EXTRACTED: Daily News Clips 12/1/21
PIPELINE NEWS
Detroit Free Press: Michigan to drop federal lawsuit against Enbridge over Line 5; pursue state court case
Mlive.com: Michigan Gov. Whitmer drops federal Line 5 lawsuit against Enbridge to support AG’s state suit instead
E&E News: Will Biden shut down a Midwest pipeline? 4 issues to watch
Oil & Water Don’t Mix: Campaign to Shut Down Dangerous Oil Pipelines in the Straits of Mackinac Continues
Iowa Farmer Today: Study: Pipeline construction affects crop yield
Iowa State University: Pipeline study shows soil compaction and crop yield impacts in construction right-of-way
WV Gazette Mail: Army Corps of Engineers again pushes back deadline for DEP decision on key water permit for Mountain Valley Pipeline
Chatham Star Tribune: Air pollution impacts of Mountain Valley Pipeline extension compressor station to be considered at public meetings
Radio Iowa: First public hearings on proposed carbon dioxide pipeline underway
Des Moines Register: Planned carbon sequestration pipeline gains support of southeast Iowa fertilizer plant
The Hill: Democrat pushes for pipeline reliability standards
Associated Press: Oil pipeline planned even as California moves away from gas
Energy & Policy Institute: CenterPoint Energy Hinges Future on Gas Expansion Despite Net-Zero Pledge
STATE UPDATES
S&P Global: Iowa's largest fertilizer plant signs carbon transportation and storage agreement
Bismarck Tribune: Coal Creek carbon capture, hydrogen hub among projects seeking clean energy funding
Salt Lake Tribune: Uinta Basin is hemorrhaging methane as leaks go undetected
KCAW: EPA to investigate source of oil spill in Sitka
Joplin Globe: Cost of natural gas to double this winter for Spire customers
EXTRACTION
Reuters: Oil firms face workforce crunch as renewables beckon -survey
Bloomberg: Oil-Guzzling Shipping Still Falls Short on Decarbonization After Climate Talks
CLIMATE FINANCE
Edie.net: Shareholders ignoring auditor approaches to climate risk, report warns
TODAY IN GREENWASHING
The Narwhal: Carbon emissions to pool noodles: oilsands producers seek a ‘beautiful’ rebrand
OPINION
Richmond Times-Dispatch: Something bad in the air for pipeline component
Toronto Star: Shareholders should be suing TC Energy for incompetence
Colorado Sun: Opinion: Colorado is letting oil drillers off the hook for cleanup of their plugged wells
Calgary Herald: Varcoe: Bitumen bonanza powers Alberta's revenue resurgence, shrinking deficit
PIPELINE NEWS
Detroit Free Press: Michigan to drop federal lawsuit against Enbridge over Line 5; pursue state court case
Paul Egan, 11/30/21
“The state of Michigan is dropping its federal lawsuit against oil company Enbridge over the Line 5 pipeline and will instead focus its efforts on a separate lawsuit that was filed in state court, Gov. Gretchen Whitmer announced Tuesday,” the Detroit Free Press reports. “The change in legal strategy follows a federal judge's recent refusal to return the federal lawsuit to state court, where it had initially been filed. Plaintiffs the state of Michigan, the governor and the Department of Natural Resources filed a motion to voluntarily dismiss the lawsuit Tuesday in federal court in Grand Rapids. Defendants Enbridge Energy LP and related companies had moved the case to federal court from Ingham County Circuit Court in November 2020, less than two weeks after it was filed. “Today, I took further action to protect the Great Lakes from an oil spill and help us stay focused on getting the Line 5 dual oil pipelines out of the water as quickly as possible," Whitmer said in a news release. “While I respectfully disagree, the federal court has now decided to keep the lawsuit I filed in November 2020. I believe the people of Michigan, and our state courts, should have the final say on whether this oil company should continue pumping 23 million gallons of crude oil through the Straits of Mackinac every day." “...Enbridge is pleased with the state's motion to dismiss the lawsuit and "will continue to pursue its case in federal court to affirm federal jurisdiction over Line 5," company spokesman Ryan Duffy told the Press… “Aaron Payment, chairman of the Sault Tribe, told the Press he hopes Whitmer's move is "a retrenchment and not a retreat." He said his tribe "remains united with all tribal nations in Michigan in our unwavering opposition to Line 5," which he said is "an imminent threat to our community and the state of Michigan as a whole."
Mlive.com: Michigan Gov. Whitmer drops federal Line 5 lawsuit against Enbridge to support AG’s state suit instead
Sheri McWhirter, 11/30/21
“Michigan state leaders chartered a different course in their legal battle plans against Enbridge, the Canadian pipeline company that owns Line 5 which partially runs beneath Great Lakes waters,” Mlive.com reports. “Gov. Gretchen Whitmer on Tuesday announced she will voluntarily dismiss her suit against the oil and gas pipeline giant that was ordered to stay in federal court. That doesn’t mean she abandoned her fight to get Line 5 out of the Straits of Mackinac, though. Whitmer said she will instead support the lawsuit Attorney General Dana Nessel filed against Enbridge to shut down Line 5 through the straits, which remains in state court… “Nessel’s suit filed in June 2019 was paused while the federal case moved forward. She said she fully supports the governor’s decision to focus on the case still in state court. “The state court case is the quickest and most viable path to permanently decommission Line 5,” Nessel said.
E&E News: Will Biden shut down a Midwest pipeline? 4 issues to watch
By Hannah Northey, Niina H. Farah, Carlos Anchondo, 12/1/21
“Michigan Democratic Gov. Gretchen Whitmer shifted her legal strategy yesterday to shut down the Line 5 pipeline in the Midwest, upending a fight that could shake up White House politics and the oil industry,” E&E News reports. “...It’s the latest development in a complicated legal and regulatory battle that may rattle international trade relations, regional politics and the Biden administration’s vow to elevate and respect treaty rights. It also could force President Biden to take a definitive position on the pipeline… “Environmentalists backing Whitmer’s call to shutter the 68-year-old pipeline tell E&E the White House’s silence on the matter legally damaged Michigan’s push for the fight to remain in state court, where opponents had hoped for a faster and better outcome in their drive to close the pipeline… “I think the Biden administration’s silence hurt the state’s chances in federal court, and the result was a bad decision by the federal judge,” Andy Buchsbaum, an attorney for the National Wildlife Federation and a lecturer at the University of Michigan’s law school, told E&E… “The Biden administration “doesn’t seem to have a plan in place to get propane to Michigan without this pipeline,” Rep. Lisa McClain (R-Mich.) told E&E, adding that the risks of Line 5 are “far less than the risks of putting thousands of trucks on icy winter roads” to move gas. Biden’s stated goal of boosting tribal consultations and rights is also at stake. Line 5 supporters are opposed to a push from Great Lakes tribes, environmental groups and some bipartisan lawmakers who have repeatedly called on Biden to pull a cross-border permit for the pipeline… “While Canada is invoking the 1977 treaty with the United States, tribes around the Great Lakes region say even older rights apply.”
Oil & Water Don’t Mix: Campaign to Shut Down Dangerous Oil Pipelines in the Straits of Mackinac Continues
11/30/21
“Despite the decision by the state today to voluntarily withdraw from the federal legal case involving Line 5, in which Enbridge and Canada have taken advantage of the federal court system, the campaign to protect the Great Lakes from a damaged, dangerous, and old oil pipeline continues. With the federal legal case dropped, it's clearer than ever that it will be up to all of us to protect the Great Lakes from oil pipelines. The people of Michigan launched the effort to decommission Line 5, and it will be up to us to ensure that the Great Lakes are safeguarded and that Enbridge is not permitted to continue to put Michigan and the planet in further jeopardy for the next century with its ill-advised oil tunnel. We continue to urge President Biden, Governor Whitmer, and Attorney General Nessel to utilize every available option to eliminate oil pipelines from the Great Lakes, including the Attorney General's lawsuit in Ingham County Circuit Court. That is their duty. Nothing Enbridge and Canada are doing changes that solemn obligation.”
Iowa Farmer Today: Study: Pipeline construction affects crop yield
11/29/21
“An Iowa State University study looking at the impacts of soil disturbance and early remediation practices from construction of the Dakota Access Pipeline finds significant soil compaction and gradual recovery of crop yield in the right-of-way over five years,” Iowa Farmer Today reports. “According to a university news release, the study’s primary goal was to assess the extent of soil and cropping disturbances in the approximately 150-foot right-of-way caused by land clearing, topsoil removal and soil mixing, pipeline trenching and backfilling during the construction process. Researchers also wanted to evaluate the effectiveness of state-mandated remediation requirements and a DAPL agricultural mitigation plan designed to minimize impacts to cropland. The Iowa Utility Code requires pipeline projects to remove topsoil and apply deep tillage to exposed subsoil before replacing the topsoil… “The team found crop yields in the right-of-way were reduced by an average of 25% for soybeans and 15% for corn during the first and second crop seasons, compared to undisturbed fields.”
Iowa State University: Pipeline study shows soil compaction and crop yield impacts in construction right-of-way
11/11/21
“An Iowa State University study looking at the impacts of soil disturbance and early remediation practices from construction of the Dakota Access Pipeline finds significant soil compaction and gradual recovery of crop yield in the right-of-way over five years. The research funded by Dakota Access Pipeline (DAPL) aimed to investigate construction influences of the underground pipeline on farmland. “Our findings show extensive soil disturbance from construction activities had adverse effects on soil physical properties, which come from mixing of topsoil and subsoil, as well as soil compaction from heavy machinery,” said Mehari Tekeste, assistant professor of agricultural and biosystems engineering, director of the Soil Machine Dynamics Laboratory at Iowa State, and leader of the project. “Overall, in the first two years, we found the construction caused severe subsoil compaction, impaired soil physical structure that can discourage root growth and reduce water infiltration in the right-of-way,” said Horton, the lead soil physicist on the project. They also found changes in available soil water and nutrients. Though the heavy equipment-induced compaction was still evident two years after construction, a deep subsoil tillage treatment showed some benefit for alleviating the compaction.”
WV Gazette Mail: Army Corps of Engineers again pushes back deadline for DEP decision on key water permit for Mountain Valley Pipeline
Mike Tony, 11/30/21
“The U.S. Army Corps of Engineers has again pushed back the deadline for West Virginia environmental regulators to decide on a key water permit application for the Mountain Valley Pipeline,” the WV Gazette Mail reports. “The state Department of Environmental Protection was supposed to make a decision on whether the water quality impact of constructing the Mountain Valley Pipeline across waterbodies would be too negative to allow by Monday. But the Corps has given the DEP until Dec. 30 to make that determination. The Corps said it approved the extension request from the DEP on Nov. 18 after receiving a request from the agency on Nov. 2 to extend the deadline to act on the water quality certification request for the pipeline project toDec. 30 “due to the lack of final documentation for many key components of the project,” Brian Maka, Army Corpsof Engineers Huntington District spokesman told the Mail. DEP spokesman Terry Fletcher told the Maill Monday the DEP asked for additional time to “thoroughly evaluate and verify all information submitted to date. “We are reviewing the application for compliance with all applicable rules and regulations,” Fletcher told the Mail… “There is no deadline for a ruling on a Section 404 permit for the pipeline.”
Chatham Star Tribune: Air pollution impacts of Mountain Valley Pipeline extension compressor station to be considered at public meetings
11/30/21
“The Virginia Air Pollution Control Board will meet December 2 and 3 in Chatham, VA to consider an air quality permit for a proposed compressor station needed to extend the controversial Mountain Valley Pipeline into North Carolina,” the Chatham Star Tribune reports. “The Board will hear limited public comment on Thursday afternoon and Friday morning. If built, the Lambert Compressor Station in Pittsylvania County, Virginia would pump fracked gas into the Southgate extension of the Mountain Valley Pipeline, which has drawn growing grassroots opposition from environmental justice advocates, like the NAACP. Environmental reviews found building the compressor station would mean higher levels of carbon monoxide, sulfur dioxide, particulate matter, formaldehyde and other volatile organic compounds. These substances are known to contribute to asthma and other respiratory problems, heart disease, cancer, and other health problems for community members living near them. Mountain Valley Pipeline took a narrow view of the impacts of this pollution and failed to account for impacts to people of color and/or low income families living near the proposed station. Environmental concerns have already led the North Carolina Department of Environmental Quality to twice deny a water permit for the proposed 74-mile Southgate project. The Southgate project is still without this crucial permit, which is necessary for any construction to begin.”
Radio Iowa: First public hearings on proposed carbon dioxide pipeline underway
Dennis Morrice, Kendall Crawford, 11/30/21
“The Iowa Utilities Board is holding several public hearings on a proposed carbon pipeline that would run through 36 Iowa counties,” Radio Iowa reports. “Navigator CO2 Ventures proposes what it calls the Heartland Greenway System pipeline — which would cross Iowa and four other states — transporting carbon to be stored in Illinois. At a hearing in Rock Rapids Monday, landowner Dan Rentschler, said he believes the project risks outweigh its good. “Most of this property has been in the families for centuries. We are more or less being told what we can take and do, and how they are going to use our land, that’s a part of us,” he says. Landowners will receive compensation for the land being used and for any crop damage within the first three years of its construction. Landowner Bill Van Gerpen is another landowner who would be impacted by the project. He says he doesn’t trust that his northwest Iowa land will be safe. “These farmers have farmed this land for years, some of them maybe 60, 80 years. And now to see someone come in, and just tear up that ground, that bothers me,” Van Gerpen said… “Navigator vice president Elizabeth Burns-Thompson said they don’t want to have to use eminent domain. “We’re seeking voluntary easements to the best of our ability, right,” she said. “I don’t want to have to use eminent domain. I think that’s part of being good partners.”
Des Moines Register: Planned carbon sequestration pipeline gains support of southeast Iowa fertilizer plant
Donnelle Eller, 11/30/21
“Navigator CO2 Ventures announced Monday that the Iowa Fertilizer Co. will participate in its proposed carbon sequestration pipeline and storage project, which is expected to cost at least $2 billion,” the Des Moines Register reports. “Texas-based Navigator said the fertilizer manufacturer, located in Wever between Burlington and Fort Madison in southeast Iowa, will use the pipeline to transport up to 1.13 million metric tons of carbon dioxide annually. Navigator plans to liquefy the greenhouse gas so it can be transported through the pipeline to a sequestration site in Illinois for permanent underground storage. Altogether Navigator, which calls its project Heartland Greenway, proposes building a 1,300-mile pipeline that would reach into Minnesota, Nebraska and South Dakota as well as Iowa and Illinois… “Navigator wants to build roughly 900 miles of pipeline across 36 counties in Iowa. The company has begun the process to get a permit from the Iowa Utilities Board to build the hazardous liquid pipeline. Starting this week, Navigator will hold a public information meeting in each of the counties where the pipeline would be built.”
The Hill: Democrat pushes for pipeline reliability standards
BY RACHEL FRAZIN, 11/30/21
“Rep. Bobby Rush (D-Ill.) is pushing for the creation of an organization that would seek to set both physical and cybersecurity reliability standards for pipelines.,” The Hill reports. “According to a draft of forthcoming legislation that was first shared with The Hill, Rush wants to create a reliability organization that’s run through the Federal Energy Regulatory Commission (FERC). This reliability organization would be stakeholder-driven, according to Rush’s office, meaning it would be largely made up of industry. But the standards would have to be approved by FERC — an independent agency that regulates interstate energy transmission. Currently, the commission is comprised of three Democratic commissioners and two Republicans. The reliability organization would also consult with the Energy Department and Transportation Security Administration. And it would be able to penalize those that violate the standards. “It is long past time that we had enforceable reliability standards for energy pipelines, just as we do for the electric grid," Rush, who chairs the House Energy and Commerce Committee's Energy Subcommittee, said in a statement.”
Associated Press: Oil pipeline planned even as California moves away from gas
BY MICHAEL R. BLOOD, 12/1/21
“A proposal to replace an oil pipeline that was shut down in 2015 after causing California's worst coastal spill in 25 years is inching though a government review, even as the state moves toward banning gas-powered vehicles and oil drilling,” the Associated Press reports. “Consideration of the $300 million proposal by Houston-based Plains All American Pipeline is expected to enter a critical phase next year at a time when new scrutiny is being placed on the state’s oil industry after an offshore pipeline break in October near Huntington Beach. That rupture released at least 25,000 gallons (94,635 liters) of crude that closed beaches and took a deadly toll on sea life along one of the world’s fabled surf breaks. Farther north, the 123-mile (198 kilometer) Plains pipeline travels along the coastline near Santa Barbara before turning inland. It's buried and nearly invisible for much of its length to Kern County, in the state's midsection. For decades it was a vital link between oil platforms off the coast and processing plants on shore, with shipments averaging 1.8 million gallons (6.9 million liters) a day. California Democratic U.S. Sen. Alex Padilla opposes the proposal, bluntly warning of future risks. “We’ve seen time and time again how damaging offshore oil spills are to our coastal ecosystems as well as to our outdoor recreation and tourism economies,” Padilla said in a statement. “We should not risk repeating history by rebuilding or restarting the Plains pipeline.”
Energy & Policy Institute: CenterPoint Energy Hinges Future on Gas Expansion Despite Net-Zero Pledge
Karlee Weinmann, 11/29/21
“CenterPoint Energy billed itself as an industry leader when it pledged in September to reach net-zero emissions for its operations by 2035, but the investor-owned utility is planning a $1.7 billion gas pipeline expansion and fighting efforts to curb fossil fuel reliance at the local level,” the Energy & Policy Institute reports. “Shortly after unveiling a commitment to achieve net-zero emissions from CenterPoint’s direct operations during its 2021 Analyst Day, the utility’s executives at the same meeting told analysts they expect to add 800 miles of new gas pipeline annually. The buildout is part of a $40 billion overall spending plan that sets aside at least $16 billion for gas investments over 10 years. In addition to expanding its pipeline network in Houston, Minneapolis, suburban Indianapolis and central Texas, executives said the utility plans to replace at least 900 miles of existing pipeline each year. While CenterPoint also expects to spend more than $23 billion to grow its electricity business, its overall vision remains underpinned by gas — its signature business line and a key driver of emissions and price volatility for customers. “We believe natural gas has an enduring future,” Scott Doyle, CenterPoint’s executive vice president for natural gas, told analysts shortly after other executives outlined the net-zero framework.”
STATE UPDATES
S&P Global: Iowa's largest fertilizer plant signs carbon transportation and storage agreement
Brandon Mulder, 11/29/21
“A Midwestern carbon management company has forged an agreement with Iowa's largest fertilizer plant to transport and store 1.13 million mt/year of carbon using a carbon capture pipeline system, the companies said Nov. 29,” S&P Global reports. “The Iowa Fertilizer Company, owned by the global nitrogen products maker OCI, signed the agreement with Navigator CO2 Ventures to manage carbon captured from IFCo's plant process gas and post-combustion stages. About 500,000 mt of carbon will captured and stored through process gas, and the remaining 630,000 mt will be captured through post-combustion capture equipment, the companies said in a joint statement. Navigator CO2 Ventures will transport the carbon through the Heartland Greenway pipeline system, a proposed 1,300-mile network that will transport carbon from industrial and biofuel producers in Illinois, Minnesota, South Dakota, Nebraska and Iowa for underground sequestration at a site in Illinois. The network is commercially anchored by Valero and has nearly 20 receipt points, Navigator spokesperson Andy Bates later told S&P Global Platts in an email… “Navigator's Bates said that the Heartland Greenway pipeline is intended for long-term storage and sequestration, thus making it eligible for carbon credits valued at $85/mt under the Build Back Better Act.”
Bismarck Tribune: Coal Creek carbon capture, hydrogen hub among projects seeking clean energy funding
AMY R. SISK, 11/29/21
“A new arm of state government tasked with vetting funding applications for clean energy projects will evaluate eight proposals in the coming weeks, including one involving a carbon capture system at Coal Creek Station and another related to a hydrogen hub within North Dakota,” the Bismarck Tribune reports. “The eight applications request a combined $49.5 million in grants, more than the $25 million the Legislature authorized earlier this year for the Clean Sustainable Energy Authority to consider. The projects requesting grant money have to do with biodiesel, saltwater, hydrogen, carbon capture, liquid fuels and flaring reduction. The North Dakota Industrial Commission will make the final decision on which projects receive state assistance. The commission on Monday was informed of the funding requests. Separately, it set guidelines for a cross-state natural gas pipeline... “The University of North Dakota's Energy & Environmental Research Center, which is heavily involved in most carbon capture projects in the state, has requested a $7.5 million grant for an engineering and design study for the Coal Creek project. Lawmakers during the special legislative session earlier this month set aside another $20 million in grant money for hydrogen development… “Lawmakers during the special session approved $150 million in grant money to support natural gas infrastructure, $140 million of which is meant to go to a pipeline spanning the width of the state. The idea is to bring gas service to more central and eastern North Dakota communities, as well as to industrial and agricultural facilities… Such a pipeline is expected to cost $1 billion. State funding cannot exceed 40% of the cost under the guidelines approved Monday.”
Salt Lake Tribune: Uinta Basin is hemorrhaging methane as leaks go undetected
Brian Maffly, 11/30/21
“As much as 8% of the Uinta Basin’s natural gas production escapes into the atmosphere, an indication that the basin’s methane emissions are among the worst in the nation for energy-producing regions, according to new research from the University of Utah,” the Salt Lake Tribune reports. “Monitoring data indicate leaks from wells, pipelines, compressors and processing facilities release 6 to 8% of the natural gas pulled from the ground in northeastern Utah, representing a huge waste of a largely publicly owned natural resource. These “fugitive” emissions also pose an avoidable threat to the climate. That’s because methane, the main ingredient in natural gas, has a much stronger greenhouse effect than carbon dioxide.”
KCAW: EPA to investigate source of oil spill in Sitka
Katherine Rose, 11/29/21
“Federal environmental investigators will be in Sitka this week to examine the cause of a recent oil spill,” KCAW reports. “On November 18, oil was discovered seeping from a crack in the seawall near the Sitka Sound Science Center, when water was being pumped from a pond during routine maintenance of the center’s hatchery pens. More than a week later, the source of the spill remains unknown, and state officials have backtracked from an early statement that cited the Sitka Fine Arts Camp’s campus… “In an interview with KCAW, DEC spokesperson Sarah Moore said Environmental Protection Agency employees will be in Sitka to review historic records to help identify possible sources in the area. They’ll also do a more robust assessment of the spill site. Moore said several sites could be associated with the leak, including a former power plant.”
Joplin Globe: Cost of natural gas to double this winter for Spire customers
Andy Ostmeyer, 11/29/21
“Spire customers in Joplin and elsewhere in Southwest Missouri will pay twice as much for natural gas this winter,” the Joplin Globe reports. “That doesn’t mean their bill will double, because the cost of the gas is only part of the bill, along with other customer charges, but it is the largest part of the bill — between 50% and 55%, according to regulators — and customers should still expect increases in their monthly bills, Jason Merrill, spokesman for Spire, told the Globe. The change means an increase of about $24.36 per month, or 41.5%, for the typical natural gas residential customer, defined as someone an average of 60 to 65 ccf per month. A ccf is a hundred cubic feet of natural gas and a unit to measure usage. The Missouri Public Service Commission this week approved the increase, which takes effect Tuesday. “The gas is a straight pass through; it is not something we profit off of. The cost of natural gas has gone up throughout the Midwest and Missouri is no different. ... What we pay for the gas is what a customer pays for the gas,” Merrill told the Globe. In a statement, the PSC said the wholesale cost of natural gas is not regulated by the state, and that cost is “primarily driven by supply, demand and the weather.” The PSC does conduct a review to make sure that regulated natural gas companies such as Spire make prudent decisions in securing natural gas supplies for their customers.”
EXTRACTION
Reuters: Oil firms face workforce crunch as renewables beckon -survey
By Ron Bousso, 11/30/21
“The oil and gas industry risks a huge workforce shortage as more than half of workers in the sector seek to move into the renewable energy industry, a survey published on Tuesday showed,” Reuters reports. “The survey conducted as part of a report by recruitment firm Brunel and Oilandgasjobsearch.com showed that 43% of workers want to leave the energy industry altogether within the next five years. When asked which sectors they'd pursue employment opportunities in, 56% of those working in oil and gas said renewables, compared to 38.8% last year. Energy companies ranging from Royal Dutch Shell (RDSa.L) and BP (BP.L) to smaller exploration firms cut tens of thousands of jobs in the wake of the coronavirus pandemic as they tightened budgets. Now, as energy demand and prices recover strongly around the world, many companies are finding it hard to recruit again. Oil and gas companies have faced growing pressure from investors, activists and governments to fight climate change, making them less attractive to young professionals.”
Bloomberg: Oil-Guzzling Shipping Still Falls Short on Decarbonization After Climate Talks
Jack Wittels, 11/29/21
“The organization that regulates shipping made little fresh progress toward decarbonizing the industry during a series of meetings last week,” Bloomberg reports. “The main outcome from talks hosted by the United Nations’ International Maritime Organization was agreement to revise, in 2023, its decarbonization strategy -- and that wasn’t really new. A non-binding proposal on zero emissions didn’t get official approval. And a plan for a small charge on fuel to raise money for research and development into cleaner shipping was deferred to a future meeting. Shipping’s current 2050 target falls well short of what’s required to align the sector with the Paris Agreement’s ambitions on limiting temperature rises. Yet the IMO has yet to set solid rules -- or even a target -- that would get the industry on track. “This was disappointing,” Simon Bergulf, regulatory affairs director at A.P. Moller-Maersk A/S, the world’s largest container line, told Bloomberg. Momentum on shipping from COP26 climate talks, “did not translate at all.” The main achievement on emissions from the week-long meeting was recognizing the need to “strengthen the ambition” of the IMO’s current decarbonization strategy, which includes pollution-reduction targets. A major shipping trade group called the talks a missed opportunity.”
CLIMATE FINANCE
Edie.net: Shareholders ignoring auditor approaches to climate risk, report warns
Matt Mace, 11/30/21
“Shareholders at listed UK companies are failing to hold auditors to account on an inability to manage and address climate-related risks, a new report from Greenpeace has warned,” according to Edie.net. “Greenpeace is calling for the UK Government to introduce “specific duties” for companies and auditors to ensure that “climate risk is reflected in financial statements.” “...Indeed, ClientEarth found that only 4% of the audit reports of the 250 largest listed UK companies included clear explanations of whether auditors were considering climate change in their decision-making factors. Greenpeace UK’s senior programme adviser Charlie Kronick told Edie: “Polluting companies and their auditors are failing to integrate climate change and the 1.5C target of the Paris Agreement into their business plans and financial statements - for example over-valuing fossil fuels, rather than recognising they need to be phased out. This leads to bad investment decisions that not only harm company profits, but also wreck the climate. Our findings show that investors aren’t going to force auditors to improve any time soon. We’re calling for the government to step in by creating a duty for companies and auditors to ensure climate risk is reflected in financial statements.”
TODAY IN GREENWASHING
The Narwhal: Carbon emissions to pool noodles: oilsands producers seek a ‘beautiful’ rebrand
Drew Anderson, 10/30/21
“Alberta’s major oilsands producers want you to look at a barrel of bitumen and see a pool noodle,” The Narwhal reports. “A leaked PR campaign from the oilsands giants shows the companies are eager to rebrand the carbon-intensive industry as a net-zero resource that effortlessly turns its emissions into everything from water toys to carbon fibre boats and microchips. Currently being tested in focus groups, the Oil Sands Pathway Alliance campaign focuses on transforming carbon into everyday products with the tagline “Energy. Beautifully Designed.” A pitch video, initially posted online for focus group participants to view, but which has now been taken down, was sent to The Narwhal by Keith Stewart, senior energy strategist with Greenpeace Canada, shows what the campaign will prioritize. “Creating jet fuel out of our petroleum while using carbon from that process to make carbon fibre boats is a beautiful thing,” a voice over the video says. “Developing microchips out of carbon capture for refined oil is beautiful. Producing barrels of oil and making Styrofoam chips out of the resulting carbon. That’s beautiful. Producing oil and from the resulting carbon making pool noodles that kids can float on. Beautiful.” The campaign was prepared for a group composed of Suncor, Imperial, Canadian Natural Resources, MEG Energy, ConocoPhillips and Cenovus, who together are responsible for what they say is about 95 per cent of oilsands production… “The basic premise of the Pathways plan to achieve net-zero emissions is this: continue producing bitumen in the oilsands, but couple that production with carbon capture and utilization technologies in a bid to decrease the overall carbon pollution of the industry. This includes a carbon dioxide pipeline from the oilsands region to a sequestration hub approximately 440 kilometres away, near Cold Lake, Alta… “Stewart told the Narwhal he thinks this campaign is part of the coming negotiations with industry stakeholders who want to avoid costly regulations while lobbying for subsidies. “
OPINION
Richmond Times-Dispatch: Something bad in the air for pipeline component
Suzanne Keller, 11/29/21
“Regarding Dr. Charles Miller's recent column supporting the Mountain Valley Pipeline's proposed Lambert Compressor Station, the project impacts all Virginians,” Suzanne Keller writes in the Richmond Times-Dispatch. “Miller says there has been a public health assessment of the compressor station, with no risks identified. The consultant report was paid for by MVP and was based on air modeling, and the Virginia Department of Environmental Quality continues to recommend permits to pollute without really assessing the health impacts on people in the vicinity of the facility. The station would emit pollutants in intense and episodic events known as blowdowns that pose the most harm to people nearby. Toxic and dangerous air pollution emitted from the compressor station would not be confined to the Banister District that Miller represents, nor would the upstream and downstream water degradation. Also, the climate impacts of mining the pipeline's gas, transporting it and burning it are not just harming the people of Chatham — they harm all of life. In the interests of justice and public health, the air permit for the Lambert Compressor Station should be denied.”
Toronto Star: Shareholders should be suing TC Energy for incompetence
Mike Priaro, 12/1/21
“TC Energy seeks to recoup costs from U.S. for cancelled Keystone XL pipeline project,” Mike Priaro writes in the Toronto Star. “Let’s not forget that TC Energy spent $2 billion in shareholder funds to buy pipe for the pipeline before it had the necessary presidential approval, and was denied twice. Let’s not forget that Jason Kenney’s Alberta government gifted TC Energy with $1.3 billion in taxpayer funds to start construction and tie President Joe Biden’s hands into not revoking the pipeline permit that had been approved by former president Donald Trump. That silly gambit failed on Biden’s first day in office. Everyone — except Kenney — knew Biden was opposed to Keystone XL. Perhaps it is TC Energy shareholders and Alberta taxpayers who should be suing TC Energy and Jason Kenney for incompetence and misuse of shareholder and taxpayer funds.”
Colorado Sun: Opinion: Colorado is letting oil drillers off the hook for cleanup of their plugged wells
Ramesh Bhatt, of Boulder, is chair of the Conservation Committee of the Colorado Sierra Club, 11/26/21
“According to the International Monetary Fund, fossil fuel companies were subsidized globally to the tune of $5.9 trillion in 2020. That’s $11 million a minute!,” Ramesh Bhatt writes for the Colorado Sun. “One way in which the oil and gas industry is subsidized in the U.S. is by being allowed to keep hundreds of thousands of low-producing wells open on their books indefinitely, or even abandon them without capping. Such wells are dangerous because they tend to leak methane, a greenhouse gas that is 86 times more potent than carbon dioxide. These wells are a potent driver of climate change and health hazards. Taxpayers are left to deal with the mess. Carbon Tracker estimates that it will take at least $280 billion to properly retire all current U.S. wells. In Colorado, out of the approximately 52,000 wells on the books at the Colorado Oil and Gas Conservation Commission, 36,930 produce less than the equivalent of 15 barrels of oil a day. Of those, 17,285 produce less than 1 barrel… “Carbon Tracker estimates that it will take about $8.3 billion to properly retire all Colorado wells. The Oil and Gas Conservation Commission has required operators to put up just 2% of the estimated plugging costs. All of which means there is a great danger that their cleanup cost will fall into the lap of taxpayers. On one hand, operators say they are hanging on to these low-producing wells because they will be profitable in the future. On the other hand, they claim that requiring bonding for these wells will make it uneconomical. In other words, operators want to make profits without guaranteeing that they will pay for plugging the wells, leaving taxpayers to bear the risk.”
Calgary Herald: Varcoe: Bitumen bonanza powers Alberta's revenue resurgence, shrinking deficit
Chris Varcoe, 12/1/21
“When the provincial budget was unveiled back in February, projecting a whopping $18-billion deficit, bitumen royalties were expected to be stunted, contributing only $1.5 billion to Alberta’s cash-strapped coffers,” Chris Varoe writes for the Calgary Herald. “No oilsands projects were projected to shift into a higher royalty tier from a lower rate this year, while natural gas royalties were forecast to add only $467 million to the overall revenue pot. Suddenly, the outlook has changed like a chinook blowing into the province. On Tuesday, the province’s mid-year fiscal update was released , featuring a revenue resurgence — up $14 billion since budget day. It’s powered by higher energy prices and a bitumen bonanza, along with rising income tax revenues and improved investment returns. Bitumen royalties are now expected to top $7.6 billion this year, an astounding 413 per cent increase from February’s budget… “Albertans rightfully want to diversify the economy and smooth out the severe turbulence created by volatile energy prices. But here’s an inescapable truth: Oil and gas revenues continue to power a big portion of government revenues, playing a supersized role in the province’s finances, even in an era of industry consolidation and decarbonization. “Let’s be clear, the improvement in the finances we’re seeing today has got relatively little to do with diversification and everything having to do with a higher payout from the oilsands industry and higher energy prices,” economist Ron Kneebone with the University of Calgary’s School of Public Policy told the Herald.”