EXTRACTED: Daily News Clips 12/21/21
PIPELINE NEWS
Terrace Standard: Pipeline opposition group reoccupies Houston worksite a month after police action
Canadian Press: B.C. Mounties say they are monitoring protest against gas pipeline
Associated Press: Enbridge seeks federal jurisdiction in oil pipeline dispute
Associated Press: Intertribal agency faults Wisconsin review of Line 5 reroute
Bismarck Tribune: Standing Rock, Corps urge Supreme Court to reject Dakota Access appeal
WHO13: Branstad urges Iowans to support carbon pipeline proposed to run through 30 counties
Food & Water Watch: Company Issues Misleading Letter to Landowners Impacted by Dangerous Carbon Pipeline Proposal
Politico: LANDOWNERS CHALLENGE SPIRE CERTIFICATE
Law360: 1st Circ. Won't Revive Mass. Gas Facility Approval Row
Reuters: BP to buy out U.S. pipeline partnership in $723 mln deal
WASHINGTON UPDATES
E&E News: U.S. climate commitments abroad thrown into confusion
E&E News: DOE risks wasting ‘significant funds’ on CCS — audit
E&E News: With bill sidelined, what’s next for oil and gas overhaul?
Politico: CALIFORNIA OIL SPILL STILL UNDER THE MICROSCOPE
STATE UPDATES
Colorado Sun: First-in-the-U.S. rules that give oil and gas industry leeway in slashing emissions OK’d in Colorado
EXTRACTION
Wall Street Journal: U.S. Gas Exports Likely More Trickle Than Flood
OPINION
Marcellus Drilling News: “We Hate Pipelines” Rhetoric from FERC’s 3 Democrat Commissioners
PIPELINE NEWS
Terrace Standard: Pipeline opposition group reoccupies Houston worksite a month after police action
BINNY PAUL, 12/20/21
“Coastal GasLink (CGL) pipeline opponents are back at the site of a blockade near Houston in northwest B.C., a month after it was cleared by the RCMP on Nov. 19 and following the arrest of 29 people,” the Terrace Standard reports. “In a statement issued on Sunday morning (Dec. 19), the Wet’suwet’en Gidimt’en Checkpoint group, which is at the forefront of the opposition, announced they have once again evicted CGL workers from the key pipeline drill site near Wedzin Kwa (the Morice River). Last month, On Nov. 14, the group set up a blockade on the Morice Forest Service Road and established a resistance camp known as ‘Coyote Camp’ in an attempt to stop CGL from drilling under the river citing environmental and cultural concerns. Yesterday the group also announced they have “reoccupied” the “Coyote Camp,” after it was dismantled by the RCMP in a series of raids conducted between Nov. 17 and 19. “Coastal GasLink does not and will never have the consent of the Wet’suwet’en hereditary governance system and should expect that Wet’suwet’en law will prevail on our lands. No amount of state violence against us will make us forget our responsibility to protect the water for all future generations,” said Sleydo’ (Molly Wickam), spokesperson for the Gidimt’en Checkpoint. Last month, Sleydo’, a key leader in the pipeline opposition, was among those arrested on site by RCMP for violation of a B.C. Supreme Court injunction obtained by CGL. She and the others arrested were released on conditions on Nov. 23 and told by the court to not be within 75 metres of any CGL worksites. It is unclear as to whether Sleydo’ is back on site at the Coyote Camp.”
Canadian Press: B.C. Mounties say they are monitoring protest against gas pipeline
12/20/21
“The RCMP say they are investigating allegations that protesters threatened security officials, set off flares and damaged vehicles at a drill site for the Coastal GasLink pipeline in northern British Columbia,” the Canadian Press reports. “The Mounties say in a statement released Monday that officers were called to the site along a forest service road near Houston on Sunday. They say anyone blocking worker access to the area is in breach of a court-ordered injunction.”
Associated Press: Enbridge seeks federal jurisdiction in oil pipeline dispute
By John Flesher, 12/20/21
“Enbridge Energy moved Wednesday to shift to federal court a Michigan lawsuit seeking shutdown of an oil pipeline that runs beneath a channel linking two of the Great Lakes,” the Associated Press reports. “The Canadian company argued a 2019 lawsuit filed in a state court by Attorney General Dana Nessel should be heard by U.S. District Judge Janet Neff, who last month retained jurisdiction over a separate case initiated by the state of Michigan to halt the flow of oil through Enbridge’s Line 5. “We are hopeful that the attorney general will agree that it makes sense for her case and the Enbridge case to be decided by the federal court rather than risk duplicative litigation and inconsistent results,” spokesman Ryan Duffy told AP. But Nessel told AP the “outrageous maneuver” violates a federal rule that moving cases from one court to another must be done within 30 days of the initial filing. “We will address this flagrant attempt to undermine that process in court and remain fervently committed to our belief that the fate of Michigan’s greatest natural resources should be determined in a Michigan court,” Nessel told AP.
Associated Press: Intertribal agency faults Wisconsin review of Line 5 reroute
12/20/21
“An intertribal agency says Wisconsin’s draft environmental review for a reroute of an oil and gas pipeline is incomplete and flawed,” the Associated Press reports. “The Wisconsin Department of Natural Resources released its draft environmental impact statement last week for a roughly 40-mile reroute of Enbridge’s Line 5 in Ashland and Iron counties… “Enbridge is seeking to move the pipeline after the Bad River Band of Lake Superior Chippewa sued the company in 2019 to remove it from their reservation. Wisconsin Public Radio reports that the Great Lakes Indian Fish and Wildlife Commission told the DNR that the state’s review has significant gaps in information.”
Bismarck Tribune: Standing Rock, Corps urge Supreme Court to reject Dakota Access appeal
AMY R. SISK, 12/17/21
“The Standing Rock Sioux Tribe and a federal agency are urging the U.S. Supreme Court to reject an appeal of the five-year-old lawsuit over the Dakota Access Pipeline,” the Bismarck Tribune reports. “The project developer in the appeal seeks to have the high court reinstate a federal permit for the line’s Missouri River crossing. The justices are expected to decide early next year whether to take up the case. The appeal follows a January ruling by the U.S. Court of Appeals for the D.C. Circuit affirming part of a lower court order that revoked the permit and required a new environmental review of the pipeline… “The tribes argued that the justices should decline the pipeline developer’s petition to hear the case because appeals courts are not split on the issues surrounding the dispute. Disagreement among lower courts can prompt the Supreme Court to weigh in on an issue. The tribes say the D.C. Circuit judges applied a “conventional” review of the U.S. Army Corps of Engineers' permitting decisions and “found no abuse of discretion” in the lower court’s order revoking the permit… “The Corps on Friday joined Standing Rock in opposing Dakota Access's appeal. The agency said a question at the heart of the dispute -- whether federal law obligates the agency to prepare a more thorough environmental review -- "will lack any substantial importance after the Corps in fact prepares one." “...If the Supreme Court allows the D.C. Circuit's ruling on the case to stand, it "would establish a novel precedent of breathtaking scope that could delay or thwart any number of other national infrastructure projects," lawyers for Dakota Access wrote at the time.
WHO13: Branstad urges Iowans to support carbon pipeline proposed to run through 30 counties
12/19//21
“Some Iowans in nearly a third of the state’s counties are getting a letter signed by former Gov. Terry Branstad asking them to support a new pipeline that would run underneath their property. Branstad is working in support of Ames-based Summit Carbon Solutions,” WHO13 reports. “...Branstad signed off on the letter to Iowans impacted by the proposed pipeline’s path through their property. The letter warns that as a landowner they may become a target of the Sierra Club, an environmental group opposed to carbon sequestration pipelines. The letter says the Sierra Club could be “making wild claims about the pipeline and encouraging you to oppose it.” “Please don’t be intimidated,” the letter adds, “They are not your friends and will be long gone after they have destroyed the ethanol industry and the value of your corn-producing land.” The Sierra Club urges people to oppose the two pipelines that could go through Iowa. The group called this pipeline concept a “false climate solution.” The Sierra Club contends that it’s just a way to extend the life of oil, ethanol and coal industries. It prefers to focus on what it considers true solutions to the climate crisis such as instead investing in solar, wind, battery storage, conversation and efficiency.”
Food & Water Watch: Company Issues Misleading Letter to Landowners Impacted by Dangerous Carbon Pipeline Proposal
12/20/21
“This weekend, news broke that former Governor Terry Branstad had issued letters on behalf of Summit Carbon Solutions to landowners impacted by the controversial carbon pipeline project proposed for the Midwest. Proposed to cover hundreds of miles across Iowa, Summit’s pipeline is a disaster in the making, posing serious threats to communities, land and climate,” Food & Water Watch reports. “The misleading letter from the pipeline developer warns landowners against community and environmental groups opposed to the destructive pipeline, saying that such groups “are not your friends” and could be “making wild claims about the pipeline and encouraging you to oppose it.” News of these misleading letters comes on the heels of the state refusal to make public the names of landowners impacted by the dangerous pipeline proposal, hampering the efforts of environmental and community groups to conduct outreach on the project. In response, Food & Water Watch Senior Organizer Emma Schmit issued the following statement: “Carbon capture and storage is an unproven and unsound false climate solution. A distraction from the real work of reforming our agricultural and energy sectors to combat the looming climate emergency, carbon capture stands to make corporate cronies like Rastetter and Branstad very rich, while regular Iowans bear the brunt of the project’s many risks. Carbon pipeline developers are using landowner names to specifically organize a misinformation campaign, while weaponizing the Iowa Utilities Board to prohibit community groups from conducting public education — it’s unjust. Iowans have the right to understand the many threats carbon capture and storage pose to our communities, land and climate.”
Politico: LANDOWNERS CHALLENGE SPIRE CERTIFICATE:
Matthew Choi, 12/20/21
“The Niskanen Center on Friday challenged FERC’s order granting the Missouri-based Spire STL Pipeline a temporary certificate to operate on behalf of landowners, asking the commission in a request for rehearing to clarify the pipeline company does not have eminent domain authority under the certificate,” Politico reports. “The landowners want to end the condemnation proceedings against them, but will not try to eject the pipeline company entirely or interfere with its delivery of natural gas to customers, according to the filing. “Landowners do, however, reserve the right to seek damages for Spire’s continued trespass,” Niskanen wrote.”
Law360: 1st Circ. Won't Revive Mass. Gas Facility Approval Row
Clark Mindock,12/20/21
“The First Circuit has backed state Clean Air Act approvals for an Enbridge Inc. unit's proposed natural gas-fired compressor station as part of a $1 billion extension, after finding an electric compressor alternative wouldn’t be cost-effective, Law360 reports.
Reuters: BP to buy out U.S. pipeline partnership in $723 mln deal
12/20/21
“BP (BP.L) will acquire the remaining stake in its U.S. pipelines partnership BP Midstream Partners LP (BPMP.N) that it doesn't already own in a more than $700 million deal, as the energy giant looks to simplify its structure,” Reuters reports. “The company said on Monday BP Midstream unitholders will receive 0.575 of a BP American depositary share for each unit they hold, translating to a total price of about $723 million for the deal, according to Reuters calculations… “BP created BP Midstream Partners as a master limited partnership (MLP) to own, operate, and buy mainly fee-based oil-transporting pipelines and storage assets. It made an offer in August to buy the remainder of BP Midstream… “The oil and gas industry has financed billions in pipeline and storage products under tax-advantaged MLPs since the 1980s, but several pipeline companies have restructured in recent years after U.S. regulators said they will no longer be allowed to recover an income tax allowance.”
WASHINGTON UPDATES
E&E News: U.S. climate commitments abroad thrown into confusion
By Sara Schonhardt, 12/21/21
“In an instant, West Virginia Sen. Joe Manchin sent the United States’ climate promises to the world into a tailspin,” E&E News reports. “The conservative Democrat effectively removed the best path the U.S. has to fulfill the climate commitments it made to leaders worldwide by saying he would vote against his party’s signature climate legislation. It isn’t just the fate of U.S. climate policy that appears in tatters. It could reverberate into other corners of the globe and undermine efforts to keep deadly floods, fires, heat, hurricanes and sea-level rise from inflicting greater havoc. “If the U.S. doesn’t meet its target, everybody else needs to step up and make up for it. That’s the simple math of global [carbon] concentrations,” John Larsen, director of the Rhodium Group, a research institute that analyses climate and energy policy, told E&E. That could mean other countries have to accelerate their action to reduce emissions, and that’s a big ask if the U.S. — the world’s second-largest emitter of greenhouses gases — isn’t seen to be doing its part.” “...An analysis by Rhodium in October showed that passage of both the infrastructure bill, which was signed into law last month, and "Build Back Better" are the foundation of reaching U.S. emissions targets. The two bills alone wouldn’t have gotten the U.S. all the way to its 50 percent goal by 2030. But the investments they carved out would have made it easier to do other things to slash emissions, Larsen, who leads Rhodium’s U.S. power sector and energy systems research, told E&E.
E&E News: DOE risks wasting ‘significant funds’ on CCS — audit
By Carlos Anchondo, Jeremy Dillon, 12/21/21
“The Department of Energy is at risk of wasting a significant amount of money on carbon capture and storage demonstration projects without greater oversight, according to a new Government Accountability Office report,” E&E News reports. “The report, released yesterday by the watchdog agency, said although DOE has invested $1.1 billion in 11 carbon capture and storage (CCS) demonstration projects since 2009, only three of those projects ended up being built, with coal CCS projects “generally less successful” than projects at industrial facilities like chemical plants… “GAO highlighted “significant risks” to DOE’s management of coal CCS demonstration projects, citing the department’s decision to fully fund projects in their early stages, as well as taking a larger share of early stage funding than typical at DOE for such projects. DOE also failed to adhere to cost controls aimed at limiting the department’s financial exposure, repeatedly continuing to fund projects that weren’t meeting required performance milestones, a GAO spokesperson said. That included amending original cooperative agreements to reduce a project’s cost-share requirement and increasing the government’s share, the report said. As part of its findings, GAO recommended that Congress institute ongoing monitoring reports “to provide greater oversight and accountability of DOE CCS demonstration project expenditures.” “Absent such a mechanism, DOE is at risk of expending significant funds on CCS demonstration projects that have little likelihood of success,” the report said.
E&E News: With bill sidelined, what’s next for oil and gas overhaul?
By Emma Dumain, Heather Richards, 12/21/21
“Proponents of overhauling the federal oil and gas program saw a path forward in the Democrats’ $1.7 trillion climate and social spending package. But Sunday’s announcement from Democratic West Virginia Sen. Joe Manchin that he can’t support the bill as written has advocates reassessing their strategy,” E&E News reports. “A top progressive in Congress yesterday cited the fossil fuel industry and the need for action on climate change in urging the administration to take unilateral action. “It is now incumbent on President Biden to keep his promise to us and to the American people by using the ultimate tool in his toolbox: the tool of executive actions, in every arena, immediately,” Congressional Progressive Caucus Chair Pramila Jayapal (D-Wash.) told reporters in a call. Alan Zibel, research director on energy and environmental issues for Public Citizen, told E&E his consumer advocacy nonprofit would be prioritizing a two-track strategy that would push for congressional action alongside a regulatory ruling… “With legislative action now uncertain given opposition from the Democrats’ key swing vote in a 50-50 Senate, advocates are now underscoring a sense of urgency to secure reforms they say will benefit taxpayers. Autumn Hanna, vice president of Taxpayers for Common Sense, who oversees energy and natural resource campaigns, told E&E her group’s top priority was locking in new rates “as soon as possible,” pointing out that new rates cannot be applied to existing leases retroactively.
Politico: CALIFORNIA OIL SPILL STILL UNDER THE MICROSCOPE
Matthew Choi, 12/20/21
“The top Democrats of the House Natural Resources Committee want a hearing with Amplify Energy, the firm at the center of the Southern California oil spill in October,” Politico reports. “Chair Raúl Grijalva, along with Energy and Mineral Resources Subcommittee Chair Alan Lowenthal and Oversight Subcommittee Chair Katie Porter , wrote to the company Friday, citing allegations of negligence levied in a federal indictment last week. The lawmakers asked Amplify to respond by Jan. 3 with dates to testify that month.”
STATE UPDATES
Colorado Sun: First-in-the-U.S. rules that give oil and gas industry leeway in slashing emissions OK’d in Colorado
Mark Jaffe, 12/20/21
“Colorado air regulators have adopted a sweeping set of rules to slash methane emissions from oil and gas operations, including a controversial, first-in-the nation program giving industry a freer hand in determining how to cut pollution,” the Colorado Sun reports. “The “intensity program,” under which operators will have to reduce emissions by set percentages based on the amount of oil and gas they produce, was strongly supported by the industry and opposed by environmental groups concerned it would be ineffective. The environmental and community groups pressed for regulations to increase inspections and curb emissions from specific operations such as unloading liquids and cleaning pipelines… “Environmental and community groups, along with some local officials voiced concern that the intensity program could be manipulated and that verifying the emission inventories for each operation and the emission reductions would be difficult to do.”
EXTRACTION
Wall Street Journal: U.S. Gas Exports Likely More Trickle Than Flood
Jinjoo Lee, 12/18/21
“Is it time for a third U.S. LNG export boom?” the Wall Street Journal reports. “Right now market conditions are creating an ideal negotiating position for potential U.S. liquefied natural gas export terminals, which chill and liquefy home-sourced natural gas to be shipped abroad… “Accordingly, hopes are running high for companies that might build out that next phase of LNG export terminals… “Geopolitical winds are blowing in their favor too. China’s freeze on LNG trade seems to have thawed, at least compared with the tense years under President Donald Trump. In October and November alone, Chinese companies have signed at least four long-term deals to buy LNG from the U.S. Three are with Cheniere; one is with a private developer, Venture Global LNG. Meanwhile, there is a potential opening to find willing buyers in Europe, where the tense Ukraine situation bodes poorly for the prospect of Russian natural gas refilling depleted European inventory. S&P Global Platts expects three to five North American LNG export projects to reach a final investment decision in 2022, heralding a “third wave” of new U.S. LNG terminals after years of stalling for many would-be exporters. For some developers, getting those projects across the finish line involves signing a few more contracts, which is far from easy.”
OPINION
Marcellus Drilling News: “We Hate Pipelines” Rhetoric from FERC’s 3 Democrat Commissioners
12/20/21
“Last Thursday at the Federal Energy Regulatory Commission (FERC) open meeting in Washington, D.C., the three Democrat Commissioners uttered policies and statements that amount to an “I hate pipelines” philosophy,” Marcellus Drilling News writes. “This is a bit odd, given their statutory role and responsibility as FERC commissioners is to enable pipelines, not stop them. Yet the Democrat Party is now completely radicalized and is corrupting agencies like FERC. The Dem FERC commissioners have lost their way and believe FERC is an environmental agency when, in fact, it’s an economic agency. Elections have consequences folks, and we repeatedly warned you in 2020 that FERC would be a casualty under Joe Biden. It is–in spades.”