Company: BSM
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001628280-25-007730
Chunk: 148

Company: Black Stone Minerals, L.P.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 148
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 projects. All of these factors could impact production on our properties and adversely affect our business and results of operations.

Climate Change

The threat of climate change continues to attract considerable attention in the United States and in foreign countries. Numerous proposals have been made and could continue to be made at the international, national, regional, and state levels of government to monitor and limit existing emissions of greenhouse gases ("GHG") as well as to restrict or eliminate such future emissions. As a result, our operations as well as the operations of our operators are subject to a series of regulatory, political, litigation, and financial risks associated with the production and processing of fossil fuels and emission of GHGs.

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In the United States, no comprehensive climate change legislation has been implemented at the federal level, though laws such as the Inflation Reduction Act of 2022 (“IRA”) advance numerous climate-related objectives. Following the U.S. Supreme Court finding that GHG emissions constitute a pollutant under the Clean Air Act, the EPA adopted regulations that established construction and operating permit reviews for GHG emissions from certain large stationary sources and required the monitoring and annual reporting of GHG emissions from certain petroleum and natural gas system sources in the United States. 

However, from time to time, certain presidential administrations have taken actions to repeal or revise such climate-related actions. For example, the regulation of methane from oil and gas facilities has been subject to uncertainty in recent years. Most recently, in December 2023, the EPA finalized more stringent methane rules for new, modified, and reconstructed facilities, known as New Source Performance Standard ("NSPS") OOOOb, as well as rules for existing sources for the first time ever, known as OOOOc. Fines and penalties for violations of these rules can be substantial. The rules have been subject to legal challenge, and in February 2025, the D.C. Circuit Court granted the EPA's motion to hold the cases in abeyance while the agency reviews the final rules. While the Trump Administration may take action to repeal or modify the final rules, we cannot predict the substance or timing of such changes, if any. Relatedly, the IRA amends the CAA to impose a first-time fee on the emissions of methane from sources required to report their GHG emissions to the EPA.

Separately, various states and groups of states have adopted or are considering adopting legislation, regulations or other regulatory initiatives that are focused on such areas as GHG cap and trade programs, carbon taxes, climate “superfund” laws,