EXTRACTED: Daily News Clips 12/14/22
PIPELINE NEWS
Financial Post: TC Energy's troubles mount as Keystone spill remains unexplained after five days
Reuters: Keystone oil spill cleanup expected to last weeks -officials
ABC News: Keystone Pipeline Kansas leak is latest in series of accidents since 2010
U.S. EPA: NEWS UPDATE #4: TC Energy Pipeline Rupture and Oil Discharge Near Washington, Kansas
Reuters: Explainer: Oil storage situation in Canada and U.S. after Keystone spill
Reuters: Jefferies sees minimal impact of Keystone pipeline shutdown on Canadian producers
Bloomberg: FERC to Weigh Need for Spire STL Pipeline After Court Rejection
Daily Nonpareil: Pipeline companies, opponents argue over requiring safety materials
Cedar Rapids Gazette: Linn Supervisors vote ‘yes’ on first carbon pipeline setback reading
Terrace Standard: Five Coastal GasLink pipeline opponents sentenced for criminal contempt
WKU Public Radio: Environmentalists protest outside LG&E headquarters to halt Bullitt County pipeline
New England Public Media: Natural gas project including pipeline between Springfield, Longmeadow up for public comment
WASHINGTON UPDATES
E&E News: Senate to vote on Manchin’s permitting overhaul
E&E News: House Dems hold out hope for environmental justice vote
E&E News: DOE releases record funding for removing carbon
E&E News: Oil And Gas Bills Address Methane, Orphan Wells, Taxes
STATE UPDATES
Herald & Review: Officials share why Decatur is prime location for carbon sequestration projects
Energy News Network: Ohio’s ‘Frackgate’ controversy predicted backlash to drilling under state parks
Denver Gazette: Xcel's natural gas line upgrade in Denver Highlands area can proceed despite objections
Los Angeles Business Journal: Oil Ban Spurs Loud Protests
EXTRACTION
Reuters: Countries try to weaken EU clampdown on methane emissions -documents
CLIMATE FINANCE
Reuters: HSBC to stop funding new oil and gas fields as part of policy overhaul
Energy News Network: Ohio ‘green’ natural gas bill motivated by ESG investing concerns, lawmaker says
OPINION
Niskanen Center: If FERC approves yet another pipeline that no one needs, it’s bad for everyone.
PIPELINE NEWS
Financial Post: TC Energy's troubles mount as Keystone spill remains unexplained after five days
Meghan Potkins, 12/13/22
“More than five days after TC Energy Corp. shut down its Keystone pipeline to the United States, the company still hasn’t said what caused the 14,000-barrel spill into a Kansas creek on Dec. 7, nor has it said when oil might resume flowing,” the Financial Post reports. “...The halt to flows on the pipeline, which typically transports more than 600,000 barrels per day of crude oil between Hardisty, Alta. and refineries in the U.S. midwest and Gulf Coast, likely will result in a rapid increase in inventories of crude oil in Western Canada, and, depending on the duration of the outage, could drive Canadian crude prices lower, according to analysts… “Experts have compared the latest incident to Keystone’s spill in the fall of 2019, which was smaller in size and still resulted in the pipeline being shut down for nearly two weeks, prompting a massive surge in crude inventories in Western Canada… “The disruption to Keystone’s operations comes at a difficult time for TC Energy. The Canadian pipeline giant announced last month its intention to sell $5 billion in assets next year and was rumoured to be looking at selling Keystone. The company has also faced investor scrutiny over the rising costs associated with construction of its embattled Coastal GasLink pipeline to Canada’s west coast… “This latest incident is unlikely to improve public perceptions of pipelines, Johnston told the Post. “Keystone, of all pipelines, because of Keystone XL, has this infamous character to it,” Johnston told the Post. “I think you’ve seen plenty of people saying, ‘Oh yeah, wasn’t this the pipeline that we were supposed to expand and was going to be really safe?’ “It’s certainly not doing any favours for an industry that’s hoping to increase their perceived safety and kind of social licence for other projects, because, again, we’re probably going to need additional pipeline sometime.”
Reuters: Keystone oil spill cleanup expected to last weeks -officials
Rod Nickel and Arathy Somasekhar, 12/13/22
“Cleanup of the biggest U.S. oil spill in nearly a decade will take at least weeks more, local officials in Kansas said on Tuesday, citing a recent meeting with Keystone pipeline owner TC Energy Corp,” Reuters reports. “There is still no official timeline for a restart of the key Canada-U.S. pipeline, which was closed after the spill of roughly 14,000 barrels of crude was discovered on Wednesday in Washington County in Kansas… "They told us they expected to be here for several more weeks," Randy Hubbard, Washington County's emergency management coordinator, told Reuters. "They didn't qualify what that is." The U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) told Reuters TC Energy is yet to submit a restart plan. The affected segment of the line cannot resume operation until regulators approve a restart plan in its entirety, according to a U.S. Department of Transportation document.”
ABC News: Keystone Pipeline Kansas leak is latest in series of accidents since 2010
Bill Hutchinson, 12/13/22
“As investigators in Kansas seek to determine what caused the worst leak in the 12-year history of the Keystone Pipeline, a federal report released last year showed the crude oil conduit recorded 22 accidents between 2010 and 2020 and found the severity of spills has "worsened" in recent years,” ABC News reports. “The report conducted by the U.S. Government Accountability Office showed the previous incidents leaked a total of 11,975 barrels of crude oil, or a little over 500,000 gallons. Combined with last week's incident in Kansas, the pipeline has spilled a little over 1 million gallons of oil in a dozen years, enough to fill one-and-a-half Olympic-size swimming pools… “The government accountability report indicates the Kansas spill is not only bigger than all the pipeline's previous leaks combined, but it's also more than twice as big as the second largest accidental spill to happen on the pipeline, a November 2017 leak near Amherst, South Dakota… “Twelve of the 22 Keystone Pipeline leaks between 2010 and 2020 released fewer than two barrels oil into the environment. But four others released more than 50 barrels each and six met the federal government's criteria for accidents "impacting people and environment," according to the Government Accountability Office. The report found that since 2011, leaks on the Keystone Pipeline have gotten bigger… “The report found that four of the biggest Keystone Pipeline oil spills were caused by issues related to the original design, manufacturing of the pipe or construction of the pipeline. In a statement to ABC News on Tuesday, TC Energy responded to the report, saying, "We take every incident very seriously. No incident is ever acceptable to us."
U.S. EPA: NEWS UPDATE #4: TC Energy Pipeline Rupture and Oil Discharge Near Washington, Kansas
12/13/22
“EPA Region 7 on-scene coordinators (OSCs) and an EPA public information officer (PIO) are on-scene at the pipeline rupture and oil discharge near Washington, Kansas. EPA OSCs are monitoring the cleanup activities being performed by TC Energy, and the EPA PIO is working with TC Energy PIOs to ensure that the public remains informed of all actions taking place at the scene. Since EPA’s third news update on Friday, Dec. 9, TC Energy crews have built a second earthen underflow dam to provide structural relief to the earthen underflow dam that was constructed last week. No additional oil impacts or oil migrations have occurred since the last EPA news update. Approximately 317 personnel are on-scene from EPA, TC Energy, and other state and local agencies. Response crews have recovered 2,163 barrels of oil-water mixture from Mill Creek, with 435 barrels of oil recovered directly from the ruptured pipeline. That’s a total of 2,598 barrels recovered from the scene.”
Reuters: Explainer: Oil storage situation in Canada and U.S. after Keystone spill
Nia Williams and Arathy Somasekhar, 12/13/22
“Six days after TC Energy's Keystone pipeline shut following a 14,000-barrel spill into a creek in Kansas, traders are questioning whether there is enough oil in storage in key areas if the pipeline remains closed for a number of weeks,” Reuters reports. “...Following a previous Keystone leak in 2019, which triggered a 13-day shutdown, inventories climbed by 13.6 million barrels over five weeks. The spare capacity on hand this time suggests Canadian storage hubs have ample space for any barrels stranded in Alberta… “Crude oil stocks at the Gulf Coast stood at about 226.5 million barrels, the lowest in more than eight months, according to data from the U.S. Energy Information Administration. Weekly Gulf Coast gross input into refineries stood at 9.4 million barrels per day. However, analysts were not worried about inventory. "The Gulf Coast is reasonably well supplied. I don't think that there is any sort of significant panic in terms of lack of heavy (crude) in the Gulf Coast, particularly given that we could pull more Colombian as well Latin American barrels into the Gulf," Michael Tran, an analyst at RBC Capital Markets, told Reuters. Prices of U.S. sour crude oil grades strengthened slightly on Monday, as refiners sought alternatives to Canadian barrels. Mars Sour WTC-MRS firmed 10 cents to a discount of $5.60 to U.S. crude futures, while West Texas Sour also strengthened 35 cents to a $1.15 discount. Inventories at the U.S. crude storage hub in Cushing, Oklahoma, totaled 28.3 million, according to Wood Mackenzie data for the week ending Dec. 9… “Numerous refineries in the U.S. Midwest usually pull barrels from the storage hub, but the price at Cushing has not moved much because traders expect part of Keystone to reopen soon. The leak occurred just south of a key junction in Steele City, Nebraska, where Keystone splits into two legs. The leg that flows to Patoka, Illinois, could be reopened as it was not affected, Dylan White, an analyst at Wood Mackenzie, told Reuters. So far, TC has not commented on a partial restart of the Patoka leg.”
Reuters: Jefferies sees minimal impact of Keystone pipeline shutdown on Canadian producers
12/12/22
“Jefferies says TC Energy’s Keystone pipeline shutdown following a spill in Kansas creek to have a relatively minor impact on its coverage,” Reuters reports. “Assuming shutdown for two weeks (for no other reason than precedent), crude sales in Q4 for Cenovus Energy, Canadian Natural Resources and Suncor Energy will be affected only by an estimated ~2.2%, ~0.2% and ~1.5%, respectively. Says production shouldn’t be impacted given excess storage regionally. The ~622,000-barrels-per-day pipeline was shut down after more than 14,000 barrels of crude oil spilled into a creek in Kansas, making it one of the largest crude spills in the United States in nearly a decade. TRP says it has not yet determined the cause of the leak and did not give a timeline as to when the pipeline will resume operation.”
Bloomberg: FERC to Weigh Need for Spire STL Pipeline After Court Rejection
12/14/22
“After more than a year of uncertainty, the Spire STL Pipeline is scheduled to hear from U.S. energy regulators Thursday on how to justify the litigated natural gas project,” Bloomberg reports. “The Federal Energy Regulatory Commission’s response this week could signal how it will approach natural gas reviews more broadly. The 65-mile natural gas pipeline, connected to Illinois’ Rockies Express Pipeline and various points east in Missouri, has been operating under an emergency temporary certificate after FERC’s 2018 authorization was vacated and remanded in August 2021. Energy analysts are “curious to see how the commission plans to explain what we expect is likely to be a decision to leave the asset in place,” ClearView Energy Partners, an independent research firm in Washington, wrote in a note to clients. The group added it was unclear whether the commission would modify rates paid by Spire Missouri. The U.S. Court of Appeals for the District of Columbia Circuit sided with the Environmental Defense Fund in ruling that the commission failed to adequately assess the economic need for the project… “The company has argued its pipeline provides lower bills and better reliability to some 650,000 utility customers and that shutting the pipeline down would have devastating effects. But the Environmental Defense Fund said FERC has not yet fulfilled the court-mandated obligation to conduct a “transparent and rigorous review” of the Spire pipeline it recommended in its comments earlier this year. “FERC should thus not take any final action on the Spire STL pipeline without offering landowners, ratepayers, and other stakeholders an opportunity to comment and offer evidence,” Ted Kelly, a senior attorney for EDF, told Bloomberg.
Daily Nonpareil: Pipeline companies, opponents argue over requiring safety materials
Caleb McCullough, 12/13/22
“An Iowa board should be barred from requiring safety-related documents from a company seeking to build a CO2 pipeline in the state, a lawyer for Summit Carbon Solutions argued Tuesday,” the Daily Nonpareil reports. “Summit, as well as representatives for pipeline companies Wolf Carbon Solutions and Navigator CO2 ventures, argued the materials, which the Iowa Utilities Board requested in July, were preempted by federal law… “The request for the documents came initially from the Office of the Consumer Advocate, a division of the Iowa Attorney General’s office. The arguments on Tuesday hinged on whether the information requested by the board constituted a safety standard, which federal law vests with the PHMSA, not states… “Anna Ryon, an attorney with the Office of the Consumer Advocate, said during oral arguments the office is not asking the board to make a safety determination. She argued, instead, that the documents would be relevant to making decisions about routing and siting. “The board can look at safety information for purposes other than imposing safety requirements,” Ryon said. Ryon argued the information would also give interested parties — counties, cities, landowners — a better understanding of the risks associated with having pipelines in their vicinity… “Safety concerns are one of the animating factors behind opposition to CO2 pipelines among some Iowa activists and landowners. Opponents of the pipelines point to a burst of a pipeline near Satartia, Mississippi, in 2020, as an example of the potential safety risks. No one died in that incident, but dozens were sickened and needed medical attention. Jessica Mazour, the conservation program coordinator with the Iowa chapter of the Sierra Club, said during public comment at the board’s Tuesday meeting that the board should require as much safety information as possible. “We deserve to be able to be safe in our homes, on the road, in our schools, in our workplaces,” she said. “We shouldn’t have to worry if there’s a pipeline nearby that’s going to kill us, going to harm our communities.”
Cedar Rapids Gazette: Linn Supervisors vote ‘yes’ on first carbon pipeline setback reading
Gage Miskimen, 12/12/22
“The Linn County Board of Supervisors voted 2-1 Monday to approve the first reading of an ordinance that would stipulate how close a carbon pipeline could be built to certain locations,” the Cedar Rapids Gazette reports. “The vote came after multiple residents voiced their concerns about the ordinance — specifically its allowance for setback waivers… “The ordinance proposes two setback standards: one for areas of public assembly and one for dwellings. The setback for public areas such as schools, hospitals and parks mandates the pipeline be a distance of 155.8 feet times the pipeline’s diameter. That would equal about 2,500 feet — a little less than half a mile — for the 16-inch pipeline. The setback for dwellings would be 107.65 feet times the diameter of the pipeline, plus another 328 feet, equal to about 2,050 feet for a 16-inch pipeline. Linn County Planning and Development Director Charlie Nichols told the Gazette the proposed ordinance was written with Linn County residents’ safety in mind. “We are trying to find our space in this regulatory framework that we conditionally have not existed in but are trying to add safety measures for,” Nichols told the Gazette. The county can’t dictate where hazardous materials pipelines are built, but Nichols and the supervisors have said they believe setbacks from homes and public facilities are legal and would help protect residents… “About a dozen people participated in a public comment period during the board’s work session on Monday morning. Many said the current proposed ordinance doesn’t go far enough. They criticized the ordinance’s inclusion of a setback waiver… “Projects that have received approval from the Iowa Utilities Board shall have their required setback reduced to 300 feet provided the pipeline operator addresses why this setback reduction is necessary in their petition to the Iowa Utilities Board.” “...Cedar Rapids resident Patricia Booth said the setbacks, as written, are not enough. “You need to listen to us. You were elected to protect us,” Booth said. “A 300 setback waiver is not acceptable. This is our community. Please stand up and protect us.” “Don’t worry about getting sued,” Lisbon resident David Wiskus said. “You’re leaders. Lead. Give these other counties the strength to stand up and pass these ordinances. Don’t be intimidated or worry about money or people throwing things out. Let them throw it out and come back at them.” “...The supervisors are planning to meet in closed session on Tuesday afternoon before their second reading of the proposed ordinance on Wednesday at 11 a.m. The third and final reading is currently planned for Dec. 21.”
Terrace Standard: Five Coastal GasLink pipeline opponents sentenced for criminal contempt
THOM BARKER, 12/13/22
“For the first time since people began protesting against the Coastal GasLink (CGL) natural gas pipeline where the route passes through Wet’suwet’en territory near Houston, arrests have resulted in criminal convictions,” the Terrace Standard reports. “In the Supreme Court of B.C. Monday (Dec. 12) in Smithers, five people were sentenced for breaching a court injunction, three with $500 fines and two with 25 hours of community service. The sentences for Amanda Wong, Joshua Goskey, Nina Sylvestor, Layla Staats and Skyler Williams were the result of a joint submission by Crown and defence counsels following guilty pleas. The five were part of a larger group arrested in November 2021 when Mounties moved into the area along the Morice River and Marten forest service roads near Houston to enforce a court injunction by removing blockades and preventing pipeline workers from accessing the work site… “The sentencing of the five individuals Monday in Smithers, coincided with an announcement the same day that Crime Stoppers and the B.C. Independent Contractors and Businesses Association were putting up a $100,000 reward for information on the identities of approximately 20 individuals who allegedly attacked the CGL camp near Houston in February of this year… “The sentencing also coincided with the last day of four days of Wet’suwet’en and Gitxsan celebrations of the 25th anniversary of the landmark Delgamuukw-Gisday’wa Supreme Court of Canada decision. That ruling established that Indigenous rights to their traditional lands exist and are protected under the Constitution.”
WKU Public Radio: Environmentalists protest outside LG&E headquarters to halt Bullitt County pipeline
Ryan Van Velzer, 12/13/22
“Deborah Potts Novgorodoff donned a pair of sneakers, a warm jacket and a bat costume to urge Louisville Gas and Electric and Kentucky Utilities to stop the construction of a natural gas pipeline through conservation lands in Bullitt County,” WKU Public Radio reports. “On Friday, she and 21 other protesters attempted to hand deliver a letter to LG&E President John Crockett urging the utility to drop plans to condemn land owned by Bernheim Arboretum and Research Forest in an upcoming court case. “We weren’t too well received, but managed to hand it to a security guard who would only take it outside the lobby,” Potts Novgorodoff told WKU. Environmentalists, local homeowners and Bernheim have, for years, been fighting LG&E’s efforts to build a 12-mile-long pipeline that crosses through Bernheim’s Cedar Grove Wildlife Corridor. LG&E has long said the current pipeline in the area is at full capacity and a new one is necessary to meet growing demand and improve reliability in Bullitt County. The proposed route would remove nearly 40 acres of forest, cross at least six major waterways impacting wetlands, sinkholes and habitat for more than a half-dozen threatened or endangered species, according to an LG&E stormwater pollution prevention plan… “The letter to LG&E’s president outlines environmental, financial and climate-related reasons for dropping the condemnation proceedings and halting the pipeline. Potts Novgorodoff told WKU LG&E should be investing in renewable energy, not fossil fuel infrastructure, given the limited amount of time the planet has reached net-zero emissions and avoid the worst impacts of climate change… “LG&E vice president of communications and corporate responsibility Chris Whelan told WKU the utility understands that the construction of the pipeline is an “emotional issue,” but multiple federal agencies and courts have reviewed and approved of the project.”
New England Public Media: Natural gas project including pipeline between Springfield, Longmeadow up for public comment
Adam Frenier, 12/13/22
“A virtual public comment session is being held Wednesday evening on a natural gas project, which includes a new pipeline between Longmeadow and Springfield, Massachusetts,” New England Public Media reports. “The state's Energy Facilities Siting Board is reviewing the proposal by the utility company Eversource. It calls for a new gas delivery station in Longmeadow and the pipeline, which would run from that facility to another in Springfield. The company said the project is needed to back up an existing pipeline, which is more than 70 years old. Naia Tenerowicz is an organizer with the Springfield Climate Justice Coalition. She told NEPM the organization has many concerns about the project, including what the possible leak of chemicals from natural gas could do to the environment… “Eversource spokesperson Priscilla Ress told NEPM alternative sources of energy are not ready yet to handle the load if something were to happen to the current natural gas supply… “The siting board will also take written comments on the proposal through Jan. 2, but some have already been coming in. State Sen. Adam Gomez, of Springfield, wrote to the board to express his opposition. "I continue to remain opposed to the pipeline in which the Eversource Project would degrade air quality, increase the risk of fires and explosions in the community, contribute to detrimental climate change, and increase our reliance on fossil fuels," Gomez wrote. Officials in both Springfield and Longmeadow also called on Wednesday's hearing to be postponed until a later date, in order to await an environmental impact report on the project, and to find a date away from the holiday season. There was also a desire for more than one hearing, and for some to be held in person.”
WASHINGTON UPDATES
E&E News: Senate to vote on Manchin’s permitting overhaul
Nick Sobczyk, 12/13/22
“Sen. Joe Manchin will get a floor vote on his environmental permitting overhaul, Senate Majority Leader Chuck Schumer told reporters Tuesday,” E&E News reports. “It’s a move that will roil environmental groups, but the bill has a shaky outlook on the floor, with an unusual partnership of progressives and Republicans ready to oppose it. Manchin’s legislation will be considered as an amendment to the annual National Defense Authorization Act. It’s an attempt to uphold a bargain the West Virginia Democrat made with leadership to vote on his reform of permitting laws for energy projects in exchange for supporting the Inflation Reduction Act in August. “We’re gonna vote on that amendment. As you know, Republicans have blocked it in the House, even though permitting reform is something that they’ve always supported in the past,” Schumer (D-N.Y.) told E&E. “So I hope they’ll help us.” Some Senate Republicans have already said they would support Manchin’s bill, but others are maintaining their opposition. Sens. John Cornyn (R-Texas) and Jim Inhofe (R-Okla.), ranking member of the Armed Services Committee, both indicated Tuesday they would vote against the amendment… “Instead, Manchin unveiled a new version of his legislation last week that attempted to cater to Republican votes by, among other things, tossing out the transmission provision they had opposed. In doing so, he may have alienated climate hawks in his own party who argue that building massive amounts of new power lines is key to the energy transition… “If Manchin’s amendment fails, his last vehicle in the current Congress will be the omnibus, but House progressives are likely to keep up their opposition. “We’re still trying,” Manchin told E&E Tuesday when asked if he’d consider trying to get his bill tacked onto the omnibus. “Every vehicle’s a vehicle.”
E&E News: House Dems hold out hope for environmental justice vote
Emma Dumain, 12/14/22
“Despite some very steep odds, colleagues of the late-Rep. Don McEachin are not yet giving up on securing a vote in the waning days of the 117th Congress on historic environmental justice legislation intended to honor the memory of the Virginia Democrat who helped write it,” E&E News reports. “This is our time to do it,” Rep. Nanette Diaz Barragán (D-Calif.) told E&E yesterday, confirming there is “still interest and a possibility” of holding the vote on the bill by the year’s end… “Whether proponents of H.R. 2021, the “Environmental Justice for All Act,” succeed will depend on practical considerations, like whether there’s time to put the bill on the floor during a packed legislative season with just days left in the session… “It would make major changes to the nation’s bedrock environmental laws and allow more intensive community input into the siting of fossil fuel projects. It also would vastly expand the power of polluted communities to reject projects that can spike local rates of cancer and respiratory disease and cause long-term pollution. A significant component of the bill deals with “cumulative impacts,” which would require permitting decisions under the Clean Water Act and Clean Air Act to account for the cumulative effects of harmful emissions on communities. The House Energy and Commerce Committee has legislative jurisdiction over those laws, and this is the portion of the “Environmental Justice for All Act” that has emerged as the thorniest, according to Grijalva. “We’ve been trying hard to work to accommodate the need to vote on [the] ‘Environmental Justice for All’ bill and rename it after Mr. McEachin as a very important acknowledgement of his work and the commitment that he had to frontline communities,” Grijalva told E&E News recently. “But that’s been problematic because of issues with the cumulative impact language.” “...Rep. Frank Pallone (D-N.J.), chair of the Energy and Commerce Committee, told E&E News on Tuesday he didn’t know where he or his members stood on the issue.”
E&E News: DOE releases record funding for removing carbon
Corbin Hiar, Carlos Anchondo, 12/14/22
“A high-stakes race that will shape the future of direct air capture technology has officially begun,” E&E News reports. “The Department of Energy fired the starting gun Tuesday with the release of guidelines the agency will follow when awarding $3.5 billion for four regional hubs that aim to rapidly scale up systems for removing carbon dioxide from the atmosphere. That prize money, which comes from the bipartisan infrastructure law of 2021, will be distributed over the next five years in two prize competitions. The infusion of cash comes as the direct air capture industry, or DAC, is still in its infancy. There are only 18 operating facilities worldwide that use fans, filters and pipes to suck carbon out of the air and pump it underground, where it’s supposed to be stored indefinitely. They are collectively capable of capturing less than 10,000 metric tons of CO2 per year, according to an April report from the International Energy Agency. “No matter how fast we decarbonize the nation’s economy, we must tackle the legacy pollution already in our atmosphere to avoid the worst effects of climate change,” Energy Secretary Jennifer Granholm said Tuesday in a press release… “The agency will begin by offering up to $1.2 billion to support credible DAC hub plans that could capture at least 1 million metric tons of CO2 annually, either from a single facility or interconnected units… “Each applicant could win matching funds ranging from $3 million for the earliest-stage efforts to $500 million for shovel-ready proposals… “Applicants should detail plans for maximizing the amount of CO2 storage relative to associated hydrocarbon extraction over the life of the project,” the agency said. Still, the announcement made clear that hub projects that include oil may have a difficult time obtaining funding… “Some environmentalists argued that government-funded DAC projects should not be connected to oil production. “To allow the oil companies to participate in this government-supported enterprise is stunning and disorienting when we’re listening to Biden and DOE officials talk about their climate goals,” John Noël, a senior climate campaigner with Greenpeace USA, told E&E.
E&E News: Oil And Gas Bills Address Methane, Orphan Wells, Taxes
Heather Richards, 12/13/22
“Two Democratic senators want EPA to launch a multiyear study of methane emissions in two of the country’s main oil and gas regions to get a true count of drilling’s greenhouse gas pollution,” E&E News reports. “Their proposal is one of several oil- and gas-related bills to surface in recent days, even though Congress is about to wrap up its lame-duck session. Sens. Jeff Merkley of Oregon and Sheldon Whitehouse of Rhode Island say the ‘Methane Emissions Research Act of 2022,’ S. 5214, would provide lawmakers data to support the country’s international climate commitments. Methane is a powerful greenhouse gas. ‘Existing oil and gas infrastructure is leaking a tremendous amount of methane into the environment, and we need to stop those leaks both to cut our pollution and to demonstrate bold climate leadership internationally,’ Merkley said in a statement.
STATE UPDATES
Herald & Review: Officials share why Decatur is prime location for carbon sequestration projects
Taylor Vidmar, 12/12/22
“Decatur could soon be home to a carbon dioxide pipeline pumping the liquified gas all the way from Cedar Rapids, Iowa,” the Herald & Review reports. “On Monday, some community members got the chance to learn about what that project could look like — and about why Decatur is coveted land for the process of carbon sequestration. “Decatur is, in the carbon capture and storage industry, a household name,” said Sallie Greenberg, a principal research scientist at the University of Illinois and the Illinois State Geological Survey. “Everybody knows the work that's been done here, and it's a model for what's being done around the world.” One of Archer Daniels Midland Co.'s carbon capture and storage injection and monitoring wells is located near Richland Community College in Decatur. Pipeline stretches from ADM to the college and carries carbon emitted through ADM's ethanol production thousands of feet underground… “What makes Decatur a great location for carbon storage is, plain and simple, the rocks,” Greenberg told the Herald & Review. Decatur’s geological make-up provides optimal ground for CCS, with an extra bonus in an effective sealant rock layer… “ADM’s current CCS wells store CO2 produced during the ethanol fermentation process at the company’s Decatur plant, Greenberg told the Herald & Review. But the newly proposed pipeline would necessitate the creation of multiple new wells that will be used to store carbon produced in Iowa and transported to Decatur… “Nick Noppinger, senior vice president of corporate development at Wolf Carbon Solutions, told the Herald & Review he could not share exact locations for where the new wells would be constructed and through where the pipeline would travel… “Wolf has not yet filed its plans with the Illinois Commerce Commission, but Noppinger told the Herald & Review the company has plans to do so by late January or early February. Further negotiations would begin at that point. Nicole Bateman, president of the Economic Development Corporation of Decatur and Macon County, told the Herald & Review the new pipeline could benefit businesses and create new jobs in the county.“
Energy News Network: Ohio’s ‘Frackgate’ controversy predicted backlash to drilling under state parks
Kathiann M. Kowalski, 12/12/22
“Barkcamp State Park is among the few places where visitors can experience Ohio’s forests as they existed before European settlement,” Energy News Network reports. ”Once the site of a historic logging camp, today it’s a destination for camping, fishing and other outdoor recreation. It’s also a place that could see new pressure for oil and gas development if Ohio lawmakers approve lame-duck legislation this month that would remove barriers to drilling under public lands. Neither supporters nor critics have singled out specific parks that could be of interest to the industry, but a planning document from a previous governor’s administration reveals at least three areas where oil and gas extraction might occur. They include Barkcamp, as well as Wolf Run State Park and Suncreek Fish State Forest. That document — a strategic communications plan developed by members of the Kasich administration and Ohio Department of Natural Resources in 2012 — ignited a political controversy known as Frackgate after it became public two years later. It also predicted the backlash that would be likely to follow any proposal to drill under state parks. “Vocal opponents of this initiative will react emotionally, communicate aggressively to the news media and online, and attempt to cast it as unprecedented and risky state policy,” the communication plan said. Ohio law for more than a decade has said an agency “may” lease land for oil and gas drilling. House Bill 507, which passed the Ohio Senate last week without any public testimony on its last-minute amendments, would change that to say the agency “shall” lease the land “in good faith.” “...Critics worry the new bill wording might not let agencies say no. “The language change from ‘may’ to ‘shall’ changes the very basis of the review process from leasing being permissive to being required. It takes it from ‘You can do this’ to ‘You have to do this,’” Neil Waggoner, who heads the Sierra Club’s Beyond Coal campaign in Ohio, told ENN. He and others also worry about oil and gas operations in state parks and forests.
Denver Gazette: Xcel's natural gas line upgrade in Denver Highlands area can proceed despite objections
SCOTT WEISER, 12/22/22
“The Colorado Public Utilities Commission dismissed objections to a proposed $27 million project to install larger natural gas main lines in Denver's Highlands neighborhood, giving Xcel Energy permission to install some 8,000 feet of new, 12-inch gas pipe there,” the Denver Gazette reports. “Xcel officials proposed the project to address problematic areas of the city where the existing pipelines can’t carry enough gas to meet the needs of customers. That problem raised the specter of rolling gas blackouts during extreme weather if capacity is not increased. The environmental group Southwest Energy Efficiency Project, along with the commission's own staff and the Office of the Utility Consumer Advocate all disagreed with Xcel’s solution to the problem for substantially the same reasons and filed objections. All three focused on the expansion of gas delivery capacity by the West Metro Gas Project as ignoring the requirements of Gov. Jared Polis’ Greenhouse Gas Reduction Roadmap. They argued that the project would increase, rather than decrease, consumption of natural gas. This, according to the filed objections, is the antithesis of what Polis and General Assembly have called for… “Xcel also sized the new pipeline so that it can accommodate replacing natural gas with green hydrogen sometime in the future, if that becomes a reality.”
Los Angeles Business Journal: Oil Ban Spurs Loud Protests
MARK R. MADLER, 12/22/22
“The head of one of the state’s petroleum associations said that oil producers would likely “have to defend their rights in court” over an ordinance passed this month by the Los Angeles City Council banning new wells and phasing out existing ones,” the Los Angeles Business Journal reports. “Rock Zierman, chief executive of the California Independent Petroleum Association, a Sacramento trade group for the oil industry, told the Journal that “eliminating the ability of any property owner from operating their duly permitted assets without compensation is a clear violation of the United States Constitution’s Fifth Amendment protection against the illegal taking of private property, especially given the city’s reliance on false science.” “It is highly likely companies will have to defend their rights in court,” Zierman told the Journal… “Any business in the city of L.A. should be interested in this because if they do this to oil, what will be the next industry that they do this policy to?” Jeff Cooper, vice president and co-owner of Cooper & Brain Inc., an oil and gas producer based in WilmingtonCooper, told the Journal… “The council, even in a state where it’s one-party rule, is just pandering to the NGOs (nongovernment organizations) and the most progressive part of their party, as opposed to thinking of how the economy actually works and the needs of society for the byproducts and the petrochemicals and everything else that come from oil and natural gas, in addition to gasoline and diesel,” he told the Journal… “The municipalities imposing the bans are considering a new concept for these phaseouts: amortization. Under this plan – which is designed to circumvent a constitutional ban on the taking of private property without fair market compensation – a local government can move to declare an economic activity noncompliant with zoning codes and then require a company to stop that economic activity once it has recouped its investment. The government is not obligated to make any additional payment to the company.”
EXTRACTION
Reuters: Countries try to weaken EU clampdown on methane emissions -documents
Kate Abnett, 12/12/22
“Some European Union countries are trying to weaken the bloc's planned law to cut methane emissions in the oil and gas sector, documents show, weeks after the EU pledged at the COP27 climate conference to do more to tackle the potent greenhouse gas,” Reuters reports. “...The European Commission last year proposed legislation to require oil and gas companies in Europe find and fix leaky infrastructure allowing methane to escape. Checks would be required every three months, starting six months after the regulation takes effect. But EU countries, who are negotiating the law, want to delay the first survey to 12 months, and then set different timelines – in some cases less frequent - for checking different types of infrastructure, according to their latest draft compromise, seen by Reuters. For example, compressor stations and liquefied natural gas terminals would be surveyed every six months, valve stations every 12 months and transmission pipelines every two years. Countries also want to exempt deep wells from a requirement to check inactive oil and gas wells for methane leaks, and to change a weekly requirement for inspecting gas flare stacks to a monthly one, the draft showed… “In one document, Hungary said the EU plan to immediately end routine gas flaring would represent a "cost and timing issue for the industry", and should be delayed to 2030… “A Romanian source told Reuters the country was working to draft measures "in line with our climate ambitions, technically feasible, while ensuring that the implementation calendar is realistic"... “Campaigners warned that weaker EU rules would dent the bloc's green credentials, noting Canada, Nigeria and others are advancing methane regulations that are, in some cases, more ambitious.”
CLIMATE FINANCE
Reuters: HSBC to stop funding new oil and gas fields as part of policy overhaul
Lawrence White and Simon Jessop, 12/14/22
“HSBC will stop funding new oil and gas fields and expect more information from energy clients over their plans to cut carbon emissions, the banking giant said on Wednesday, as part of a wider update of its sector policy,” Reuters reports. “Activist groups that have been critical of HSBC in recent years mostly hailed the move by one of the biggest lenders to energy companies in the world as a keenly awaited update that will drive companies towards a cleaner future. "HSBC's announcement sets a new minimum level of ambition for all banks committed to net-zero," Jeanne Martin, a campaigner at Share Action, told Reuters. HSBC is among the biggest banks to confirm it would not support oil and gas projects that received final approval after the end of 2021, a move the International Energy Agency has said is needed for the world to reach net-zero emissions by 2050. Others to have committed to this include Britain's biggest domestic bank Lloyds. HSBC said it would continue to finance energy companies at the corporate level to help them overhaul their businesses and drive development of cleaner energy sources, and would assess their strategic plans annually. Covering everything from biomass projects to hydrogen, nuclear and thermal coal, the policy was aimed at driving progress across regions with different energy systems, Celine Herweijer, HSBC's Chief Sustainability Officer, told Reuters.” “...Also on Wednesday, Barclays said it had increased its sustainable and transition finance target to $1 trillion by 2030 and would pump more of its own money into energy startups.”
Energy News Network: Ohio ‘green’ natural gas bill motivated by ESG investing concerns, lawmaker says
Kathiann M. Kowalski, 12/12/22
“The author of an Ohio amendment that would classify natural gas as “green energy” said he hopes the legislation can help companies meet ESG investing standards,” Energy News Network reports. “ESG refers to environmental, social and governance practices. ESG investing generally limits financing choices to companies or funds that meet certain criteria for those categories. The practice has been around for decades but recently has become a political boogeyman for conservatives who denounce it as “woke capitalism.” Ohio state Sen. Mark Romanchuck, a Republican from Ontario, told the Energy News Network he hopes having the “green energy” language in Ohio law might help large users of natural gas meet ESG standards. “I don’t know if it will work,” Romanchuk added. Romanchuk said he doesn’t think there is “anything magical” about using the word “green,” and there is uncertainty about its potential legal impact. Unlike an earlier version, the amendment to House Bill 507 specifically says it would not allow natural gas projects to qualify for renewable energy credits. That hasn’t quelled criticism from climate and clean energy advocates, who say the vague legislation — approved by the state Senate last Wednesday without any public testimony — could have wider implications for the way natural gas is marketed and regulated in the state. “In terms of how the ‘green energy’ amendment might impact regulatory decisions and investments, I think everyone is still trying to fully understand that,” said Neil Waggoner, who leads the Sierra Club’s Beyond Coal campaign in Ohio. The Senate moved “quickly and foolishly,” he said, in a way that prevented opponents from offering any testimony on the proposal. The Ohio Senate Agriculture and Natural Resources Committee last Tuesday tacked the proposal and other amendments onto an unrelated bill about rules for poultry farmers regarding baby chicks. Now, along with the “green energy” provision, the bill includes provisions that would require state agencies to open parks and other public lands to oil and gas drilling, plus other amendments.”
OPINION
Niskanen Center: If FERC approves yet another pipeline that no one needs, it’s bad for everyone.
KATHRYN SCHROEDER, JENNIFER DANIS, 12/13/22
“As the Federal Energy Regulatory Commission (FERC) closes out a year of approving every single fossil fuel project proposal that came before it, a troubling project waits on its desk and appears scheduled for vote this Thursday,” Kathryn Schroeder and Jennifer Danis write for the Niskanen Center. “Transco’s Regional Energy Access Expansion (Regional Access) project would build another gas pipeline purportedly designed to serve customers in Pennsylvania, Maryland, and–primarily–New Jersey. Yet New Jersey—via its Board of Public Utilities (BPU), which oversees gas utilities, and the New Jersey Rate Counsel, which protects ratepayers and the public interest— told FERC that the state does not need more gas capacity. What’s more, Maryland’s most populous county just enacted a gas ban and has the country’s most stringent GHG reduction law. Taking these facts into account, FERC should break from its 100 percent project approval this year and deny certification for the project, signaling its willingness to ask the right questions when faced with such proposals going forward. Why would a pipeline company invest money in building an unnecessary pipeline? The short answer is that building pipelines is hugely profitable for developers, as they can make a 14 percent return on equity (regardless of whether the pipeline is even needed). And for pipelines like Regional Access, where most shippers are state-regulated gas utilities, they recover 100 percent of the contract costs from their ratepayers. Utility shippers then profit from selling extra capacity on secondary markets to entities other than their rate-paying customers, enriching their shareholders at ratepayers’ expense… “If FERC continues its historical practices of approving almost any project before it, it will rubber-stamp Regional Access under the usual guise of deferring to private companies’ “business decisions.” But market demand (the existence of private contracts to purchase capacity) is not the same as public need (needing new capacity to fill a gap). To that end, New Jersey regulators found, via an independent expert analysis, that New Jersey utilities didn’t need new pipelines and submitted that analysis to FERC. A second report published by energy markets consulting firm Skipping Stone also concluded that Regional Access’ capacity is unnecessary… “As long as FERC turns a blind eye or hides behind a belief that private contracts are sufficient for establishing public need, none of this will change. Pipeline companies could apply to build infinite amounts of new capacity that is not even remotely needed. Without federal legislation or action by FERC, the situation in New Jersey could be replicated in other states, regardless of state gas needs or laws requiring GHG reductions. If FERC is indeed the “guardian of the public interest,” it should begin acting accordingly and use its last 2022 meeting to deny authorization for Regional Access.”