordance with
Article [xx29a]. Until such methodologies are established, best practices established in
the context of measurement campaigns co-funded by the Union or the United Nations
Environmental Programme may also guide operators in performing source levelmeasurements.

10.

Where information is kept confidential in accordance with Directive (EU) 2016/943 of theEuropean Parliament and of the Council of the European Parliament and of the Council34,
operators shall indicate in the report the type of information that has been withheld and thereason thereof.

11.

The competent authorities shall make the reports set out in this Article available to the public
and the Commission, within three months from submission by operators and in accordancewith Article 5(4).

Article 13
General mitigation obligation
Operators shall take all appropriate mitigation measures available to them to prevent andminimise methane emissions in their operations.

34

Directive (EU) 2016/943 of the European Parliament and of the Council of 8 June 2016 on
the protection of undisclosed know-how and business information (trade secrets) against
their unlawful acquisition, use and disclosure (OJ L 157, 15.6.2016)

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Article 14
Leak detection and repair
1.

By … [36 9 months from the date of entry into force of this Regulation], operators shallsubmit a leak detection and repair programme to the competent authorities which shall detailthe contents of the surveys contents of the surveys and activities, including specifictimelines, to be carried out in accordance with the requirements in this Article, Parts 1 and 2of Annex I and the relevant standards specifications established pursuant to Article
29a(1). If any changes to the leak detection and repair programme are made, theoperators shall re-submit the programme to the competent authorities as soon as
possible.
The competent authorities may require the operator to amend the programme taking into
account the requirements of this Regulation.

2.

By … [612 months from the date of entry into force of this Regulation], operators shall carryout initiate a type 2 leak detection and repair survey of all relevant components under their
responsibility in accordance with the leak detection and repair programme referred inparagraph 1.
Thereafter, remote type 1 and contact type 2 leak detection and repair surveys shall be
repeated every [three months]. carried-out with frequencies as follows:(a)

For aboveground and underground components excluding distribution networks,of compressor stations, of gas storages, of LNG terminals, of regulating and metering
stations, of valve stations, for offshore components and for distribution networks andfor offshore components including under the seabed: in accordance with theminimum frequencies set out in Part 1 of Annex I.

(b)

For all other components: remote type 1 source-level leak detection and repair
surveys shall be carried-out every three six months and contact type 2 source-level
leak detection and repair surveys shall be carried-out every nine twelve months.

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In lieu of, or in combination with leak detection and repair surveys, operators may use
continuous monitoring systems, provided the competent authorities approve its use in thecontext of the leak detection and repair programme referred to in paragraph 1 and inaccordance with the elements set out in Part 1 of Annex I.
2a.

Operators may choose, after the approval of competent authorities, to carry out a type 2
leak detection and repair survey instead of a type 1 leak detection and repair survey.
In lieu of, or in combination with leak detection and repair surveys, operators may use
continuous monitoring systems, provided that:a) the competent authorities approve its use in the context of the leak detection andrepair programme referred to in paragraph 1;b) the measurement is undertaken at the level of each individual potential emission
source; andc) that the continuous monitoring systems comply with the minimum detection limits
values as set out in paragraphs 3 and 4 and in accordance with requirements set out inPart 2 of Annex I.

2aa (new). Where operators producing or processing fossil gas or oil provide evidence on thebasis of measurements during the five preceeding years that less than 1 % of theircomponents are leaking, different LDAR survey frequencies for components where noleaks were identified may be used, subject to the approval of the competent authorities
and provided that:a. For all components at processing locations, Type 1 LDAR surveys are performedat least every 12 months;
b. For at least 25% of all components at processing locations, Type 2 LDAR surveys
are performed every 12 months, ensuring that all components are checked every
48 months;

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c. For all components at production locations, Type 1 LDAR surveys are performedat least every 36 months;
d. For all components at production locations, Type 2 LDAR surveys are performedat least every 60 months.
If the number of leaks detected following the surveys performed in accordance with thefirst subparagraph exceeds 1 %, the operator shall be subject to obligations underparagraphs 2 and 2a.
3.

In carrying out the periodic surveys or in using a continuous monitoring system, operators
shall use measuring detection devices that allow detection of loss of methane fromcomponents with a minimum detection limit of as follows:
ai. for remote type 1 LDAR leak detection and repair surveys: 500 parts per million[3/10]
kg/h or [4200/10] l/h 7000 parts per million or [17] grams per hour of methane atstandard temperature and pressure or more, or any visible emission from a fugitive emissions
component observed using optical gas imaging, in compliance with the manufacturer
specifications for operation and maintenance;bii. for contact type 2 LDAR leak detection and repair surveys:
i. 10 parts per million or 8.3 0.15 milligrams/hour of methane for abovegroundcomponents;
ii. [3000] parts per million or [5] grams/hour of methane for undergroundcomponents and offshore components above the sea level;iii. [7000] parts per million or [17] grams per hour for offshore components below
the sea level and below the seabed at standard temperature and pressure incompliance with the manufacturer specifications for operation and maintenance.

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4.

Operators shall repair or replace all components found to be emitting duringat least:
a.i. remote type 1 LDAR leak detection and repair survey:500 parts per million[3] kg/h or[4200] l/h [7000] parts per million or [17] grams per hour or more of methane at standard
temperature and pressure;b.ii. contact type 2 LDAR leak detection and repair surveys:
i. [500] parts per million or [0.151] grams per hour or more of methane foraboveground components;
ii. [3000] parts per million or [5] grams per hour of methane for undergroundcomponents and for offshore components above the seal level;iii. [7000] parts per million or [17] grams per hour for offshore components below
the sea level and below the seabed at standard temperature and pressure.

4a.

The repair or replacement of the components referred to in the first subparagraph 4 shall takeplace immediately after detection, or as soon as possible thereafter but no later than five days
for a first attempt and 30 days for a complete repair, after detection. The operators shallprioritize repairs of larger leaks.
provided o Operators can shall demonstrate that safety or technical considerations do notallow ifWhere the repair or replacement is not successful or possible within five days fora first attempt or if the operator anticipates that a complete repair shall not be possible
within 30 days due to safety, administrative, or technical considerations, the operator
shall provide evidence thereof and shall establish a repair schedule as set out in Part 3 inAnnex Ia no later than [15] days after leak detection. immediate action and provided
operators establish aThe repair and monitoring schedule shall include all the necessary
evidence justifying such a decision to delay repair. The repair schedule shall guaranteethat the environmental impact is minimized, while respecting safety, administrative, andtechnical considerations. The competent authorities may require the operator to amend
the repair schedule taking into account the requirements of this Regulation. The repair
or replacement shall not take longer than [3 months]be carried out as soon as possible.

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Safety, administrative and technical considerations that do not allow immediate action, as
referred to in the second first second subparagraph, shall be limited to taking into accountsafety to personnel and humans in proximity, scheduled maintenance, unavailability ofcomponents necessary for the repair or replacement, environmental impacts, significant
deterioration of the gas supply situation likely to lead to a situation as established in
Article 11(1) of Regulation (EU) 2017/193835, permitting processes requirements or
required administrative authorization, concentration of methane loss, accessibility tocomponent, availability of replacement parts necessary for repair of the component.
Environmental impact considerations may include instances whereby repair could lead to ahigher level of methane greenhouse gas methane emissions than in the absence of the repair.
4b.

Where a system shutdown is required before the repair or replacement can be undertaken,
operators shall attempt to minimise the leak within one day of detection and shall repair theleak by the end of the next scheduled system shutdown or within a year, whichever is sooner,unless carrying out an earlier repair would could reasonably be expected to lead to aworse environmental outcome in terms of emissions, that is a situation whereby theamount of methane inevitably vented during repair operations would very likely besignificantly higher than the amount of methane that would leak in the absence of arepair; or unless carrying out an earlier repair could reasonably be expected to lead tosecurity of supply issues in small connected systems as defined in Directive (EU)2019/944. Such action shall be included in the repair and monitoring schedule set out in Part
2 of Annex I and shall be approved by the competent authorities. All the necessary evidence
justifying the decision to delay repair shall be without any delay provided to thecompetent authorities. Decisions to delay repair shall require approval ofby thecompetent authorities before being carried out and shall be included in the repair
schedule set out in Part 3 of Annex Ia. The competent authorities may require theoperator to amend the repair schedule taking into account the requirements of thisRegulation.

35

Regulation (EU) 2017/1938 of the European Parliament and of the Council of 25 October
2017 concerning measures to safeguard the security of gas supply and repealing Regulation(EU) No 994/2010 (OJ L 280, 28.10.2017, p. 1–56)

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5.

Notwithstanding paragraph 2, operators shall survey components that were found to be
emitting:a.

500 parts per million [3] kg/h or [4200] l/h or more of methane at levels of methane
equal to or higher than the thresholds in paragraph 4 at standard temperature andpressure during any of the previous surveys as soon as possible after the repair carriedout pursuant to paragraph 4, and no later than 15 days thereafter two months
thereafter to ensure that the repair was successful; and.

b.

Notwithstanding paragraph 2, operators shall survey components that were found to be
emitting below 500 parts per million[3] kg/h or [4200] l/h of methane at levels of
methane equal to or higher lower than the thresholds in paragraph 4 at standard
temperature and pressure, no later than three months after the emissions weredetected, to check whether the size of loss of methane has changed.

Where a higher risk to safety or a higher risk of methane losses is identified, the competentauthorities may recommend that surveys of the relevant components take place more
frequently.
6.

Without prejudice to the reporting obligations pursuant to paragraph 7, operators shall record
all identified leaks, irrespective of their size, and shall continually periodically survey themto and ensure that they are repaired in accordance with paragraph 4.
Operators shall keep the record for at least ten years and shall provide that information tocompetent authorities upon their request.

7.

Within one three months after each survey Every six months, or every three months if using
a continuous monitoring system operators shall submit all monitoring reports with the resultsof the surveys completed during the previous six months summarizing the leaks that could
not be repaired and the corresponding and a repair and monitoring schedule to thecompetent authorities of the Member State where the relevant assets are located. The
monitoring report shall include at least the elements set out in Part 23 of Annex Ia.
The competent authorities may require the operator to amend the monitoring report or the
repair and monitoring schedule taking into account the requirements of this Regulation.

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8.

Operators may delegate any of the tasks set out in this Article. Delegated tasks shall not affectthe responsibility of operators and shall not impact the effectiveness of supervision by thecompetent authorities.

9.

Member States shall ensure that certification, accreditation schemes or equivalentqualification schemes, including suitable training programmes, are available for service
providers and for operators with respect to the surveys.

10.

The Commission [may/shall] issue a mandate to the European standardisation bodyconcerned to establish technical specifications, European standards or harmonised
European standards on leak detection and repair instruments and methodologies.
Harmonised standards or parts thereof the references of which have been published in the
Official Journal of the European Union shall be presumed to be in conformity with therequirements referred to in this Article.

10a. Without prejudice to the provisions of Directive 2013/30/EU and Directive 2008/56/EC,
offshore oil and gas wells located at a depth greater than [10700 meters] shall be are
exempt from the obligations under this Article.

Article 15
Limits to venting and flaring
1.

Venting shall be prohibited except in the circumstances provided for this Article. Routine
flaring shall be prohibited.

2.

Venting and flaring shall only be allowed in the following situations:(a) in case of an emergency or malfunction; and(b) where unavoidable and strictly necessary for the operation, construction, repair,maintenance, decommissioning or testing of components or equipment and subject to thereporting obligations set out in Article 16.

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3.

Venting and flaring under point (b) of paragraph 2 shall include the following specificsituations where venting or flaring, as applicable, cannot be completely eliminated:(a)during normal operations of certain components designed to vent, including but notlimited to pneumatic controllers and pumps, compressors, atmospheric pressurestorage tanks, sampling for measurement devices and dry gas seals, provided thatthe equipment meets all the specified equipment standards and it is properly maintained
and regularly inspected to minimise methane losses the standards set out inaccordance with [relevant Article] the delegated acts referred to in Article 29a (2);(b)

to unload or clean-up liquid holdup in a well to atmospheric pressure;(c)during gauging or sampling a storage tank or other low-pressure vessel, provided thatthe tank or vessel meets the standards set out in accordance with [relevant Article]
the delegated acts referred to in Article 29a (2);(d)

during loading out liquids from a storage tank or other low-pressure vessel to a transport
vehicle in compliance with applicable standards , provided that the tank or vessel
meets the standards set out in accordance with [relevant Article] the delegated acts
referred to in Article 29a (2);(e)

during repair, and maintenance and decommissioning, including blowing down anddepressurizing equipment to perform repair and maintenance;(f)during a bradenhead test;(g)during a packer leakage test;(h)during a production test lasting less than 24 hours;(i)where methane does not meet the gathering pipeline specifications, provided theoperator analyses methane samples twice per week to determine whether the
specifications have been achieved and routes the methane into a gathering pipeline assoon as the pipeline specifications are met;

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(j)

during commissioning of pipelines, equipment or facilities, only for as long asnecessary to purge introduced impurities from the pipeline or equipment;(k)during pigging, blow-down to repair, decommissioning or purging a gathering pipeline
for repair or maintenance, and only where the gas cannot be contained or redirected into
an unaffected portion of the pipeline.

4.

Where venting is allowed pursuant to paragraphs 2 and 3, operators shall vent only where
flaring is not technically feasible or risks endangering safety of operations or personnel orleads to a worse environmental outcome in terms of emissions, that is a situation whereby
the amount of greenhouse gas emissions from methane flared would very likely be higher than
the amount from methane vented. In such a situation, as part of the reporting obligations set
out in Article 16, operators shall demonstrate provide evidence to the competent authoritiesof the necessity to opt for venting instead of flaring and shall require approval by be notified
to the competent authorities.

5.

Where flaring is allowed pursuant to paragraphs 2 and 3, operators shall flare only
Flaring shall only be allowed where either re-injection, utilisation on-site, storage for lateruse or dispatch of the methane to a market are not feasible for reasons other than economic
considerations. In such a situation, as part of the reporting obligations set out in Article 16,
operators shall demonstrate to the competent authorities the necessity to opt for flaring insteadof either re-injection, utilisation on-site, storage for later use or dispatch of the methane to amarket.

6.

Where a site is built, replaced or refurbished in whole, operators shall utilise only zeroemitting controllers and pumps. Where a site is replaced or refurbished in part,
operators shall utilise in said part only zero-emitting controllers and pumps.

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7.

Where the implementation of this Article requires a permitting process or otherwise
administrative approval from the relevant authorities or where the unavailability ofequipment causes an exceptional delay of the actions required for that implementation,
operators shall provide the competent authorities with a schedule for that
implementation. The schedule shall include sufficient evidence of the conditions laid downin this paragraph and the full implementation shall not exceed … [one two years from thedate of entry into force of this Regulation]. The competent authorities may require
modifications of the schedule.

Article 16
Reporting of venting and flaring events
1.

Operators shall notify the competent authorities of venting and flaring events:(a) caused by an emergency or a malfunction; or(b) lasting a total of 8 hours or more within a 24 hour period from a single event, excluding
controlled flaring that occurs during shutdowns, which shall be reported in the annual
report.

The notification referred to in the first subparagraph shall be made without delay after the event andat the latest within 48 hours from the start of the event or the moment the operator became aware ofit, in accordance with the elements set out in Annex II.

2.

Operators shall submit to the competent authorities quarterly reports of all venting andflaring referred to in paragraph 1 and in Article 15 in accordance with the elements set out inAnnex II. information on all venting and flaring referred to in paragraph 1 and in Article
15 in accordance with the elements set out in Annex II, as part of each the relevant
report referred to in Article 12.

3.

The competent authorities shall make the reports set out in this Article available to the public
and the Commission annually and in accordance with Article 5(4).

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Article 17
Requirements for flaring standards efficiency
1.

Where a site facility is built, replaced or refurbished in whole or in part, or where new flare
stacks or other combustion devices are installed, operators shall install only only combustion
devices with an auto-igniter or continuous pilot and at least 98% a complete destruction
destruction and removal efficiency for hydrocarbons.

2.

Operators shall ensure that all flare stacks or other combustion devices used in normal
operations comply with the requirements of paragraph 1 by … [182 months from the date ofentry into force of this Regulation].

3.

Operators shall conduct weekly monthly inspections of flare stacks in accordance with theelements set out in Annex III, except for flares that are not used in normal operations,which operators shall inspect before each use.
InAs an alternative to monthly inspections of a flare stack, operators may use
continuous monitoring devices on that flare stack, in accordance with the elements set
out in Annex III.

4.

Where auto-igniters or continuous pilots are used, flame supervision equipment shall be
used to continuously monitor the main flare flame or the pilot flame to ensure that
venting does not occur due to a flame-out condition.

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Article 18
Inactive wells, temporarily plugged wells and permanently plugged and abandoned wells
1bis. This Article applies to all inactive wells, temporarily plugged wells and permanently plugged
and abandoned wells where operations have ceased since … [70 years prior to the date ofentry into force of this Regulation].
1.

By … [12 months from the date of entry into force of this Regulation], Member States shallestablish and make publicly available an inventory of all recorded inactive wells,
temporarily plugged wells and permanently plugged and abandoned wells on theirterritory or under their jurisdiction, where information on location exists or where location
can be identified with all reasonable efforts, including at least the elements set out in Part
1 of Annex IV.

1a.

By derogation from paragraph 1, Member States with 40 000 or more inactive wells,
temporarily plugged wells and permanently plugged and abandoned wells combined
may adopt a plan for completing the inventory of all recorded inactive wells,
temporarily plugged wells and permanently plugged and abandoned wells on theirterritory or under their jurisdiction, where information on location exists or where
location can be identified with all reasonable efforts, including at least the elements set
out in Part 1 of Annex IV. and make it publicly available, provided that:(a)By [12 months from the date of entry into force of this Regulation], at least 20% of these wells are included in the inventory prioritizing inactive andtemporary plugged wells;(b)

By [24 months from the date of entry into force of this Regulation], at least 40% of these wells are included in the inventory;(c)Every 12 months thereafter at least an additional 15 % of these wells areincluded in the inventory;(d)

All wells are included into the inventory by [72 months from the date of entry
into force of this Regulation] at the latest;

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The plan shall be approved by the competent authorities.
2.

By … [18 months of the date of entry into force of this Regulation], equipment
for measurement of methane emissions shall be installed on all inactive wells.
Where five subsequent measurements [at yearly intervals] of inactive wells prove no methane
emissions, they shall be considered emission-free and no further quantifications and reports
will be required.

32.

Without prejudice to paragraph 3, R reports containing the information on measurementsor quantification of methane emissions and, where such monitoring equipment exists on
wellheads, pressure monitoring, of methane emissions from all inactive wells, andand
temporarily plugged wells and wells that do not meet the requirements set out in paragraph
3, referred to in paragraph 2 shall be submitted to the competent authorities by … [24months of the date of entry into force of this Regulation] and by 30 March31 May every year
thereafter and cover the last available calendar year.
The reports set out in this Article shall include methane emissions to air and to water, as
applicable, using the specifications established in accordance with Article 29a(1). Where
operators or Member States report methane emissions to water within the framework ofinternational or regional agreements to which the Union or the relevant Member State isa party, the reports set out in this Article may include the information reported
thereunder.
Reports concerning inactive and temporarily plugged wells located in Member Stateswith 40 000 or more inactive wells, temporarily plugged wells and permanently plugged
and abandoned wells combined shall be submitted in accordance with this paragraph by
12 months after the inclusion of the wells in the inventory and updated at least every
four years thereafter.

3.

Where [five] consecutive measurements quantification of methane emissions and, wheresuch monitoring equipment exists on wellheads, pressure monitoring, of methane
emissions from an onshore temporarily plugged well, at yearly intervals, prove nomethane emissions, this paragraph 2 shall cease to apply to that well.

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Where [two] consecutive measurements quantification of methane emissions and pressure
monitoring, where such monitoring equipment exists on wellheads, pressure monitoring,of methane emissions from an offshore inactive well or temporarily plugged well, madeevery two years, prove no methane emissions, this paragraph 2 shall cease to apply tothat well.
4.

Where an inactive well or a temporarily plugged well becomes a permanently plugged andabandoned well as defined in this Regulation, this paragraph shall cease to apply to it, unless,a third party provides the competent authorities are provided with reliable evidence ofmaterial methane emissions in such well. In such case, a permanently plugged andabandoned well and when this evidence has been confirmed by a verifier, the obligations
set out in this Article for temporarily plugged wells shall apply to that well. In that case,
remediation, reclamation or plugging of that well shall be carried out by the responsible
party, where technically feasible and only if the associated reduction of the abovementioned material emissions cumulated over 100 years offsets the environmental
impacts of the necessary works.

5.

Before submission to the competent authorities, tThe reports set out in this paragraph Article
shall be assessed by a verifier and include a verification statement issued in accordance with
Articles 8 and 9.

46.

The competent authorities shall make the reports set out in this Article available to the public
and the Commission, within three months from submission by operators and in accordancewith Article 5(4).

57.

Member States shall be responsible for fulfilling the obligations laid down in paragraphs 2
and 3 to 4, except where a responsible party can be identified and can provide adequate
financial assurance to fulfil those obligations, in which case that party shall bear
responsibility. Member States shall ensure fulfilling the obligations laid down inparagraphs 2 to 4 by the operators. Where a responsible party provides reliable
evidence that it does not have adequate financial assurance to fulfil those obligations or
where the responsible party cannot be identified, the Member State shall bear
responsibility.

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68.

By … [284 months from the date of entry into force of this Regulation], Member States or
the responsible party, in accordance with paragraph 7, shall develop and implement a
mitigation plan to remediate, reclaim and permanently plug inactive wells and temporarily
plugged wells located in their territory including at least the elements set out in Part 2 ofAnnex IV and setting out an implementation period starting no later than 12 months
after the first reports referred to in paragraph 2.
Mitigation plans shall use the inventories referred to in paragraph 1 and the reports referred
to in paragraph 2 to determine priority for activities including:(a)remediating, reclaiming and permanently plugging wells;(b)reclaiming related access roads or the surrounding soil under water, as
applicable;(c)restoring land, water, seabed and habitat impacted by wells and the prior
operations;(d)yearly regular checks to ensure plugged wells temporarily plugged wells and,
where deemed applicable, permanently plugged and abandoned wells are notlonger a source of methane emissions.

9.

Without prejudice to the provisions of Directive 2013/30/EU and Directive 2008/56/EC,
offshore oil and gas wells located at a depth greater than [30010700 meters] are exempt
from the provisions obligations of this Aarticle.

10.

Without prejudice to the provisions of Directive 2013/30/EU and Directive 2008/56/EC,
and subject to the approval of the competent authority, offshore wells located at water
depth between 200 and 700 meters may be exempt from the obligations of this Article,
where the operator demonstrates that during the environmental impact assessments
conducted before drilling, or after accidents during operations, no possibility of
migration of potential methane leaks to the atmosphere has been documented.

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Chapter 4
Methane emissions in the coal sector
SECTION I
MONITORING AND REPORTING IN OPERATING MINES
Article 19
Scope
1.

This Section applies to operating underground and surface coal mines.

2.

Methane emissions from operating underground coal mines include the following emissions:(a) methane emissions from all ventilation shafts in use by the mine operator;(b) methane emissions from drainage stations and from the methane drainage system,
whether occurring as a result of intentional or unintentional venting, or incomplete
combustion in flares;(c) methane emissions occurring during post-mining activities and within the area of the
mine.

3.

Methane emissions from operating surface coal mines include the following emissions:(a) methane emissions occurring at the coal mine during the mining process;(b) methane emissions occurring during post-mining activities and within the area of themine.

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Article 20
Monitoring and reporting1.

For underground coal mines, mine operators shall perform continuous ventilation air methane
emissions source level direct measurement or and and quantification on all exhaust
ventilation shafts used by the. mine Mine operators shall report to the competentauthorities methane releases per ventilation shaft per year in kt of methane, using
equipment and methodologies resulting in a measurement accuracy with a tolerance of[+/- 5% of the reported amount] or [+/- 0.5 kt] of methane] whichever value is lower
apparatus with a methane concentration sensitivity threshold of at least 100 parts per million.
They shall also take monthly sample-based source level measurements or quantification..

2.

Drainage stations operators shall perform continuous source level direct measurements orand quantifications of volumes total releases of vented and flared methane, regardless of thereasons for such venting and flaring activity.

3.

As regards surface coal mines, mine operators shall use deposit-specific coal mine methane
emission factors to quantify emissions resulting from mining operations. Mine operators shallestablish those emission factors on a quarterly basis, in accordance with appropriate scientificstandards and take into account methane emissions from surrounding strata.

4.

The measurements and quantification referred to in paragraphs 1 to 3 shall be undertaken inaccordance with an appropriate European or international standards using thespecifications established in accordance with Article 29a(1). Until such standards become
available specifications are established, best practices established in the context ofmeasurement campaigns co-funded by the Union or the United Nations Environmental
Programme may also guide operators in performing source level measurements.

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As regards continuous source level direct measurements or and quantifications referred to inparagraphs 1 and 2, where part of the measuring equipment is not operating for a period, readings
taken during periods when the equipment was operating may be used to estimate data on a pro rata
basis for the period that the equipment was not operating.
The equipment used for continuous source level direct measurements or and quantifications
referred to in paragraphs 1 and 2 shall operate for more than 90% of the period for which it is used
to monitor an emission, excluding downtime taken for re-calibration and repairs.
5.

Where relevant, Mmine operators shall estimate coal post-mining emissions using coal postmining emission factors, updated annually, based on deposit-specific coal samples and inaccordance with appropriate scientific standards.

6.

By… [12 months from the date of entry into force of this Regulation] and by 30 March 31
May every year thereafter, mine operators and drainage station operators shall submit a reportto the competent authorities containing yearly source-level methane emissions data inaccordance with the provisions of this Article.
The report shall cover the last available calendar year period and include the elements set out
in Part 1 of Annex V for operating underground coal mines, Part 2 of Annex V for operating
surface coal mines and Part 3 of Annex V for drainage stations.
Before submission to the competent authorities, mine operators and drainage station operators
shall ensure that the reports set out in this paragraph are assessed by a verifier and include averification statement issued in accordance with Articles 8 and 9.

7.

The competent authorities shall make the reports set out in this Article available to the public
and the Commission, within three months from submission by operators and in accordancewith Article 5(4).

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SECTION II
MITIGATION OF METHANE EMISSIONS FROM OPERATING UNDERGROUND COAL MINES

Article 21
Scope
This Section applies to the methane emissions from underground coal mines referred to in Article
19(2).
Article 22
Mitigation measures
1.

Venting and f Flaring with a destruction and removal efficiency below 98% and ventingof methane from drainage stations shall be prohibited from [1 January 2025], except in thecase of an emergency, a malfunction or where unavoidable and strictly necessary for
maintenance and venting in accordance with paragraph 2. In such cases, drainage station
operators shall vent only if flaring is not technically feasible or risks endangering safety ofoperations or personnel. In such a situation, as part of the reporting obligations set out in
Article 23, drainage station operators shall demonstrate to the competent authorities thenecessity to opt for venting instead of flaring.

2.

Venting of methane through ventilation shafts in coal mines emitting more than 5 tonnesof methane/kilotonne of coal mined, other than coking coal mines, shall be prohibitedfrom 1 January 2027. Venting of methane through ventilation shafts in coal mines emitting
more than 0.53 tonnes of methane/kilotonne of coal mined, other than coking coal mines, shallbe prohibited from 1 January 203127. These thresholds shall apply per year per mine andper operator, if one entity operates several mines.

3.

By … [three five years from the date of entry into force of this Regulation] the Commission
shall adopt a delegated act in accordance with Article 31 to supplement this Regulation by
setting out restrictions on venting methane methane venting thresholds from ventilation
shafts for coking coal mines.

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Article 23
Reporting of venting and flaring events
1.

From [1 January 2025], drainage station operators shall notify the competent authorities of all
venting events and flaring events with a destruction and removal efficiency below 98%:(a) caused by an emergency or a malfunction,(b) occurring unavoidably due to maintenance of the drainage system.

That notification shall be made without delay after the event and at the latest within 48 hours fromthe start of event or the moment the operator became aware of it, in accordance with the elements
set out in Annex VI.
2.

The competent authorities shall make the information submitted to them pursuant to this
Article available to the public and the Commission annually and in accordance with Article
5(4).

SECTION III
METHANE EMISSIONS FROM CLOSED AND ABANDONED UNDERGROUND COAL MINES

Article 24
Scope
This Section applies to the following methane emissions from closed and abandoned and closed
underground coal mines where coal production has been discontinued since … [50 years prior to
the date of entry into force of this Regulation]:(a)methane emissions from all ventilation shafts which continue emitting methane;(b)methane emissions from coal mining equipment, use of which has been discontinued;(c)methane emissions from other well-defined point emission sources as outlined in Part 1of Annex VII.

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Article 25
Monitoring and reporting1.

By … [12 months from the date of entry into force of this Regulation] Member States shall set
up and make publicly available an inventory of all closed coal mines and abandoned
underground coal mines in their territory or under their jurisdiction where operations haveceased since … [50 years prior to the date of entry into force of this Regulation], in
accordance with the methodology and including at least the elements set out in Part 1 ofAnnex VII.

2.

From … [18 24 months from the date of entry into force of this Regulation], methane
emissions shall be measured in all closed and abandoned underground coal mines whereoperations have ceased since … [50 years prior to the date of entry into force of thisRegulation]. mMeasurement equipment shall be installed on all elements listed in point(v) of Part 1(v) of Annex VII which were found to emit above 0,5 tonnes of methane per
year based on the inventory in Paragraph 1. for closed coal mines and abandoned coalmines where operations have ceased since … [50 years prior to the date of entry into force of
this Regulation].
The equipment shall perform Methane concentration source level direct measurements orquantifications shall be taken in accordance with the specifications established inaccordance with Article 29a appropriate scientific publicly available European andinternational standards and at least on an hourly basis and of sufficient quality to allow fora representative estimation of yearly methane emissions from all elements listed in part1(vi) of Annex VII which were found to emit methane. Until such methodologies are
established, publicly available European and international standards may be used.
The measurement equipment mustshall operate for more than 90% of the period for which it
is used to monitor the emissions, excluding downtime taken for re-calibration and repairs.

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2a.

If the observed annual methane release of an element listed in part 1(v) of Annex VII is
below 1 tonne of methane for six consecutive years in the case of flooded mines or twelve
consecutive years in the case of dry mines, no further monitoring and reporting shall betaken for that specific element.

3.

Reports containing estimates of yearly source-level methane emissions data shall be submitted
to the competent authorities by … [246 months of after the date of entry into force of thisRegulation] and by 30 March 31 May every year thereafter.
The reports shall cover the last available calendar year and include the elements set out in Part
23 of Annex VII.
Before submission to the competent authorities, the reports set out in this paragraph shall beassessed by a verifier and include a verification statement issued in accordance with Articles 8
and 9.

4.

Mine operators or Member States shall be responsible for the requirements referred to inparagraphs 2, 2a and 3 as regards closed mines. Member States shall be responsible for therequirements referred to in paragraphs 2, 2a and 3 as regards abandoned mines. In case ofalternative uses of abandoned mines, the permit holder shall be responsible for therequirements referred to in paragraphs 2, 2a and 3.

5.

The competent authorities shall make the reports set out in this Article available to the public
and the Commission, within three months from submission by operators and in accordancewith Article 5(4).

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Article 26
Mitigation measures
1.

On the basis of the inventory referred to in Article 25, Member States shall develop andimplement a mitigation plan to address methane emissions from closed and abandoned
underground coal mines where operations have ceased since … [50 years prior to the dateof entry into force of this Regulation].
The mitigation plan shall be submitted to competent authorities by … [36 months from thedate of entry into force of this Regulation] and include at least the elements set out in Part 3 4of Annex VII.

2.

Venting and flaring from equipment referred to in Article 25(2) shall be prohibited from 1
January 2030, unless utilisation or mitigation is not technically feasible or risks endangering
environmental safety, or safety of operations or personnel human safety, including that ofthe personnel, or public health. In such a situation, as part of the reporting obligations set
out in Article 25, mine operators or Member States shall demonstrate the necessity to opt forventing or flaring instead of utilisation or mitigation.

3.

Alternative use of abandoned coal mines shall be allowed following a permitting
procedure adapted to the specific reuse of the abandoned coal mine. The permit
applicant shall provide a detailed plan of measures to avoid methane emissions tocompetent authorities. The permit holder shall comply with the monitoring, reportingand mitigation obligations under Article 25 and Article 26.

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Methane emissions occurring outside the Union
Article 27
Importer requirements
1.

By … [9 months from the date of entry into force of the Regulation] and by 30 June1
December every year thereafter, importers shall provide the information set out in Annex VIII
to the competent authorities of the importing Member State. Where importers fail toprovide the information set out in Annex VIII, in whole or in part, they shalldemonstrate to the competent authorities of the importing Member State that allreasonable efforts have been undertaken to acquire the information.
The Commission shall be empowered to adopt delegated acts in accordance with Article 31 to
supplement amend this Regulation by amending or adding to the information to be provided
by importers pursuant to this Article.

2.

By … [12 months from the date of entry into force of the Regulation] and by 31 December0June every year thereafter, Member States shall submit to the Commission the information
provided to them by importers.
The Commission shall make the information available in accordance with Article 28.

3.

By 31 December 20275, or earlier if the Commission considers that sufficient evidence isavailable, the Commission shall examine the application of this Article, considering inparticular:(a)reporting of the available methane emissions data collected in the context of the global
methane monitoring tool referred to in Article 29;(b)methane emission data analysis by the IMEO;

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(c)

information on monitoring, reporting, verification and mitigation measures of operators
located outside of the Union and from whom energy is imported into the Union; and(d)security of supply and the level playing field implications in case of possible additional
obligations, including mandatory measures such as methane emission standards ortargets, taking into account the oil, gas and coal sectors separately.

Where appropriate and based on the necessary evidence to secure full compliance with theapplicable international obligations of the Union, the Commission shall may propose amendments
to this Regulation to strengthen the requirements applicable to importers with the view to ensure a
comparable level of effectiveness with respect to measurement or quantification or quantification,
reporting and verification and mitigation of energy sector methane emissions.

Article 28
Methane transparency database1.

By … [18 months after the date of entry into force of the Regulation] the Commission shallestablish and maintain a methane transparency database containing the information submitted
to it pursuant to Article 27 and Articles 12(11), 16(32), 18(46), 20(7), 23(2) and 25(5).

2.

In addition to the information referred to in paragraph 1, the database shall include thefollowing information:(a)a list of countries where fossil energy is produced and exported to the Union;(b)

for each country referred in point (a) information about the following points:(i) whether it has mandatory regulatory measures in place on energy sector methane
emissions, covering the elements set out in this Regulation regarding measurement or
quantification, reporting and verification and mitigation of energy sector methane
emissions;(ii)

whether it has signed the Paris Agreement on climate change;(iii) whether it is delivering national inventories in accordance with the requirementsof the United Nations Framework Convention on Climate Change, whereapplicable;

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(iv) whether the national inventories submitted pursuant to the United Nations
Framework Convention on Climate Change include tier 3 reporting of energy
methane emissions, where applicable;(v)

the amount of energy sector methane emissions according to the national
inventories submitted pursuant to the United Nations Framework Convention on
Climate Change, where applicable, and whether the data was subject toindependent verification.

(vi) the list of companies exporting fossil energy into the Union and whether they
are part of any global methane reduction initiative(vii) a list of importers of fossil energy into the Union
23.

The transparency database shall be available to the public online, free of charge and at least in
English.

34.

This Article shall apply without prejudice to the provisions of Directive (EU) 2016/943.

Article 29
Methane emitters global monitoring tool1.

By … [two years after the date of entry into force of the Regulation], the Commission shallestablish a global methane monitoring tool based on satellite data and input from several
certified data providers and services, including the Copernicus component of the EU Space
Programme.
The tool shall be made available to the public and provide regular frequent updates at leaston the magnitude, recurrence and location of high methane-emitting sources of energy.

2.

The tool shall inform support the Commission’s bilateral dialogues with respect to methane
emissions policies and measures. Where the tool identifies a new major emission source, theCommission shall alert the relevant country with a view to promoting awareness and remedialactions.

3.

This Article shall be subject to the provisions of Directive (EU) 2016/943.

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Final provisions
Article 29a
Methodologies and equipment standards
1.

The Commission shall be empowered to adopt delegated acts in accordance with Article
31 to supplement this Regulation by setting the specifications applicable to:(a)direct measurement and quantification of methane emissions in oil, gas and coal
operations, for the purposes of Articles 8(2), 12(9), 18(2), 20(4) and 25(2);(b)
2.

leak detection and repair surveys for the purposes of Article 14.

The Commission shall be empowered to adopt delegated acts in accordance with Article
31 to supplement this Regulation by incorporating and setting out the applicability ofstandards for venting and flaring equipment, for the purposes of Article 15(3)(a), (c) and(d).

Article 30
Penalties
1.

Member States shall lay down the rules on penalties applicable to infringements of theprovisions of this Regulation and shall take all measures necessary to ensure that they are
implemented.

2.

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(a)

fines proportionate to the environmental damage and impact on human safety andpublic health., calculating the level of such fines. The level of such fines shall becalculated in such way as to make sure that they at least effectively deprive those
responsible of the economic benefits derived from their infringements and gradually
increasing the level of such fines for repeated serious infringements;(b)

periodic penalty payments to compel operators to put an end to an infringement, comply
with a decision ordering remedial actions or corrective measures, supply information or
submit to an inspection, as applicable.

Member States shall notify the rules on penalties to the Commission by [3 12 months from thedate of entry into force of the Regulation]. In addition, Member States shall notify any
subsequent amendment affecting such rules to the Commission without delay.
3.

At least the following infringements shall be subject to penalties:(a)failure of operators or mine operators to provide the competent authorities or theverifiers with the assistance necessary to enable or facilitate the performance of theirtasks in accordance with this Regulation;(b)

failure of operators or mine operators to carry out the actions set out in the inspections
report referred to in Article 6;(c)failure of operators of or mine operators to submit the methane emissions reports as
required by this Regulation, including the verification statement issued by independent
verifiers in accordance with Articles 8 and 9;(d)failure of operators to carry out a leak detection and repair survey in accordance with
Article 14;(e)failure of operators to repair or replace components, to continuous survey components
and to record leaks in accordance with Article 14;(f)

failure of operators to submit a report in accordance with Article 14;(g)venting or flaring by operators or mine operators beyond the situations provided for in
Articles 15, 22 and 26, as applicable;

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(h)

routine flaring by operators;(i)failure of operators or mine operators to demonstrate the necessity to opt for venting
instead of flaring and to demonstrate the necessity to opt for flaring instead of either reinjection, utilisation on-site or dispatch of the methane to a market, in the case ofoperators, or utilisation or mitigation, in the case of mine operators, in accordance with
Articles 15, 22 and 26;(j)failure of operators or mine operators to notify or report on venting and flaring events inaccordance with Articles 16, 23 and 26, as applicable;(k)use of flare stacks or combustion devices in breach of the requirements laid down in
Articles 17, 22 and 23;(l)failure of importers to provide the information required in accordance with Article 27
and Annex VIII.

3a.

Where the conditions set out in Article 15(7) are fulfilled, Member States shall consider
reducing or not imposing penalties on operators for the implementation period deemednecessary by the national authorities.

4.

Member States shall take into account at least the following indicative criteria for theimposition of penalties, as appropriate:(a)the duration or temporal effects, the nature and the gravity of the infringement;(b)

any action taken by the undertaking, operator or mine operator to timely mitigate or
remedy the damage;(c)the intentional or negligent character of the infringement;(d)any previous infringements by the undertaking, operator or mine operator;(e)the financial benefits gained or losses avoided directly or indirectly by the undertaking,operator or mine operator due to the infringement, if the relevant data are available;(f)the size of the undertaking, operator or mine operator;(g)the degree of cooperation with the authorityies;

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(h)

the manner in which the infringement became known to the authorityies, in particularwhether, and if so to what extent, the operator or mine operator timely notified theinfringement;

5.

(i)

third party actions aggravating any breaches of this Regulation;(ij)

any other aggravating or mitigating factor applicable to the circumstances of the case.

Member States shall publish annually information on the type and the size of the penalties
imposed under this Regulation, the infringements and the operators or mine operators uponwhich penalties have been imposed.

Article 31
Exercise of the delegation
1.

The power to adopt delegated acts is conferred on the Commission subject to the conditions
laid down in this Article.

2.

The power to adopt delegated acts referred to in Articles 8(5), 22(3), and 27(1) and 29a(1)shall be conferred on the Commission for an indeterminate period of time from … [date ofentry into force of the Regulation].

3.

The delegation of power referred to in Articles 8(5), 22(3) and 27(1) may be revoked at any
time by the European Parliament or by the Council. A decision to revoke shall put an end to
the delegation of the power specified in that decision. It shall take effect the day following the
publication of the decision in the Official Journal of the European Union or at a later datespecified therein. It shall not affect the validity of any delegated acts already in force.

4.

Before adopting a delegated act, the Commission shall consult experts designated by each
Member State in accordance with the principles laid down in the Interinstitutional Agreement
on Better Law-Making of 13 April 2016.

5.

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to theEuropean Parliament and to the Council.

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6.

A delegated act adopted pursuant to Articles 8(5), 22(3) and 27(1) shall enter into force only
if no objection has been expressed either by the European Parliament or by the Council withina period of two months of notification of that act to the European Parliament and the Council
or if, before the expiry of that period, the European Parliament and the Council have bothinformed the Commission that they will not object. That period shall be extended by twomonths at the initiative of the European Parliament or of the Council.

Article 32
Committee procedure
1.

The Commission shall be assisted by the Energy Union Committee established by Article 44
of Regulation (EU) 2018/1999.

2.

Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shallapply.

Article 33
Review
1.

By 2030 and eEvery five years thereafter, the Commission shall submit a report on theevaluation of this Regulation to the European Parliament and to the Council and shall, if
appropriate, submit legislative proposals to amend this Regulation. The reports shall be madepublic.

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1a.

The Commission shall assess the potential impact of the extension of the obligations
concerning the measurement, quantification, monitoring, reporting and verification of
methane emission as well as their abatement to importers of fossil fuels into the Union,
identifying potential barriers and proposing possible solutions with a view to reducing
methane emissions, while not impacting energy prices and security of supply. Based onthat impact assessment the Commission shall, by [… 12 months after the date of entry
into force of this Regulation], present a report to the European Parliament and theCouncil which shall be accompanied, if appropriate, by a legislative proposal to amend
this Regulation.

2.

For the purpose of this Article, the Commission may request information from Member States
and competent authorities and shall take into account notably the information provided by
Member States in their integrated National Energy and Climate Plans, updates thereof and intheir National Energy and Climate progress reports pursuant to Regulation (EU) 2018/1999.

2a.

By … [12 months after the date of entry into force of this Regulation] the Commission shallpresent a report to the European Parliament and the Council on the possibility to extend theobligations contained in this Regulation to imports from third countries from 2027 onwards,
identifying potential barriers and proposing possible solutions with a view to reducing
methane emissions, while not impacting energy prices and security of supply.

Article 34
Amendments to Regulation (EU) 2019/942
In Article 15 of Regulation (EU) 2019/942 of the European Parliament and of the Council thefollowing paragraph 5 is added:“5. Every three years ACER, after receiving input from Member States shall establish and makepublicly available a set of indicators and corresponding reference values for the comparison of unit
investment costs linked to measurement or quantification, reporting, venting and flaring, andabatement of methane emissions for comparable projects. It shall issue recommendations on
indicators and reference values for unit investment costs for complying with the obligations under[this Regulation] pursuant to Article 3 of [this Regulation]”.

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Article 35
Entry into force
This Regulation shall enter into force on the twentieth day following that of its publication in the
Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,
For the European Parliament
The President

For the Council

The President

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ANNEX I

Leak detection r Repair and monitoring schedules Leak detection and repair surveys
Part 1
For all underground aboveground components, excluding distribution networks, referred to in
Article 14(2)(a), leak detection and repair surveys as set out in Article 14 must shall be
carried-out as per the following minimum frequencies:
Type of LDAR survey

Type of component

Frequency

Remote Type 1 LDAR
surveyCompressor station

6 months

Underground storage
LNG-Terminal
Regulating and metering station

Contact Type 2 LDAR
surveyValve station

12 months

Transmission pipeline

24 months

Compressor station

12 months

Underground storage
LNG-Terminal
Regulating and metering station

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Valve station

24 months

Transmission pipeline

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For all underground components, excluding distribution networks, referred to in Article
14(2)(a), leak detection and repair surveys as set out in Article 14 shall be carried-out as per
the following minimum frequencies:
Type of LDAR survey

Type of material

Frequency of survey

Type 1 LDAR survey

Bitumen sheet

4 3 months

Grey cast iron
Grey cast iron

6 months

Asbestos
Ductile cast ironNon-protected steel

12 months

Polyethylene
PVC
protected steel (< = 16 bar)
CopperPolyethylene

24 months

PVC
Protected steel
Type 2 LDAR survey

8 6 months

Bitumen sheet
Grey cast iron
Grey cast iron

12 months

Asbestos
Ductile cast iron

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Non-protected steel

24 months

Polyethylene
PVC
protected steel (< = 16 bar)
CopperProtected steel

36 months

For all underground components of distribution networks referred to in Article 14(2)(a), leakdetection and repair surveys as set out in Article 14 shall be carried-out as per the following
minimum frequencies:
Type of LDAR survey

Type of material or component

Frequency of survey

Remote Type 1 LDAR
surveyGrey cast iron

3 months

Bitumen sheet

Grey cast iron

6 months

Asbestos
Ductile cast iron
Regulating and metering station
Non-protected steel

12 months

Polyethylene
PVC
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Polyethylene

24 months

PVC
protected steel (< = 16 bar)ContactType 2 LDAR
surveyGrey cast iron

6 months

Bitumen sheet

Grey cast iron

12 months

Asbestos
Ductile cast iron
Regulating and metering station
Non-protected steel

24 months

Polyethylene
PVC
protected steel (< = 16 bar)
CopperPolyethylene

36 months

PVC
protected steel (< = 16 bar)

For underground and below the sea level protected steel pipelines with pressure above 16 bar,
operators shall also perform preventive pipeline integrity management to prevent any leakage
in accordance with relevant European standards or national pipeline integrity management
legislation. Taking into account results of that preventive pipeline integrity management, thecompetent authority may approve different frequency of up to 36 months for Type 1 LDAR
survey and 48 months for Type 2 LDAR survey.

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For all offshore components below the sea level referred to in Article 14(2)(a), leak detection
and repair surveys as set out in Article 14 shall be carried-out as per the following minimum
frequency:
Type of LDAR survey
Type 1 LDAR survey

Type 2 LDAR survey

Frequency of survey
Offshore components above thesea level

12 months

Offshore components below thesea level

24 months

Offshore components below theseabed36 months

Offshore components above thesea level

24 months

Part 12
Approval of continuous monitoring Information requirements on devices used in leak detection
and repair programmessurveys
As part of the leak detection and repair programme referred to in paragraph 1 of Article
14For the purposes of the approval by the competent authorities of the use of continuous
monitoring systems according to Article 14 of this Regulation, operators must provide thefollowing information:(i)the continuous monitoring device manufacturer information;(ii)

the leak detection capabilities, reliability, and limitations of the continuous monitoring
system devices, including, but not limited to, the ability to identify specific leaks or
locations, detection limits, and any restrictions on use, as well as supporting data;(iii) a description of where, when, and how the continuous monitoring system devices will beused;(iv) documentation adequate to demonstrate the continuous monitoring system is as effective at
reducing emissions as the quarterly surveys set out in Article 14.

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ANNEX Ia
Repair and monitoring schedules
Part 23
Repair schedule
The repair and monitoring schedule referred to in Article 14 must include at least the following
elements:(i)

Inventory and identification of all components that have been checked(ii)

Result of inspection in terms of whether methane loss has been detected and, if so, size of loss(iii) For components found to be emitting at or above the thresholds set out in Article 14(4) 500
parts per million or more of methane, indication of whether repair was undertaken during the
LDAR survey and if not why, taking into account the requirements as regards what elements
can be taken into account for a delayed repair, as per Article 14, paragraph 4.
(iv) For components found to be emitting at or above the thresholds set out in Article 14(4)500
parts per million or more of methane, planned repair schedule indicating planned date of
repair,(v)

For components found to be emitting below the thresholds set out in Article 14(4)less than
500 parts per million in previous LDAR survey, but found to be emitting at or above such
thresholds 500 parts per million or more of methane during post LDAR monitoring to check
whether the size of loss of methane has evolved, indication whether repair was undertaken
immediately and if not, why not (as per iii), and planned repair schedule indicating planned
date of repair.

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This is to be followed by a post repair and monitoring schedule to indicate when repairs
were effectively carried out.
Monitoring schedule
The repair and monitoring schedule report referred to in Article 14 must include at least thefollowing elements:(i)

Inventory and identification of all components that have been checked(ii)

Result of inspection in terms of whether methane loss has been detected and, if so, size of loss(iii) For components found to be emitting at or above the thresholds set out in Article 14(4) in
previous LDAR survey 500 parts per million or more of methane, information about the
repair undertaken and results of monitoring after repair to check if repair was successful(iv) For components found to be emitting below the thresholds set out in Article 14(4) in theprevious LDAR survey less than 500 parts per million of methane, results of post LDAR
monitoring to check whether the size of loss of methane has evolved and recommendation on
the basis of finding.

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ANNEX II

Reporting of venting and flaring events

Pursuant to Article 16, operators must report to the competent authorities at least the following
information regarding methane flared or vented:(i)name of the operator;(ii)

location, name and type of asset;(iii) equipment involved;(iv) date(s) and time(s) that venting or flaring was discovered or commenced and terminated;(v)

measured or estimated volume of vented or flared natural gas methane. Where a measured
volume is not available, a motivated estimation must be provided;(v1) flaring efficiency(vi) cause and nature of venting or flaring;(vii) steps taken to limit the duration and magnitude of venting or flaring;(viii) corrective actions taken to eliminate the cause and recurrence of venting or flaring;(ix) results of weekly monthly inspections of flare stacks and of the continuous monitoring offlare stacks, as applicable, carrieds out in accordance with Article 17, where an issue has
been identified.

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ANNEX III

Flare stack inspections

Weekly Monthly flare stack inspections must include a comprehensive Audio, Visual and Olfactory(AVO) inspection (including external visual inspection of flare stacks, listening for pressure andliquid leaks and smelling for unusual and strong odours).
During the inspection the operator must inspect all components, including flare stacks, thiefhatches, closed vent systems, pumps, compressors, pressure relief devices, valves, lines, flanges,
connectors, and associated piping to identify defects, leaks and releases.
The following observations must be included in the report:(i)

In the case of lit flares: whether combustion is considered adequate or inadequate. Inadequate
combustion being defined as a flare with visible emissions that exceed a total of five minutes
during any two consecutive hours. Where flares are equipped with continuous monitoring,inadequate combustion being defined as a flare with visible emissions that exceed a totalof five minutes during any two consecutive hours recorded on a live basis.

(ii)

In the case of unlit flares: whether the unlit flare has a gas vent or not. If it does have a gasvent, an intervention to remedy it should take place within 6 hours or within 24 hours in thecase of bad weather or other extreme conditions. Where flares are equipped with
continuous monitoring, the emissions are calculated based on the flow rate and methane
slip in case there is a gas vent. An intervention to remedy it must should take place
within 6 hours or within 24 hours in the case of bad weather or other extreme
conditions.

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Inventories and mitigation plans forof inactive wells, temporarily plugged wells andpermanently plugged and abandoned wells

Part 1
Pursuant to Article 18, inventories of inactive wells, temporarily plugged wells and permanently
plugged and abandoned wells must include at least the following information:(i)name and address of the operator, owner or licensee, where applicable;(ii)

name, type and address of well or well site, specifying whether it is an inactive well,
temporarily plugged well or permanently plugged and abandoned well, as defined in thisRegulation;(iii) where relevant, map showing borders of the well or well site;(iv) results of any methane concentration measurements or quantification of methane emissions
to air and to water carried out prior to the inventory, if any.
Pursuant to Article 18, inventories of inactive wells, temporarily plugged wells andpermanently plugged and abandoned wells may include the following information:(i)

Dates for initial drilling and last operation;(ii)

Orientation (vertical, horizontal, slant);(iii) Overall depth of well;(iv) Whether any notable events have occurred during the drilling process, such as “kicks”;(v)Whether the well has contacted gas containing significant amounts of sulphur
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(vi) Seismic data available for the well in the upper 1000m of its trajectory with a 1000m
radius;(vii) The most recent well integrity assessment report;(viii) Whether the well is an exploration or production well;(ix) Whether the well has contacted any shallow gas pockets, shallow gas zones or loss
circulation zones;(x)

Whether the well is located onshore (indicate urban, rural, other) or offshore (indicate
water depth);(xi) In the case of offshore wells, information regarding any conditions at the sea bed which
could assist methane migration up through the water column;(xii) Information on the well’s lifecycle status, (active, inactive, downhole plugged, surface
decommissioned, etc);(xii) Whether the well cap associated with a decommissioned well is vented or not.

Pursuant to Article 18, with respect to permanently plugged and abandoned wells, inventories
must also include:(i)the last known measurements or quantification of methane emissions to air and towater, if any;(ii)

information showing that the relevant competent authority has attested that the well orwell site in question fulfils the criteria set out in Article 2(24a5);(iii) documentation adequate to demonstrate that there are no methane emissions from thatwell or well site for all wells permanently plugged and abandoned after the adoption ofthis Regulation, or where such documentation already exists prior to adoption.

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Part 2
Pursuant to Article 18, mitigation plans must include at least the following information:(i)the schedule of addressing each inactive well and temporarily plugged well, including
the actions to be performed;(ii)

name and address of the operator, owner or licensee of the inactive well or temporarily
plugged well, where applicable;(iii) projected end date of all remediation, reclamation or plugging of inactive wells andtemporarily plugged wells.

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ANNEX V

Reporting for operating coal mines

Part 1
Pursuant to Articles 19 and 20, the reports for operating underground mines must include at least
the following information:(i)name and address of the mine operator;(ii)

mine address;(iii) tonnage of each coal type produced by the mine;(iv) for all ventilation shafts utilised by the mine1)

name (if any);2)

period of use, if different from the reporting period;

3)

coordinates;4)

purpose (intake, exhaust);

5)

technical specification of the measurement equipment apparatus used for measurement
and quantification of methane emissions and optimum operating conditions specified by
the producer;

6)

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7)

choice of European or international standard specifications for:- methane measurement equipment apparatus sampling position;- measurement of flow rates;- measurement of methane concentrations;8)methane emissions registered by the continuous measurement equipment apparatus (intonnes);9)methane emissions registered through monthly sampling (in tonnes/hour) covering
information on;- sampling date;- sampling technique;- readings of atmospheric conditions (pressure, temperature, humidity), taken at an
appropriate distance to reflect conditions at which continuous measurement equipment
apparatus is operating;11)

if mine is joined to another mine by any means allowing for a flux of air between themines, name of the mine;(v)

post mining emission factors and description of method employed for their calculation;(vi) post-mining emissions (in tonnes).

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Part 2
Pursuant to Articles 19 and 20, the reports for operating surface mines must include at least thefollowing information:(i)name and address of the mine operator;(ii)

mine address;(iii) tonnage of each coal type produced by the mine;(iv) map of all deposits utilised by the mine, outlining borders of these deposits;(v)

for each coal deposit:
1) name (if any)2) period of use, if different from the reporting period3) outline of the experimental method employed to determine methane emissions due tomining activities, including the choice of methodology to account for methane emissions
from surrounding strata(vi) post mining emission factors and description of method employed for their calculation;(vii) post-mining emissions.

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Part 3Pursuant to Articles 19 and 20, the reports for drainage stations must include at least the following
information:(i)name and address of the mine operator;(ii)

tonnage of methane supplied by a mine/mines drainage system, per mine;(iii) tonnage of methane vented;(iv) tonnage of flared methane;(v)

flare efficiency;(vi) use of methane captured.

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ANNEX VI
Reporting of venting and flaring events in drainage stations

Pursuant to Article 23, drainage station operators must report to the competent authorities at least
the following information regarding methane flared or vented:(i)name and address of the operator;(ii)

time when the event was first detected;(iii) cause of the venting and/or flaring event;(iv) tonnage of methane vented and flared (or an estimate if quantification ora measurement is
not possible).

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ANNEX VII
Closed and abandoned mines

Part 1
Pursuant to Article 24 and 25, for each site, the inventory of closed and abandoned coal mines must
include at least the following information, where available:(i)name and address of the operator, owner or licensee, where applicable;(ii)

site address;(iii) map showing borders of the mine;(iv) schemes of mine workings and their status(v)

results of methane concentration source level direct measurement or quantification at thefollowing elementspoint emission sources:1)

all ventilation shafts utilised by the mine when operating, accompanied by:- shaft coordinates- shaft name (if any)
- sealing status and sealing method, if known

1.

2)

unused vent pipes

3)

unused gas drainage wells

4)

outcrops;

5)

identifiable strata fractures at the mine’s territory or linked to its former coal deposit;

6) other recorded potential point emission sources. 6) other recorded potential point emission
sources.

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Part 2The measurements referred to in point (v) of Part 1above must be performed in accordance with thefollowing principles:(i)

measurements must be performed at atmospheric pressure allowing for potential methane leakto be detected, and according to the appropriate scientific standards;.

(ii)

measurements must be performed using an equipment capable of estimating yearlymethane emissions at the level of at least 0,5 tonnes or above from such source.
apparatus with a sensitivity threshold of at least;.

(iii) measurements must be accompanied by an information on:
1)

date of the measurement;2)

atmospheric pressure;3)

technical details of the equipment used for the measurement;(iv) ventilation shafts historically utilised by two or more mines must be assigned to just one
mine, to avoid double-counting.

Part 23
The report set out in Article 25(3) must include the following elements, where data is available orcan be acquired:(i)name and address of the operator, owner or licensee, where applicable;(ii)

site address;(iii) methane emissions from all elements outlined in Article 25(3)point emission sources
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1)

type of element point emission source;2)

technical details of measurement equipment and method employed to estimate
methane releases apparatus used for the measurement including sensitivity;

3)

proportion of time when measurement equipment apparatus was operating;4)

methane concentration registered by the measurement equipment apparatus;

5)

estimates of methane emissions from the element point emission source.

Part 34
The mitigation plan set out in Article 26(1) must include at least the following information, wheredata is available or can be acquired:(i)list of all point emission sources outlined in Part 1elements covered in Article 25(3);(ii)

technical feasibility of mitigation of methane emissions fromat site level, based on point
emission sources each point emission sourceelements outlined in Article 25(3);(iii) timeline of mitigation of methane emissions from at each site point emission sourceelements
outlined in Article 25(3).;(iv) assessment of the efficiency of projects for collection of abandoned mine methane, where
implemented.

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ANNEX VIII
Information to be provided by importers
For the purposes of this Annex, ‘exporter’ means the contractual counterparty in each supply
contract entered into by the importer for the delivery of fossil energy into the Union.
Pursuant to Article 27, importers must provide the following information:(i)where exporters or producers can be identified, name and address of exporter and, if
different from exporter, name and address of producer;(ii)

countriesy and regions corresponding to the Union nomenclature of territorial units forstatistics (NUTS) level 1 where the energy was produced and countries and regions
corresponding to the Union nomenclature of territorial units for statistics (NUTS) level 1
through which the energy was transported until it was placed on the Union market;(iii) as regards oil and fossil gas, whether the exporter, or where relevant, the producer isundertaking measurement and reporting of its methane emissions, either independently or as
part of commitments to report national GHG inventories in line with United Nations
Framework Convention on Climate Change (UNFCCC) requirements, and whether it is incompliance with UNFCCC reporting requirements or in compliance with Oil and Gas
Methane Partnership 2.0 standards. This must be accompanied by a copy of the latest reporton methane emissions, including, where available, the information referred to in Article 12(6),where provided in such report. The method of quantification (such as UNFCCC tiers or
OGMP 2.0 levels) employed in the reporting must be specified for each type of emissions;(iv) as regards oil and gas, whether the exporter, or where relevant, the producer applies
regulatory or voluntary measures to control its methane emissions, including measures such asleak detection and repair surveys or measures to control and restrict venting and flaring of
methane. This must be accompanied by a description of such measures, including, whereavailable, relevant reports from leak detection and repair surveys and from venting andflaring events with respect to the last available calendar year;

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(v)

as regards coal, whether the exporter, or where relevant, the producer is undertaking
measurement and reporting of its methane emissions, either independently or as part ofcommitments to report national GHG inventories in line with United Nations Framework
Convention on Climate Change (UNFCCC) requirements, and whether it is in compliancewith UNFCCC reporting requirements or in compliance with an international or European
standard for monitoring, reporting and verification of methane emissions. This must be
accompanied by a copy of the latest report on methane emissions, including, where available
the information referred to in Article 20(6). The method of quantification (such as UNFCCC
tiers or OGMP 2.0 levels) employed in the reporting must be specified for each type ofemissions;(vi) as regards coal, whether the exporter, or where relevant, the producer applies regulatory or
voluntary measures to control its methane emissions, including measures to control andrestrict venting and flaring of methane. This must be accompanied by a description of suchmeasures, including, where available, reports from venting and flaring events with respect tothe last available calendar year;(vii) name of the entity that performed independent verification of the reports referred to in points(iii) and (v), if any.

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