EXTRACTED: Daily News Clips 12/7/22
PIPELINE NEWS
E&E News: Manchin’s last-gasp permitting effort fails
Bloomberg: Defense Policy Bill Excludes Manchin Energy Permitting Changes
Fox News: Progressives, GOP succeed in blocking Manchin's pipeline deal from national defense bill
Lincoln Journal Star: Carbon pipeline says it has secured easements for half of Nebraska route
Iowa Public Radio: Wolf meets with landowners, begins road to permitting carbon pipeline
KWQC: Wolf Carbon Solutions presents information on pipeline to Scott Co. residents
WJFW: Line 5 Pipeline Divides Tribal Opinions
Wisconsin Public Radio: Judge orders action to prevent pipeline spills, Recap of deer harvest
Law360: Feds Say They Had Authority To Craft Pipeline Valve Rule
Bloomberg: Ruby Pipeline Banker Expects Multiple Bids in Bankruptcy Sale
WASHINGTON UPDATES
E&E News: How Warnock’s win changes the climate game for Senate Dems
Washington Post: Manchin spat with energy regulator could be self-sabotage, experts say
E&E News: Lawmakers Propose Tax Credit For Renewable Natural Gas
STATE UPDATES
Press release: Lawsuit Aims to Protect Colorado Front Range Air From Oil and Gas Industry’s Pollution
Forum News Service: North Dakota’s gas flaring intensity is highest (by far) in nation
Utah Public Radio: Environmental group says the BLM's methane flaring limit could go further
Alaska Public Media: As Hilcorp drills for more natural gas, some Ninilchik neighbors refuse to sign on
EXTRACTION
Calgary Herald: Varcoe: After years of 'belt-tightening,' Canadian oilsands producers loosen reins on spending for growth
CLIMATE FINANCE
Press release: Energy Transfer LP Announces Pricing of $2.5 Billion of Senior Notes
OPINION
Los Angeles Times: Editorial: Southern California smog reduction plan should race to zero emissions
PIPELINE NEWS
E&E News: Manchin’s last-gasp permitting effort fails
Emma Dumain, 12/7/22
“Congressional Democratic leaders fell short in a last-ditch effort to honor a promise to pass Sen. Joe Manchin’s permitting overhaul proposal,” E&E News reports. “The final text of the fiscal 2023 National Defense Authorization Act released Tuesday night did not include language that would have shortened timelines for National Environmental Policy Act reviews and limited citizen judicial challenges for proposed energy projects. It’s a blow for Manchin, a West Virginia Democrat and chair of the Senate Energy and Natural Resources Committee. His proposed reform efforts would have included approval for the Mountain Valley pipeline, a natural gas project in his state… “Manchin’s failure is a victory for an unlikely coalition of progressives and conservatives, who again came together to fight the permitting plan after successfully blocking it from being attached to the stopgap government spending measure back in September. “Thanks to the hard-fought persistence and vocal opposition of environmental justice communities all across the country, the Dirty Deal has finally been laid to rest,” House Natural Resources Chair Raúl Grijalva (D-Ariz.), who led the opposition both times, said in a statement. “House Democrats can now close out the year having made historic progress on climate change without this ugly asterisk.” “...Pelosi was pitching her members hard on the plan in a closed-door caucus meeting Tuesday morning, according to lawmakers and aides inside the room, extolling the advantages of legislation that would speed up deployment of new transmission lines… “It was a chaotic day on Capitol Hill on Tuesday as members of both parties and chambers laid down their markers on the permitting language and were rapidly making it clear to leaders there weren’t the votes to proceed. House progressives, who continued to regard the overhaul proposal as antithetical to environmental justice priorities, doubled down on threats to sink the NDAA “rule” — a procedural resolution on floor debate that must be adopted in order for legislation to be considered. “We will not accept the dirty deal that would fast-track more fossil fuel projects, like the Mountain Valley pipeline,” said Rep. Rashida Tlaib (D-Mich.) in a press call yesterday. “It must be separated, and it must be voted down.” The Congressional Progressive Caucus, more than 100 members strong, announced its formal opposition to the permitting provision’s inclusion Tuesday night, minutes before the NDAA text was released. Meanwhile, House Republicans were also making it clear yesterday they wouldn’t help make up a Democratic vote deficit on the NDAA rule. Their arguments ranged from procedural (the defense bill shouldn’t have policy riders) to ideological (the Democrats’ approach to permitting reform wouldn’t go far enough)... “In the Senate, Republicans were also creating a vote-counting headache for proponents of the permitting language on similar grounds as their House colleagues.”
Bloomberg: Defense Policy Bill Excludes Manchin Energy Permitting Changes
Kellie Lunney, 12/6/22
“The annual defense policy bill released Tuesday night excludes controversial changes to the federal permitting process for energy projects that Sen. Joe Manchin sought to include, likely punting any action on the proposal to the next Congress,” Bloomberg reports. “Despite “working and praying,” as Manchin said last week, the West Virginia Democrat was unable to insert language in the must-pass fiscal 2023 National Defense Authorization Act that would streamline the federal environmental review process for fossil fuel and renewable energy projects… “Republicans, progressive Democrats, and environmental groups were all unhappy with adding Manchin’s permitting language to the NDAA, albeit for different reasons… “The omission increases the chances a permitting overhaul will materialize in the 118th Congress, when Republicans control the House, and Democrats run the Senate with a slim margin. But that scenario presents challenges as well, Christi Tezak, managing director for research at ClearView Energy Partners, an independent energy research firm, told Bloomberg. “Permitting reform is not impossible, but it’s tough, especially the more intent the House folks are on messaging hot out of the gate,” Tezak told Bloomberg. If Republicans jam through partisan bills that are dead on arrival in the Senate, then any efforts to modify permitting will have to focus on regulatory action through the agencies and the White House, rather than legislation… “Sen. Shelley Moore Capito (R-W.Va.) has introduced a permitting bill (S. 4815) with nearly unanimous Republican support that’s more aggressive than Manchin’s in accelerating processing timeframes and other criteria. In the House, Rep. Garret Graves (R-La.) has sponsored legislation (H.R. 2515) that would modernize and expedite the current permitting system for energy projects. Expected Natural Resources Chairman Bruce Westerman (R-Ark.) has said that bill—the BUILDER Act—could form the basis for what House Republicans promote on permitting next year. Manchin still has a shot at including his proposal, which would also fast-track the Mountain Valley pipeline in his home state, into a stopgap government funding measure or year-end omnibus in the waning days of the 117th Congress. But incorporating it into the omnibus looks like “a rough lift unless some kind of Jenga” is performed to require it, Tezak told Bloomberg. The current funding measure expires Dec. 16. She told Bloomberg Democrats are “frustrated because Manchin has been able to dictate a lot of terms to folks and they are just kind of maxed out.”
Fox News: Progressives, GOP succeed in blocking Manchin's pipeline deal from national defense bill
Haris Alic, 12/6/22
“Sen. Joe Manchin's legislation to spur oil and gas drilling was left out of the must-pass national defense bill after conservative Senate Republicans and progressive House Democrats raised objections,” Fox News reports. “Manchin, a West Virginia Democrat who chairs the Senate Energy Committee, said the move would have serious and long-term consequences for American energy independence. "The American people will pay the steepest price for Washington once again failing to put common sense policy ahead of toxic tribal politics," he told Fox. "This is why the American people hate politics in Washington." Democratic leaders were hoping to include the legislation, which overhauls permitting regulations for oil and gas drilling, within the National Defense Authorization Act as a reward for Manchin's support of President Joe Biden's Inflation Reduction Act. Those plans were nixed, however, after bipartisan opposition in both the House and Senate… “Within the House, several progressive Democrats threatened to vote against the NDAA if it included Manchin's permitting legislation… “Given the narrow margin by which Democrats control the House, the progressive opposition was likely to be costly… “The situation was similar within the 100-member Senate, except it was Republicans who were in opposition. GOP lawmakers argued that Manchin's permitting bill did not go far enough to spur oil and gas production to keep up with new environmental regulations. A few also took umbrage with being asked to support the permitting bill and reward Manchin for helping deliver a big win for Democrats. Sen. Lindsey Graham, R-S.C., even described the deal as a "political payback scheme."
Lincoln Journal Star: Carbon pipeline says it has secured easements for half of Nebraska route
Chris Dunker, 12/6/22
“An Iowa-based company planning thousands of miles of carbon dioxide pipelines across the Midwest says it has obtained right-of-way agreements for half of its route in Nebraska,” the Lincoln Journal Star reports. “Summit Carbon Solutions said it has signed 460 easement agreements with 340 landowners in the Cornhusker state as part of its Midwest Carbon Express, a $4.5 billion project that envisions 2,000 miles of pipelines linking ethanol plants to an underground storage site in North Dakota… “Since it began negotiations in 2021, Summit Carbon Solutions has paid out about $24 million to Nebraska landowners for the right to build a pipeline connecting to ethanol plants in six Nebraska communities: Plainview, Norfolk, Atkinson, York, Central City and Wood River… “While Summit Carbon Solutions is touting the progress made in Nebraska and other states along the pipeline's path, environmentalists, public health organizations, landowner rights groups and Native tribes have joined to oppose it. Those unlikely alliances have led to calls asking the U.S. Pipeline and Hazardous Materials Safety Administration to delay any action on the carbon pipelines until new safety guidelines can be established, as well as calls to states and counties to review rules regulating where those infrastructure projects can be located… “Blank told the Journal Star the company hopes to begin construction on the pipeline in the fourth quarter of 2023. Where the first shovels go into the ground will depend upon where the company feels like it can make progress. "The nice thing about us, we can start in various places," he told the Journal Star. "We don't have to start in A, B, or C, we can be flexible in where we start." “...The notion that the private company could use eminent domain to seize land in order to complete its route has generated opposition in Nebraska and elsewhere, however. About 60 landowners have signed up with the Nebraska Easement Action Team, which describes itself as a kind of legal co-op, to provide advice on property rights, or assistance in securing better terms on any right-of-way acquisition deals. More have signed up to be on an email list with updates, organizers said. Similar legal co-ops set up to allow landowners to pool their resources have been formed in Iowa and South Dakota — where landowners have sued the carbon pipeline companies to stop them from surveying property — with hundreds of individuals having joined to date. Jane Kleeb, the founder and president of Bold Alliance and the chair of the Nebraska Democratic Party, told the Journal Star she believes more landowners along the carbon pipeline routes will join as litigation is settled in other states. "We don't have the same pressure right now because we don't have a state regulatory body," Kleeb told the Journal Star. "Landowners are waiting to see what happens, knowing lots of litigation and moving parts are ahead of us."
Iowa Public Radio: Wolf meets with landowners, begins road to permitting carbon pipeline
Zachary Oren Smith, 12/6/22
“Representatives of Wolf Carbon Solutions are getting an earful from residents of eastern Iowa about the company’s proposed carbon dioxide capture pipeline project,” Iowa Public Radio reports. “Wolf develops and operates pipelines in the U.S. and Canada. It is owned by CPP Investments, a pension fund… “Residents of Cedar County lined up for four hours Monday afternoon to question representatives of a Wolf about the project… “There were two primary issues for residents: the project’s safety and the use of eminent domain. Many pointed to a 2020 carbon pipeline in Satartia, Mississippi that burst, hospitalizing 49 people and forcing the evacuation of 300 more. For hours, residents – including Cedar County Emergency Management Agency Director Jodi Freet – grilled the Wolf representatives about whether Wolf was adequately planning to keep residents safe in the event of a rupture… “A sticking point for several residents was Wolf Carbon Solution’s recent action to avoid showing the Utilities Board its emergency response plan, risk assessment and modeling for burst pipe disasters. On Nov. 30, Wolf joined Summit Carbon Solutions and Navigator Heartland Greenway — the state’s two other major carbon dioxide pipeline projects — which similarly asked these safety reports not be required as a condition of the permit. Wolf’s stance is that the safety standards for interstate pipelines is a federal matter, not to be regulated by state boards like the Iowa Utilities Board. But residents say Wolf is avoiding being transparent about how safe the project is and its plans for a burst pipe. This requirement is currently under review. The other major concern for residents was whether Wolf would use eminent domain to secure a way through the state if negotiations failed. Tracey McDaneld, the director of Government Relations & Land at Wolf, said they do not plan to use eminent domain to secure land for the project. She emphasized that the company didn’t use eminent domain in its previous carbon dioxide capture pipeline project.”
KWQC: Wolf Carbon Solutions presents information on pipeline to Scott Co. residents
Hernan Gutierrez, 12/6/22
“The Iowa Utilities Board and Wolf Carbon Solutions held a public meeting at the River Center, to discuss a carbon capture pipeline that would run through parts of the Quad Cities Area on Tuesday,” KWQC reports. “...Many residents in the proposed path of the pipeline shared concerns about safety. “Do you have a general game plan for … distance that you stay away from critical facilities like schools or a nursing home, hospital that kind of things?” asked one Eldridge resident. In response to the question, Matt Kindred with KC Harvey Environmental, a Wolf consultant, said that’s part of the reason the route changed. “We widened the corridor so that we can approach more people in a wider swath so that there’s more opportunities to manage these pinch points and get as much distance as we can from the population centers,” Kindred said… “Eminent domain was another concern among residents. According to Wolf officials, it has never used eminent domain as a method of gaining easements, and its project leaders haven’t used it in the length of their careers.”
WJFW: Line 5 Pipeline Divides Tribal Opinions
Kyle Pozorski, 12/6/22
“A small part of the Line 5 pipeline, which delivers oil from Superior through northern Wisconsin and Michigan to the Canadian border flows through the Bad River Indian Reservation,” WJFW reports. “In 2019, the Bad River Band of Lake Superior Chippewa Enbridge to remove Line 5 from their land. The pipeline is still in use and now a judge is warning that it might burst… “Valerie Bigboy, a Bad River Reservation resident told WJFW she opposes the current re-route plan which would flow south of the reservation. "In case there is a release it's still going to hit our watershed," said Bigboy. However, other tribal members want the pipeline off the reservation for good. "Our council voted... get out," Joe Bates, a tribal elder and reservation resident, told WJFW. Bates went on to say that the reservation would be better off with the pipeline removed. "Our rice is more important than any kind of money that Enbridge is going to pay us," Bates told WJFW. "...But now that they're going to go along with this re-route, that's 44 miles going south of the reservation, around it. So if something were to burst or rupture not only is it going to take out half, it's going to take out the whole reservation," Peter Bigboy, a reservation resident and tribal elder, told WJFW. Repeated attempts have been made by WJFW to contact Bad River Tribal Chairman Mike Wiggins and the tribal natural resources department.”
Wisconsin Public Radio: Judge orders action to prevent pipeline spills, Recap of deer harvest
Keegan Kyle, 12/7/22
“We get up to speed on a legal battle in northern Wisconsin over a nearly 70-year-old pipeline that carries millions of gallons of oil and natural gas liquids each day,” Wisconsin Public Radio reports.
Law360: Feds Say They Had Authority To Craft Pipeline Valve Rule
Tom Lotshaw, 12/6/22
“Federal regulators pushed back on the assertion that a 2011 bill limited their ability to craft a rule requiring rupture-mitigation valves on some gathering pipelines, telling the D.C. Circuit on Monday that an industry challenge to the rule has no merit,” Law360 reports.
Bloomberg: Ruby Pipeline Banker Expects Multiple Bids in Bankruptcy Sale
12/6/22
“A banker for Ruby Pipeline expects to receive at least one more bid for the insolvent natural gas pipeline, which has already received an offer from existing part-owner Kinder Morgan Inc. for more than $230 million cash,” Bloomberg reports. ““Sitting here today, I feel we will have multiple bids” for Ruby Pipeline, said John Singh of PJT Partners, who testified in bankruptcy court Tuesday. Final bids for Ruby Pipeline are due Wednesday and an auction will follow next week if necessary, Singh said; Singh was testifying as part of a fight between Ruby and its creditors over proposed breakup fees for ...
WASHINGTON UPDATES
E&E News: How Warnock’s win changes the climate game for Senate Dems
Adam Aton, Scott Waldman, 12/7/22
“Top Democrats will regain subpoena power. Committee work should get easier. And Sen. Joe Manchin will lose some leverage — even as the West Virginia Democrat gains more leeway to buck President Joe Biden,” E&E News reports. “Democratic Sen. Raphael Warnock’s victory over Republican Herschel Walker in Tuesday’s Georgia Senate runoff means Democrats will have a 51-seat majority in the next Congress, ending the longest period in history with an evenly divided Senate… “Manchin no longer will be the Senate’s kingmaker. Over the last two years, he used his 50th vote to alter, kill or rewrite a significant amount of Biden’s legislative agenda. That power is now gone, but when it comes to climate legislation it won’t matter much anyway. Since Democrats no longer control the House, no meaningful climate bills are expected to pass through Congress in the next two years. Adding a 51st Democratic vote to the Senate does diminish one major power Manchin has flexed — which is blocking some of Biden’s nominees. Earlier this year, Manchin doomed Sarah Bloom Raskin’s nomination to the Federal Reserve because she had argued that federal regulators should pay more attention to climate risks. Biden now could nominate Raskin to another position — since the rest of the party is united behind her and Manchin has lost his ability to stop her. Biden can also nominate other climate advocates to key federal positions because he won’t have to worry about securing Manchin’s vote. A number of administration departures are expected in the next year, so there likely will be vacancies that need Senate approval.”
Washington Post: Manchin spat with energy regulator could be self-sabotage, experts say
Maxine Joselow, 12/7/22
“For years, Sen. Joe Manchin III (D-W.Va.) has pushed to overhaul the nation’s permitting process for energy projects, including for the transmission lines needed to carry clean power across the country,” the Washington Post reports. “...In an ironic twist, however, Manchin’s refusal to hold a confirmation hearing for the chairman of the Federal Energy Regulatory Commission could further undermine his own efforts to build out America’s transmission infrastructure, experts tell the Post… “Manchin’s move raises the possibility that Glick will lose his job by the end of the year, when his current term expires. That would leave a 2-2 split between Democratic and Republican commissioners at FERC, a lesser-known independent agency that has enormous influence over the nation’s transition to clean energy. Such a split could stall the commission’s work on updating transmission policies to support the deployment of more renewable energy, a crucial part of Biden’s climate agenda, Jill Tauber, vice president of litigation for climate and energy at Earthjustice, told the Post. “If you care about getting transmission built, recognizing the very real bottleneck problem that we have, you’ve got to be supportive of a fully constituted FERC, putting the agency in the best position to move forward on that,” Tauber told the Post. Howard Crystal, legal director of the Center for Biological Diversity’s Energy Justice Program, agreed. “Manchin holding up Glick’s reappointment seriously calls into question whether he even thinks the transmission provisions in the [permitting] bill are necessary or important,” Crystal told the Post. “Maybe the fossil fuel provisions in that bill are the things that Manchin really cares about.” “...Manchin has not said publicly why he raised the barrier to Glick’s renomination. But the decision came days after Manchin slammed President Biden’s comments on shutting down coal plants and replacing them with renewable energy… “Some observers have speculated that Manchin, who represents a top coal-producing state, is trying to pressure Biden and FERC to take a friendlier approach to the fossil fuel sector. But others have been left scratching their heads. “I just don’t really understand what his endgame is here,” one environmental lawyer who spoke on the condition of anonymity to be candid told the Post.”
E&E News: Lawmakers Propose Tax Credit For Renewable Natural Gas
Mark Heller, 12/6/22
“Lawmakers in both chambers of Congress are proposing a tax credit for renewable natural gas,” E&E News reports. “Last week Reps. Linda Sánchez (D-Calif.) and Brian Fitzpatrick (R-Pa.) proposed a tax credit of $1 per gallon for sellers of RNG — which can be made from manure and other agricultural waste — that is used for transportation. The bill ‘Renewable Natural Gas Incentive Act,’ H.R. 9396, would boost fuel that is often used by package delivery services and public transit systems, among others, and which promoters say is a cleaner alternative to electric vehicles and diesel-powered trucks. As much as 64 percent of on-road vehicles that use natural gas obtain it from renewable sources, according to the industry group Natural Gas Vehicles for America.”
STATE UPDATES
Press release: Lawsuit Aims to Protect Colorado Front Range Air From Oil and Gas Industry’s Pollution
12/6/22
“WildEarth Guardians and the Center for Biological Diversity filed suit today against the Polis administration over its failure to ensure several major sources of air pollution in Adams and Weld Counties, Colorado operate in compliance with state and federal clean air laws. Filed in state court by student attorneys with the University of Denver Sturm College of Law Environmental Law Clinic, the suits target the failure of the Air Pollution Control Division to meet legally required deadlines for reviewing and updating air pollution permits for large oil and gas processing facilities. The suit targets large oil and gas industry facilities located along the Colorado Front Range… “All of the polluting facilities are considered major sources of air pollution and collectively release thousands of tons of toxic air emissions, including nitrogen oxides, volatile organic compounds, and particulate matter. All facilities contribute to high ozone levels in the Denver Metro area. “The operating permits these polluters are supposed to have can be a vital tool in our fight against air pollution in Colorado,” said Robert Ukeiley, an environmental health attorney at the Center for Biological Diversity. “However, the state government’s combined decades of delay in issuing these permits means more asthma attacks and other bad health consequences.” The suit comes as the Colorado Air Pollution Control Division is increasingly under fire for shirking its duty to protect clean air and hold polluters accountable. This week a state court in Adams County ruled the Division illegally delayed action on four air pollution permits, ordering the state to take action.”
Forum News Service: North Dakota’s gas flaring intensity is highest (by far) in nation
PATRICK SPRINGER, 12/5/22
“North Dakota is one of five states that together account for 90 percent of the nation’s flared natural gas and is an “outlier” with flaring intensity that is seven times greater than the next-highest state,” Forum News Service reports. “Those are among the findings by consultants Rystad Energy in a study commissioned by the Environmental Defense Fund that determined infrastructure capacity limits are by far the greatest cause of flaring gas that can’t be captured and processed. North Dakota greatly exceeded the other four major flaring states in flaring intensity, the percentage of flared gas as a percent of total produced gas, according to the report. North Dakota accounted for 35 percent of the flaring by the group of five leading states — second to Texas, with 41 percent — but had a flaring intensity of 7.1 percent, seven times greater than the next-highest state, New Mexico, which flared 1 percent of the gas it produced in 2021, the Rystad Energy report found. Flaring in New Mexico was 11 percent of the total for the five states. Texas, the leading oil and gas state, flared 0.9 percent of the gas it produced in 2021, the report said. Wyoming flared 0.2 percent of its natural gas, followed by Colorado with 0.1 percent. “It’s a huge source of waste. It’s unconscionable, really. It’s also a huge source of pollution,” Jon Goldstein, the Environmental Defense Fund’s senior director of regulatory and legislative affairs, told Forum of flaring. “That’s a big problem, particularly in North Dakota.” Lynn Helms, director of the North Dakota Department of Mineral Resources, told Forum the vast majority of natural gas produced in the state is a byproduct of oil wells, making it more difficult to capture. Elsewhere, most natural gas is produced from natural gas wells, specifically designed to capture the gas for processing, he told Forum.”
Utah Public Radio: Environmental group says the BLM's methane flaring limit could go further
Eric Tegethoff, 12/5/22
“Between 2010 and 2020, enough methane was vented on public lands to serve about 675,000 homes, according to the Bureau of Land Management,” Utah Public Radio reports. “The Biden administration has proposed a rule to limit methane flaring from oil and gas development on public lands. The rule would impose royalty payments for excessive flaring, and the Bureau of Land Management estimates it would generate nearly $40 million a year. Melissa Hornbein, a senior attorney based in Montana with the Western Environmental Law Center, told UPR she's encouraged by some aspects of the proposal, but believes an outright ban would be more effective, as long as there are no safety concerns in a given situation. "There's really no need for it," she told UPR, "and instituting a pay-to-play system is not likely to be effective in terms of really reducing the waste of associated gas through venting and flaring." Hornbein told UPR it's important that the BLM has recognized its authority to regulate such oil and gas waste as methane, and her organization would like to see the agency go further to create a consistent and durable rule that will last into the next administration.”
Alaska Public Media: As Hilcorp drills for more natural gas, some Ninilchik neighbors refuse to sign on
Riley Board, 12/5/22
“Don Shaw bought his nearly 10-acre property in Clam Gulch, on the Kenai Peninsula, for $9,000 in 2003 with an inheritance from his mother’s death. He’s a self-described techno-hermit, and can stay on his property for upwards of two months, leaving only for cigarettes. He’s also a member of the Exxon Valdez oil spill class-action lawsuit from 1994. He said he has deep resentments about the way oil companies have impacted Alaska,” Alaska Public Media reports. “It murdered my life, I’ve never recovered from it, I’m out here in the woods minding my own business,” he told APM. “I despise the way the state handles the oil industry.” “...Shaw is now among the Kenai Peninsula residents getting offers from Hilcorp as the company expands. Shaw said Hilcorp wants to lease the area underneath his property to explore for gas. He said they’ve made him offers in exchange for that lease, like this one: “Maybe my boss will let me come down and we can go on a deer hunting charter and you can sign a lease,” he said, recounting what a Hilcorp landman told him. “Or maybe we can go on a fishing charter and you can sign a lease.” “...The company asks private property owners to lease the land underneath them, and then pays them royalties on the gas produced there. The vast majority of people have taken those deals. But Shaw is one of the holdouts. Hilcorp declined to answer a list of questions for this story, including whether the proposed deal with Shaw took place, the steps it takes when it wants to expand drilling, and how many people have signed leases or refused to sign them, like Shaw. Instead Hilcorp released a brief written statement saying it prides itself on being a good neighbor and is proud of the work it’s done, “to revitalize the Cook Inlet basin and produce natural gas for Alaskan homes and businesses.” Shaw told APM he’s worried that signing a lease would devalue his property and that any payment would be inadequate. He’s not the only one standing his ground against the company.”
EXTRACTION
Calgary Herald: Varcoe: After years of 'belt-tightening,' Canadian oilsands producers loosen reins on spending for growth
Chris Varcoe, 12/6/22
“Canada’s oilsands producers are set to open their wallets and direct more capital toward their growth plans in 2023 after several years of relative frugality,” the Calgary Herald reports. “Companies are introducing bigger capital budgets for next year, despite apprehension over the future direction of the global economy and a retreat in oil prices — even the potential effect of Alberta’s sovereignty act. Over the past week, four of the country’s largest oilsands producers have unveiled bigger capital programs for 2023, with Cenovus Energy announcing Tuesday it will spend between $4 billion and $4.5 billion next year. At its midpoint, that’s up 21 per cent from this year’s budget. “The industry has really been in a real belt-tightening mode for most of the last two or three years, given the pandemic and everything else,” Cenovus CEO Alex Pourbaix told the Herald. “Now, as balance sheets are improving, as commodity prices remain strong, I’d be surprised if we don’t see some (additional) production.” The Calgary-based integrated producer said about $2.8 billion of its capital expenditures will be earmarked for sustaining capital that allows it to maintain base output. About $1.45 billion will be directed to growing or optimizing operations, including its oilsands assets in northern Alberta, and for construction of the West White Rose project offshore Newfoundland and Labrador. Another $500 million will help grow the company’s thermal oilsands business, adding about 100,000 barrels per day over the next two to five years, Pourbaix told the Herald. Total production next year is forecast around 820,000 barrels of oil equivalent (boe) per day, an increase of more than three per cent.”
CLIMATE FINANCE
Press release: Energy Transfer LP Announces Pricing of $2.5 Billion of Senior Notes
12/6/22
“Energy Transfer LP (NYSE: ET) today announced the pricing of its $1.0 billion aggregate principal amount of 5.550% senior notes due 2028 and $1.5 billion aggregate principal amount of 5.750% senior notes due 2033 at a price to the public of 99.974% and 99.891%, respectively, of their face value. The sale of the senior notes is expected to settle on December 14, 2022, subject to the satisfaction of customary closing conditions. Energy Transfer intends to use the net proceeds of approximately $2.482 billion (before offering expenses) from this offering to repay outstanding indebtedness, and for general partnership purposes. Barclays Capital Inc., BofA Securities, Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering.”
OPINION
Los Angeles Times: Editorial: Southern California smog reduction plan should race to zero emissions
THE TIMES EDITORIAL BOARD, 12/2/22
“Southern California smog regulators are finally getting on board with what pollution-plagued communities have been telling them for years: To clean the nation’s worst-polluted air, they have to get emissions down to zero,” the Los Angeles Times Editorial Board writes. “After decades of focusing on incrementally cleaner combustion, the South Coast Air Quality Management District is poised to adopt a plan that for the first time strives for a zero-emission economy. The district’s governing board is set to vote Friday on its road map for cleaning up ozone pollution, the lung-searing gas in smog, to meet federal health standards by 2037… “Business interests have tried to dilute the plan, saying it should remain silent on electrification and should instead be “technology and fuel neutral.” And they complain that business owners and residents will have to shoulder the costs of the transition — when in reality people have long been subsidizing industry pollution with their health… “There are also stronger tailwinds today thanks to hundreds of billions of dollars in new federal climate funding under the Inflation Reduction Act, which will support projects to accelerate the shift to electric vehicles and appliances powered by renewable energy. State lawmakers have also invested billions in emissions-cutting programs. Passing the most aggressive air-quality plan possible will put Southern California in a stronger position to get more funds for these projects. But implementation is just as important. Regulators will have to hold firm on their commitment to zero emissions and work quickly to start to deliver the long-overdue air quality improvements people across the region have been promised.”