Associated gases are by-products of the oil extraction process that can either be commercialized or flared, the latter turning them into environmental pollutants. Opting for the former over the latter depends on several factors, one of which is an appropriate legal framework. A crucial aspect of creating this framework is the anticipation of legal methods for compensating damages incurred by affected communities and the environment. Given that Iran ranks among the top three countries in the world for flaring associated gases, establishing an efficient legal structure in this area seems imperative, with the anticipation of compensation methods being a significant component. This research, using a descriptive-analytical method, seeks to answer whether the liability system for compensating damages resulting from associated gas emissions is sufficient, and what other methods for compensating these damages might exist. The hypothesis of this article is that the civil liability system is insufficient for compensating environmental damages, including those caused by associated gases, and that reforms are needed in this area. Additionally, the potential of international liability can be utilized, or innovative methods such as creating a compensation fund for local communities using the revenue from fines imposed for associated gas emissions can be employed.