EXTRACTED: Daily News Clips 12/29/22
(Note to Readers: The next edition of “Extracted” will be published on Wednesday, Jan. 4, as we take a break for the holiday.)
PIPELINE NEWS
Radio Iowa: GOP leaders says legislature to consider carbon pipeline rules
AgWeek: Summit Carbon pipeline on Minnesota PUC agenda; including scope of environmental review
Press release: South Dakota Ethanol Officials: Unnecessary Delays in Summit Carbon Solutions’ Regulatory Proceedings Will Harm Our Economy
Corpus Christi Caller Times: Cleanup from oil spill in Corpus Christi Bay continues
Reuters: Enbridge resolves unplanned outages on its Texas Eastern gas line
Daily Sentinel: Pipeline ruptures on deer lease
Bloomberg: EQT President and CEO Calls For More Pipeline Infrastructure [VIDEO]
WASHINGTON UPDATES
Natural Gas Intelligence: U.S. Firms Advancing Mexico LNG Export Plans as Asian Buyers Line Up Supply
STATE UPDATES
NPR Marketplace: In the West Texas oil patch, a boom in drilling has led to a growing number of earthquakes
CBS Colorado: 2 hurt in fire at Suncor refinery in Commerce City
Press release: Suncor Energy Provides Update on Commerce City Refinery
Associated Press: EPA investigates Colorado for possibly discriminating against Hispanic residents with air pollution regulations
EXTRACTION
The Hill: Exxon sues EU over windfall profit tax
Lakeland Today: Cold Lake area proposed as site for underground carbon capturing
Reuters: Factbox-Carbon capture and storage projects across Europe
TODAY IN GREENWASHING
Press release: TC Energy continues oil recovery and response over the holidays
OPINION
The Hill: Direct air capture funding has raised environmental justice concerns — but there’s more to the story
PIPELINE NEWS
Radio Iowa: GOP leaders says legislature to consider carbon pipeline rules
O. KAY HENDERSON, 12/29/22
“Top Republicans in the Iowa House and Senate say the 2023 legislature will consider new guidelines for pipelines that would capture and carry carbon away from Iowa’s ethanol plants,” Radio Iowa reports. “The proposed Summit and Navigator pipelines run through areas House Speaker Pat Grassley represents. “I’ve been around here long enough to know when something really is an issue in our districts and I’ve talked to enough members as well as (people) in my own district to know that this is a real thing,” Grassley told Radio Iowa. “This is something that Iowans are frustrated about.” “...Senate Republican Leader Jack Whitver told Radio Iowa it won’t be an easy debate. “I expect that we’ll have a thorough conversation about this. It’s something that our members have heard about back on the campaign trail,” Whitver told Radio Iowa. “And they hear from both sides — people that want the pipeline, that are excited about it, that think it’s good for our economy and our rural areas and people that are against it and so we have a lot of members that have a lot of different opinions on it.” “...This fall, Grassley sent a letter to the Iowa Utilities Board, expressing concern about a waiver developers of the Navigator pipeline were seeking from current regulations about sampling and restoring topsoil in farm fields… “Navigator withdrew its request to reduce the amount of testing and restoration of topsoil currently required by state regulations.”
AgWeek: Summit Carbon pipeline on Minnesota PUC agenda; including scope of environmental review
Jeff Beach, 12/28/22
“The Minnesota Public Utilities Commission will take up its first carbon capture pipeline case in January, with one of the first questions being the scope of the environmental review,” AgWeek reports. “Summit Carbon Solutions in September filed for a permit for a liquid carbon dioxide pipeline in Otter Tail and Wilkin counties in northwest Minnesota. The pipeline would connect the Green Plains ethanol plant at Fergus Falls with a network of pipelines as part of a $4.5 billion project that aims to benefit the ethanol industry and reduce greenhouse gas emissions. The Minnesota PUC will meet Jan. 5 to discuss if Summit's application can be deemed complete and if an environmental assessment worksheet should be completed. Requiring an environmental assessment worksheet could lead to a more in-depth environmental impact statement. The 10 a.m hearing in St. Paul can be viewed on a webcast or the public can listen by phone; learn how at https://mn.gov/puc/activities/meetings/webex/. Environmental groups such as CURE (Clean Up the River Environment) in Minnesota and some landowners have been rallying against the pipeline, saying it will do more environmental harm than good and tramples on the rights of landowners… “A Minnesota based group called North Star Policy Action has issued a report on the impact on labor if the Summit pipeline is built. The report says communities could lose $350 million in economic activity if nonlocal labor is used during construction.”
Press release: South Dakota Ethanol Officials: Unnecessary Delays in Summit Carbon Solutions’ Regulatory Proceedings Will Harm Our Economy
12/28/22
“Multiple officials from major South Dakota ethanol producers today argued that unnecessary delays to the regulatory proceedings around Summit Carbon Solutions proposed carbon capture, transportation, and storage project will cause significant harm to both the ethanol and agricultural industries. This follows comments from the South Dakota Public Utilities Commission that they are considering a delay in the regulatory proceedings around this project. “For years, the ethanol industry has served as the critical customer for corn growers in the state of South Dakota and across the Midwest, helping drive growth in commodity prices and land values in the process,” said Walt Wendland, President and CEO of Ringneck Energy in Onida, South Dakota. “Carbon capture projects like Summit Carbon Solutions are absolutely vital to ensuring ethanol producers remain competitive in the years and decades to come. Simply put, the future of the ethanol industry is uncertain at best without these critical investments in our infrastructure and delays in the regulatory process could come at a significant cost.” The ethanol industry in South Dakota supports more than 5,000 jobs, contributes nearly $600 million annually to the state’s gross domestic product, and purchases more than half of all the corn grown in the state. Summit Carbon Solutions will allow its 32 ethanol plant partners to sell their product at a premium in the states and countries that have adopted policies incentivizing the use of low carbon fuels.”
Corpus Christi Caller Times: Cleanup from oil spill in Corpus Christi Bay continues
Kirsten Crow, 12/28/22
“Full cleanup from a nearly 4,000-gallon oil spill over the weekend may continue for several days, according to officials,” the Corpus Christi Caller Times reports. “The source of the spill near Flint Hills Ingleside, reported to the U.S. Coast Guard about 11 p.m. Saturday, was ultimately identified as a cracked pipeline that had discharged light crude oil into Corpus Christi Bay, according to a news release issued Sunday. Agency spokeswoman Corinne Zilnicki told the Caller-Times on Tuesday that oil cleanup on the shoreline of the Spoil Islands is ongoing. No impacts to wildlife have been found, she added. An environmental service used roughly 1,500 feet of boom as part of cleanup response to the spill, estimated to have totaled about 3,800 gallons of oil, according to the agency’s news release. There's been recovery of a “significant amount of the oil, especially what was in the water, because we were able to contain it with booms,” wrote Flint Hills spokesman Andy Saenz in an email to the Caller-Times on Tuesday… “There is an ongoing investigation on the root cause, but we suspect this was influenced by the freezing temperatures and the cold weather conditions,” Saenz wrote.
Reuters: Enbridge resolves unplanned outages on its Texas Eastern gas line
12/28/22
“Enbridge Inc's Texas Eastern gas pipeline system on Wednesday lifted a force majeure event on its Lebanon Compressor Station in Ohio following a series of unplanned outages last week, the company posted on its website,” Reuters reports. “The pipeline system had experienced similar outages at its Five Points, Ohio and Armagh, Pennsylvania compressor stations last week, which have now been resolved. "All force majeures on Texas Eastern have been lifted," a company spokesperson said, but did not respond to questions about the cause of the events and the impact on shippers… “The 8,580 mile-long pipeline system connects Texas and the Gulf Coast to markets in the northeastern United States and can transport 12.04 billion cubic feet of natural gas per day, according to the Enbridge website.”
Daily Sentinel: Pipeline ruptures on deer lease
12/28/22
“Hazardous materials, 11400 block of S. FM 225. A pipeline ruptured on a deer lease, but it posed no immediate danger to the public. The leak was reported to the the pipeline company and landowner,” the Daily Sentinel reports.
Bloomberg: EQT President and CEO Calls For More Pipeline Infrastructure [VIDEO]
12/28/22
“Toby Rice, EQT President and CEO, stressed the need for more pipeline infrastructure to Caroline Hyde and Paul Sweeney on "Bloomberg Markets" Wednesday morning,” Bloomberg reports.
WASHINGTON UPDATES
Natural Gas Intelligence: U.S. Firms Advancing Mexico LNG Export Plans as Asian Buyers Line Up Supply
ANDREW BAKER, 12/28/22
“Momentum is building for the re-export of U.S. natural gas to Asia by way of Mexico’s Pacific Coast, as evidenced by developments over the last week,” Natural Gas Intelligence reports. “The U.S. Department of Energy (DOE) granted Sempra Infrastructure’s request for two LNG export permits for terminal projects planned in Mexico. Published by DOE Dec. 20, the orders expanded non-Free Trade Agreement (FTA) export volumes for Sempra’s Energia Costa Azul (ECA) liquefied natural gas terminal and authorized shipments to non-FTA countries for the proposed Vista Pacifico project through 2050 (No. 20-153-LNG & No. 18-145-LNG). Sited on the peninsula of Mexico’s Baja California, the ECA LNG project was granted long-term export approval in 2019 and was sanctioned by Sempra in 2020… “DOE also approved a request for Sempra’s proposed Vista Pacifico terminal to export 200 Bcf/y to non-FTA countries. It was previously approved to export 240 Bcf/y to FTA countries… “Sempra and its governmental and industry partners in Mexico have been pursuing development of LNG terminals in the country that could take advantage of U.S. gas imports while improving pipeline connections through the country. Kinder Morgan Inc. recently revised its forecast for U.S. gas imports to Mexico, estimating LNG projects could boost exports to 9 Bcf/d by 2030, up from 6 Bcf/d currently. With the latest orders, DOE has approved more than 47 Bcf/d of non-FTA exports of LNG from the Lower 48, including 6.32 Bcf/d of U.S. gas for re-export as LNG from Mexico and Canada.”
STATE UPDATES
NPR Marketplace: In the West Texas oil patch, a boom in drilling has led to a growing number of earthquakes
Travis Bubenik, 12/28/22
“In the past few weeks, the West Texas oil patch has been rocked by two 5.4 magnitude earthquakes that were among the largest in the state’s recorded history,” NPR Marketplace reports. ”People reported feeling the quakes hours away in big cities. In November, one of the quakes hit near the small town of Orla, where big rigs barrel up and down the highway every day, hauling everything from oil and gas to water and sand. The region is one of the most active parts of the Permian Basin oil field, and it’s where a lot of Permian drilling activity has been centered in recent years. This far-flung corner of the state has also lately been a hotbed of earthquakes… “2017, 2018 is when things started really ramping up exponentially,” Robert Skoumal, a seismicity expert with the U.S. Geological Survey who has studied the quakes, told Marketplace. Skoumal’s research has shown that the vast majority of these quakes have been triggered by oil companies pumping wastewater from the drilling process into the ground. Skoumal explained how exactly it happens: “The activities are not shaking the ground,” he told Marketplace. “It’s more changing the stresses that are acting on these faults, and those stresses, in turn, cause these faults to slip, which then cause the shaking.” This year alone — in the county where last month’s big earthquake happened — companies have pumped more than 49 billion gallons of wastewater into the ground, according to data compiled by the analyst firm Rystad Energy. “It’s an insane amount of water,” Rystad’s Ryan Hassler, who noted that oil field quakes aren’t new, told Marketplace. Oklahoma saw a flurry of earthquake activity at the dawn of the fracking boom, a trend that was later repeated in North Texas when drilling picked up there. But these days in West Texas, Hassler told Marketplace, there is just a lot more wastewater that comes along with drilling. “You’re talking about anywhere between a 3:1 to a 6:1 barrel of water to barrel of oil recovery in these wells,” he told Marketplace. “The wells have gotten bigger, so with that we’re seeing more [oil] production, but we’re also seeing a lot more water production.”
CBS Colorado: 2 hurt in fire at Suncor refinery in Commerce City
12/25/22
“Two people were hurt in a fire that was quickly put out at the Suncor oil refinery in Commerce City on Saturday morning,” CBS Colorado reports. “ According to Suncor, its crews responded to a fire at the refinery just before 11 a.m. All non-essential personnel were evacuated from the area, and the fire was put out. Two people were confirmed to be injured in the fire, and they were taken to the hospital in an ambulance. There was no immediate information about their injuries, and Suncor did not confirm who the injured people were out of respect for their privacy. South Adams County Fire Department also responded to the fire. They told CBS the fire was put out about two hours after the initial response.”
Press release: Suncor Energy Provides Update on Commerce City Refinery
12/28/22
“Due to the extreme and record-setting weather impacting much of the United States, including Denver, Colorado, Suncor's Commerce City refinery experienced equipment damage in the days leading up to December 24th, 2022. Consistent with our operational excellence and safe operating practice, on December 24th it was determined that the entire facility would be shut down and put into safe mode to allow for the inspection of all units and repair of the damaged equipment. The inspection and repair of the damaged equipment is ongoing. Based on our current assessment we anticipate a progressive restart of the facility with a return to full operations expected to be completed by late Q1 2023.”
Associated Press: EPA investigates Colorado for possibly discriminating against Hispanic residents with air pollution regulations
12/28/22
“The Environmental Protection Agency is investigating whether Colorado’s regulation of air pollution from industrial facilities discriminates against Hispanic residents and other racial minorities, according to a letter released Wednesday,” the Associated Press reports. “That’s a level of scrutiny long sought by Lucy Molina whose daughter goes to school near Colorado’s only petroleum refinery. Three years ago, Molina had just stepped outdoors when she noticed a coating of ash on her Nissan Altima that wiped off on her fingers. Then she received a message that her daughter’s school was locked down and panicked. She later learned the refinery had malfunctioned, spewing a clay-like material into the air. She’d heard of lockdowns for shootings, but never for pollution. Since then she’s pushed for community air monitoring and stronger protections, but it all feels too late. She’s lived here for 30 years, and her kids are already young adults. “If we would have known” years ago, she told AP. “We would have moved.” Advocates say the Suncor refinery too often malfunctions, spiking emissions. They say Colorado rarely denies permits to polluters, even in areas where harmful ozone already exceeds federal standards. Federal investigators said in the letter they will scrutinize the state’s oversight of Colorado’s biggest polluters like the Suncor oil refinery in North Denver where Molina lives, and whether the effect of that pollution on residents is discriminatory… “The EPA launched its investigation under Title VI of the Civil Rights Act of 1964. It has been going on since March but went little noticed until Wednesday’s letter, which explains its scope. The Act allows the EPA to negotiate agreements with states to promote equity. The Biden administration has stepped up its enforcement of environmental discrimination.”
EXTRACTION
The Hill: Exxon sues EU over windfall profit tax
RACHEL FRAZIN, 12/28/22
“ExxonMobil is suing the European Union (EU) over the bloc’s windfall tax on energy companies and is arguing that the move is counterproductive amid Europe’s energy supply challenges,” The Hill reports. “In September, the EU adopted a 33 percent tax on oil, gas and coal profits that are at least 20 percent higher than average profits in recent years. The EU called the tax a “solidarity levy” and argued it was meant to address high energy prices. Exxon blasted the tax in announcing its lawsuit Wednesday. “Our challenge is targeted only at the counter-productive windfall profits tax, and not any other elements of the package to reduce energy prices,” said a statement from the company shared by spokesperson Erin McGrath. “This tax will undermine investor confidence, discourage investment, and increase reliance on imported energy and fuel products,” the statement said, adding the company’s potential future investment in Europe will depend on “how attractive and globally competitive Europe will be.” European Commission spokesperson Arianna Podesta told The Hill in a statement the commission “maintains that the measures in question are fully compliant with EU law.”
Lakeland Today: Cold Lake area proposed as site for underground carbon capturing
12/28/22
“It is a proposal that will positively impact the entire Lakeland region and the environment, says Pathways Alliance vice president of external relations, Mark Cameron,” Lakeland Today reports. “Carbon Dioxide (CO2) is a greenhouse gas that is responsible for climate change. The main criticism of the Alberta oil sands industry is that it is very carbon intense,” Cameron acknowledged. The Pathways vision is a major carbon capture and storage system line connecting up to 20 oil sands facilities in the Fort McMurray, Christina Lake and Cold Lake regions of Alberta to a carbon storage hub near the Cold Lake area… “The proposed locations for the carbon sequestration well sites, a carbon storage hub, are being considered in areas south of Cold Lake, but further geological testing will occur in several areas including Bonnyville and Lac La Biche, according to the vice president. “We are looking at drilling exploratory wells, testing the carbon sequestration capacity,” he told LT. “Geologically, this is a very good location for carbon capture.” The organization describes Alberta’s Sedimentary Basin as an ideal geology for the safe, permanent storage of captured CO2, describing the area’s multiple overlying layers of impermeable rock formations as natural seals. Cameron told LT studies are being carried out to carefully select site locations and extensive monitoring will ensure the injected CO2 remains sequestered and does not impact the environment or geological stability… “A program for investment in tax credit rolled out by the federal government could help, but more governmental support is needed, he told LT. “On the fiscal side, these projects are extremely expensive. We're talking about $16.5 billion investments to create the carbon capture network between now and 2030, and the projects don't create any additional revenue, they don't create any additional oil production or anything like that,” Cameron told LT.
Reuters: Factbox-Carbon capture and storage projects across Europe
Nerijus Adomaitis and Dina Kartit, 12/28/22
“Efforts to remove carbon dioxide (CO2) from the atmosphere and store it underground storage have gained steam across Europe over the past few years as industries and governments seek to reduce emissions to meet their climate goals,” Reuters reports. “...There are around 70 existing or planned CCS projects in Europe, according to the International Association of Oil and Gas Producers. Here are some under development: Northern Lights, a joint venture project by Equinor, TotalEnergies and Shell… “BRITAIN * Acorn CCS, a project off the coast of Scotland to develop a storage site with an annual capacity of 5-10 mtpa of CO2 by 2030… ”NETHERLANDS * Porthos, a project by the port of Rotterdam, Gasunie and EBN, aims to store 2.5 mtpa of CO2 in depleted Dutch gas fields in the North Sea… “DENMARK * Greensand, a project led by INEOS Energy and Wintershall Dea, plans to start injecting up to 1.5 mtpa of CO2 from 2025 into depleted oil and gas fields in the Danish section of the North Sea, and increasing capacity to 8 mtpa by 2030… “GERMANY * Wilhelmshaven CO2 export terminal, a project led by Wintershall Dea to build a CO2 liquefaction and temporary storage facility at Wilhelmshaven, Germany’s only deep-water port, and then the CO2 could be shipped or piped to permanent storage sites under the North Sea… “BULGARIA * ANRAV, a project lead by private Irish energy company Petroceltic, will link CO2 capture facilities at HeidelbergCement’s Devnya cement plant in north-eastern Bulgaria with offshore permanent storage in the depleted Black Sea gas field of Galata… “FRANCE * PYCASSO, a project capturing carbon from industries in the south-west of France and in the north of Spain and storing it in a depleted gas field in Aquitaine… “ICELAND * The Coda Terminal will be a cross-border carbon transport and storage hub in Straumsvík, operated by Icelandic carbon storage firm Carbfix… “ITALY * CCS Ravenna Hub, led by energy company Eni is a project to capture CO2 and transport it into offshore depleted gas reservoirs off the coast of Ravenna, in the Adriatic Sea… “IRELAND * The Cork CCS project aims to store carbon captured from Irish industrial facilities into a depleted gas field in the Celtic Sea, potentially re-using an existing pipeline for transport… “SWEDEN * Slite CCS, a CCS project lead by HeidelbergCement and its Swedish subsidiary Cementa, at its Slite cement plant on the Swedish island of Gotland, in the Baltic Sea.”
TODAY IN GREENWASHING
Press release: TC Energy continues oil recovery and response over the holidays
12/23/22
“The U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) has approved our Restart Plan for the Cushing segment. We will be commencing activities to support the safe restart of the segment, including rigorous testing and inspections, and this will take several days. We will provide an update on in-service once we are able… “Our team has been overwhelmed by the kind support of Washington County landowners and the community. As part of our thank you to the community, we have launched an employee-funded donation program and will match 100 percent of our employees' contributions to the Washington County Hospital. We will continue to explore other ways to contribute to the community through our Build Strong program. ”
OPINION
The Hill: Direct air capture funding has raised environmental justice concerns — but there’s more to the story
Ugbaad Kosar is the director of environmental justice at Carbon180, a climate-focused nonprofit working to fundamentally rethink carbon, 12/26/22
“The passage of the Inflation Reduction Act (IRA) was nothing short of historic for climate change action in the United States. Yet, perspectives from environmental justice groups on what was included, such as support for direct air capture, are now front and center,” Ugbaad Kosar writes for The Hill. “For one, many environmental justice advocates — who work to secure healthy living environments, community involvement and equal protections for all — were alarmed to see funding for provisions that may drive further investment into coal, oil and gas development. For another, many also feel that they were not given the opportunity to meaningfully shape the outcome of the new law, something clearly at odds with fairness in decision-making. And then there’s direct air capture (DAC), a carbon removal technology that draws down carbon dioxide from ambient air and supported by a newly reformed tax credit known as 45Q, thanks to the IRA. DAC is a point of tension within the environmental justice community. It’s sometimes perceived by environmental justice organizations as a “false solution” or a distraction from decarbonization yet to meet the needs of communities… “Moreover, there are fears among many of us in the environmental justice movement that climate technologies could be co-opted or conflated by fossil fuel companies to avoid meaningful action — a tried and true greenwashing scheme by an industry with a long history of human rights and environmental violations. Industry heavyweights have been increasingly loud about investments into carbon capture and sequestration (CCS), for example. Direct air capture, however, is different but often muddled, in part due to the shared verbiage of these technologies… “Carbon removal is no longer a question of “do we need it?” but “how and where?” Just, durable climate policy can reroute power to the most disenfranchised and create a more equitable and prosperous society — just with a lot less carbon in the atmosphere.”