EXTRACTED: Daily News Clips 11/2/22
PIPELINE NEWS
Reuters: Equitrans wants U.S. legislation to help finish Mountain Valley natgas pipe
Roanoke Times: Mountain Valley says it ‘will not rest’ until its pipeline is completed
KETV: Iowa county passes law putting restrictions on CO2 pipeline projects
KMA: Montgomery County board discusses possible pipeline intervention
Manchester Press: Navigator files for pipeline permits
Iowa Capital Dispatch: Trespassing case might test state’s pipeline survey law
Facebook: Speaker Pat Grassley: After hearing from many constituents, I am standing with landowners to ask the Iowa Utility Board to reject the recent waiver request by Navigator Pipeline.
Brainerd Dispatch: 5 of ‘Shell River Seven’ have charges dismissed from Line 3 protest
Winston-Salem Journal: Applause for pipeline pause: Centuries-old Triad farm among properties spared from condemnation attempts
Charleston Gazette Mail: Federal regulators taking public comment on proposed gas storage wells and pipeline project near Pinch
Natural Gas Intelligence: Denbury Expecting CO2 Pipeline Expansion as Part of Blue Methanol Project Partnership
Kiowa County Press: North Dakota updating pipeline safety programs
WASHINGTON UPDATES
E&E News: Will Democratic attacks on Big Oil pay off with voters?
Politico: Eyeing Gavel, Westerman Warns CEQ
InsideEPA: CEQ Plans January Release For Controversial Phase 2 NEPA Rule
STATE UPDATES
Reuters: New Mexico House race wrangles oil and gas, climate change
E&E News: ‘All for naught.’ Biden orphan well plan faces trouble in Pa.
Colorado Sun: 10 Colorado communities support lawsuit to block Utah oil trains along Colorado River
Energy & Policy Institute: Gas industry group is behind ‘Affordable Energy Fund’ PAC election mailers and digital ads targeting Ohio
EXTRACTION
Canadian Press: Critics warn proposed Alberta well cleanup plan a royalty giveaway: ‘Money for free’
Reuters: Suncor Fort Hills deal hints at new strategy for Canada oil sands mine replacement
Energy Global: The Hydrogen Council welcomes four new members
CLIMATE FINANCE
Sierra Club: Leaders or laggards? Report analyzes net-zero pledges of US banks
Calgary Herald: Varcoe: As high energy prices attract more investors, a 'pipeline' of oilpatch IPOs is building, says head of TMX Group
Enervus: CARBON CAPTURE, UTILIZATION & STORAGE: FINDING OPPORTUNITIES IN AN EMERGING MARKET
TODAY IN GREENWASHING
KPRC: Volunteers needed for upcoming Operation Turkey event
OPINION
Environmental Defence: Busting Enbridge’s Line 5 Myths – Part 3: Indigenous sovereignty, Tribal rights, and consent – Bad River Band v. Enbridge
Appalachian Voices: Pictures don’t do it justice, and neither would a pipeline
Bloomberg: We Told Big Oil Not to Invest. Don’t Complain Now
High Country News: Do bedrock conservation laws need a makeover?
PIPELINE NEWS
Reuters: Equitrans wants U.S. legislation to help finish Mountain Valley natgas pipe
11/1/22
“U.S. energy company Equitrans Midstream Corp said on Tuesday that the best path to complete its Mountain Valley natural gas pipeline from West Virginia to Virginia by the second half of 2023 was through U.S. permitting reform legislation,” Reuters reports. “Equitrans also said in its third quarter earnings release that federal legislation would help the company stick to its previously-announced $6.6 billion budget for the project. Mountain Valley - the only big gas pipe under construction in Appalachia - is one of several U.S. pipeline projects delayed by regulatory and legal fights with environmental and local groups.These fights stem from federal permit problems issued during President Donald Trump's administration… “There continues to be significant, bipartisan support for federal energy infrastructure permitting reform legislation,” Equitrans CEO Thomas Karam said in a release. “However ... the same panel of judges in the U.S. Fourth Circuit Court of Appeals has again been assigned and appears hostile in a (Mountain Valley) permitting case," Karam said. He was referring to Equitrans' perceptions of "continued hostility" of the Fourth Circuit panel during oral argument on Oct. 25 in a case seeking to overturn Mountain Valley's water quality certification from West Virginia, which is just one of several permits still under court review. The Fourth Circuit has already vacated several of the project's permits - some more than once.”
Roanoke Times: Mountain Valley says it ‘will not rest’ until its pipeline is completed
Laurence Hammack, 11/1/22
“Citing what it called a federal court's "continued hostility" to the Mountain Valley Pipeline, the joint venture's lead partner said Tuesday that the best path forward may be through Congress,” the Roanoke Times reports. “In a conference call to discuss its third quarter earnings, Equitrans Midstream Corp. expressed hope that calls to reform the permitting process for energy projects will include legislation that requires the completion of the natural gas pipeline. But at the same time, the company will continue to pursue new permits that have been struck down repeatedly by the 4th U.S. Circuit Court of Appeals. "We remain confident that we will complete MVP through one path or another," Equitrans Chairman and CEO Thomas Karam told financial analysts during the call. Asked if finishing the 303-mile pipeline by the end of next year remains the goal, Karam said: "It's difficult to provide a definitive timeline until we know which path we will travel." “...In what Karam called "unrelenting litigation" from the Sierra Club and other environmental groups, he said the 4th Circuit appears inclined to throw out the most recent approval to be challenged. A decision is not expected until next year… “The legal problems facing Mountain Valley, combined with global events that have increased the demand for natural gas, "clearly highlight the need for expeditious action by Congress on federal permitting reform legislation as the best path to complete the MVP project in 2023," Karam said… “Pipeline opponents — who cite the environmental damage caused by construction as well as the finished project’s contribution to climate change — say its investors should abandon a failing venture. In his comments Tuesday, Karam promised that will not happen. "We will not rest, and have no intention of resting, nor do our partners, until we complete MVP," he said.
KETV: Iowa county passes law putting restrictions on CO2 pipeline projects
Josh Kristianto, 11/1/22
“In Shelby County, Iowa, the board of supervisors put limits on companies proposing controversial carbon capture pipelines on Tuesday,” KETV reports. “...From health concerns to property rights, these farmers and landowners all have their reasons for going against this CO2 pipeline project. "It would decrease the resale value of the land because now you would have a hazardous pipeline buried on your land. It will impact farming for years to come," Mary Powell, whose family owns a farm in Shelby County, told KETV. In a unanimous decision, the county board passed a new law that makes it harder for companies to pass a CO2 pipeline through the region. "We've amended our zoning ordinance that we have in place now, our comprehensive plan, to include hazardous pipelines," Steve Kenkel, the chairman of the Shelby County board, told KETV. That means you now have to get country-approved permits to build and stay certain distances away from homes, farms, cities and schools. It tacks on a whole litany of requirements that throw a wrench in Summit Carbon Solutions' pipeline plan, which currently needs easements on private property to succeed. "We will check the boxes if they're following the ordinance, following the setbacks that we have in place," Kenkel told KETV. Summit Carbon Solutions, which has already signed 1,600 easement agreements with 900 Iowa landowners, could take this new ordinance to court. "If you look at Iowa law, I think it's very clear that the Iowa Utilities Board has the authority to regulate pipeline projects and projects like ours. Those regulations will pre-empt ordinances passed on the county level," Jesse Harris, a spokesperson for Summit, told KETV.
KMA: Montgomery County board discusses possible pipeline intervention
Mike Peterson, 11/1/22
“Montgomery County officials are holding off on a decision regarding legal maneuvers involving a proposed carbon pipeline project,” KMA reports. “During Tuesday morning's county board of supervisors meeting, Supervisor Charla Schmid relayed her recent conversation with attorney Tim Whipple of Ahlers and Cooney, the company assisting the county with legal channels associated with Summit Carbon Solution's proposed Midwest Express CO2 pipeline project. Schmid contacted Whipple after board members received a recent email from Jan Norris urging the supervisors to intervene in the company's application to the Iowa Utilities Board. According to Schmid, the county faced a December deadline on joining any intervention effort. However, Schmid says Whipple wasn't concerned as to whether Montgomery County would meet that deadline… “Schmid says legal counsel also recommended that Montgomery County share the litigation costs with others counties, such as Shelby County, for example. She added Montgomery County's pipeline ordinance is still a work in progress. "He (Whipple) reassured me for our county that he's working on Montgomery County's ordinance," she said, "and that we're not going to be missing any dates that are important with the IUB."
Manchester Press: Navigator files for pipeline permits
11/2/22
“A carbon capture pipeline project officially filed for permits through the Iowa Utilities Board (IUB). The move by Navigator CO2 Ventures, a Texas-based company, is the first big hurdle the project must get past before it could get underway with its proposed 900-mile route through Iowa,” the Manchester Press reports. “The project has caused some level of controversy and, according to a press release from Food and Water Watch, 80% of registered voters oppose the use of eminent domain for the projects and over half of the counties impacted by Navigator’s pipeline proposal oppose the project. “Hazardous carbon pipelines like Navigator’s are dangerous scams that stand to make a few out-of-staters wealthy at the expense of a whole lot of Iowans — we are having none of it,” Food & Water Watch Senior Iowa Organizer Emma Schmit told the Press. “But as billions of our tax dollars fund these unproven, unwanted projects, Iowa’s legislative leaders have proven unwilling to stand up to private donors and stand up for their constituents. Last session, our legislature failed to pass critical bills to protect Iowa communities, land and climate from these dangerous projects — it can’t happen again.”
Iowa Capital Dispatch: Trespassing case might test state’s pipeline survey law
JARED STRONG, 11/1/22
“A land surveyor for Summit Carbon Solutions faces a criminal trial in December for allegedly trespassing on land in northwest Iowa that is part of the company’s proposed carbon dioxide pipeline route, according to court records,” the Iowa Capital Dispatch reports. “State law allows the land surveys — without the threat of a trespassing charge — after hazardous liquid pipeline companies hold informational meetings about the projects and send notice to landowners… “For now, we’re on the side of the farmer because I don’t know who’s been notified and who hasn’t, and it’s their property,” Dickinson County Sheriff Greg Baloun told the Dispatch. “If you’ve been asked to leave, you’re supposed to leave, otherwise it’s trespassing.” The criminal charge stems from an attempt to survey farmland east of Spirit Lake in August, court records show. Jeff Jones, a nephew of the landowner, has farmed that ground for decades. He raises crops and cattle with his two adult sons. Jones worries that the pipeline — which would cut about a mile-long path through the property — will disrupt drainage tile in the fields and hamper crop yields. But that’s not the main issue. “I’m more upset that they think they can do whatever they want and take whatever they want,” he told the Dispatch… “The company seeks a final board order in June. The state’s Office of Consumer Advocate is opposed to the proposed schedule, according to a recent IUB filing. “Given the scope of Summit’s proposed project and the novelty of carbon dioxide pipelines in Iowa, it is important to not rush to establish proceedings before Summit has prepared information necessary to evaluate the pipeline and its route,” Consumer Advocate Jennifer Easler wrote… “No laws were broken, and we fully expect these charges will be dismissed in the near future,” Courtney Ryan, a Summit spokesperson, told the Dispatch.
Facebook: Speaker Pat Grassley: After hearing from many constituents, I am standing with landowners to ask the Iowa Utility Board to reject the recent waiver request by Navigator Pipeline.
11/1/22
“After hearing from many constituents, I am standing with landowners to ask the Iowa Utility Board to reject the recent waiver request by Navigator Pipeline. I have submitted the following letter to the IUB,” according to Iowa State House Speaker Pat Grassley. “If you share my concerns with this waiver request, please join me in submitting your objection by going to… “I’ve been very clear that I am following this issue closely and that I am prepared to act when landowner rights are not being properly respected.”
Brainerd Dispatch: 5 of ‘Shell River Seven’ have charges dismissed from Line 3 protest
Michael Johnson, 11/1/22
“Charges of trespassing and obstruction of legal process were dismissed against five of the women from the group known as the ‘Shell River Seven’ in Wadena County District Court on Monday, Oct. 31,” the Brainerd Dispatch reports. “Those women include Kelly Maracle, Trish Weber, Mary Klein, Barbara With, and Cheryl Barnds. All pleaded not guilty. The seven women were arrested back in July 2021 when they sat chained together on lawn chairs on a Line 3 oil pipeline easement in northern Wadena County, near the Shell River. This was a location where construction was not actively taking place, but horizontal drilling was planned nearby to install a pipeline under the Shell River… “Their goal was to sit in protest against the construction of the Line 3 pipeline that now makes its way south from Canada and through a portion of Wadena County on its way to Superior, Wisc… “Wadena County District Court Judge Doug Clark dismissed the charges on the grounds that the plaintiffs failed to demonstrate probable cause to sustain the charges… “The defendants also claimed that their act of chaining themselves together and speaking to law enforcement about possible threats posed by the pipeline and Indian treaty rights did not rise to the level of physically obstructing, hindering, or preventing their being taken into custody. Judge Clark’s conclusion was that the protest was taking place away from an active pipeline construction and the protesters presence there was not affecting the ongoing drilling. He added that there was insufficient evidence that the women being chained together was significant to constitute physical obstruction… “Several charges against the other two Shell River Seven, including independent photojournalist K. Flo Razowsky and Winona LaDuke, Executive Director and co-founder of Honor the Earth, remain in place pending ongoing litigation, according to a news release from the group Honor the Earth.”
Winston-Salem Journal: Applause for pipeline pause: Centuries-old Triad farm among properties spared from condemnation attempts
John Deem, 11/1/22
“Mike Herbin’s roots in the Triad reach deeper than most. The eighth-generation farmer cultivates the same Rockingham County land his family has tended for more than two-and-a-half centuries,” the Winston-Salem Journal reports. “...So a threat to any of the hundreds of acres that make up Herbin Farms is more than a potential attack on the family’s livelihood. It is an ancestral affront. That explains Herbin’s reaction last week to the news that the company behind a proposed pipeline that would transport hundreds of millions of cubic feet of natural gas through the Triad annually was abandoning — at least for now — condemnation proceedings against dozens of North Carolina property owners whose land is the project’s path. “That’s the best news I’ve heard in about four years,” Herbin told the Journal by phone during a break from bailing tobacco. “I don’t want another right-of-way across this farm.” Five Duke Energy rights-of-way and two state roads already slice through Herbin’s fields of tobacco, corn and soybeans. “One of those roads was built in 1962, when my father was 28 years old,” Herbin recalled. “He fought it all the way to the North Carolina Supreme Court.” The N.C. Department of Transportation won that battle, but it wasn’t the Herbins’ last. Alvin Herbin was in his mid-80s and in poor health by the time representatives of the Mountain Valley Pipeline approached him about an agreement to allow the proposed 75-mile MVP Southgate extension to pass through a 13-acre portion of his farm. His response was an emphatic “no,” which landed the aging farmer — along with dozens of other defiant property owners in Guilford, Rockingham and Alamance counties – in court to fight Mountain Valley’s legal attempts to gain access to their land. Alvin died May 14, 2021, at age 87 while surrounded by family members in his Gibsonville home and still unsure about the outcome in this latest defense of the Herbins’ hallowed ground. “That was part of the reason he died,” Mike Herbin told the Journal of his father. “Because all he did all his life was work to buy land. And then here at the end, they still try to take it from him.” “...But in a U.S. District Court filing Oct. 20, the company provided notice that it was voluntarily dismissing condemnation proceedings against Herbin and the owners of nearly 70 North Carolina properties who rebuffed Mountain Valley’s attempts to acquire easements on their land. That doesn’t mean their fight is over, however. Mountain Valley noted in its filing that it was dismissing its legal claims “without prejudice” and reserves the right to restart condemnation proceedings because it has “not abandoned this project.”
Charleston Gazette Mail: Federal regulators taking public comment on proposed gas storage wells and pipeline project near Pinch
Mike Tony, 11/1/22
“Federal regulators are seeking public comment on a Columbia Gas Transmission LLC proposal to build and operate two new gas storage wells on a new well pad and construct nearly 600 feet of related pipeline in Kanawha County,” the Charleston Gazette Mail reports. “Columbia Gas Transmission plans to construct and operate two new injection and withdrawal wells and 586 feet of related pipeline and abandon over 5,000 feet of pipeline in the Coco B storage field near Pinch. The wells replacement project includes plugging and abandoning 4,927 feet of pipeline in place, abandoning 251 feet of pipeline by removal and plugging and abandoning four injection and withdrawal wells. Staff for the Federal Energy Regulatory Commission released an environmental assessment last month concluding that the project wouldn’t significantly impact “the quality of the human environment” with appropriate mitigation measures. The commission, which regulates pipeline and storage facility construction and abandonment, is taking public comment on the environmental assessment until Nov. 21… “Well site drilling may result in a “minor increase” in sound levels at the church on Sundays and at night over a three-month, 24-hour per day drilling period, according to the assessment… “A building permit from the Kanawha County Commission is required before construction can start within the Special Flood Hazard Area, according to the assessment… “Columbia shouldn’t start construction until the staff consults with the U.S. Fish and Wildlife Service regarding a proposed species endangerment listing for the tricolored bat, the commission staff advised. The staff said the tricolored bat could be impacted by the project but added that the project isn’t likely to jeopardize its existence. The staff dismissed a previously submitted comment that Columbia had deliberately understated the land requirements for construction, noting that Columbia must stay within its 21.9-acre certified workspace boundary.”
Natural Gas Intelligence: Denbury Expecting CO2 Pipeline Expansion as Part of Blue Methanol Project Partnership
MORGAN EVANS, 11/1/22
“Denbury Inc. subsidiary Denbury Carbon Solutions LLC has inked a 20-year agreement with Lake Charles Methanol LLC (LCM) to provide carbon dioxide (CO2) transportation and storage for LCM’s $4 billion project to convert natural gas into hydrogen, and ultimately blue methanol,” Natural Gas Intelligence reports. “Denbury said it intends to construct a new pipeline from the Lake Charles industrial area to its Green Pipeline in order to transport LCM’s captured CO2. The enhanced oil recovery (EOR) company indicated the new pipeline could allow for additional CO2 transportation and storage out of Lake Charles. For the Plano, TX-based independent, the “pipeline network expansion into the Lake Charles area will position Denbury to help other industrial customers in the area decarbonize their businesses,” Denbury Carbon Solutions Senior Vice President Nik Wood told NGI… “Denbury’s goal by 2030 is to fully offset direct and indirect emissions, including from customers, otherwise known as Scope 1, 2 and 3 CO2 emissions. Ultimately, CO2 from the LCM facility is expected to be sequestered at one of multiple sites along Denbury’s Gulf Coast CO2 pipeline system. In addition, Denbury said the process could result in more than one million metric tons/year (mmty) of permanently sequestered CO2, or the equivalent to removing about 200,000 gasoline-powered vehicles from the road annually. LCM is aiming to convert natural gas into hydrogen, which then would be synthesized into blue methanol using technology from Denmark’s Topsoe A/S.”
Kiowa County Press: North Dakota updating pipeline safety programs
Gregory Burnett, 11/2/22
“The North Dakota Public Service Commission is using a recent influx of federal dollars to implement pipeline safety programs,” the Kiowa County Press reports. “The U.S. Department of Transportation's Pipeline and Hazardous Materials Administration awarded $2.6 million in grants to the state, according to U.S. Sen. Kevin Cramer. The PSC will receive $354,635 for pipeline safety programs and an additional $46,770 for damage prevention programs, which educate the public about the state's pipelines… “The state's pipeline system was reviewed this summer for safety, Haugen-Hoffart told KCP… “North Dakota State University received two grants of $1 million each. One would create AI-powered software that would adapt gas pipelines to hydrogen ones. The second grant would fund the creation of a self-healing and self-sensing structural liner for pipelines.”
WASHINGTON UPDATES
E&E News: Will Democratic attacks on Big Oil pay off with voters?
Nico Portuondo, 11/2/22
“Democrats have launched a last-gasp effort to change the narrative around high gasoline prices ahead of next week’s midterm elections, in a move some strategists say could shield candidates from Republican attacks,” E&E News reports. “On campaign stops and press conferences, Democrats are coalescing around attacking oil company profits. While the average price of gasoline remains above $3.70 a gallon nationwide — and above $4 in Western states — Exxon Mobil Corp. and Chevron Corp. reported more than $30 billion in combined third-quarter profits. President Joe Biden, in response, threatened Monday to work with Congress on legislation to impose a tax on windfall profits. Since then, other Democrats have escalated the narrative against Big Oil. “Their profits are a windfall of war,” Biden said in reference to the conflict in Ukraine. “Any company receiving historic windfall profits like this has a responsibility to act beyond their narrow self-interest of its executives and shareholders.” Pennsylvania Democratic Lt. Gov. John Fetterman — who is courting moderates from both parties and recently delivered a strong endorsement of fracking — penned an op-ed on Fox News against oil profits. “We have to do more to bring down costs and curb inflation,” wrote Fetterman on Tuesday. “It starts with cracking down on the huge corporations and big oil companies that have been raking in record profits.” And during a Fox News town hall event Rep. Tim Ryan (D-Ohio), who is running against Republican J.D. Vance for Senate, received applause when he noted energy companies were making record profits while Americans struggled. “I think that’s wrong. And I think we need to crack down on it,” Ryan said… “Democratic strategists applauded the recent messaging from the president and candidates as a politically effective and easy-to-understand concept for voters to a problem that is rooted in a complicated global oil market… “A POLITICO/Morning Consult survey from May showed that 77 percent of voters would support a federal government ban on energy price gouging, including 83 percent of Democrats and 76 percent of Republicans. Voss told E&E those results suggest that going after oil companies with accusations of price gouging has crossover appeal with voters.”
Politico: Eyeing Gavel, Westerman Warns CEQ
10/31/22
“Rep. Bruce Westerman (R-Ark.), the top Republican on the House Natural Resources Committee, warmed up his oversight muscles in a Monday letter to Council on Environmental Quality Chair Brenda Mallory,” Politico reports. “Pending rulemakings at the White House’s in-house environmental agency have raised ‘significant concerns … about CEQ’s decisions leading agencies to exceed their congressional authority,’ Westerman wrote. That includes rollbacks of Trump-era changes to the National Environmental Policy Act rules. ‘The Biden administration’s insistence on returning to a status quo that supports weaponization of the NEPA process and associated litigation will continue to delay critical energy projects, at a time when our nation should be pursuing energy independence,’ he wrote. Westerman also demanded information on land conservation work and the ‘Justice40’ program’s application in cleaning up abandoned mines and orphaned wells.”
InsideEPA: CEQ Plans January Release For Controversial Phase 2 NEPA Rule
10/31/22
“The White House Council on Environmental Quality (CEQ) intends to issue in January its highly anticipated Phase 2 National Environmental Policy Act (NEPA) implementing rule -- which is slated to address some of the most-difficult issues the Biden administration left out of the Phase 1 rule. CEQ outlines the new planned deadline-- the first time it has articulated a deadline since it missed its targeted August release as set forth in the most recent unified agenda -- in an Oct. 28 status report in stayed litigation over the Trump NEPA rule, Iowa Citizens for Community Improvement, et al. v. CEQ, et al., which is pending in the U.S. District Court for the District of Columbia. In the status report, CEQ asks the court to continue to hold the case in abeyance through February. ‘CEQ is actively working on the Phase 2 rulemaking, the third of three contemplated regulatory actions to address the 2020 Rule. Since the last status report, CEQ has made substantial progress on the proposed Phase 2 rule,’ including holding 49 meetings to discuss the proposal with interested parties as it drafts it. ‘While CEQ indicated in the Spring 2022 Regulator Agenda that it hoped to issue the proposed Phase 2 rule in August 2022, development of the proposed Phase 2 rule has taken longer than anticipated, in part because of interim developments,’ the status update adds. The filing cites the enactment of the Inflation Reduction Act (IRA) as one example. ‘CEQ has had to review and consider the impact’ of that new law, which provides billions in climate change funding, on the pending proposal.
STATE UPDATES
Reuters: New Mexico House race wrangles oil and gas, climate change
Andrew Hay, 11/1/22
“The candidates vying for a New Mexico U.S. House seat are clashing over fossil fuel industry jobs and climate change, setting up voters to decide whether to focus on the environment or the economy,” Reuters reports. “New Mexico's U.S. second congressional district is among a handful of swing seats which will decide whether Republicans retake the U.S. House in Nov. 8 midterm elections. Polls show issues like climate change and abortion are important but the economy may be the driving factor in a state that is one of the poorest in the country and also a top global oil producer. First-term Republican incumbent Yvette Herrell is known as a defender of the Permian Basin oil and gas sector, a region she represents. In an interview with Reuters, she said she saw no link between the U.S. fossil fuel industry and climate change, a statement at odds with the scientific consensus linking emissions of methane and volatile organic compounds to a warming planet… “Her Democratic opponent Gabe Vasquez is critical of the oil and gas industry's environmental impact and advocates a gradual switch to renewable energy to counter climate change, an issue judged important by half of U.S. voters, based on polls. He is among progressive politicians in oil-dependent U.S. states whose policies put them at odds with a fossil fuel industry that is a huge source of revenues for government programs… “Herrell, a target of the League of Conservation Voters and other green groups, told Reuters New Mexico's emission controls meant the state's oil and gas industry was far cleaner than foreign competitors and did not contribute to climate change.”
E&E News: ‘All for naught.’ Biden orphan well plan faces trouble in Pa.
Heather Richards, 11/2/22
“Even as Pennsylvania prepares to tap millions in federal money to plug roughly 300 of the state’s many abandoned oil and gas wells, drillers this year have already tried to walk away from another 354,” E&E News reports. “The abandonments are not a fluke of oil prices or market shifts. From 2017 to 2021, state regulators sent more than 3,000 notices to companies for attempting to abandon oil and gas wells in Pennsylvania without plugging them. This potential new wave of abandoned wells highlights the hydra-like nature of well abandonment in the state, and worries environmentalists about what they might eventually see throughout the Appalachian region. While Congress and the Biden administration committed $4.7 billion last year to clean up abandoned wells across the country, that significant influx of money could fall short in the mountainous region if states don’t stop drillers from walking away when wells reach the end of their lucrative lives. “The federal money that is coming through the federal bipartisan infrastructure law is a godsend,” David Hess, who worked in leadership at the Pennsylvania Department of Environmental Protection for a decade, including as secretary in 2001 and 2002, told E&E. “But if we don’t stem this continuing flood of new well abandonment somehow, it’s going to be all for naught.” “...In Pennsylvania, conservative lawmakers from the natural gas-rich western region pushed through a law earlier this year blocking the state bureaucracy for 10 years from increasing bonding on some wells. That bonding is the financial insurance drillers lay down to ensure cleanup doesn’t fall to the taxpayers when companies go bankrupt or refuse to plug wells. Pennsylvania, where there are more than 8,000 known orphans, doesn’t require bonding on wells drilled before 1985, and critics of the new law say it sets bonding requirements that aren’t enough to cover cleanup costs.”
Colorado Sun: 10 Colorado communities support lawsuit to block Utah oil trains along Colorado River
Jason Blevins, 10/28/22
“Ten Colorado communities along both dormant and active railroad tracks are asking a federal court to include their arguments in an appeal to block plans for increased crude oil train traffic from Utah traversing the state,” the Colorado Sun reports. “When the Surface Transportation Board in 2020 approved plans for a new 88-mile stretch of railroad in Utah that would connect Uinta Basin oil fields with the national rail network, the federal agency used a “fatally flawed” environmental analysis. That’s the argument raised by the 10 Colorado communities along railroad tracks between Utah and Denver in a plea to join Eagle County and environmental groups appealing the board’s approval of the Uinta Basin Railway in the U.S. Court of Appeals in Washington, D.C. The flaws in the board’s analysis, the communities argue, are the dismissal of risks of derailment, wildfire, and impacts to tourism and transportation along the rail corridor outside of Utah as simply “downline” effects “beyond the board’s control.” In the “friend of the court” brief filed Friday in the federal court, the communities seek permission to be included in the appeal… “Glenwood Springs Mayor Jonathan Godes called minimizing the wildfire risk along Colorado railroads a “glaring inadequacy … which completely ignores real-world evidence.” “...Glenwood Springs organized the coalition, which includes Avon, Minturn, Red Cliff and Vail in Eagle County, along with Boulder, Chaffee, Lake, Pitkin and Routt counties. The municipalities and counties are home to more than 423,000 Colorado residents.”
Energy & Policy Institute: Gas industry group is behind ‘Affordable Energy Fund’ PAC election mailers and digital ads targeting Ohio
Dave Anderson, 11/1/22
“The Empowerment Alliance, a dark-money group aligned with the gas industry, is behind the mysterious Affordable Energy Fund PAC that spent over $1 million dollars on election mailers and digital ads supporting Republican candidates in Ohio over the last two months,” the Energy & Policy Institute reports. “The Empowerment Alliance (TEA) took credit for “establishing the Affordable Energy Fund as a political action committee” in a “Year in Review 2021” report. The Energy and Policy Institute obtained a copy of the report, which has not previously been made public, via a public records request filed with the Auglaize County Commissioners, who met in September with TEA’s then-executive director Matthew Hammond. The Affordable Energy Fund PAC (AEF PAC) has paid more than $1 million to the political consulting firm Majority Strategies for direct mail and digital ad campaigns since the start of September, according to Federal Election Commission (FEC) reports the Super PAC filed in October. Hammond joined TEA as its new executive director in January, after previously working as president of the Ohio Oil and Gas Association and a lobbyist for Chesapeake Energy… “TEA’s “How to Run On Energy” election guide includes a “Guide to Understanding the Impacts of Wind and Solar Projects” that is clearly aimed at stoking opposition to renewable energy projects. The election guide also includes numerous bullet points with anti-renewables messages, some citing special interest groups like the Heartland Institute that have received funding from the fossil fuel industry and long opposed wind power in Ohio. County commissioners in Ohio’s Jackson and Shelby counties recently adopted a “Natural Gas is Green” resolution promoted by TEA after meetings with TEA representatives. Meanwhile, TEA’s Super PAC paid for mailers supporting Republican candidates in Ohio described as supporting “clean, natural gas.”
EXTRACTION
Canadian Press: Critics warn proposed Alberta well cleanup plan a royalty giveaway: ‘Money for free’
Bob Weber, 10/31/22
“Critics fear Alberta’s new United Conservative premier is preparing to bring in a program that would use billions of dollars in taxpayer-funded royalty breaks to subsidize energy companies to fulfil their legal duty and clean up old wells,” the Canadian Press reports. “The so-called RStar proposal, developed by an industry group, has been criticized by legal experts, energy economists and the province’s own internal analysts. But for more than a year, Danielle Smith and newly appointed members of her cabinet have been outspoken advocates of the plan, which would enable companies to use reclamation spending to gain credits against royalty payments… “But critics say the idea appears to remain high on the agenda for the new Smith-run government… “Under RStar, companies would earn credits for remediating old wells up to the total liability the well represents as calculated by Alberta’s energy regulator. That credit would then apply against revenue earned from new production to reduce royalties or be sold to another operator. “It’s like moving more of your income into a lower tax bracket,” Andrew Leach, a University of Alberta energy economist who has seen the proposal’s details, told CP… “Leach told CP RStar would subsidize work that almost all companies do anyway as a legal condition of their drilling licence. “The companies that are going to be able to take advantage of this are the companies that aren’t distressed,” he told CP. “We’re not worried about companies that have active drilling programs and are meeting their reclamation targets. They’re doing exactly what they’re supposed to do and (we’d be) giving them additional credits with substantial value.” “...Boychuk told CP in addition to transferring wealth to companies that don’t need it, RStar would use a taxpayer-owned resource to bail out hundreds of Alberta companies that have run their wells dry without cleaning them up. “Danielle Smith’s program would hand them money for free,” he told CP. “It’s flabbergasting. It’s sheer robbery.”
Reuters: Suncor Fort Hills deal hints at new strategy for Canada oil sands mine replacement
Nia Williams and Rod Nickel, 11/2/22
“Suncor Energy's (SU.TO) acquisition of a larger stake in the Fort Hills oil sands project is a sign that Canada's second-largest oil company is looking for alternatives to extending the life of its biggest mine, which has run into political obstacles, industry observers said,” according to Reuters. “The purchase indicates Suncor is looking to acquire new bitumen supply to replace production from its Base Mine instead of, or in addition to, developing its own oil sands leases, energy consultancy Wood Mackenzie said, raising expectations of more deals… “The company proposed the Base Mine Extension project, an expansion of the existing mine to produce 225,000 bpd from around 2030, but the federal government said in April that the mine would not pass an environmental review because projected emissions are too high. Canada's oil sands hold the world's third-largest crude reserves and the long-life projects can produce for decades. However, carbon-intensive new mines are difficult to square with Ottawa's goal of reaching net-zero emissions by 2050, making it important to keep existing ones running… "This is the first time Suncor has hinted at the risk that (Base Mine Extension) may not be going ahead," Mark Oberstoetter, Wood Mackenzie's head of Upstream Americas, told Reuters… “Jamie Bonham, director of corporate engagement at NEI Investments, a Suncor shareholder, told Reuters for oil companies, consolidation seemed a safer bet than developing new assets that may have cost overruns or become stranded assets if oil demand wanes faster than expected during a transition away from fossil fuels.”
Energy Global: The Hydrogen Council welcomes four new members
Jessica Casey, 11/1/22
“The Hydrogen Council has announced that four new leading companies have joined the global CEO-led initiative to advance the role for hydrogen in the energy transition globally, bringing its membership total to 145,” Energy Global reports. “Comprised initially of 13 international business leaders from the energy, transportation and manufacturing sectors, in just over five years, the Hydrogen Council now includes close to 150 multinational companies representing the entire hydrogen value chain. Joining the Hydrogen Council as steering members are Japan’s Asahi Kasei Corporation, Japanese engineering corporation, IHI Corporation, and Canadian energy infrastructure company, TC Energy… “These four new members are aligned with the Hydrogen Council’s three main objectives: To increase visibility and recognition that hydrogen is a critical tool for energy systems and decarbonisation. To identify and unlock impediments to progress in the realisation of the great potential that hydrogen solutions bring to the pressing problems being faced including energy security, resilience and sustainability. To work with and provide recommendations to key stakeholders, such as policymakers, the business community, international agencies and civil society, to foster collaboration and meet shared climate goals… “François Poirier, President and CEO of TC Energy, stated “North American industry needs to make major strides in decarbonisation, and our customers are specifically demanding hydrogen solutions.”
CLIMATE FINANCE
Sierra Club: Leaders or laggards? Report analyzes net-zero pledges of US banks
11/2/22
“Ahead of COP 27, a new report by the Sierra Club’s Fossil-Free Finance campaign analyzes the financial sector’s net-zero emissions pledges two years in the making, revealing that the commitments and actions from the 6 biggest US banks fall far short of what’s needed to meet global climate goals… “The report focuses on the commitments of 6 US banks — JPMorgan Chase, Citi, Wells Fargo, Bank of America, Morgan Stanley, and Goldman Sachs. All 6 banks pledged to reach net-zero financed emissions by 2050 and are members of the Net Zero Banking Alliance… “Overall, the report finds banks’ progress remains limited in large part due to their continued financing of fossil fuel expansion. US banks are the biggest fossil fuel financiers in the world, with JPMorgan Chase, Citi, Wells Fargo, and Bank of America together providing a whopping quarter of the $4.6 trillion USD in global fossil fuel financing in the past six years alone. This financing comes despite calls from leading energy experts for no new fossil fuel projects to ensure the world reaches its climate goals. “The science is clear that in order to reach net zero by 2050 — and help steer the world away from climate disaster — banks must stop funding fossil fuel expansion. But big US banks have fallen far behind the best practices of their global peers, setting only weak targets and policies riddled with loopholes that allow billions of dollars in new fossil fuels projects each year. If banks want to live up to their net-zero pledges, they need to commit to real emissions reductions and end financing for companies expanding fossil fuels,” said Adele Shraiman, Campaign Representative for the Sierra Club’s Fossil-Free Finance campaign… “Across the board, the report finds that all six big US banks are severe laggards when compared to the best practices set by some of their international counterparts. It provides a suite of recommendations for banks to strengthen their interim targets and financing policies in order to reach their net zero by 2050 pledges. Among the most pressing recommendations are the need to cover both lending and underwriting, and extend exclusion policies to cover general corporate finance, rather than being limited to project financing.”
Calgary Herald: Varcoe: As high energy prices attract more investors, a 'pipeline' of oilpatch IPOs is building, says head of TMX Group
Chris Varcoe, 11/1/22
“Energy prices continue to charge ahead and while the number of new initial public offerings and amount of equity capital raised by petroleum producers remains low, the head of the TMX Group believes there are signs the situation could change,” the Calgary Herald reports. “It is fascinating because it’s a bit of a tale of two cities right now,” John McKenzie, CEO of the TMX Group, which runs the Toronto Stock Exchange and TSX Venture Exchange, told the Calgary Chamber of Commerce this week. “When it comes to financing, we used to do $20 to $30 billion a year in public market financing in the sector. And this year, we’re on track for one ($1 billion) — and that will be one of the best years we’ve had in the last number of years,” he added. “Now, the silver lining (is) with the strength of pricing, you are starting to see many more companies come to us on potential IPOs or potential spinoffs… So we’re starting to build a pipeline again of future IPOs in the sector.” “...What hasn’t rebounded is a flurry of new junior or mid-sized companies being started and raising money via initial public offerings. And total equity capital raised by Canadian petroleum producers sat at about $800 million through the first nine months of the year, down from $2.2 billion in 2021, according to Sayer Energy Advisors… “Doug Bartole, CEO of junior producer InPlay Oil, which is traded on the Toronto Stock Exchange, told the Herald it’s tough for smaller companies to go public today, even with high commodity prices. Government policies and regulations are also making it difficult for the entire sector.”
Enervus: CARBON CAPTURE, UTILIZATION & STORAGE: FINDING OPPORTUNITIES IN AN EMERGING MARKET
11/1/22
“The current state of carbon capture, utilization and storage (CCUS) is dominated by the supermajors and large midstream companies who can afford to absorb risks in this emerging market. CCUS project developers are forging ahead without the typical commitments between an oil and gas producer and midstream pipeline developer. And, as we argued in our last blog on CCUS, the economics simply aren’t good. CCUS as it stands today could never turn a profit,” according to Enervus. “The U.S. 45Q tax credit, while generous, only covers part of the total cost to build and operate CCUS from source to sink. Canada’s Investment Tax Credit (ITC) similarly falls short of full coverage. Some might say it’s a bet, but with the unstoppable forces of net zero policies, Wall Street ESG sentiment and an upgrade to 45Q from $50 to $85 per ton of CO2, it’s likely a safe bet… “Many CCUS project developers have adopted a “build it and they will come” mindset, proceeding with projects without upfront commitments from emitters. In this light, carbon capture can be seen as carrying similar risks as water management, where it’s a necessary cost for emitters and a continuous revenue stream for transporters… “North American policy makers have disparate views of EOR. CO2 EOR has fallen out of favor in Canada and consequently has been omitted from the ITC, but is still covered in the U.S. 45Q… “CCUS is still in its infancy with many potential market accelerators and blockers to growth. Despite advancements in policy and tax incentives, the current policy situation limits the pace of growth given breakeven, transportation and storage costs, making it difficult to justify investment in this emerging market… “Bolstered by an imperative to achieve net zero, CCUS will play an increasingly important role in attaining climate change goals. As an industry, it’s not there yet in terms of profitability.”
TODAY IN GREENWASHING
KPRC: Volunteers needed for upcoming Operation Turkey event
11/1/22
“The advertiser paid a fee to promote this sponsored article and may have influenced or authored the content. The views expressed in this article are those of the advertiser and do not necessarily reflect those of this site or affiliated companies… At KPRC 2, we’re proud to showcase those making a difference in the Houston area. Each month in 2022, we’re partnering with Energy Transfer to showcase a different nonprofit organization offering Houstonians a helping hand,” KPRC reports. “...Operation Turkey is an organization dedicated to eradicating hunger by giving away free, prepared Thanksgiving meals throughout Houston, Katy and Pasadena on Thanksgiving Day… “Volunteers are key to its success as a 100% volunteer-run organization.”
OPINION
Environmental Defence: Busting Enbridge’s Line 5 Myths – Part 3: Indigenous sovereignty, Tribal rights, and consent – Bad River Band v. Enbridge
Michelle Woodhouse, 11/1/22
“Funding police to suppress water and land defence efforts, breaching natural aquifers that supply wetlands with groundwater, and circumventing Indigenous People’s tribal rights: some of the many ways Enbridge is working to “develop mutually beneficial relations with Indigenous communities,” Michelle Woodhouse writes for Environmental Defence. “Enbridge, like many other fossil fuel companies, has well funded PR teams that expertly craft marketing campaigns to give the appearance that the company is willing to work alongside Indigenous communities and act as partners in good faith. But it is just PR. When it comes to Line 5, Enbridge has not been working amicably with Tribes in Michigan and Wisconsin. Enbridge is involved in separate battles with Tribes across Michigan, as well as with the Bad River Band Tribe in Wisconsin. In all cases, Enbridge is working to circumvent tribal rights within the U.S. legal system… “Enbridge is currently trying to circumvent Tribal rights and overturn Bad River Band’s sovereign power to control its territory, which includes protecting the land and water from the major threat posed by Line 5 to the Bad River watershed. Enbridge uses divisive tactics that take advantage of limited financial resources within the community, manipulating people to go against their values for promises of short-term jobs and payouts. Bad River Band of the Lake Superior of Chippewas is within its sovereign power to control its territory, which includes choosing not to renew the 2013 easement, evicting Enbridge and removing the Line 5 pipeline from their lands and waters. Canada is complicit in supporting Enbridge’s attacks on Tribal rights and putting the Great Lakes basin at continued imminent risk of a disastrous oil spill.”
Appalachian Voices: Pictures don’t do it justice, and neither would a pipeline
Angie Mummaw is a community organizer for Appalachian Voices in Tennessee, 11/1/22
“I recently spent a couple of weekends exploring around Big Bartons Creek in Charlotte, Tennessee, with other biologists and nature lovers to see what kinds of plants and animals the area supports. I was amazed at all the diversity we found, and it really hit home how special this part of Tennessee is,” Angie Mummaw writes for Appalachian Voices. “...All of the abundant natural beauty and wildlife we observed could be threatened if gas giant Kinder Morgan has its way. The company wants to construct a 32-mile pipeline to carry fracked gas through three counties in middle Tennessee. The proposed project would cut a path through more than 130 wetlands and streams. The bedrock along the route is karst limestone, which is highly erodible and contains many cracks and fissures. Disturbance from pipeline construction could cause creeks to reroute or even go underground, making them inaccessible to the public, wildlife and livestock that currently rely on that water. The proposed pipeline project could also present threats to drinking water, recreation and aquatic life in the region. The immediate disturbance from construction, the resulting sedimentation or a spill could affect access to clean water in an area where many rural residents rely on well or spring water and cannot switch to an alternate supply in the event of contamination… “There are also several Century Farms that are directly in the route of the pipeline. Kinder Morgan’s plans would place numerous historical lands and homes within the impact zone or evacuation zone of the methane gas pipeline, leaving them vulnerable to leaks and deadly explosions… “Installing a methane gas pipeline and constructing two gas-fired units is a step in the wrong direction when we should be making considerable strides to combat the climate crisis. Trading one fossil fuel for another does not make sense, especially when methane is 80 times more potent a greenhouse gas than carbon dioxide. There are other clean and renewable options to consider that are sustainable, safer and more environmentally friendly. With readily available clean energy replacements for the Cumberland City Plant, a new pipeline is unnecessary.”
Bloomberg: We Told Big Oil Not to Invest. Don’t Complain Now
Javier Blas, 11/2/22
The cure for high oil prices is high prices, or so says the commodity industry’s adage. Let the invisible hand of the free market work its magic. High prices will simultaneously reduce demand and increase supply, eventually making the good less expensive,” Javier Blas writes for Bloomberg. “This has proven true for centuries: In commodities, a bust follows every boom. It happened after the Klondike Gold Rush in 1896, during the second oil crisis in 1979 and following the most recent US shale boom a decade ago. Generations of petroleum engineers, geologist and financiers have grown up swearing by it. But the axiom no longer seems to be governing the oil market. To be sure, the elevated cost of crude is suppressing appetite. But the other side of the equation — supply — isn’t working out. The industry simply hasn’t been reacting to high prices with more investment as it has before. This means demand will have to do all the work to rebalance the oil market. The result is likely to be a slower economy and more sustained energy costs than in the past. Why isn’t the supply lever working? Money certainly isn’t the problem… “Neither Exxon nor its competitors Chevron Corp., Shell Plc, TotalEnergies SE and BP Plc have announced any major increases in spending beyond what they have already planned. Institutional investors, led by BlackRock Inc., have convinced virtually every oil executive to keep spending under control… “In the past, some executives would have tried to kickstart a boom-to-bust cycle: Boost spending early, increase production and then cash in before prices crashed. Today, the pressure from shareholders to remain frugal is so strong and uniform across the industry that from the outside it almost looks like a cartel. And the result is cartel-like: Big Oil is collectively underinvesting by a lot… “If Biden wants more oil, he needs to reset the conversation completely, and that means telling green campaigners and Wall Street investors — loud and clear — that America needs fossil fuels right now.”
High Country News: Do bedrock conservation laws need a makeover?
Kylie Mohr, 11/1/22
“In the 1960s and early 1970s, Congress passed a series of laws that profoundly affected Western ecosystems and human relationships to them. The Clean Air Act, designed to reduce air pollution, led the way in 1963, and in 1970, the National Environmental Policy Act, sometimes called the Magna Carta of environmental protection, created a review process for federal projects,” Kylie Mohr writes for High Country News. “...Six decades later, that foundation is in serious need of retrofitting. Though the West has the nation’s highest concentration of areas permanently protected for biodiversity, it also has some of the highest concentrations of species at risk of extinction. Rising temperatures, precipitation extremes and larger, more destructive wildfires, all driven by climate change, are complicating pre-existing — and increasingly pressing — conservation problems such as habitat loss. “Too many of our environmental laws assumed a static system,” Barbara Cosens, a professor emerita at the University of Idaho College of Law, told HCR. “We’re no longer faced with a static system. We have a system that’s changing, and changing faster than anyone thought it would.” The result, Melinda Morgan, a University of New Mexico geography and environmental studies professor, told HCR, is that federal conservation laws are “the equivalent of driving a Ford Pinto when we could and should be using a Tesla. High Country News asked five Western law and conservation experts to re-imagine these longstanding laws and their implementation. How might they better carry humans and Western landscapes into the future?”