EXTRACTED: Daily News Clips 2/4/22
PIPELINE NEWS
Appalachian Voices: Fourth Circuit Invalidates Decision in Endangered Species Act Case, Further Delaying MVP
Roanoke Times: Another Mountain Valley Pipeline permit struck down by federal court
S&P Global: Mountain Valley Pipeline takes another hit in court as 4th Circuit strikes species authorization
Milwaukee Journal Sentinel: Hours of testimony highlight tensions over potential reroute of Canadian-owned Enbridge oil pipeline in northern Wisconsin
Associated Press: Many Speak Out Against Proposed Enbridge Pipeline Reroute
Aberdeen News: A carbon dioxide pipeline could be coming to South Dakota. Here's why landowners are concerned
Radio Iowa: Lawmaker calls for landowner protections in pipeline negotiations
NTV ABC: Bold Nebraska questions carbon capture pipelines
National Post: Trans Mountain expansion running over budget by billions of dollars and months behind schedule
Associated Press: NTSB: 2020 Kentucky pipeline blast caused by welding defects
Civil Liberties Defense Center: New Legal Resources For Line 3 Water Protectors
WASHINGTON UPDATES
STATE UPDATES
Spectrum News: Hochul: New York finalizes methane regulations
OPB: Land-use board says Portland can deny Zenith oil-by-rail terminal, but more evidence needed
Unicameral Update: Tax incentives for carbon capture and storage proposed
Reuters: Energy Transfer asks U.S. regulator for 3-year extension to build Louisiana LNG plant
Reuters: Tellurian to start building Louisiana liquefied natural gas plant in April
EXTRACTION
Canadian Press: Environmental groups serve Alberta premier, government with defamation lawsuit
Press release: First Nation Capital Investment Partnership teams up with Enbridge to advance CO2 storage solutions
E&E News: Major study documents methane ‘ultra-emitters’
Newsweek: Trinity Spirit Oil Tanker That Can Carry 2 Million Barrels Explodes at Sea
Reuters: 'I own this' - Suncor Energy CEO vows to fix safety, operational problems
CLIMATE FINANCE
Politico: CHANGING CLIMATE AT THE FED?
E&E News: Fed nominee hits back at GOP climate attacks. Will it work?
Financial Times: Asset Managers Dismiss Biden’s Methane Clampdown As Too Lenient
OPINION
Des Moines Register: Opinion: Carbon pipelines before heritage and water quality — is that the Iowa way?
The Hill: Biden's climate promises require oil and gas leasing reform
OilPrice.com: Plastic Will Fuel Oil Demand For Years To Come
PIPELINE NEWS
Appalachian Voices: Fourth Circuit Invalidates Decision in Endangered Species Act Case, Further Delaying MVP
2/3/22
“The U.S. Court of Appeals for the Fourth Circuit invalidated the biological opinion and incidental take statement issued by the U.S. Fish and Wildlife Service under the Endangered Species Act for the Mountain Valley Pipeline. The court found that the agency failed to adequately analyze the project’s environmental context when assessing the detrimental impacts to the Roanoke logperch and the candy darter, a species on the brink of extinction. The court’s decision means that construction should not move forward along the 303-mile pipeline route. Today’s announcement is a result of a case argued by the Sierra Club on behalf of a coalition of conservation organizations, including Wild Virginia, Appalachian Voices, Chesapeake Climate Action Network, Defenders of Wildlife, West Virginia Rivers Coalition, Preserve Giles County, Preserve Bent Mountain, West Virginia Highlands Conservancy, Indian Creek Watershed Association and Center for Biological Diversity. Appalachian Mountain Advocates also represented the petitioners. The decision is yet another setback for the Mountain Valley Pipeline after another recent decision from the Fourth Circuit invalidating approvals by the U.S. Forest Service and Bureau of Land Management for construction through Jefferson National Forest. The project continues to face several legal battles and is more than three years behind schedule, barely half complete to full restoration, and billions over budget. The pipeline has been required to pay millions of dollars in fines for more than 350 water quality-related violations in Virginia and West Virginia, and has disturbed and destroyed important habitat that has adversely affected local wildlife. Today’s decision should stop the pipeline’s onslaught against one of the largest remaining wild landscapes in the eastern U.S.”
Roanoke Times: Another Mountain Valley Pipeline permit struck down by federal court
Laurence Hammack, 2/3/22
“Concerns about the fate of two endangered fish — the Roanoke logperch and the candy darter — have prompted a federal appeals court to throw out another permit for the embattled Mountain Valley Pipeline,” the Roanoke Times reports. “...Last week, the same three judges shot down a permit that would have allowed the pipeline to pass through the Jefferson National Forest. In both cases, the judges faulted the U.S. Forest Service and the wildlife agency for failing to adequately assess the environmental impact of a 303-mile long pipeline that bisects the New River and Roanoke valleys… “We recognize that this decision will further delay the completion of an already mostly finished pipeline, but the Endangered Species Act’s directive to federal agencies could not be clearer: halt and reverse the trend toward species extinction, whatever the cost,” the 40-page opinion concluded… “However, opponents hope the two most recent decisions — on top of previous setbacks for the deeply controversial pipeline — may finally push investors to abandon the $6.2 billion project… “Previously, the Fourth Circuit has set aside initial approvals from the Forest Service and the U.S. Fish and Wildlife Service. It has also twice found problems with permits from the U.S. Army Corps of Engineers that gave the pipeline permission to cross nearly 1,000 streams and wetlands. Although the court has also ruled in Mountain Valley’s favor in some cases, its overall record has evoked a saying among pipeline opponents: “May the Fourth be with you.”
S&P Global: Mountain Valley Pipeline takes another hit in court as 4th Circuit strikes species authorization
Maya Weber, 2/3/22
“The 4th US Circuit Court of Appeals delivered another blow to the 304-mile, 2 Bcf/d Mountain Valley Pipeline, invalidating the US Fish and Wildlife Service's Endangered Species Act authorization for the natural gas project for a second time,” S&P Global reports. “The ruling adds another layer of legal complication for the project that would add an outlet for Appalachian Basin production, after the court's Feb. 2 ruling that struck authorization for the pipeline to cross the Jefferson National Forest. A three-judge panel Feb. 3 agreed with environmental group petitioners that FWS failed to consider the project's environmental context while analyzing impacts on two species of endangered freshwater fish, the Roanoke logperch and the candy darter. It struck the biological opinion and incidental take statement, a document that sets out allowed impacts to the species, and remanded them to the agency… “The ruling criticized the cumulative effects analysis for all five species as occupying "less than a page" and said the biological opinion spends "one sentence discussing the impacts of climate change." “Equitrans Midstream in a statement said it was "taking time to thoroughly review" the decision on the endangered species authorizations and evaluating next steps regarding the biological opinion. Sierra Club Senior Director of Energy Campaigns Kelly Sheehan told S&P now that three more key agencies have been sent to the drawing board after failing analyze MVP's "harmful impacts," the matter is up to the current administration. "Now, the Biden administration must fulfill the commitments it has made on climate and environmental justice by taking a meaningful, thorough review of this project and its permitting," she told S&P. "When they do, they will see the science is clear: MVP is not compatible with a healthy planet and livable communities. MVP must not move forward."
Milwaukee Journal Sentinel: Hours of testimony highlight tensions over potential reroute of Canadian-owned Enbridge oil pipeline in northern Wisconsin
Laura Schulte, 2/3/22
“Over more than 10 hours of testimony that stretched into the early hours Thursday, state environmental regulators heard pleas about the possible harmful effects of a proposed rerouted pipeline through the North Woods balanced against backers who see rare economic opportunity in the Canadian petroleum company's plans,” the Milwaukee Journal Sentinel reports. “…Many of those who spoke during the hearing said the draft environmental impact survey didn't do enough to lay out the risks to the climate, land and water the pipeline could have. Mike Wiggins Jr., the tribal chairman for the Bad River Tribe, said there really isn't a justification for the line, and that the DNR shouldn't even be considering a reroute vs. the decommissioning of the line. "The only thing we have ever asked the oil company is to just get out of our water and that has been rejected, that has been disrespected and essentially ignored," he said. "It's a simple request. We can't afford in this day and age to have an oil pipeline — a foreign corporate oil pipeline — in American drinking water, in the Lake Superior drainage basin, and in our tribe's drinking water." Politicians also weighed into the debate. U.S. Senate candidate Tom Nelson called the pipeline a "rotten artery of fossil" fuels and said that rerouting the pipeline will do nothing to bring Wisconsin into the age of green energy. “Line 5 should be stopped, plain and simple,” he said. “It’s an aging relic that threatens our environment, undermines the next generation of Wisconsin jobs, places an undue burden of risk on Wisconsin localities and violates the heritage and sovereignty of Wisconsin’s First Peoples.” Other raised concerns about what impact the pipeline could have in crossing streams and rivers in northern Wisconsin, which are known for their cold-water trout populations… “Others saw the pipeline as a driver of adverse climate change and expressed concerns over what will happen to the state if action isn't taken to move away from fossil fuels.”
Associated Press: Many Speak Out Against Proposed Enbridge Pipeline Reroute
2/3/22
“Many of nearly 300 people who attended a 10-hour-long virtual public hearing spoke out against a $450 million plan to reroute an oil and gas pipeline across northern Wisconsin,” the Associated Press reports. “The hearing that began Wednesday finally wrapped up early Thursday… “Environmental groups, tribal members, activists and residents from across the state, Midwest and beyond argue the DNR’s draft environmental review is insufficient and doesn’t adequately evaluate impacts along the route that include the risk of spills. “Tne 5 segment would be to Wisconsin’s waters, wetlands or climate,” Jennifer Giegerich, director of government affairs for Wisconsin Conservation Voters, said. “Secondly, this draft EIS fails to recognize the authority of the treaty rights of the tribes of Wisconsin.” Republican lawmakers, labor unions and the state’s largest business lobby support the project, citing the 700 construction jobs it would generate.”
Aberdeen News: A carbon dioxide pipeline could be coming to South Dakota. Here's why landowners are concerned
Alexandra Hardle, 2/3/22
“In July 2021, Ed Fischbach grabbed his mail before beginning the drive from his Spink County home to his niece’s wedding in Minnesota. His wife told him he might want to look at a letter they had gotten from Summit Carbon Solutions,” the Aberdeen News reports. “But not wanting to crash his car, Fischbach asked his wife to read the letter out loud to him — their property was on the route for a proposed carbon dioxide pipeline, and they might not have any say. Since then, Fischbach has spent time learning about the company and the goals of the pipeline. And he’s become one of the project’s most vocal critics… “Some symptoms of exposure to high carbon dioxide concentrations include: convulsions, asphyxia and coma, according to the CDC. Carbon dioxide is also a colorless and odorless gas. And because the pipeline will only be 4 feet underground, some landowners are concerned about rupturing it, even if that’s 20 years from now. Landowners have also raised questions about the company’s integrity. Summit Carbon Solutions is currently proposing easements, although it does not yet have a permit to begin construction of the pipelines. If easements are not signed, Powell said on Tuesday that he’s confident the company will get a right to eminent domain. And eminent domain is one of Fischbach’s main concerns: Summit Carbon Solutions is a private company. “We don’t believe a private, unregulated company should be allowed to use eminent domain,” Fischbach told the News… “While county commissioners have heard presentations about the proposed pipeline, no action has been required. But, the McPherson County Commission has placed a moratorium on hazardous transmission pipelines until a revised zoning ordinance is approved. That moratorium was approved at a special meeting Jan. 11… “But nothing will be decided for about another year, Public Utilities Commission Staff Attorney Kristen Edwards told the News. The commission is expecting a permit application from Summit Carbon Solutions sometime this month, and the commission will have one year to decide whether or not the permit will be granted. After the permit application is received, notices will be sent out to local papers regarding public input meetings that will be held in affected counties along the route throughout March.”
Radio Iowa: Lawmaker calls for landowner protections in pipeline negotiations
O. KAY HENDERSON, 2/3/22
“A northwest Iowa lawmaker says the legislature should act to protect the private property rights of Iowans who do not want a carbon pipeline to cut through their land,” Radio Iowa reports. “Representative Steven Hansen of Sioux City said developers stand to reap millions of dollars from these proposed pipelines. “Without federal incentives, we wouldn’t be talking about these pipelines, so there’s going to be winners and there’s going to be losers, but it should be our landowners,” Hansen said this morning during a brief speech on the House floor. Hansen noted the Woodbury and Plymouth County Boards of Supervisors are opposed to the state granting eminent domain — so developers can acquire land from property owners who haven’t agreed to easements for the pipelines. “For all the talk about different rights, I don’t know what is probably more important than the right to do what you want to with your land,” Hansen said. “And I think that’s a bipartisan agreement.”
NTV ABC: Bold Nebraska questions carbon capture pipelines
Steve White, 2/3/22
“A decade after fighting an oil pipeline, Bold Nebraska now takes on carbon capture pipelines,” NTV ABC reports. “The group is opposing plans by Summit Carbon Solutions. A spokesman for the company previously stated the project will make ethanol plants more environmentally friendly. The pipeline would connect several Nebraska plants, but it's drawing criticism from Bold Nebraska. The group questions how safe it would be and also cautions landowners it could damage soil and result in crop losses. Bold Nebraska is holding a meeting in York on Thursday.”
National Post: Trans Mountain expansion running over budget by billions of dollars and months behind schedule
Chris Varcoe, 2/3/22
“After facing interruptions caused by volatile weather and the pandemic, the Trans Mountain expansion is expected to run over budget by several billion dollars — and the federally owned pipeline project won’t be completed this year as planned,” the National Post reports. “Work to expand the oil pipeline is now forecast to cost more than $17 billion and likely won’t be done until sometime in 2023, sources tell the Post. Ottawa purchased the pipeline almost four years ago from Kinder Morgan Canada for $4.4 billion after it appeared the private owners were set to walk away from the expansion as it faced a series of hurdles to be built by late 2020. At the time, the project’s price tag was pegged at $7.4 billion, but soon moved higher. It climbed to $12.6 billion in early 2020 and is headed up again… “Former TransCanada Corp. CEO Hal Kvisle told the Post the budget is rising due to construction delays, regulatory obstacles, supply chain issues and difficulties working in tough terrain. “There have been many work stoppages and this is a major driver of cost overruns,” he told the Post. “I don’t know that the costs will exceed $20 billion, but it will be heading up towards that. And most people now are thinking it will be done by the end of 2023, or maybe a little bit into 2024.”
Associated Press: NTSB: 2020 Kentucky pipeline blast caused by welding defects
2/4/22
“A natural gas pipeline explosion in eastern Kentucky in 2020 was caused by defects in the welding, federal officials said,” the Associated Press reports. “The explosion near a state highway in Fleming County caused no injuries, but it followed a 2019 deadly gas line explosion in Lincoln County. Both lines are owned by Enbridge, a Canadian energy company. A report from the National Transportation Safety Board said the Fleming County pipeline ruptured on May 5, 2020, causing a fire that burned about 5 acres of vegetation near Hillsboro. NTSB investigators found two weak spots on a pipeline weld at the site of the explosion. Enbridge estimated the cost of property damage and emergency response was nearly $12 million, according to the report, which was released in January.”
Civil Liberties Defense Center: New Legal Resources For Line 3 Water Protectors
2/3/22
“The Civil Liberties Defense Center (CLDC) and the Water Protector Legal Collective (WPLC) are excited to announce a new partnership to boost legal representation capacity for Water Protectors who were arrested while defending Anishinaabe lands, the upper Mississippi watershed, and our collective climate future from construction of the Line 3 tar sands pipeline. Thanks to a significant grant from the 11th Hour Project, our two organizations have hired an attorney to provide full-time legal representation and support to Water Protectors still needing representation within the Minnesota court system. We’re thrilled to introduce you to Claire Glenn, who will be working collaboratively with our two organizations and the Line 3 community to ensure that all Water Protectors still in need of representation receive capable, movement-aligned legal support as they move through the criminal punishment system… “Providing legal representation for Line 3 Water Protectors is vital - not just for individual "defendants" who have been charged, but to show the opposition that support for Line 3 Water Protectors and the broader Indigenous-led movement in resistance to fossil fuels is stronger than ever. We will continue to defend those who put their lives and freedom on the line for climate justice, for the water, the Earth, and future generations.”
WASHINGTON UPDATES
E&E News: Democrats give oil leaders ‘last chance’ to testify
By Nick Sobczyk, 2/4/22
“The House Oversight and Reform Committee is extending a new deadline for a group of five Big Oil board members to testify as part of its investigation of fossil fuel misinformation,” E&E News reports. “In letters sent Wednesday, the committee said board members from Exxon Mobil Corp., BP PLC, and Chevron Corp. declined to appear at a planned hearing on Feb. 8. Jane Holl Lute, a member of Shell’s board of directors, said she would be willing to testify but “declined to participate on that date after other invited board members refused to appear,” according to the committee. The panel will reschedule the hearing for March 8, wrote full committee Chair Carolyn Maloney (D-N.Y.) and Environment Subcommittee Chair Ro Khanna (D-Calif.). The full committee will hold a separate hearing with climate science experts on the original Feb. 8 date. “The Big Oil companies should consider the March hearing their last chance to cooperate,” Maloney said in a statement. “If their board members refuse to appear, they should expect further action from this Committee.” “...This week’s letters asked the companies to turn over all relevant documents by the March 8 hearing, or face “further action by the Committee.” “...Khanna told E&E he hopes the eventual testimony will be revealing because the board members are involved in sustainability efforts at their respective companies… “Their answers will provide a behind the scenes look at the internal discussions occurring at these companies,” Khanna said in a statement. “If the members do not provide them voluntarily, all options are on the table.”
Politico: PERMIT THIS
Matthew Choi, Zack Colman, 2/3/22
“A group of lawmakers is keeping up the pressure on the Biden administration to consider tamping down on LNG export permits,” Politico reports. “Eight senators, including Sen. Angus King (I-Maine), Democratic Sens. Debbie Stabenow and Gary Peters of Michigan, Jack Reed of Rhode Island and Patrick Leahy of Vermont, asked Energy Secretary Jennifer Granholm to halt new natural gas export permits and have DOE review how LNG exports are affecting domestic natural gas prices. The senators note that the Biden administration has been trying to secure natural gas cargoes for Europe in case Russia decides to throttle its own supply amid tensions over Ukraine, but also point to rising natural gas prices at home even as the EIA forecasts lower-than-average inventories.”
STATE UPDATES
Spectrum News: Hochul: New York finalizes methane regulations
By Nick Reisman, 2/2/22
“New York state officials on Wednesday finalized environmental rule changes meant to reduce the amount of methane and other emissions from oil and natural gas in the state, Gov. Kathy Hochul's office announced,” Spectrum News reports. “The regulations, taken together, are aimed at having the state comply with a mandated change to cleaner and more renewable forms of energy in the coming decades in order to mitigate the effects of climate change. "As New York continues our ambitious and historic transition away from fossil fuels, we are committed to reducing emissions from oil and gas infrastructure that are contributing to climate change and impacting the public health of our communities," Hochul said. "The finalization of these rules will reduce leakage from New York's oil and natural gas facilities, and keeps our state at the forefront of climate action." The development could reduce methane emissions by more than 14,000 metric tons a year. Volatile organic compound emissions would be reduced by more than 2,000 tons per year.”
OPB: Land-use board says Portland can deny Zenith oil-by-rail terminal, but more evidence needed
By Cassandra Profita, 2/3/22
“The Oregon Land Use Board of Appeals says the city of Portland has the authority to deny a key approval for a controversial oil-by-rail terminal, but the city needs to provide more evidence to back up its denial last year,” OPB reports. “In a decision announced Thursday, the land-use board said the city does have the power to deny Zenith Energy the approval it needs to continue operating in Portland’s Northwest industrial area. But city officials must do more to support their arguments that the project’s planned expansion conflicts with existing land-use goals. In August, the Portland Bureau of Development Services refused to issue a land use compatibility statement to the Texas-based company, quashing a proposed expansion of its Portland facility and putting its continued operation in jeopardy. As a result of the city’s denial, the Oregon Department of Environmental Quality refused to issue the company the air quality permit it needs to continue operating the oil-by-rail terminal where it receives crude oil and renewable fuels from trains, stores it in tanks and sends it through pipes to outgoing ships… “Zenith appealed the city’s denial to LUBA, saying in a statement that the company was disappointed in the city’s decision, given that its plan to transition to renewable energy is aligned with the city’s comprehensive plan… “In its decision, LUBA agreed with the company that the city had not sufficiently supported its argument that the Zenith project conflicts with Portland’s 2035 comprehensive plan. But the board indicated the city can strengthen its argument with a closer review of what the plan does and does not allow with respect to fossil fuel facilities.”
Unicameral Update: Tax incentives for carbon capture and storage proposed
2/3/22
“Companies that capture, transport or store carbon dioxide from anthropogenic sources would qualify for certain tax incentives under a bill heard Feb. 2 by the Revenue Committee,” Unicameral Update reports. “Venango Sen. Dan Hughes, sponsor of LB801, said the bill would clarify whether such activities, which are regulated under last year’s LB650, qualify for incentives under the ImagiNE Nebraska Act. Tony Goins, director of the state Department for Economic Development, testified in support of the bill. Under current law, he said, Nebraska businesses that pressurize and transport carbon dioxide via pipeline for sequestration outside the state may qualify, but businesses that sequester their carbon dioxide emissions onsite do not… “Mick Mines testified in support of LB801 on behalf of the Nebraska Corn Growers Association, Nebraska Farm Bureau and Nebraska Soybean Association. Since the passage of LB650, he said, several Nebraska ethanol plants and private companies have announced pipeline projects intended to reduce the industry’s carbon dioxide emissions… “Kenneth Winston testified in opposition to LB801 on behalf of Bold Alliance. He questioned whether tax incentives are needed to encourage business activity that already is taking place. Additionally, he said, carbon dioxide pipelines are a relatively new technology and present the risk of leaks.”
Reuters: Energy Transfer asks U.S. regulator for 3-year extension to build Louisiana LNG plant
2/3/22
“U.S. pipeline company Energy Transfer on Thursday asked the Federal Energy Regulatory Commission (FERC) for a 3-year extension to its permit to build a Louisiana liquefied natural gas plant, according to a FERC filing,” Reuters reports. “Energy Transfer wants to be able to extend construction of the 16.4 mtpa Lake Charles LNG facility through late 2028.”
Reuters: Tellurian to start building Louisiana liquefied natural gas plant in April
By Marcy Deluna, 2/1/22
“U.S. liquefied natural gas developer Tellurian Inc (TELL.A) plans to start construction on its $16.8 billion Driftwood LNG plant in Louisiana in April, Chairman Charif Souki said on Tuesday,” Reuters reports. “The company has access to enough capital to handle the first year of plant construction, Souki told Reuters in a Tuesday interview… “The first phase of Driftwood construction is designed to process 11 million tonnes per year (mtpa) of LNG. First delivery could take place in 2026, Souki told Reuters. Future phases would bring the plant's full capacity to 27.6 mpta. Project financing of $12 billion for the next five years will consist of about two-thirds debt and one third equity, Souki told Reuters.
EXTRACTION
Canadian Press: Environmental groups serve Alberta premier, government with defamation lawsuit
Bob Weber, 2/2/22
“Five environmental organizations have followed through on a threat to sue Alberta Premier Jason Kenney and the provincial government for defamation,” the Canadian Press reports. “In documents filed Wednesday in Edmonton Court of Queen’s Bench, the groups allege Kenney deliberately twisted the findings of a public inquiry into whether the groups were using foreign funding to try and landlock Alberta oil by spreading misinformation about its environmental impacts. “There’s a line that (Kenney) crossed,” Paul Champ, lawyer for the environmentalists, told CP. “If you don’t hold him accountable on something like this, there’s really no limits for him.” “...But the groups allege that even after Allan’s report was released, Kenney made public statements and social media posts that kept falsely accusing them, statements repeated on government websites… “Tim Gray of Environmental Defence, one of the plaintiffs, told CP he’s not aware of a similar lawsuit being launched before by an advocacy group. “I’m used to the cut and thrust of policy debate and that’s fine,” he told CP. “But to say a public inquiry that was paid for with public money concluded something that is exactly opposite to what it did is just pushing it a bit too far.” Gray alleges the remarks were a deliberate attempt to damage the reputation of environmental groups. “It does undermine our credibility. It gives people who would like to marginalize the value of our information someone important to point to who says, ‘That’s the truth.’”
Press release: First Nation Capital Investment Partnership teams up with Enbridge to advance CO2 storage solutions
2/3/22
“Enbridge Inc. and the First Nation Capital Investment Partnership (FNCIP) have reached an agreement to advance the proposed Open Access Wabamun Carbon Hub (the Hub) west of Edmonton. The Hub is being developed as an innovative combination of carbon transportation and storage solutions to support recently announced carbon capture projects from Capital Power Corporation (Capital Power), Lehigh Hanson Materials Limited (Lehigh Cement), and potentially others. Four Treaty 6 Nations – Alexander First Nation, Alexis Nakota Sioux Nation, Enoch Cree Nation and Paul First Nation – recently formed the FNCIP to pursue ownership in major infrastructure projects with commercial partners who share Indigenous values – the Hub is the FNCIP's first partnership. The Lac Ste. Anne Métis Community will also have an opportunity to pursue ownership in future carbon transportation and storage projects associated with the Hub. "This path creates an opportunity to generate wealth, but more importantly it allows sustainable economic sovereignty for our communities. We are creating a healthy future for the next seven generations to thrive," said Chief of Alexander First Nation, George Arcand Jr.”
E&E News: Major study documents methane ‘ultra-emitters’
By Carlos Anchondo, 2/4/22
“Stopping methane leaks from oil and gas “ultra-emitters” could provide billions of dollars in climate benefits, according to a new study,” E&E News reports. “Published yesterday in the journal Science, the study details about 1,200 such ultra-emitters detected by satellite between 2019 and 2020, referring to intermittent events involving at least 25 metric tons of methane leaks per hour. In total, the high-emitting events — which usually are undetectable — constituted about 12 percent of the oil and gas industry’s total, although they were not included in national greenhouse gas inventories. While earlier studies have looked at so-called ultra-emitters in particular locations, the new research is the first systematic, global assessment of really large releases of methane from across the world, the authors said… “The research, however, did not include the United States’ Permian Basin because of overlapping plumes from the region’s closely located facilities… “The large-emitting events could be accidental or due to intentional venting that’s associated with maintenance operations, according to the researchers… “The study said stopping the large leaks could save the countries billions of dollars in net savings, with the United States poised to save an estimated $1.6 billion. Tackling high-emission events presents a cost-effective strategy for countries, the authors said.”
Newsweek: Trinity Spirit Oil Tanker That Can Carry 2 Million Barrels Explodes at Sea
KHALEDA RAHMAN, 2/3/22
“An explosion has rocked an oil production vessel off the coast of Nigeria,” Newsweek reports. “Dramatic footage shared on social media shows the Trinity Spirit oil tanker on fire and apparently sinking, with thick plumes of black smoke billowing into the sky… “The vessel is capable of storing about 2 million barrels of oil and can process up to 22,000 barrels a day, according to the company's website.”
Reuters: 'I own this' - Suncor Energy CEO vows to fix safety, operational problems
By Rod Nickel, 2/3/22
“The chief executive of Suncor Energy (SU.TO) said on Thursday that he is taking steps to make the Canadian oil producer safer for its workers and its operations more reliable, after an employee died last month,” Reuters reports. “The worker died at Suncor’s Base plant in Alberta's oil sands on Jan. 6, after a heavy haul truck rear-ended a second truck at the mine. The incident is the fourth fatality at a Suncor facility since late 2020, according to Scotiabank… “The company will adopt new technology - common in the mining industry but new to the Canadian oil sands - on all mobile equipment to avoid collisions and manage fatigue, Little said, adding that it will be in place within 18-24 months.”
CLIMATE FINANCE
Politico: CHANGING CLIMATE AT THE FED?
Matthew Choi, Zack Colman, 2/3/22
“The Federal Reserve’s role over how it should prepare the financial system for climate change is central to the showdown over Sarah Bloom Raskin, President Joe Biden’s pick for the central bank's top Wall Street regulator, who faces a confirmation hearing today in the Senate Banking Committee,” Politico reports. “Raskin has joined with other finance and climate experts in suggesting banks take steps to prepare for climate-related shocks, and she has encouraged regulators to consider ways to support a “rapid and just green transition.” The risks most closely watched by the Fed include not only physical threats posed by severe weather, but also the possibility that global policies enacted to curb greenhouse gases — which would make fossil fuels more expensive and shift consumer behavior — could hurt financial institutions with sizable fossil fuel investments. Environmentalists contend that Raskin has generally aligned with Fed Chairman Jay Powell and former top regulator Randal Quarles, both Republicans. Under that pair, the Fed joined the Network for the Greening of the Financial System, a coalition of central banks assessing climate risks. The bank is also in the process of developing a framework for making banks game out climate-related risk scenarios… “Republicans have slammed Raskin as an ideologue who would halt cash flows to coal, oil and gas firms, though such an extreme move is highly unlikely, particularly in the near term. Twenty-four state treasurers, largely from energy-dependent and Republican-leaning states, sent a letter Monday to the White House calling her views “radical.” The U.S. Chamber of Commerce opposes her, citing statements criticizing Fed actions bolstering ailing oil and gas firms through the Trump-era CARES Act.”
E&E News: Fed nominee hits back at GOP climate attacks. Will it work?
By Avery Ellfeldt, 2/4/22
“President Biden’s nominee to be the Federal Reserve’s top banking regulator came out swinging yesterday against Republican assertions that she’s on a mission to combat climate change by diverting dollars away from the oil and gas sector,” E&E News reports. “In a highly anticipated hearing before the Senate Committee on Banking, Housing and Urban Affairs, Sarah Bloom Raskin faced a flurry of questions from GOP lawmakers about her previous remarks on the Fed’s responsibility to address the financial threats of global warming. Their main accusation: That Raskin, a former Fed governor who Biden tapped to be the central bank’s next vice chair for supervision, would lead a politicized charge to starve high-carbon companies of cash — a move that would fall outside the Fed’s mandate from Congress… “That claim, which was repeated by other lawmakers throughout the nearly three-hour hearing, has the potential to sink Raskin’s chances of being confirmed in a narrowly divided Senate with sharply divergent views on climate-related risk. Raskin, who served as a deputy Treasury secretary during the Obama administration, rejected the allegation outright. She told Toomey and other lawmakers that she’s focused on one key issue: assessing and mitigating risks to the financial system, whatever their origin… “Democrats, environmentalists and a growing number of experts say that the financial system — which is deeply entrenched in high-carbon industries — could face unanticipated shocks as extreme weather events intensify and the world shifts toward clean energy sources. They argue that regulators have a responsibility to examine that risk, model how it could unfold and ensure finance firms are preparing for it. Some Republican lawmakers, business groups, and the oil and gas industry say it isn’t appropriate for financial agencies to wade into these issues at all. They also claim that climate advocates are overblowing the risk.”
Financial Times: Asset Managers Dismiss Biden’s Methane Clampdown As Too Lenient
2/3/22
“Large investors including Wellington Management and Legal & General have criticised US president Joe Biden’s crackdown on methane pollution for being too lenient on the oil and gas industry, as asset managers take a more vocal stance on climate policy,” the Financial Times reports. “The Environmental Protection Agency has put forward new regulations that would force producers to find and plug leaks of methane, a potent greenhouse gas, from their wells, storage tanks and other infrastructure. The proposal is a pillar of the president’s pledge to halve US greenhouse emissions by the end of the decade from 2005 levels. The regulatory measure has gained importance as the bulk of Biden’s legislative climate agenda has stalled. But in public comment filed before a deadline this week, the draft methane rule came under fire from both environmental groups and investors. They urged the EPA to remove an exemption from regular inspections for small oil and natural gas wells that account for almost half the sector’s methane leaks. ‘We firmly believe that the proposed rule, which exempts nearly 40 per cent of active wells in the US from regular monitoring, does not go far enough in requiring oil and gas companies to take responsibility for the methane pollution from their assets,’ wrote Mary Pryshlak, head of investment research at Wellington, with more than $1tn in assets under management. In separate submissions, investors including Legal & General Investment Management America, NEI Investments and the Harvard Management Company, which oversees the university’s $53bn endowment, all called on the EPA to take a harder line against smaller oil and gas operations.”
OPINION
Des Moines Register: Opinion: Carbon pipelines before heritage and water quality — is that the Iowa way?
Mark E. Gannon runs Gannon Real Estate & Consulting in Ames, 2/3/22
“As you know, three carbon pipelines are proposed to cut through Iowa. One headed north to North Dakota and two headed to Illinois. These are in direct opposition to Iowa values and our heritage, and, we have other needs in Iowa that need attention before we consider allowing this,” Mark E. Gannon writes for the Des Moines Register. “I am a farm manager in Iowa, and lines would go through eight tracts of land I manage. Most of these farms are long-term ownership, some with over 100 years in the same family. All oppose these projects, but we feel the deck is stacked against us before we get started. The precedent was already set with the Dakota Access pipeline with a private company with the threat of eminent domain hanging over everyone’s heads. These new projects are much the same, where investors' only real values are making money but tout the weak excuse that they are helping farmers and Iowans for generations. If it wasn’t for federal tax credits and the fact the Iowa Utilities Board and the Iowa Supreme Court allowed Dakota Access to slide through, they wouldn’t consider “helping us.” Where will this end, if we don’t put down our foot now and stick up for our landowners and the land that took millions of years to develop into the productive land it is today?”
The Hill: Biden's climate promises require oil and gas leasing reform
Romany Webb is an associate research scholar at Columbia Law School and senior fellow at the Sabin Center for Climate Change Law, 2/3/22
“The Bureau of Land Management (BLM) this week announced that it would impose a higher royalty rate on new oil and gas leases on federal lands,” Romany Webb writes for The Hill. “A BLM spokesperson later walked back the announcement, telling reporters the change was “not final.” The communications mix-up is sure to have caused some red faces at BLM, but the substance of the announcement should not. Increasing royalties on new leases is a no brainer — something BLM can easily do to advance President Biden’s climate agenda. But it won’t be enough on its own. BLM’s seeming reluctance to take this easy step raises questions about whether it is ready for the harder ones ahead… “There are sound reasons for increasing royalties above the current rate, which has remained fixed for over a century. During that time, there have been major developments in the oil and gas industry. As the industry’s profitability has increased, many states have upped their royalty rates. Oklahoma now charges 18.75 percent, Colorado and New Mexico up to 20 percent, and Texas up to 25 percent. BLM’s current rate is clearly well below fair market value. The low rate effectively subsidizes oil and gas production and does not account for its significant social and environmental costs… “One industry group recently claimed that BLM cannot stop development on federal land because, in its view, the Mineral Leasing Act “requires quarterly lease sales in every oil and gas state.” In fact, the act only requires quarterly sales in “each State where eligible lands are available” for leasing. BLM has previously declared large tracts of land to be ineligible for leasing and could declare more in the future. That would be controversial and almost certainly face court challenges. But if the president wants to deliver on his promises, his administration will need to take the necessary steps — both easy and hard.”
OilPrice.com: Plastic Will Fuel Oil Demand For Years To Come
Felicity Bradstock, 2/3/22
“As Big Oil worries about the looming threat of renewable alternatives, with governments and international organizations putting pressure on countries and companies to curb fossil fuel production, petrochemicals will become increasingly important,” Felicity Bradstock writes for OilPrice.com. “With oil majors continuing to invest in oil and gas projects, they want to be sure that their new exploration and production operations pay off in the long run, an issue that’s becoming increasingly uncertain. However, as the demand for petrochemicals increases worldwide, energy firms can be safe in the knowledge that if oil demand in some sectors wanes there will still be a use for their ‘black gold’... “As uncertainty around sustained oil demand over the coming decades grows, with much depending on the development of renewable alternatives, Big Oil wants to make sure their new investments will still see a return even as demand wanes… “Big Oil is betting big on petrochemicals as a backup for oil being used purely as an energy source, as the growth of the renewable energy sector threatens to dethrone some of the world’s energy giants. However, many oil and gas firms are likely to face strong opposition from governments and climate activists in the process, potentially driving some to look for innovative technologies to establish lower-carbon practices without giving up on oil.”