EXTRACTED: Daily News Clips 11/7/23
PIPELINE NEWS
Iowa Capital Dispatch: Illinois regulators: Carbon pipeline permits should wait for new rules
NWestIowa.com: Summit-IUB hearing to resume Nov. 6
Sioux City Journal: City Council approves resolution opposing construction of CO2 pipelines
InsideClimate News: How Midwest Landowners Helped to Derail One of the Biggest CO2 Pipelines Ever Proposed
J.D. Supra: Despite Growing Federal Support, Carbon Capture and Storage Developers Face Permitting Challenges and Strong Local Opposition in the Midwest
Journal of Petroleum Technology: CCUS at Risk: Key Pathway to Net Zero Faces Growing Threats
Bismarck Tribune: Quieter second night of Dakota Access public hearings; format changed after complaints
Bloomberg: Dakota Access Pipeline Protesters Lose Excessive Force Claims
Reuters: Kinder Morgan to buy NextEra Energy Partners' Texas pipelines for $1.82 billion
Natural Gas Intelligence: Enbridge Bets Big on U.S. Natural Gas Demand, LNG Exports
WASHINGTON UPDATES
InsideEPA: Democrats Fear Shutdown As House Slashes EPA’s FY24 Spending Plan
E&E News: Federal Shutdown Could Derail U.S. Methane Rollout At Climate Talks
NPR: The government may store carbon dioxide under the nation's forests
E&E News: Lawsuit: Southern Co. lied to DOE over Kemper CCS plant
STATE UPDATES
Chicago Tribune: As Midwest ‘hydrogen hub’ plans move ahead, concerns persist
WyoFile: Gov. Gordon: Western states can lead on carbon capture technologies
Bismarck Tribune: New carbon capture project gets funding recommendation; could serve hydrogen, renewable diesel facilities
E&E News: Why oil companies are worried about climate lawsuits from gas states
WyoFile: Legislators want $50M to sue feds over environmental laws
Southern Utah Wilderness Alliance: New Lawsuit Targets 145 Trump-Era Oil and Gas Leases on Utah’s Public Lands
EXTRACTION
Reuters: Just 4% of top companies meet UN climate target guidelines, study says
Canadian Press: Crescent Point solidifies Montney dominance in $2.55B deal for Hammerhead Energy
CLIMATE FINANCE
Reuters: ESG Watch: Battered on all fronts, insurance industry struggles to rise to climate challenge
OPINION
Sioux Falls Argus Leader: I prefer American-made ethanol any day
OilPrice.com: Gas Pipeline Shortage Threatens U.S. Economy
PIPELINE NEWS
Iowa Capital Dispatch: Illinois regulators: Carbon pipeline permits should wait for new rules
JARED STRONG, 11/6/23
“Two engineers for the Illinois Commerce Commission say federal regulators should finalize new rules about carbon dioxide pipelines before state regulators approve pending permits for construction,” the Iowa Capital Dispatch reports. “The U.S. Pipeline and Hazardous Materials Safety Administration “has acknowledged that its rules are outdated and inadequate,” Brett Seagle, a commission engineer, recently testified in regard to a pipeline proposal by Wolf Carbon Solutions. “The lives and safety of Illinois citizens must come before business concerns.” Seagle said the commission should deny Wolf permission to construct and operate its pipeline system — which would extend into eastern Iowa — for safety concerns and other reasons… “An attorney who represents landowners in several states who oppose the pipelines is seeking to use Seagle’s testimony as evidence in Summit Carbon Solution’s pipeline permit process in Iowa… “The project’s opponents have repeatedly called for a halt to new carbon dioxide pipeline permits until PHMSA — which sets safety requirements for the construction and operation of the pipelines — finalizes new rules. State regulators issue route permits for construction. PHMSA announced a new rulemaking process in 2022 in response to a major carbon dioxide pipeline failure in Mississippi in 2020. The agency has estimated that it will publish its proposed changes to the regulations in June 2024 but has not said when it might officially adopt them… “It is my opinion that PHMSA’s current regulations pertaining to carbon dioxide pipelines are not sufficient to guarantee the public’s safety in all possible scenarios,” Seagle said in October in regard to Wolf’s proposal. Another commission engineer, Mark Maple, had similar concerns about Navigator’s project. “It is very possible that PHMSA will issue new rules for characteristics such as a minimum setback distance from homes and structures that could cause (Navigator’s) proposed pipeline to not conform with the regulations,” Maple testified in June… “Brian Jorde, a lawyer who represents about 150 people or entities who have intervened in Summit’s permit process in Iowa, recently submitted Seagle’s testimony in the Wolf case as evidence in Summit’s… “Testimony in Summit’s evidentiary hearing resumed Monday and is set to conclude next week… “The citizens of Iowa and the Midwest would be nothing more than laboratory rats and are possibly expendable in the case of a rupture,” Nancy Miller, an O’Brien County landowner, testified Monday. “It’s a terrible way to view human life.”
NWestIowa.com: Summit-IUB hearing to resume Nov. 6
Elijah Helton, 11/5/23
“Break time is over and the Summit Carbon Solutions permit hearing will reopen Monday, Nov. 6.,” NWestIowa.com reports. “The Iowa Utilities Board had a full month away from the CO2 pipeline, with its most recent day of testimony being Oct. 5, after starting the hearing in August. An IUB statement at the time cited “a high volume of docket proceedings” it needed to work through. According to the IUB’s online calendar, the board will be presented with evidence and cross examinations Nov. 6-9 and again Nov. 16-17… “For anti-pipeliners, such as Iowa Falls farmer Shane Neely, the stakes have been plain to see since before he came to the first day of the hearing. “It’s all money-driven,” Neely told NWestIowa.com.. “The one that has the most money is going to win this case, money and time, and our time is worth nothing. We get paid nothing and these lawyers are getting paid thousands of dollars.” “...If the IUB were to permit Summit to build in Iowa, the company still would need to secure various permissions along its five-state route. In both Dakotas, the states’ equivalents of the IUB have turned it down, at least for the time being… “Plant additions or other changes to the route would require another round of IUB approvals… “It’s a $5 billion project, so there’s always twists and turns with any major project, but we feel really good about it,” Summit chief operations officer Jimmy Powell told NWestIowa.com.”
Sioux City Journal: City Council approves resolution opposing construction of CO2 pipelines
Dolly Butz, 11/6/23
“The Sioux City Council voted Monday to approve a resolution opposing the construction and operation of CO2 pipelines in or near the city,” the Sioux City Journal reports. “The vote was 4 to 0 in favor of the resolution. Mayor Pro Tem Dan Moore abstained. "The thing that gives me the greatest pause with a pipeline like this is the way that they're going about it through eminent domain and becoming a utility and things like that," Councilman Alex Watters said before the vote. "And it's that erosion of local control that gives me greatest pause." “...The resolution states that "granting eminent domain for private companies sets a dangerous precedent" and that both routes are "dangerously close" to residences, business areas, Sioux Gateway Airport and the 185th Air Guard, as well as the sister cities of Sergeant Bluff and Lawton. The resolution notes that "major highways will be affected by construction and operation of hazardous CO2" and "construction of hazardous CO2 pipelines would result in irreparable damage to land." “...Many Iowa landowners have refused to grant surveyors access to their land or sign easements… “During Monday's meeting, Watters said he "believes in the capture of carbon," however, he said the "erosion of local control" makes him hesitant.”
InsideClimate News: How Midwest Landowners Helped to Derail One of the Biggest CO2 Pipelines Ever Proposed
Kristoffer Tigue, 11/5/23
“After half a decade of failed attempts, Kathleen Campbell thought 2021 would finally be the year she retired. That is—until she received a letter in December from Navigator CO2 Ventures,” InsideClimate News reports. “The company wanted to build part of its carbon dioxide pipeline through her property, about 1,000 feet from her rural Illinois home, just south of Springfield, which she had shared with her husband for more than 30 years…“This has absolutely ruined my retirement,” Campbell remembers thinking… “But Navigator’s executives couldn’t have known who they were dealing with. A distinguished research professor at Southern Illinois University School of Medicine, Campbell had spent her life combing through complex health studies and thwarting deep-pocketed pharmaceutical companies from bringing potentially dangerous drugs to market. Within months, she had helped birth a formidable opposition campaign to the pipeline… “About two weeks ago, Navigator finally capitulated and canceled its project. The company officially cited “unpredictable nature of the regulatory and government processes involved” as its reason for the decision. But truth be known, it was landowners like Campbell whose opposition wore them down and proved decisive. “I think that I feel safe in my own home now,” Campbell told ICN in a phone interview on the day of Navigator’s announcement. “Happy doesn’t come near it—delighted, euphoric?” Now, her retirement notwithstanding, Campbell has agreed to help another group of Illinois landowners fight yet another CO2 pipeline being proposed between Iowa and Illinois… “Coalitions sprang up in other Midwest states, filled with equally concerned landowners feeling indignant that their properties might get seized. Spurred by public complaints, some Iowa counties even passed new laws to restrict how close a CO2 pipeline is allowed to come near homes, churches and schools, prompting lawsuits from both Navigator and Summit… “By August of this year, the mass mobilization of landowners had become a serious barrier to the projects. That month, North Dakota regulators rejected Summit’s permit application, citing concerns over “the welfare of the citizens of North Dakota.” The next month, South Dakota’s state utility board rejected the permits for both Navigator and Summit, citing similar safety concerns. Then on Oct. 10, Navigator voluntarily withdrew its permit application in Illinois, only to cancel the project entirely the following week… “Everyone said we have no chance against foreign-backed, multibillion-dollar hazardous pipelines, but when hundreds of landowners band together with a unified legal strategy, we can win,” Brian Jorde, an attorney representing many of the Midwest landowners who opposed the pipeline, said in a statement.”
J.D. Supra: Despite Growing Federal Support, Carbon Capture and Storage Developers Face Permitting Challenges and Strong Local Opposition in the Midwest
BakerHostetler, 11/6/23
“Despite federal and state efforts to incentivize development of carbon-capture projects, one major CO2 pipeline has been canceled, and another faces similar hurdles,” according to J.D. Supra. “Carbon-capture projects continue to face stiff local and state resistance despite being one of the key pieces of emission-reduction strategies… “Navigator cited “the unpredictable nature of the regulatory and government processes involved” as the driving factor behind its decision to shutter the project. Navigator faced stern opposition to its proposed carbon-capture and storage (CCS) pipeline from landowners and environmental groups. Opponents of the Heartland Greenway project expressed concerns to state regulators about the alleged safety risks of potential pipeline leaks as well as fears about property seizure and damage stemming from the pipeline’s construction… “Iowa-based Summit Carbon Solutions, a company seeking to build a similar – and even larger –carbon-capture pipeline in the region, aims to turn Navigator’s departure to its benefit, hinting at the possibility of acquiring Navigator’s assets to expand its own infrastructure. Despite the company’s optimism, Summit also faces strong resistance to its CCS pipeline proposal from stakeholders… “But the cancellation of the Heartland Greenway pipeline and the delays of Summit’s CCS pipeline represent a setback to the development of CCS projects. CCS projects are encountering strong resistance from landowners and environmental nongovernmental organizations over the alleged risks of carbon-capture technology. Beyond landowners’ concerns about leaks and property damage, environmentalists voice concerns about the efficacy of CCS pipelines more generally, arguing that capturing and storing emissions will be used merely as an excuse to delay or eliminate the transition to alternative fuel sources. Navigator’s and Summit’s examples indicate a hard road ahead for companies hoping to develop CCS pipeline projects. Similar projects will likely encounter strong local opposition on top of the legal difficulties of navigating state and local regulators and permitting processes. For now, developers will need to increase buy-in from residents and environmental groups by increasing public outreach and government relations through education on the benefits and risks of CCS projects. Despite the opposition, there is growing support for permitting reform to streamline the deployment of CCS projects… “Combined with increased community engagement and education, permitting reform will likely make developing and deploying CCS projects such as Summit’s carbon-capture pipeline more feasible in the future.”
Journal of Petroleum Technology: CCUS at Risk: Key Pathway to Net Zero Faces Growing Threats
Paul Donnellan, 11/6/23
“As if the challenge of lowering global carbon emissions wasn’t difficult enough, new forces are conspiring to make it even tougher,” according to the Journal of Petroleum Technology. “Carbon capture, use, and storage (CCUS) is a critical part of a portfolio of technologies needed to achieve net zero emissions by 2050, according to several leading climate models… “Yet here in the US, localized opposition and regulatory uncertainty are threatening to kill or severely limit the use of CCUS in the fight against climate change… “In our analysis, CO2 transportation is likely to be one of the more challenging links in the CCUS value chain. While the US has a robust network of pipelines for natural gas, repurposing those for transporting CO2 to locations with suitable geologic storage could, in many cases, be both technically and economically challenging. And building new pipelines for CO2 transportation will face a gantlet of permitting challenges and regulatory uncertainty… “With CO2 transportation well understood and having been in operation for years for industrial uses and EOR, an important driver will be regulatory permitting and public acceptance of CO2 transportation and storage. Public opposition to natural gas pipelines has successfully derailed several projects. CO2 pipelines are facing similar if not more extensive opposition, whether for new or retrofit pipelines… “Beyond the hurdles of regulatory approvals for building new pipelines, community opposition can become a catalyst for slowing or stopping new pipeline projects. While oil or natural gas pipelines have been contested for their environmental impact, additional concerns over safety with CO2 leaks only add to the challenge of developing new CO2 pipelines… “Despite a few examples of repurposing existing gas pipelines in the US to transport CO2, it’s expected that most CO2 will need to be transported via newly built pipelines in order to be economical and meet required performance and safety standards. Therefore, the potential of CCUS to meet key decarbonization goals will be determined in part on companies’ ability to navigate a complex and changing regulatory environment while addressing an increasingly vocal opposition to any new pipelines. The cancellation of the Heartland Greenway project and delay of the Summit Carbon Solutions project are signs of serious trouble for CCUS, at least in the US… “To keep this important tool in the fight against climate change, two key challenges for CCUS will need to be addressed: First, federal regulation of CO2 pipelines (currently in process) needs to be updated to resolve regulatory uncertainty and clarify safety standards. And, second, government and industry need to unite to address safety concerns and better articulate to the public the critical role of CCUS in building an affordable, reliable, and flexible energy system to meet key climate goals.”
Bismarck Tribune: Quieter second night of Dakota Access public hearings; format changed after complaints
JOEY HARRIS, 11/2/23
“The second night of public hearings that the Army Corps of Engineers held for the Dakota Access Pipeline, like the first, included signs, speeches, and cheers for those speeches, but ultimately Thursday was much quieter,” the Bismarck Tribune reports. “...There was also a small change to the format. Though many spoke to the room during Wednesday's hearing, it did not count as official testimony, which was instead given behind a curtain. Thursday, the public had the option to make what they said to the public their official comment. Corps spokesman Steven Wolf told the Tribune the decision to tweak the format was because less people had signed up to speak Thursday, but the message will be heard the same. "At the end of the day the decision-makers that have to review the public comment, its all in a document, there's none of the banners, there's none of the emotion, there's none of that other stuff, it's simply what they said," Wolf told the Tribune. Reflecting on the past two days, in which the agency was the subject of criticism from pipeline opponents, Wolf told the Tribune he believed the process had been successful… “The Standing Rock Sioux tribe and other opponents of the pipeline during this week's hearings repeatedly expressed the perspective that the pipeline is not safe for the environment or public health… “Chase Iron Eyes with the Lakota People's Law Project, who grew up on the Standing Rock Reservation, said he believes the study underestimates the possibility of a spill. He worries about plans to increase the pipeline's capacity. "I don't know what's going to happen if they double the flow -- that would be catastrophic," he said… “The tribe alleges the pipeline breaks treaties that the U.S. government signed with Standing Rock in the 1800s… “Some who spoke Thursday said the pipeline should be moved to the north of Bismarck since they argue it has more support there. Mike Markus, who grew up on the Pine Ridge Indian Reservation in South Dakota, told the Tribune he once worked in the Bakken oil fields. He opposes the pipeline. "They like to say that it is the safest pipeline, but it is a man-made thing; everything man-made breaks down," he said. Markus was sentenced to three years in prison for civil disorder in the 2016-17 protests. He said there should be considerations beyond the economic impact of the pipeline. "They're putting money ahead of people, and that shouldn't be the way it is," he said… “Wolf told the Tribune the purpose of the public comment period is to see if anything was missed in the environmental impact statement. He told the Tribune a decision from the Corps could come at the end of 2024.“
Bloomberg: Dakota Access Pipeline Protesters Lose Excessive Force Claims
Peter Hayes, 11/6/23
“Police officers who used tear gas, rubber bullets, lead-filled bean bags, and water from a fire hose to disperse Dakota Access Pipeline protesters are entitled to qualified immunity from suit, a federal appeals court ruled,” Bloomberg reports. “The protesters alleged that 100 unnamed officers engaged in an unreasonable seizure under the Fourth Amendment by using excessive force in response to protests at Backwater Bridge, north of a protest camp in Morton County, N.D., in November 2016. The officers are immune because the law wasn’t clearly established at the time that a use of force to disperse a crowd constitutes a seizure…”
Reuters: Kinder Morgan to buy NextEra Energy Partners' Texas pipelines for $1.82 billion
Seher Dareen and Sourasis Bose, 11/6/23
“U.S. pipeline operator Kinder Morgan (KMI.N) said on Monday it would acquire NextEra Energy Partners' (NEP.N) gas pipelines in South Texas for $1.82 billion,” Reuters reports. “The oil and gas pipeline business has seen increased consolidation this year as U.S. production grows and persisting problems related to permits for new pipelines have made existing operators more valuable. NextEra Energy Partners' (NEP) Texas natural gas pipeline portfolio, STX Midstream, primarily consists of seven pipelines which provide natural gas to Mexico and power producers and municipalities in South Texas. The pipelines together have a transport capacity of 4.9 billion cubic feet per day.”
Natural Gas Intelligence: Enbridge Bets Big on U.S. Natural Gas Demand, LNG Exports
KEVIN DOBBS, 11/6/23
“Enbridge Inc.’s chief executive touted the Canadian company’s efforts to further expand in the United States – on the Gulf Coast and elsewhere – as part of a bid to capitalize on expected long-term natural gas demand in North America and overseas,” Natural Gas Intelligence reports. “The Calgary, AB-based company, already a major force in Canadian and American energy, said a string of previously announced agreements with Dominion Energy Inc. would bolster its gas utility operations throughout several U.S. states. Enbridge is buying East Ohio Gas Co., Public Service Co. of North Carolina Inc., as well as Questar Gas Co. and its Wexpro Co. affiliate. In all, the Dominion units on the sale block serve 3 million customers across 78,000 miles of pipelines with customers in Idaho, North Carolina, Ohio, Utah and...
WASHINGTON UPDATES
InsideEPA: Democrats Fear Shutdown As House Slashes EPA’s FY24 Spending Plan
11/3/23
“House Democrats are warning that the government will shut down when current spending approval expires Nov. 17 after Republicans, on a near-party-line vote, approved a bill that slashes EPA spending for fiscal year 2024 by nearly 40 percent from current levels, a cut that President Joe Biden has pledged to veto and the Senate will not consider,” InsideEPA reports. “Continuing to consider these extreme Republican bills only brings us closer to a shutdown. We continue to waste our time debating partisan policies instead of coming together to write bills that can earn the bipartisan, bicameral support needed to become law. It is past time for House Republicans to meet House Democrats at the negotiating table,” Rep. Rosa DeLauro (D-CT), ranking Democrat on the House Appropriations Committee, said in a Nov. 3 statement. Her comments came shortly after the House voted 213-203 to approve H.R. 4821, the Interior-Environment Appropriations bill for FY24. Three Republicans -- Reps. Brian Fitzpatrick (PA), Mike Lawler (NY) and Marc Molinaro (NY) -- voted against the bill, while Rep. Vicente Gonzalez (D-TX) backed the bill.”
E&E News: Federal Shutdown Could Derail U.S. Methane Rollout At Climate Talks
Jean Chemnick, 11/6/23
“EPA appears poised to make oil and gas methane regulation a showpiece of the U.N. climate talks later this month,” E&E News reports. “But a looming government shutdown in late November could jeopardize those plans by preventing EPA officials from attending the summit in Dubai, United Arab Emirates, and perhaps delaying the rules’ release. EPA sent the White House a final rule in late September that would limit methane emissions from new and existing oil and gas infrastructure. Then it quickly submitted a separate draft rule that would create a new fee on excess petroleum sector methane emissions.”
NPR: The government may store carbon dioxide under the nation's forests
Julia Simon, 11/6/23
“Capturing carbon dioxide pollution and storing it underground is a controversial climate solution. The forest service announced proposed changes to allow the storage of CO2 on public forest lands,” NPR reports.
E&E News: Lawsuit: Southern Co. lied to DOE over Kemper CCS plant
Zach Bright, 11/1/23
“A former employee of the utility said she was ordered to prepare documents with false information on the now-canceled Kemper carbon capture project,” E&E News reports.
STATE UPDATES
Chicago Tribune: As Midwest ‘hydrogen hub’ plans move ahead, concerns persist
Alex Dalton, 11/5/23
“At a virtual event held on Wednesday by the U.S. Department of Energy’s Office of Clean Energy Demonstrations, leaders with the Midwest Alliance for Clean Hydrogen discussed details of “hydrogen hub” projects across the region that stand to receive up to $1 billion in federal investment,” the Chicago Tribune reports. “MachH2, which brings together over 60 public and private entities across Indiana, Illinois and Michigan, was one of seven funding recipients announced in October… “However, as the hydrogen hubs’ critics have been quick to point out, creating hydrogen requires energy, and the source of the energy used affects the process’s overall environmental impact. Hydrogen can be separated from the oxygen atoms in water using electricity through a process called electrolysis. If the process uses energy from wind, solar or other renewable sources, then this so-called “green” hydrogen can be produced and burned without carbon emissions. “Pink” hydrogen is produced using energy from a nuclear reactor, which does not involve direct carbon emissions. “Blue” hydrogen — the cheapest and most widespread method of production today, according to the Department of Energy — is produced by reacting natural gas with steam, producing carbon dioxide as a byproduct. Banwart told the Tribune that MachH2 will take an “all of the above hydrogen production approach,” including green, pink and blue hydrogen production. A hydrogen production node planned for Northwest Indiana to be operated by the energy giant BP — the only MachH2 project planned for the Hoosier state — will produce blue hydrogen and offset the process’s environmental impact using carbon capture and storage. In his presentation, Banwart acknowledged that blue hydrogen is a controversial component of the hub’s plans. “I don’t think we’re gonna settle the debate tonight, but I do want to emphasize that blue hydrogen can be very low carbon,” he told attendees, adding that the carbon intensity of the hub’s hydrogen production will be subject to independent review. “By taking this approach to pursue multiple forms of clean hydrogen including blue, pink and green, we can move more quickly, we can scale the production and the distribution of these molecules all across the Midwest, and that will allow us to decarbonize difficult to decarbonize sectors.” BP explained its carbon storage plans, which involve building pipelines to move liquid carbon dioxide from its hydrogen production node to suitable injection sites south of Lake County, at a series of public meetings earlier this autumn. The company was met with a mixed reaction from community members, some of whom voiced concerns over possible negative environmental impacts stemming from failures in pipelines or injection wells. The 2020 rupture of a carbon dioxide pipeline in Satartia, Mississippi, which resulted in 45 hospitalizations, has stoked public fears about the prospect of more CO2 pipelines… “Chris Chyung, the executive director of Indiana Conservation Voters, told the Post-Tribune on Thursday that he sees the BP plan as a continuation of Northwest Indiana’s history as an industrial sacrifice zone.”
WyoFile: Gov. Gordon: Western states can lead on carbon capture technologies
Dustin Bleizeffer, 11/7/23
“Wyoming spent more than a decade mapping its geology, forging federal partnerships and establishing its own regulatory framework to launch a variety of commercial-scale carbon capture and storage efforts. That work is beginning to pay off, Gov. Mark Gordon said Monday,” WyoFile reports. “The state has attracted private investors in some of the largest direct air capture and carbon dioxide storage projects in the world, Gordon told six of his fellow western governors and a crowd of about 200 people. “The technologies provide a pathway to significantly decarbonize both the energy and industrial sectors by capturing carbon emissions at the source and mitigating the [climate] impacts,” he told WyoFile. Gordon’s remarks kicked off the Western Governors’ Association’s winter meeting here, which will continue through Wednesday. Gordon was elected chairman of the group this summer, which comes with the privilege of choosing a special initiative for the association. Gordon’s initiative: “Decarbonizing the West.” Gordon didn’t shy away from talking about climate change as a primary reason for pushing carbon capture technologies — just days after the Wyoming Republican Party and Freedom Caucus condemned him for saying the state must reduce its carbon emissions at a Harvard University event… “Wyoming still tussles with the federal government and some states over the use of coal and other fossil fuels that have supported Wyoming’s economy for decades. But the state is advancing carbon capture and storage projects that make such fuels’ continued use possible, Gordon told WyoFile. Perhaps most significantly for Wyoming and other western states, Gordon told WyoFile, is that several federal agencies have come around to support carbon capture and storage efforts rather than stand in the way.”
Bismarck Tribune: New carbon capture project gets funding recommendation; could serve hydrogen, renewable diesel facilities
JOEY HARRIS, 11/6/23
“Plans for another carbon capture facility in North Dakota got a boost from the state Renewable Energy Council on Monday,” the Bismarck Tribune reports. “The advisory group voted to recommend that the three-member Industrial Commission made up of the governor, attorney general and agricultural commissioner provide $100,000 in funding for the Prairie Horizon Carbon Management Hub. That's a joint undertaking of the University of North Dakota Energy and Environmental Research Center and Prairie Horizon, a consortium involving Marathon Petroleum and TC Energy, for a facility in southwestern North Dakota to store climate-warming carbon dioxide emissions. The project has already received $2.5 million from the federal Department of Energy. Prairie Horizon will contribute up to $625,000 to the project as well… “Though not directly tied to the Heartland Hydrogen Hub, Prairie Horizon's facility may play an important role in its design. The Heartland Hub is one of seven regional clean hydrogen projects nationwide that's getting money from the federal Energy Department. The agency last month allocated $925 million to the EERC, Marathon, TC Energy and Xcel Energy for it. Marathon and TC Energy will collaborate under the name Prairie Horizon Hydrogen to produce hydrogen with methane gas in southwestern North Dakota as part of their role in the hub. Prairie Horizon's Carbon Management Hub would be used to capture and store CO2 emissions from the hydrogen production process if it is built out. Under the federal standards, carbon capture is a necessary component for hydrogen to be considered clean when produced with methane gas.”
E&E News: Why oil companies are worried about climate lawsuits from gas states
Lesley Clark, 11/7/23
“Pennsylvania and Ohio — two major fossil fuel-producing states — are emerging as unlikely battlegrounds in local governments’ sprawling legal fight to put the oil and gas industry on the hook for the costs of climate change,” E&E News reports. “Research to estimate what local officials in the two states would spend to address planet-warming emissions, conducted by a group that supports climate litigation, has sparked interest from some lawmakers — and alarm from the oil industry and its allies. “It would be like a cherry on top,” Richard Wiles, president of the Center for Climate Integrity, told E&E of the possibility of a climate liability lawsuit in Ohio or Pennsylvania. “It would be great if we could get a case in a fossil fuel-producing state.” Industry groups are assiduously tracking the center’s efforts, detailing every development on the website for Energy In Depth, a research and outreach campaign run by the Independent Petroleum Association of America. The group has accused the center of trotting out a familiar playbook in hopes of seeding climate lawsuits. “Pennsylvania and Ohio are home to prolific natural gas and oil development that benefits the entire Appalachian region and country, and we have decades of experience developing these resources safely and responsibly,” IPAA CEO and President Jeff Eshelman told E&E in a statement. “Wealthy, foreign interests that seek to halt this progress through costly litigation on the taxpayer’s dime — and with it, eliminate thousands of jobs that are powered by these essential resources — are misinformed, hypocritical, and doomed to fail.” “...Wiles told E&E the effort to calculate climate change expenses — from planting trees to increasing storm drainage capacity — for municipal governments is aimed at educating local officials, as well as talking to them about ways to pay those bills.”
WyoFile: Legislators want $50M to sue feds over environmental laws
Angus M. Thuermer Jr., 11/6/23
“Wyoming lawmakers want to earmark $50 million to sue the federal government over implementation of national environmental and natural resource laws,” WyoFile reports. “Lawmakers added the proposed $50 million appropriation to a draft bill — Federal land use plans-legal actions authorized — that the Joint Agriculture, State and Public Lands & Water Resources Committee endorsed Oct. 30. The bill authorizes the Legislature “to prosecute actions involving the proper administration and interpretation of federal acts.” Lawmakers proposed the measure in part because of dissatisfaction over the U.S. Bureau of Land Management’s effort to put conservation on equal footing with resource development in the Rock Springs area of southwest Wyoming. Wyoming believes the BLM’s draft Rock Springs area resource management plan for 3.6 million acres of federal property threatens state and local interests and economies — everything from mining to drilling, grazing and recreation. The bill targets the Federal Land Policy and Management Act, the National Historic Preservation Act, the Endangered Species Act, the Clean Air Act, the Clean Water Act and other laws passed by Congress. The bill would allow the Legislature to “prosecute an action for declaratory judgment” to protect Wyoming and the public’s interests.”
Southern Utah Wilderness Alliance: New Lawsuit Targets 145 Trump-Era Oil and Gas Leases on Utah’s Public Lands
11/3/23
“Today, the Southern Utah Wilderness Alliance (SUWA) filed a federal lawsuit challenging four decisions by the Bureau of Land Management (BLM) in 2018-19 to issue 145 oil and gas leases encompassing 215,325 acres of public land in Utah. The leases are located in eastern Utah, primarily in the Book Cliffs and Uinta Basin. “The Trump administration’s BLM closely followed the playbook of how to make an uninformed and unlawful leasing decision,” said Landon Newell, staff attorney with SUWA. “That administration’s ‘lease first, think later’ approach to fossil fuel development blanketed Utah’s public lands with leases—threatening some of our nation’s wildest places, water resources, and critically important habitat for plants and wildlife.” The lawsuit aims to protect some of Utah’s wildest public lands, including important habitat for the imperiled greater sage-grouse (a bird) as well as Graham’s and White River beardtongue (flowering plants)... “The BLM’s leasing decisions at issue did not fully analyze and disclose the foreseeable impacts to this landscape as required by law. All of the leases were approved during the Trump administration as part of its so-called “energy dominance” agenda. That agenda sought to lease as many public lands as possible for oil and gas development, as quickly as possible, and with as little public involvement and environmental analysis as possible. But those rushed and poorly analyzed leasing decisions have consistently—and with few exceptions—been held to be unlawful by federal courts. As a result, millions of acres of Trump-era leases have been canceled (see here and here) and thousands of other leases suspended or forced to be re-examined by the BLM (see here). “Development of these leases was not and is not in the public interest,” said Hanna Larsen, staff attorney with SUWA. “The climate crisis has arrived. The extinction crisis is ongoing and worsening. Both are driven in large part by the BLM’s broken and outdated oil and gas program. If we are to avoid the worst outcomes of a rapidly changing climate, we must quickly transition away from fossil fuel leasing and development.”
EXTRACTION
Reuters: Just 4% of top companies meet UN climate target guidelines, study says
Simon Jessop, 11/5/23
“Half of the world's 2,000 biggest listed companies have set a target to get to net-zero emissions by mid-century, but just a fraction meet tough United Nations guidelines for what constitutes a quality pledge, a report on Monday showed,” Reuters reports. “Net Zero Tracker, an independent data consortium including Oxford University, said corporate targets from Forbes2000 index companies had jumped 40% to 1,003 in October 2023, from 702 in June 2022, covering two-thirds of revenues, some $27 trillion. However, just 4% of the targets meet the criteria laid down by the U.N.'s Race to Zero campaign, for example by covering all emissions, starting to cut them immediately, and including an annual progress update on interim and longer term targets. Of those to set a target, just 37% had one that covered their Scope 3 emissions, or those tied to a company's value chain. Just 13% had a quality threshold for the use of carbon offsets.
Canadian Press: Crescent Point solidifies Montney dominance in $2.55B deal for Hammerhead Energy
11/6/23
“Crescent Point Energy Corp. has inked another blockbuster deal in the Canadian oilpatch, solidifying its place as the dominant player in the Montney, one of North America's largest unconventional petroleum plays,” the Canadian Press reports. “The Calgary-based oil and gas company announced Monday it will purchase Hammerhead Energy Inc., a Calgary-based energy company with assets in the Montney region of northwest Alberta, for a total of $2.55 billion, including approximately $455 million of Hammerhead's net debt. The deal will see Crescent Point acquire approximately 105,000 acres and 800 drilling locations in the region, immediately making Crescent Point the largest landowner in the Alberta Montney's volatile oil fairway… “The wave of consolidation is in part the result of two years of strong commodity prices. Many companies are flush with cash and have rapidly been paying down debt, giving them a strong enough balance sheet to pursue growth through acquisitions.”
CLIMATE FINANCE
Reuters: ESG Watch: Battered on all fronts, insurance industry struggles to rise to climate challenge
Mike Scott, 11/6/23
“Insurance is an essential cog in the global economy, largely unseen but vital to homeowners and giant infrastructure projects alike,” Reuters reports. “Insurance contracts are like a “permission to act. When you have an insurance company on your side, you can do business,” Francois Lanavere, head of strategic partnerships at AXA Climate, told Reuters. But increasingly this vital economic cog is getting squeezed, in large part because of the impacts of climate change. In a recent report, sustainable investment not-for-profit Ceres explains that the industry is exposed on two fronts – through the assets and activities that it insures, and through its role as a significant investor. And on each front, it faces two risks: a financial hit as climate-exacerbated natural disasters increase claims, affecting returns in the companies it invests in, and a reputational one because of its role in continuing to insure, and invest in, high carbon fossil fuel assets… “While insurers’ role in assessing risk means that they have been aware of the potential impacts of a warming climate for decades, Lanavere told Reuters many in the industry still take a short-term view because insurance is delivered through 12-month contracts and underwriting guidelines are reviewed on the same timeline.”
OPINION
Sioux Falls Argus Leader: I prefer American-made ethanol any day
Alesha Voeltz, 11/6/23
“Summit Carbon Solutions is working hard every day to have a positive relationship with landowners and counties affected by its project. Prior to rerouting the project in order to appease landowner and county partners, Summit was nearing 75% of the total number of voluntary easements needed to construct their project,” Alesha Voeltz writes for the Sioux Falls Argus Leader. “...Pipelines are extremely safe, and highly regulated. In fact, there are thousands of miles of pipelines in South Dakota that successfully operate every single day. The second fact is that this project will bolster agriculture and ethanol in South Dakota. Our state economy is reliant on the success of these two industries, and I believe we should do all that we can to ensure they continue to grow. With the help of Summit’s pipeline, the ethanol industry can compete with electric vehicles. I would much rather rely on American-made ethanol than electric vehicles, which is why it’s so important for the ethanol industry to partner with Summit Carbon Solutions.”
OilPrice.com: Gas Pipeline Shortage Threatens U.S. Economy
Irina Slav, 11/6/23
“The United States became the largest natural gas producer in a matter of years, also turning into one of the top three LNG exporters,” Irina Slav writes for OilPrice.com. “...At the same time, however, the infrastructure necessary to bring this gas from the producer to the consumer has been slow to catch up with demand. The reason: political opposition that, the industry says, could have a negative impact on the U.S. economy. Last month, a senior executive from Williams, the natural gas transport major, told Energy Intelligence that regulatory rules are stifling the necessary expansion of the nation's gas pipeline network. And he wasn't the only one. The availability of pipelines to get the product out of the shale gas fields in particular--there's only so much they can get to market without more of that infrastructure. So for that reason, you might have inactive wells," said the president of the Potential Gas Committee, also last month, summarizing one of the biggest challenges for U.S. gas. The industry has been complaining of obstacles being put in the way of new gas pipelines for years, as the Biden administration made no secret of its dislike for the hydrocarbons industry, and as state governments in some parts of the country doubled down on their efforts to reduce their reliance on oil and gas—risking their energy security in the process… “The discrepancy between demand for gas and the infrastructure necessary to take it from producer to consumer could become a problem for the country's economy—Germany is a recent and quite telling example of the importance that sufficient gas supply has for a big economy with a large industrial portion… “Because if the shortage of pipelines persists, all that additional LNG export capacity may not materialize for lack of sufficient feed gas supply. And that would become a problem for much more than just the U.S… “The U.S. has the gas and the companies to take it out of the ground. All it needs are some more pipelines to take that gas from the well to the consumers who need it. And they will continue needing it for quite a while yet. Just look at Europe.”