The US Supreme Court has rejected a request to pause new methane regulations issued by the Biden administration while ongoing legal challenges work through lower courts. The application was denied without comment on Friday. Read the order here.

A coalition of oil and gas producers, joined by over 20 states, argues in the case, Oklahoma, et al. v. EPA, et al. , that the EPA’s new mandates exceed its legal authority. The regulations, introduced at the end of 2023, require operators to replace outdated equipment to limit accidental methane emissions and mandate increased testing for leaks. The rules also enforce stricter standards for mercury emissions.

Methane, a potent greenhouse gas, is believed to trap heat in the atmosphere at a rate approximately 80 times greater than carbon dioxide and is estimated to be responsible for up to 30% of global warming. Mercury, a neurotoxin, poses significant public health risks.

In addition to stricter environmental standards, the regulations expose energy operators to increased civil action from the private sector, making them more vulnerable to lawsuits.

Investors are watching the court’s approach to the methane suit closely for signals of how the justices may rule on other cases on the docket this term. A similar case before the court involving new EPA rules for carbon emissions could have an even larger impact on the energy industry.

Texas Attorney General Ken Paxton, a leading voice in the legal battle against the EPA, criticized the regulations: “The EPA is once again trying to seize regulatory authority that Congress has not granted,” he said in a March statement. “I am challenging this blatant overreach by the Biden Administration and will continue to defend vital sectors of the Texas economy.”

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