EXTRACTED: Daily News Clips 12/1/22
PIPELINE NEWS
Wisconsin Examiner: Enbridge and Bad River Band to meet following pipeline decision
Bismarck Tribune: PSC plans to appoint judge to serve on commission for Summit CO2 pipeline decisions
Waverly Newspapers: Bremer Co. mulls pipeline ordinance, P&Z to hold public hearing Dec. 6
Sioux City Journal: Woodbury County continues to look at local pipeline reviewing processes
Corpus Christi Caller Times: Enbridge, Oxy eyeing possibility of carbon pipeline and sequestration near Corpus Christi
Asheville Citizen Times: Dominion Energy gets go-ahead to put natural gas pipeline under Blue Ridge Parkway
Bloomberg: New Jersey Partnership Fee Challenge Tossed From Federal Court
Reuters: Canada's TC Energy gets approval to expand NGTL gas pipeline system
Canadian Press: Enbridge raising quarterly dividend, releases financial guidance for 2023
WASHINGTON UPDATES
E&E News: Manchin Eyes Omnibus For Lands Package
E&E News: House Oversight to issue report on Big Oil investigation
E&E News: White House elevates Indigenous expertise to inform policy
E&E News: Green Groups Call For Court To Keep Oil NEPA Lawsuit Alive
STATE UPDATES
Associated Press: Gas driller pleads no contest to polluting town’s water
WHYY: ‘Gasland’ driller will pay millions for new water system in Dimock
Press release: Governor Newsom Convenes Special Session to Hold Oil Industry Accountable for Price Gouging, Keep Money in Californians’ Pockets
InsideClimate News: Petition Circulators Are Telling California Voters that a Ballot Measure Would Ban New Oil and Gas Wells Near Homes. In Fact, It Would Do the Opposite
E&E News: Climate on trial: Montana youth take on state energy policy
KPRC: Oil spill coats Louisiana canal in 3,500 gallons of used lubricant from Houston-based company, Coast Guard says
EXTRACTION
Reuters: Alberta Premier Danielle Smith seeks more sovereignty from Canada in new bill
Financial Post: CNRL sets new emissions target alongside pledge to boost shareholder returns
CLIMATE FINANCE
Responsible Investor: Sustainability advocates step up fight against anti-ESG after US midterms
The Energy Mix: Two More Reinsurers Nix Coverage for East Africa Pipeline Megaproject
OPINION
Forbes: Peak Oil: The Perennial Prophecy That Went Wrong
PIPELINE NEWS
Wisconsin Examiner: Enbridge and Bad River Band to meet following pipeline decision
ISIAH HOLMES, 11/30/22
“By the end of December, the legal battle between the Canadian energy company Enbridge Inc. and the Bad River Band will enter its next phase,” the Wisconsin Examiner reports. “U.S. District Judge William Conley issued an order Monday that requires Enbridge and the tribal community to meet to discuss ways to mitigate dangers associated with the company’s Line 5 pipeline by Dec. 17, and to submit plans by Dec. 24 for the future of Line 5. Either the tribe and the company will work together on a plan, or they’ll propose separate visions for Line 5… “In his decision, Conley writes that Enbridge isn’t a party to the U.S.-Canadian treaty. Nor does the treaty suggest that “a private entity could bring a cause of action to enforce it or even that it may be enforced in federal court,” the decision states… “Elizabeth Ward, chapter director of the Sierra Club of Wisconsin, told the Examiner invoking the treaty was an attack on tribal sovereignty. “I was happy to see the judge recognize that the 1977 Transit Treaty had no bearing on this case at all,” said Ward, who monitored the federal case closely. “Enbridge tried to argue that it was OK for them to trespass on Bad River’s land and, essentially, this treaty between the U.S. and Canada overwrote Bad River’s sovereignty. And I was glad to see the judge agree with Bad River that Enbridge was wrong.” “...As it stands, Enbridge and the Bad River Band are set to begin their talks by Dec. 16. Those discussions will in part cover ways to mitigate risks of an oil rupture, such as by installing new emergency valves on the reservation. In a statement to the Wisconsin Examiner, Enbridge touted the safety of its pipeline… “Enbridge has repeatedly proposed remediation projects to halt erosion at the meander, and a project to install emergency valves on the reservation, as we also move forward with permitting for a planned 41-mile relocation project of the Line 5 pipeline around the reservation. We look forward to meeting with the Bad River Band to discuss these issues. In the meantime, the Line 5 pipeline will continue to safely operate.”
Bismarck Tribune: PSC plans to appoint judge to serve on commission for Summit CO2 pipeline decisions
JACKIE JAHFETSON, 11/30/22
“The North Dakota Public Service Commission plans to appoint a temporary member for decisions regarding the proposed Summit Carbon Solutions carbon dioxide pipeline, after the panel’s chair recused herself to avoid any perceived conflicts of interest,” the Bismarck Tribune reports. “The PSC and staff on Wednesday discussed appointing Administrative Law Judge Tim Dawson to be a decision-maker in the case, temporarily replacing Chair Julie Fedorchak. The three-member regulatory panel also discussed tapping Bismarck attorney Zachary Pelham to serve as advisory council for any Summit decisions. The commission has hired Pelham before to help with legal counsel on siting cases. The PSC’s legal counsel is working on the paperwork needed for the appointments before making it official, spokeswoman Stacy Eberl told the Tribune… “Fedorchak and her husband own land in Oliver County and signed a contract with Summit a year ago to store carbon dioxide on their land. Fedorchak in early November recused herself from any siting decisions pertaining to the pipeline. Commissioner Randy Christmann said during the Nov. 10 PSC meeting that he believes appointing a third person is necessary because the case is likely to take several months, involves many people and a substantial amount of investment from companies involved.”
Waverly Newspapers: Bremer Co. mulls pipeline ordinance, P&Z to hold public hearing Dec. 6
11/30/22
“A public hearing for a proposed ordinance requiring permits from companies seeking to build hazardous liquid pipelines in Bremer County will be held at 7 p.m. on Dec. 6 at the Waverly Civic Center,” Waverly Newspapers reports. “The Bremer County Planning and Zoning Commission will be holding the hearing and commission members say they expect to hear feedback from the public. Attorney Tim Whipple, of Ahlers Cooney Attorneys, who helped draft the ordinance, will be present to help answer questions… “If the ordinance is recommended by the P&Z Commission, it will go to the Board of Supervisors where it will have to pass three readings before being adopted… “The drafted ordinance would require companies seeking to build a hazardous liquids pipeline through Bremer County (such as Navigator) to submit an application to the County Zoning Administrator for a conditional use permit, according to a document reviewed by Waverly Newspapers… “According to the draft, any pipelines would be required to be at least two miles away from any incorporated city limits; half a mile from any church, school, nursing home, long-term care facility or hospital; half a mile from a public park, conservation area or public recreation area; half a mile from any occupied structure… “Similar ordinances, such as those in Story and Shelby counties, have been challenged by pipeline companies in court, according to reporting by Iowa Capital Dispatch.”
Sioux City Journal: Woodbury County continues to look at local pipeline reviewing processses
Caitlin Yamada, 11/30/22
“After directing staff to create setback distances for CO2 pipelines, the Board of Supervisors received an update on the work,” the Sioux City Journal reports. “Dan Priestley, the zoning coordinator, updated the Board Tuesday regarding a zoning commission meeting on the topic which ended in no setbacks at this time. He said the commission prefers the process currently in place… “The commission held a public hearing Monday to consider the establishment of separation requirements, consultation zones, planning areas, emergency response and hazard mitigation requirements, and abandonment and removal of hazardous pipelines… “The staff presented a setback distance of 330 feet from occupied structures and residential areas, and 50 feet for industrial and commercial zones. The Board of Supervisors directed staff to create CO2 pipeline setback distances in October, following the lead of Shelby County. Board Chair Keith Radig said at the time he would like a local ordinance with a 500-foot setback with language that it will not supersede federal law… “Priestley said staff and the zoning commission compiled a report of 45 pages that referenced different studies on CO2 and the hazards. He said the Emergency Response Guidebook – used by first responders for disasters – has an initial response of 330 feet… “Priestley said community members who attended the commission meeting were vocal against allowing pipelines in Woodbury County… “The zoning commissioners brought up concerns about how the setbacks would impact the county, Priestley said. One concern was that there would be a corridor of space surrounding the pipeline that would restrict property owners. Priestley said the commission prefers the conditional use permit as the primary scrutiny of pipeline projects… “He added the supervisors could write a resolution with possible questions for companies that would apply for a conditional use permit.”
Corpus Christi Caller Times: Enbridge, Oxy eyeing possibility of carbon pipeline and sequestration near Corpus Christi
Chase Rogers, 11/30/22
“Houston-based Occidental Petroleum and Enbridge announced Wednesday the companies will explore the possibility of a CO2 pipeline and storage hub near Corpus Christi in an effort to slash emissions associated with oil and gas operations,” the Corpus Christi Caller Times reports. “The Canadian pipeline company is teaming up with Occidental’s low-carbon business, Oxy Low Carbon Ventures, for the feasibility research. The hub would provide “a complete CO2 solution” to Enbridge facilities in the area and would be marketed to other nearby emitters… “Some local environmental groups have expressed skepticism of carbon capture, instead advocating for reducing existing operations or slowing all expansion to keep global warming at bay and avoid the impacts of climate change… “Port of Corpus Christi CEO Sean Strawbridge, who is a board member of the Carbon Neutral Coalition, an industry group advocating to expand the practice, sees carbon capture as a stepping stone toward a cleaner environment and growth in the energy industry, he wrote to the Caller-Times in a December 2021 letter to the editor. In addition, such operations would allow farmers and ranchers to offer up their land in exchange for a fee, giving the local agriculture industry a new source of revenue, Strawbridge said.”
Asheville Citizen Times: Dominion Energy gets go-ahead to put natural gas pipeline under Blue Ridge Parkway
Christian Smith, 12/1/22
“An application by Dominion Energy to put a natural gas pipeline under the Blue Ridge Parkway in Buncombe County has been approved, according to a news release from the National Park Service,” the Asheville Citizen Times reports. “Even during construction, the pipeline will not have a "significant impact" on the parkway or the Mountains-to-Sea Trail, which also runs over the proposed pipeline location, according to a findings report recommended for approval by parkway Superintendent Tracy Swartout and signed by National Park Service Regional Director Mark Foust. As the pipeline will be constructed without using trenches, neither the parkway nor the trail will need to be closed… “The Blue Ridge Parkway stretches 469 miles, linking from Shenandoah National Park in Virginia to Great Smoky Mountains National Park in Cherokee. It is the most visited unit of the National Park Service, with 16 million visitors in 2021… “While methane, or natural gas, is a "powerful greenhouse gas" and leaks from pipeline infrastructure is a "serious climate threat," this project is not necessarily an issue, Karim Olaechea, spokesperson for Asheville environmental nonprofit MountainTrue, told the Times. "Generally, MountainTrue supports moving away from all fossil fuels and the widespread adoption of renewable energy sources. However, when it comes to this specific project — which is an upgrade of an existing pipeline — we have reviewed its potential impacts on water quality and forest health and determined that it doesn’t rise to a level of concern," Olaechea told the Times… “Why was human health and safety dismissed as an impact topic to be further analyzed, and why was information about pipeline safety, including leaks, spills and catastrophic failure, not included in the environmental assessment? Human health and safety impacts from the pipeline segment under the Blue Ridge Parkway are not anticipated, which is all the National Park Service analyzed. Applicant and contractors must comply with local, state and federal regulations around gas pipelines, so the assessment did not need to address safety.”
Bloomberg: New Jersey Partnership Fee Challenge Tossed From Federal Court
11/30/22
“State court is a more appropriate forum for a suit challenging New Jersey’s partnership tax collection regime, a federal judge ruled,” Bloomberg reports. “The US District Court for the District of New Jersey dismissed Energy Transfer LP’s constitutional challenge to the law under the federal comity doctrine, which limits federal jurisdiction where there’s a risk of disrupting state tax administration. The state Legislature wrapped the partnership fee in the state’s system of taxation that it relies on to fund the government, Judge Michael A. Shipp wrote in an opinion issued Tuesday.”
Reuters: Canada's TC Energy gets approval to expand NGTL gas pipeline system
Nia Williams, 11/30/22
“The Canadian government on Wednesday approved an expansion to TC Energy's (TRP.TO) NOVA Gas Transmission Ltd (NGTL) pipeline system in Alberta, which will help improve market access for western Canadian natural gas,” Reuters reports. “The West Path Delivery 2023 (WP2023) project will add about 40 kilometres (25 miles) of new natural gas pipeline to the existing 25,000-kilometre NGTL system, which ships gas across Canada and to U.S. markets. It is part of a C$1.2 billion ($893.3 million) expansion program first announced by TC in 2019 and underpinned by approximately 258 million cubic feet per day (mcf/d) of new long-term firm service contracts. TC said it was pleased with the decision and construction was scheduled to begin in the first quarter of 2023, with an anticipated in-service date of Nov. 1, 2023… “Federal natural resources minister Jonathan Wilkinson approved the project with 34 conditions related to environmental protections and the involvement of Indigenous people through employment and training.”
Canadian Press: Enbridge raising quarterly dividend, releases financial guidance for 2023
11/30/22
“Enbridge Inc. is raising its quarterly dividend to shareholders,” the Canadian Press reports. “The pipeline company says it will now pay a quarterly dividend of 88.75 cents per share, up from 86 cents per share. Based on Enbridge’s closing share price of $55.52 on Tuesday, the shares will have a dividend yield of about 6.4 per cent. The increased payment to shareholders came as Enbridge reaffirmed its full-year guidance for adjusted earnings before interest, income taxes and depreciation in the top half of its range of $15.0 billion to $15.6 billion for 2022… “Enbridge also said Wednesday that Pamela Carter will become chair of the company’s board effective Jan. 1, replacing current board chair Greg Ebel, who is becoming Enbridge’s president and chief executive at the start of next year. Carter has served as a director of the Enbridge board since 2017 and with a predecessor company since 2007.”
WASHINGTON UPDATES
E&E News: Manchin Eyes Omnibus For Lands Package
EMMA DUMAIN, JEREMY DILLON, 11/30/22
“Lawmakers are hoping to pass a package of bills to promote and protect public lands. But the only way it’ll happen is if Congress can also agree on a long-term spending bill,” E&E News reports. “‘We’re trying to fine tune it all now,’ Senate Energy and Natural Resources Chair Joe Manchin (D-W.Va.) told E&T Tuesday about the process of collecting into a single measure several lands bills under his committee’s jurisdiction. ‘We’re getting close. We’re working on it — if there’s an omnibus.’ Lawmakers have long eyed a package of bills establishing new public land designations and protections. They’ve also sought to pass a bipartisan bill to support wildlife conservation efforts in the states, the ‘Recovering America’s Wildlife Act,’ H.R. 2773 and S. 2372. But time is running out and the fate of an omnibus spending bill is still up in the air… “On the flip side, environmental groups are also bracing themselves for Manchin to announce a deal on attaching an overhaul of the nation’s permitting system to an omnibus — an effort many greens oppose.”
E&E News: House Oversight to issue report on Big Oil investigation
Nick Sobczyk, 12/1/22
“The House Oversight and Reform Committee will soon issue a report wrapping up its investigation of the oil industry, according to one of the lawmakers leading the probe,” E&E News reports. “We’ve wrapped it up, but there are millions of documents that now are going to be part of the public record and this report,” Environment Subcommittee Chair Ro Khanna (D-Calif.), who spearheaded the investigation with full committee Chair Carolyn Maloney (D-N.Y.), told E&E. “I think it will for the next 10 years pave the way for a lot of activism around the country.” Committee Democrats have been investigating oil companies for more than a year for allegedly misleading the public about climate change to cover the role their products play in warming the planet. The report will cap off the investigation and potentially shed new light on the industry’s past statements about climate science and efforts to burnish a green image. It’s highly anticipated among lawyers and advocates working on climate change lawsuits around the country. Khanna has said he wanted the investigation to mirror similar congressional inquiries into tobacco companies in the 1990s. Those hearings ultimately led to accusations of perjury, after tobacco CEOs said under oath they believed nicotine is not addictive, and federal investigations. But Khanna acknowledged Wednesday that the Big Oil investigation ultimately won’t have that kind of immediate impact. Oil and gas remain an integral part of the world’s energy supply, despite their planet-warming impacts, and solving climate change is a more complicated equation than curbing the health impacts of tobacco. “With Big Tobacco they right away broke through on American public sentiment,” Khanna told E&E. “I don’t think that we have, candidly, done that yet because the task is much harder on climate and the story was told for the first time.” Khanna nonetheless told E&E he expects the Big Oil probe to be a “historic contribution.” “I think our work is of equal significance but not as immediate in breaking through the public consciousness.”.
E&E News: White House elevates Indigenous expertise to inform policy
Scott Waldman, 12/1/22
“Indigenous people have closely observed changes to the climate for centuries. Now their knowledge — including firsthand experience passed down by oral tradition for millennia — will help inform federal research and policy decisions,” E&E News reports. “President Joe Biden announced the initiative Wednesday at the White House Tribal Nations Summit, calling it part of a larger effort to show more “respect” for tribal sovereignty and authority across the country. “When I talk about respect, here’s what I mean by respect: respect for tribes as nations and treaties as law, … respect for Indigenous knowledge and tribal consultations as a key part of the federal agency decisionmaking,” Biden said. The White House Office of Science and Technology Policy and the Council on Environmental Quality are spearheading the effort, which includes new Indigenous knowledge guidance for federal agencies. The goal is to “elevate Indigenous observations, oral and written knowledge, practices, and beliefs that promote environmental sustainability and the responsible stewardship of natural and cultural resources,” according to the White House… “On Wednesday, Vice President Kamala Harris noted that Native communities are disproportionately affected by toxic air and water pollution — despite being responsible stewards of environmental and natural resources for millennia. Now, she said, the federal government can use Indigenous knowledge to better protect those resources. “To create enduring solutions to the climate crisis, we must rely on your traditions, your expertise, your knowledge, your history, your leadership,” she said.
E&E News: Green Groups Call For Court To Keep Oil NEPA Lawsuit Alive
Niina A. Farah, 11/30/22
“After a federal climate bill reinstated a canceled offshore oil and gas lease sale in the Gulf of Mexico, conservation groups are arguing that federal judges have the power to intervene to block it for a second time. Friends of the Earth and other organizations urged a federal appeals court to decide whether the Bureau of Ocean Energy Management’s climate analysis of Lease Sale 257 failed to comply with the National Environmental Policy Act — even after the Inflation Reduction Act required the agency to accept bids on the nation’s largest ever offshore lease sale. In January, a lower bench had issued a ruling canceling the sale, after companies had submitted bids in November 2021. The conservation groups claimed the Inflation Reduction Act was silent on whether the agency should disregard NEPA in the process. ‘Rather, the provision’s direction that Interior issue leases to high bidders in Lease Sale 257 is best read narrowly,’ the groups wrote in a Nov. 23 filing to the U.S. Court of Appeals for the District of Columbia Circuit. The conservation groups said Congress’ directive took away Interior’s typical ‘largely unfettered discretion’ not to move forward with a lawful lease sale. With the provision in place, a sale would go forward — but only if the court finds that BOEM complied with NEPA, they said. If the D.C. Circuit says the agency hasn’t complied with NEPA, it still has the power to issue an injunction to prevent activity on the issued leases until the agency is in compliance, the conservation groups said.”
STATE UPDATES
Associated Press: Gas driller pleads no contest to polluting town’s water
MICHAEL RUBINKAM, 11/30/22
“Pennsylvania’s most active gas driller pleaded no contest Tuesday to criminal charges, capping a landmark environmental case against a company that prosecutors say polluted a rural community’s drinking water 14 years ago and then tried to evade responsibility,” the Associated Press reports. “Residents of the tiny crossroads of Dimock in northeastern Pennsylvania say they have gone more than a decade without a clean, reliable source of drinking water after their aquifer was ruined by Houston-based Coterra Energy Inc. Under a plea deal entered in Susquehanna County Court, Coterra agreed to pay $16.29 million to fund construction of a new public water system and pay the impacted residents’ water bills for the next 75 years. “After more than decade of denials, of shirking responsibility and accountability, Coterra pleaded to their crime, and the people of Dimock finally had their day in court,” Attorney General Josh Shapiro, the state’s incoming governor, said outside the courtroom. “Today is further proof that you don’t get to just walk away from the harm you do here in Pennsylvania.” The plea — the result of years of negotiations between Coterra and the attorney general’s office — represents a milestone in one of the most prominent pollution cases ever to emerge from the U.S. drilling and fracking boom. Dimock drew national notoriety after residents were filmed lighting their tap water on fire in the Emmy Award-winning 2010 documentary “Gasland.” “...Residents were informed of the plea deal last week. A public utility, Pennsylvania American Water, plans to drill two wells — what it calls a “public groundwater system” — and build a treatment plant that will remove any contaminants from the water before piping it to about 20 homes in Dimock. The utility estimates that construction will take about three years, during which Coterra will be required to provide individual treatment systems and bottled water to impacted residents.”
WHYY: ‘Gasland’ driller will pay millions for new water system in Dimock
Susan Phillips, 11/29/22
“It began with an explosion on New Year’s Day 2009. Soon, residents of the tiny rural community of Dimock discovered dangerous levels of methane gas had seeped into their private water wells,” WHYY reports. “Almost 14 years later, after setting off a series of events that would make the village synonymous with anti-fracking campaigns worldwide, Cabot Oil and Gas pleaded no contest to 15 criminal charges, including nine felonies. It marks the first time Cabot took responsibility for destroying drinking water supplies… “Ray Kemble of Dimock, who continues to haul water to his house in large containers, told WHYY it’s vindication for the people who suffered from lack of water and Cabot’s denials of responsibility. “For every person that has been affected by gas drilling, oil drilling, around the world, everybody is going to be looking at them now,” Kemble told WHYY. “They’re not going to be able to sit there and do what they did here for 14 years. Deny, deny, deny, deny. [Saying we] are liars. They’re going to be held accountable.” “...Victoria Switzer of Dimock reminded those present of those who chose to move out, those who passed away, and that the DEP had promised a water line back in 2012. “It’s the people’s lawyer who got it done,” said Spitzer, a retired school teacher. “Our own elected officials, DEP, EPA failed us miserably.” “...As much as Kemble says it’s a good day, he told WHYY he still has to haul water for several years before construction is complete. And, he would have liked to see someone do jail time. “The higher ups of these companies, they should be going to jail,” Kemble told WHYY. “Every damn one of them should be going to jail. Because they knew exactly what was going on here. They knew the water pollution was happening. They knew people were dying, they knew it was toxic, and they just sat there and denied, denied, denied, denied.” The company itself, not Cabot leaders or employees, was charged. On Tuesday, Shapiro said even had they taken the company to trial and won, the maximum penalty would have been about $600,000, which he called “pocket change for such a company.” “I know people are frustrated because no CEO is led away in handcuffs,” he said. He called for a change in the law to have environmental polluters face stricter penalties. Legal experts say it’s very difficult and rare to hold individuals accountable for environmental crimes.”
Press release: Governor Newsom Convenes Special Session to Hold Oil Industry Accountable for Price Gouging, Keep Money in Californians’ Pockets
11/30/22
“As oil companies continue to evade questions about unexplained gas price increases, Governor Gavin Newsom today convened a special session of the California Legislature on December 5 to pass a price gouging penalty on oil companies that will keep money in Californians’ pockets. The Governor’s action comes on the heels of a state hearing yesterday – which five major oil refiners refused to attend – to investigate this fall’s unprecedented spike in gasoline prices. This spike in gasoline prices resulted in record refiner profits of $63 billion in just 90 days, disproportionately affecting low- and middle-income families. “Big oil is ripping Californians off, and the deafening silence from the industry yesterday is the latest proof that a price gouging penalty is needed to hold them accountable for profiteering at the expense of California families,” said Governor Newsom. “I’m calling a special session of the Legislature to do just that, and to increase transparency on pricing and protect Californians from outrageous price spikes in the future.” “...During the special session, the Legislature will also consider efforts to empower state agencies to more closely review gas costs, profits and pricing as well provide the state with greater regulatory oversight of the refining, distribution and retailing segments of the gasoline market in California.”
InsideClimate News: Petition Circulators Are Telling California Voters that a Ballot Measure Would Ban New Oil and Gas Wells Near Homes. In Fact, It Would Do the Opposite
Liza Gross, 11/30/22
“Beth Harvey had just finished grocery shopping when someone asked her to sign a petition outside a Trader Joe’s in an affluent Oakland neighborhood. The petition would keep oil companies from drilling near homes, schools and other sensitive sites, the canvasser told her,” InsideClimate News reports. “...Harvey, an outpatient case manager at a children’s mental health clinic, thinks others who signed the petition in this progressive Oakland community probably thought it would prevent neighborhood oil drilling too. “Rockridge isn’t really known for its pro-oil stance,” she deadpanned. That may be why the signature gatherer told Harvey that the petition would protect people from oil drilling when in fact it aimed to do the opposite: overturn a recently enacted law boosting health and safety regulations on neighborhood oil and gas drilling. The landmark law, Senate Bill 1137, banned new oil and gas wells within 3,200 feet of places people live, work and play. Gov. Gavin Newsom signed the law, which also tightens oversight of existing operations, on Sept. 16, a Friday. By the following Monday, an oil industry representative had filed a referendum to overturn SB 1137, which is scheduled to go into effect on Jan. 1. Sponsors of the referendum have until Dec. 15 to collect nearly 625,000 signatures to get the measure on the 2024 ballot. But they won’t have to wait for Californians to vote. Simply qualifying for the ballot freezes enforcement of the law creating buffer zones, buying oil companies almost two full years to expand or continue drilling in those areas. Galvanized by that prospect, 16 oil companies have spent more than $17.9 million since mid-October to support the referendum, according to the nonpartisan Fair Political Practices Commission… “None of the companies responded to questions about why they are backing a measure to overturn the creation of buffer zones around neighborhood drilling operations… “Reports of petition circulators’ misleading voters about what the referendum would do have been surfacing across the state, Kobi Naseck, coordinator for VISIÓN (Voices in Solidarity Against Oil in Neighborhoods), a coalition of public health and environmental justice groups working to protect communities from backyard drilling, told ICN. “The behavior that we’re seeing from these signature gatherers undermines our democracy,” Naseck told ICN. “Big Oil is paying people to lie to the general public. They’re effectively buying the policy they want.”
E&E News: Climate on trial: Montana youth take on state energy policy
Lesley Clark, 12/1/22
“Mica Kantor was just 4 years old when he began to worry about the future of the world’s glaciers. A documentary had him tearing up at the climate-change-fueled retreat of the icy masses,” E&E News reports. “Growing up in the state that’s home to Glacier National Park, Mica participated in climate strikes at his school. He said he mailed letters to elected officials in Montana, “telling them how much climate change meant to me and hoping they would reevaluate their positions.” He got a few replies — each automated: “Thanks for your concern, we appreciate your feedback.” So when his mother told him and his sister in 2020 that Our Children’s Trust, an Oregon-based law firm, was planning to sue Montana’s government for failing to protect the environment for kids like him, he was all in… “His course of action was to join a lawsuit that is poised to be the first youth climate challenge to go to trial before a judge in the United States. Held v. Montana, the 2020 lawsuit filed on behalf of 16 young Montanans, is scheduled to be heard at the 1st Judicial District Court in Helena for two weeks in June 2023… “Our Children’s Trust is pursuing several lawsuits on behalf of children and teens across the country who accuse governments of contributing to climate change. But the law shop may have one of its best shots at success in Montana because it is one of only six states that explicitly recognizes a right to a clean environment. Courts in other states and at the federal level have been skeptical of the lawsuits, including the firm’s most high-profile case, Juliana v. United States, which was filed in 2015 during the Obama administration. Both Republican and Democratic administrations have opposed the Juliana lawsuit, which calls on federal officials to phase out fossil fuels, and the 9th U.S. Circuit Court of Appeals in 2020 dismissed the young challengers’ claims — finding that the case raised questions for the “political branches” of government, rather than the courts… “The Montana lawsuit, however, has an unusual hook for a U.S. challenge: The state constitution, which turned 50 this year, lists the right to a “clean and healthful environment” as the first of one of a half-dozen inalienable rights. Mica and other young challengers argue that Montana lawmakers have failed to fulfill that promise — and have in fact passed legislation that degrades the environment.”
KPRC: Oil spill coats Louisiana canal in 3,500 gallons of used lubricant from Houston-based company, Coast Guard says
11/30/22
“The Coast Guard said Wednesday morning it is monitoring the response to an oil spill in the vicinity of Calcasieu Point Landing near Lake Charles, Louisiana,” KPRC reports. “...The Coast Guard said pollution responders were dispatched to the location alongside representatives from the Louisiana Department of Wildlife and Fisheries, the Calcasieu Parish Sheriff’s Office Marine Division, the Louisiana Department of Environmental Quality, and the Lake Charles Fire Department. On-scene investigators learned the discharge escaped from the secondary containment at Martin Energy Services. The Coast Guard said Martin Energy Services personnel secured the source of the spill and estimated that approximately 3,500 gallons of used lubricant oil entered the water. Martin Energy Services is a Houston-based company, based on internet searches and its website. The oil spill response organization hired by Martin Energy Services, OMI Environmental Solutions, placed over 2,000 feet of boom and contained the oil spill along the banks of the Lake Charles Industrial Canal. LDWF personnel rescued seven oiled pelicans from the site of the spill. Environmental assessments are still ongoing.”
EXTRACTION
Reuters: Alberta Premier Danielle Smith seeks more sovereignty from Canada in new bill
Nia Williams, 11/29/22
“The government of Canada's main oil-producing province Alberta introduced proposed legislation on Tuesday to resist federal laws it deems harmful to Alberta, fulfilling a controversial promise from new Premier Danielle Smith,” Reuters reports. “If passed, the bill, known as the Alberta Sovereignty Within a United Canada Act, would give the province a legislative framework to defend its jurisdiction in areas such as natural resources, gun control, and health and education. It would also enable Alberta to refuse to enact federal laws that are "unconstitutional or harmful" to the province, the government said in a statement… “Alberta has long had a strained relationship with Prime Minister Justin Trudeau's Liberal government in Ottawa, stemming from a sense that the federal government's climate polices are damaging Canada's oil and gas industry. Smith highlighted federal government plans to cut carbon emissions from fertilizer and oil and gas sector as two examples of climate policies that would be "very problematic" for Alberta… “Alberta's First Nations, which are semi-autonomous indigenous groups who exercise some control over their own lands, issued a joint statement condemning the proposed act. The government said nothing in the proposed act undermines any existing treaties with First Nations, but the Confederacy of Treaty Six First Nations reiterated its opposition in a statement to the proposed act on Tuesday, calling it "self-centred" and "short-sighted" .
Financial Post: CNRL sets new emissions target alongside pledge to boost shareholder returns
Meghan Potkins, 11/30/22
“Canadian Natural Resources Ltd. pledged to reduce greenhouse gas emissions by 40 per cent from 2020 levels by 2035, a new and relatively ambitious target aimed at convincing investors and regulators that the oilsands major is taking climate change seriously,” the Financial Post reports. “President Tim McKay paired the new emissions target with a carrot for shareholders: the Calgary-based company pledged to return 80 to 100 per cent of free cash flow to shareholders once it reaches net debt of $8 billion, a milestone that CNRL could reach as soon as the end of next year. The latter announcement means Canadian Natural has joined peers Cenovus Energy Inc., MEG Energy Corp. and Suncor Energy Inc. in promising to allocate 100 per cent of free cash flow to shareholders based on the achievement of debt targets, continuing a trend which is expected to enrich investors and executives while curbing investment in upstream production and potentially slowing promised investment in emissions abatement projects. McKay boasted Nov. 30 that the company is the largest owner of carbon capture capacity in Canada, and argued that the Canadian oilsands “should be an investment priority” when it comes to environmental, social and governance (ESG) issues… “Canadian producers have been working to counteract the sector’s track record for producing some of the most carbon intensive crude in the world. A consortium of oilsands companies that includes Canadian Natural, known as the Pathways Alliance, has pledged to spend more than $24 billion on decarbonization projects in a bid to reach net zero by 2050. While the sector has welcomed Ottawa’s previously announced investment tax credit for 50 per cent of capital expenses for carbon capture projects, it has pushed for further assurances around carbon pricing and a response to generous new U.S. tax credits, which are expected to cover nearly two-thirds of a project’s total capital and operating costs.”
CLIMATE FINANCE
Responsible Investor: Sustainability advocates step up fight against anti-ESG after US midterms
Gina Gambetta, 11/30/22
“US treasurers, attorneys general and investor initiatives are ramping up their efforts to push back against anti-ESG policymakers and associations across the country,” Responsible Investor reports. “Until this summer, Democratic politicians had largely avoided confronting Republicans on their increasing crackdown on ESG investing. In recent months, however, they have joined investors and industry networks in engaging in the debate and fighting back. Dave Wallack, executive director of For the Long Term (FTLT), a non-profit that aims to “help public Treasurers leverage the power of their offices to deliver sustainable long-term growth”, told RI the narrative put forward by ESG’s opponents “about elites manipulating companies only works when talking about it in the abstract”. “The kryptonite that we will use against this anti-ESG push is mundane stories about how ESG data is being used by companies in a way that creates value for investor. When we look at specific examples of companies and their actions, this narrative falls apart… It is easy to get caught up in conspiracy theories in the abstract, but in reality, there is no conspiracy – only companies being very responsive to their customers and their employees in pursuit of profit.” Josh Zinner, CEO of ICCR, agreed. “The problem is, few people outside of the investment space know what ESG is, so the challenge is explaining to people that ESG is an investment framework to understand long-term risk. It’s not this wild conspiracy,” Zinner told RI. And New York City comptroller Brad Lander told RI: “Partisan attacks on ESG investing risk locking red states into investing only in the economy of the past, limiting the opportunities to invest in new technologies and mitigate future risks. Elected officials have a responsibility to put partisan politics aside and enable fiduciaries to make investment decisions in the best interests of beneficiaries and residents, and the broader economy.”
The Energy Mix: Two More Reinsurers Nix Coverage for East Africa Pipeline Megaproject
Christopher Bonasia, 12/1/22
“Two more reinsurers have joined the slew of companies refusing to provide coverage to a proposed US$5-billion crude oil pipeline in East Africa that campaigners say would be disastrous for the climate and to its host countries,” The Energy Mix reports. “Arch Capital Group Ltd and AEGIS London have joined 19 other reinsurers declaring they’ll steer clear the East African Crude Oil Pipeline (EACOP), a 1,443-kilometre project proposed in Uganda and Tanzania. This latest refusal threatens its viability, since Ugandan law requires that the project secure international coverage, Nexus Media reports. AEGIS said it is withholding insurance because EACOP does not align with its environmental, social, and governance (ESG) policy. Arch’s decision followed international pressure to reject the pipeline—after campaigners spent months exposing its climate, environmental, and social risks, and human rights violations. Arch’s announcement came days after activist organization Money Rebellion spilled fake oil outside its London offices, reports Reinsurance News… “The world’s four largest reinsurance companies—Munich Re, Swiss Re, Hannover Re, and SCOR—have all refused to cover EACOP. Days before the Arch and AEGIS announcements, East Africa-focused financial services provider Britam Holdings also backed away from the project, citing an internal environmental and social risk evaluation that showed the pipeline “violated its backers’ policies and performance standards,” reports The EastAfrican.
OPINION
Forbes: Peak Oil: The Perennial Prophecy That Went Wrong
Ariel Cohen is a Senior Fellow at the Atlantic Council and the Founding Principal of International Market Analysis, a Washington, D.C.-based global risk advisory boutique, 11/30/22
“Peak oil, a hypothetical point when global oil production maximizes and enters an irreversible decline, has been the holy grail of resource economics for decades: prized and just as elusive,” Ariel Cohen writes for Forbes. “Recently, technological development including increased digitization has altered conventional understandings associated with “peak oil”. Like other consumable resources, peak oil is grounded in reality: Oil is a finite natural resource produced over a geological timespan whereas demand continues to climb. However, peak oil could also become a self-fulfilling prophecy, inadvertently misinforming the public… “Nobody can quite agree on when we will reach the point of Peak Oil or even what will cause it. Norwegian state-owned oil company Equinor and energy researcher Rystad Energy predict a peak around 2028 owing to low investments in oil supply and increasingly efficient competition from renewable energy projects. McKinsey Consulting and French oil and gas company TotalEnergies, estimate peak oil in the early and mid-2030s respectively due to slow growth in the chemical industries as well as peak transport demand. A recent OPEC outlook report estimated steadily increasing demand, which would result in peak oil in approximately 2040. The International Energy Agency and U.S. Energy Information Agency foresee oil demand “plateauing” and recommend immediately exploring alternatives to sustain energy needs. According to BP’s outlook, international oil demand may double as the developing world buys more ICE cars and builds Western-style consumer societies, and peak oil not hit until 2050 based on known oil resources with the application of today’s technology. Extremely knowledgeable professionals cannot agree on the basic mechanisms or timing of peak oil… “As we search for the prophecy’s vindication, the voters’ values and the regulatory environment will continue to change, so basing environmental or energy planning on the existence or lack thereof of this magical inflection point is bad policy. The energy transition will happen when the alternatives to hydrocarbons can outcompete it.”