EXTRACTED: Daily News Clips 3/30/22
PIPELINE NEWS
Tennessee Lookout: Tennessee House Commerce Committee passes amended pipeline bill
Des Moines Register: Iowans at Capitol push for stronger restrictions on eminent domain for carbon capture pipelines
Radio Iowa: Carbon pipeline opponents rally in Iowa Capitol
Muscatine Journal: Iowa CO2 pipeline opponents plan hearing on eminent domain
Moody County Enterprise: Pipeline Moratorium
KMA: Montgomery County board backs eminent domain ban on pipeline
Press release: Xebec Announces MOU for CO2 Capture and Sequestration Equipment with Summit Carbon Solutions
WAVE: Court of Appeals hears arguments on proposed pipeline through Bernheim Forest
KTVQ: Laurel residents' appeal against NorthWestern Energy pipeline denied
Williston Herald: Belated hearing for Caliber Midstream's existing pipeline in McKenzie County set for April 6
Herald Banner: Pipeline leak south of Greenville leads to evacuations
VICE: Alberta’s ‘Energy War Room’ Now Wants to ‘Influence’ US, New Documents Show
Police1.com: Eighth Circuit denies qualified immunity for ‘on scene’ supervisor and officers who fired bean bags during pipeline protest
Canary Media: Experts say blending hydrogen into gas pipelines won’t work
WASHINGTON UPDATES
Press release: Chair Grijalva Blasts Fossil Fuel CEOs For Refusing to Testify at April 5 Natural Resources Committee Hearing
E&E News: Oil industry report warns of revenue bleed without new leasing
STATE UPDATES
KUSI: Sen. Shannon Grove proposes bill to prioritize production of oil in California
Los Angeles Daily News: State bill calls for Aliso Canyon natural gas storage facility to close in 2027
EXTRACTION
Financial Post: Ottawa to unveil emissions reduction plan — minus key detail on a cap for the oil and gas sector
Reuters: Energy Transfer to sell LNG to China's ENN
Canadian Press: Alberta Appeal Court keeps $217 million oilpatch cleanup liability case alive
CLIMATE FINANCE
The Insurer: AIG moves “from laggard to leader” on climate commitments
OPINION
Duluth News Tribune: Our View: Enbridge's transparency lacking after breaches
Calgary Herald: Varcoe: Alberta's oilpatch faces daunting reality of tough new emissions targets
The Hill: US using Ukraine as cover to lock us into fossil fuels for years to come
PIPELINE NEWS
Tennessee Lookout: Tennessee House Commerce Committee passes amended pipeline bill
DULCE TORRES GUZMAN, 3/29/22
“The House Commerce Committee passed a controversial energy infrastructure preemption bill that removes local control from communities, but with amendments proposed by environmental and community organizers,” the Tennessee Lookout reports. “On Tuesday, committee members passed HB2246 to allow exceptions for local zoning codes and local actions that are state authorized, among other tweaks that have loosened the bill. According to Sarah Houston, director of Protect Our Aquifer, every amendment requested by environmental justice activists was added, allowing Memphis to their ordinances protecting residential communities from pipeline infrastructure and preventing energy infrastructure from crossing city streets. While Shelby County ordinances regulating pipelines may still be affected, the bill is now open to interpretation. “We got a stronger version, something that allows for Memphis laws to stand, potentially the laws in Shelby County to stand, but that is all up for debate, so we really will see how far gas companies will try to push this loose language. That could come down to litigation between local communities and multi-billion-dollar companies…The question remains, how much are gas companies going to use and abuse this law,” Houston told the Lookout… “Critics saw the bill as directly aimed at Memphis after community protesters vehemently opposed the building of a crude-oil pipeline through low-income and historically Black neighborhoods. Both the Shelby County Commission and the Memphis City Council have since passed regulations to protect the city’s underground drinking water and prevent pipelines from being built near residential areas… “After passing, HB2246 now goes to the House Finance Subcommittee, where its fiscal impact will be debated. Once passed, the bill heads to the House.”
Des Moines Register: Iowans at Capitol push for stronger restrictions on eminent domain for carbon capture pipelines
Donnelle Eller, 3/29/22
“Kathy Stockdale says she has the unlucky distinction of having two of three planned carbon capture pipelines across Iowa proposing to run through the 550-acre Hardin County farm her family has owned for a century,” the Des Moines Register reports. "This land is part of us. We've worked hard to make improvements," Stockdale, 71, told the Register, adding that she feels "like my property rights are being taken away." Stockdale was among about 100 Iowans Tuesday who joined what was billed as a "people's public hearing" at the Iowa Capitol. They called on lawmakers to impose stronger restrictions on the pipeline developers' use of eminent domain to force unwilling landowners to sell access to their property for their projects… “But some landowners are unwilling to host the pipeline, saying they are concerned that it will damage cropland. The Iowa House passed a bill last week that would prevent state regulators from holding eminent domain hearings for carbon sequestration pipeline projects for nearly a year. Supporters say the measure would encourage voluntary agreements between companies and landowners. But Stockdale and others Tuesday said the bill doesn't go far enough to lift the threat of eminent domain. She supports a bill that failed to gain traction this year, prohibiting private developers from using eminent domain on farmland… “Jesse Mazour, the Sierra Club's Iowa conservation coordinator, told the Register her group and others organized the rally because Gov. Kim Reynolds has ignored requests that she meet with landowners who oppose the project. So have most Iowa legislators, Mazour told the Register. Landowners are "the most important stakeholders in all of this," she said, adding that the groups staging Tuesday's event invited all state lawmakers to attend… “Steve Kenkel, a Shelby County supervisor, told the Register he was at the Capitol because "I think the process is flawed." "The lack of local control ... undermines trust," Kenkel told the Register, adding that he and other county supervisors across the state are getting inundated with calls from residents, landowners and "even city residents" who live near the pipeline routes.”
Radio Iowa: Carbon pipeline opponents rally in Iowa Capitol
O. KAY HENDERSON, 3/30/22
“Opponents of proposed carbon pipelines have staged what they’re calling a public hearing in the Iowa Capitol rotunda,” Radio Iowa reports. “Shelby County Supervisor Steve Kenkle said there’s been little public input and county officials lack the authority to have any say about the projects. “I call a spade a spade and if it doesn’t make sense or people are not accountable, I ask a lot of questions and so I’ve been at meetings asking questions…I think the process is flawed,” Kenkel said to applause and cheers. “It’s flawed and that’s the reason I’m here.” Kenkel lives on a century farm near Earling, about a mile from the proposed route for the Summit pipeline. Some of the other speakers were landowners who don’t want to sell easements on their property so the pipelines can pass through. They oppose letting the Iowa Utilities Board invoke eminent domain authority so property can be seized for the projects. Carolyn Raffensperger, executive director of the Science and Environmental Health Network, also addressed the crowd. “They want to take your property through this unique power of government and hand it over to a private corporation so they that they make their profit using your land…and I say: ‘No!'” Raffensperger said, to extended cheers.”
Muscatine Journal: Iowa CO2 pipeline opponents plan hearing on eminent domain
James Q. Lynch, 3/29/22
“Concerned with a lack of action, opponents of the use of eminent domain for the construction of carbon capture pipelines across Iowa will host their own public hearing at the Capitol on Tuesday,” the Muscatine Journal reports. “Landowners report threats and harassment from interests promoting the construction of three proposed pipelines to carry carbon dioxide from Iowa ethanol plants to underground sequestration sites in neighboring states, according to Jessica Mazour of the Sierra Club… “Gov. Reynolds so far has refused to meet with those opposing the use of eminent domain, Mazour told the Journal… “But landowners report agents of pipeline interest are calling them more than a dozen times a day, repeatedly showing up at their homes and workplaces to pressure them into granting easements for pipelines across their property, Mazour told the Journal. The amendment to House File 2565 “doesn't remove the threat of eminent domain, and the landowners are going to make it loud and clear tomorrow that they still feel that eminent domain is being threatened,” she told the Journal. Landowners want to tell legislators “we're glad you finally started to listen, but this doesn't do anything.”
Moody County Enterprise: Pipeline Moratorium
Carleen Wild, 3/29/22
“Moody County’s Joint Board of Commissioners and Planning has approved in a special session — a resolution that would establish a temporary moratorium on the issuance of conditional use permits and building permits on pipelines,” the Moody County Enterprise reports. “The move comes as plans proceed on an underground pipeline project that would transport carbon dioxide (C02) from Valero, the ethanol plant in Aurora, South Dakota, to an underground storage facility in Illinois. A growing number of residents and area farmers are voicing concern about the safety and efficacy of the pipeline as well as frustration over the threat of eminent domain if they don’t voluntarily comply with the line coming through their properties. The resolution is similar to ones passed by other counties in South Dakota, including McPherson.... ”Multiple other counties are close to passing similar moratoriums or adopting ordinances, the Moody County Enterprise is told. “How much good will it do? Probably nothing,” said Commissioner John Schiefelbein. “But hopefully our moratorium along with others will convince the PUC that this should be stopped from happening. The majority of people are against it and we stand with the majority of the people of Moody County.” “...The resolution passed solely to put a moratorium on pipelines, no additional meetings are scheduled on the resolution. But commissioners do now want to look at whether or not additional changes are needed to zoning ordinances and if so, meetings will be scheduled for future dates.”
KMA: Montgomery County board backs eminent domain ban on pipeline
Mike Peterson, 3/29/22
“Montgomery County officials have taken a stand on the volatile eminent domain issue,” KMA reports. “By unanimous vote Tuesday morning, the county's board of supervisors approved a letter of objection addressed to the Iowa Utilities Board to using eminent domain to acquire property for a proposed carbon dioxide pipeline project. Action by the supervisors follows last week's meeting, in which several local residents spoke out against any effort by Summit Carbon Solutions to use the legal maneuver in securing land for the proposed Midwest Express CO2 pipeline across Montgomery County and other affected areas… “While the letter indicates the county still has the responsibility of monitoring the pipeline's construction and other regulatory matters, Olson says the board believes using eminent domain should be preserved for publicly-acknowledged work or community service infrastructure. "Using it to construct this type of project would be an inappropriate use of this measure," said Olson. "We ask that the Iowa Utilities Board deny the use of eminent domain for privately-owned hazardous liquid pipelines to include the Summit Carbon capture project. It is this board's opinion that privately-held land interactions and transactions are to be negotiated between private entities involved." “...In other business, the board interviewed officials with LT Leon and Associates of Des Moines, a prospective company to handle the county's pipeline inspection duties.”
Press release: Xebec Announces MOU for CO2 Capture and Sequestration Equipment with Summit Carbon Solutions
3/28/22
“Xebec Adsorption Inc. (TSX: XBC) (“Xebec”), a global provider of sustainable gas technologies, is pleased to announce today that it has signed a Memorandum of Understanding (“MOU”) with Iowa-based SCS Carbon Removal LLC, a subsidiary of Summit Carbon Solutions. The MOU supports the negotiation of an order in excess of USD$100 million (CAD$126 million) for 51 carbon dioxide (CO2) reciprocating compression packages to be completed by the end of Q3 2023. This equipment will be used for Summit Carbon Solutions’ proposed carbon capture and sequestration project, which will be the largest in the world if approved. The MOU is an expression of interest and there is no certainty that the negotiations will lead to a final binding order. This agreement showcases both Xebec’s expanding technology portfolio for carbon capture and sequestration, as well as the rapidly expanding customer base for Xebec’s sustainable gas technologies.” To date, Xebec has demonstrated its compression leadership in renewable natural gas (“RNG”), hydrogen and industrial gases through its subsidiaries Applied Compression Systems (ACS), Xebec Systems USA, and HyGear. Xebec’s compression equipment is typically needed to process sustainable gases to achieve desired operating parameters.”
WAVE: Court of Appeals hears arguments on proposed pipeline through Bernheim Forest
Dustin Vogt, 3/29/22
“On Tuesday, the Kentucky Court of Appeals heard oral arguments in a dispute about LG&E’s approval to place a natural gas line across Bernheim Forest,” WAVE reports. “The pipeline would go through a portion of Bernheim’s Cedar Grove wildlife corridor, which is land used for research, studying rare and endangered species of plants, bats, snails and other animals… “LG&E said they needed the new pipeline to keep up with demand and growth, but an attorney representing Bullitt County property owners, whose land the pipeline would run through, said that’s not entirely the case. ”Now, we know additional stuff about public necessity,” Attorney John Cox, representing Iola Capital told WAVE. “We know that the number one user, the only user of the first two years is Jim Beam. These are all things that were hidden that we now know through the process, but my client couldn’t get involved in it and ask the questions that it could.” Property owners said the pipeline could negatively impact farming and future developments.”
KTVQ: Laurel residents' appeal against NorthWestern Energy pipeline denied
Casey Conlon, 3/29/22
“Yellowstone County commissioners denied an appeal Tuesday from a group of 31 Laurel landowners who wanted the county to repeal a floodplain permit granted to NorthWestern Energy for a natural gas pipeline to be built underneath the Yellowstone River,” KTVQ reports. "We've had a lot of passionate comment, and I appreciate that, but I do not see the evidence to reject the permit," Commissioner John Ostlund said. The session lasted for more than three hours. Both the landowners' group and NorthWestern Energy presented expert testimony for about 30 minutes each to begin the hearing, before dozens of public comments were given, mostly against the pipeline construction. "To me, this is not political. It is personal," said Carah Ronan. "My family has lived, worked, and farmed on the banks of the Yellowstone River that we are talking about." "...The fact that they would build it on the river bothers me tremendously. Why would they build it on the river?" asked Priscilla Bell, a Laurel resident and spokesperson for the Northern Plains Resource Council. "They have thousands of miles of service lines across Montana and plenty of space." Many in the group cited a decrease in property values as well as riverbank erosion as key reasons for the repeal request. Crews removed about 50 cottonwood trees over the winter to make space for the pipeline construction.”
Williston Herald: Belated hearing for Caliber Midstream's existing pipeline in McKenzie County set for April 6
By Renée Jean, 3/29/22
“Caliber Midstream will have a belated hearing before the Public Service Commission on April 6 to site a natural gas pipeline that it is already operating in McKenzie County,” the Williston Herald reports. “...Caliber operates a gas gathering system in McKenzie County that collects raw natural gas from several producers for delivery to its Hay Butte Plant for processing, and then delivery to Northern Border. The 2.62-mile-long, 8-inch natural gas pipeline in question initially cost $5.6 million to build. In October 2021, Caliber Midstream submitted an application to the Public Service Commission asking the regulator to allow modifications making the pipeline to Northern Border bidirectional. They also requested temporary authorization to continue operating the line at that time… “PSC granted both requests in November, but ordered Caliber to submit a siting application for the original pipeline by Nov. 30, 2021.”
Herald Banner: Pipeline leak south of Greenville leads to evacuations
By Brad Kellar, 3/29/22
“Residents in several homes in the southern portion of Hunt County were evacuated Tuesday due to a leak from a gasoline/diesel pipeline,” the Herald Banner reports. “Nobody has been injured. “This leak was a pinhole,” Hunt County Emergency Management Coordinator Richard Hill told the Herald, adding the leak had been repaired as of 3:45 p.m. .. “Hill told the Herald the line can alternately transport gasoline or diesel, and a small amount of Benzene, a substance used in gasoline, was detected at the site. Hill told the Herald the maximum allowable amount of Benzene is .05 parts per million during a 15-minute work period. “In the last check, with the wind blowing the way it was, it was .05,” Hill said. The company operating the pipeline had sealed the puncture, and Hill indicated the owners of four homes in the area were offered overnight hotel stays by the company. ”
VICE: Alberta’s ‘Energy War Room’ Now Wants to ‘Influence’ US, New Documents Show
Geoff Dembicki, 3/29/22
“An organization that spreads propaganda on behalf of the Alberta government has registered as a “foreign agent” in the U.S. so that it can “influence American public opinion” amid the Ukraine crisis in favor of importing more Canadian oil, according to documents viewed by VICE. “The documents were filed earlier this month with the U.S. Department of Justice on behalf of the Canadian Energy Centre, also known as the “energy war room,” which is funded by the Alberta government and has a board of directors composed of three provincial cabinet ministers… “The goal of this activity is to “influence American public opinion with respect to the Canadian oil and gas industry.” “...The irony is that the Alberta government has spent years trying to delegitimize its environmental critics as belonging to “foreign-funded misinformation campaigns” that hide their true interests from the public. “They have so heavily criticized any form of foreign engagement or influence,” Tzeporah Berman, international program director at the environmental group Stand.earth, told VICE News. “This push in the U.S. shows how hypocritical they are.” “...The current advertising materials for the U.S. were created by DDB Canada, which is owned by Omnicom, a global public relations firm that has called climate change “the biggest existentialist crisis in living memory.” Neither DDB Canada nor Omnicom responded to requests for comment. The topic of “foreign organizations” criticizing the oil sands is extremely touchy for the Alberta government. It even spent $3.5 million on an inquiry into whether environmental groups secretly funded by Americans have “disseminated incomplete, misleading, or false information about the Alberta oil and gas industry” in order to “influence matters of public interest to Albertans and Canadians.” That inquiry found no evidence of wrongdoing. But the Canadian Energy Centre thinks foreign influence is totally fine as long as it’s the one doing the influencing. “Every dollar we spend is accounted for by Alberta’s Office of the Auditor General,” the centre’s CEO Tom Olsen wrote in an email to VICE News. “Anti-oil and gas groups aren’t subject to the same.”
Police1.com: Eighth Circuit denies qualified immunity for ‘on scene’ supervisor and officers who fired bean bags during pipeline protest
3/29/22
“Marcus Mitchell, an American Indian, sued in the North Dakota Federal District Court, Morton County Sheriff Kyle Kirchmeier and other North Dakota officers for allegedly violating his Fourth Amendment rights. [1] Mitchell’s complaint filed pursuant to 42 U.S.C § 1983 (federal civil rights act), alleged that he was shot and injured by officers with lead-filled bean bags while he was engaged in a non-violent peaceful protest,” Police1.com reports. “He claimed that under the direction of Morton County Sheriff Kirchmeier, officers on different occasions used violent tactics against protestors including bean bag pellets, rubber bullets, tear gas, pepper spray and firehose-directed freezing water. He alleged these tactics caused numerous serious injuries to protestors… “The Eighth Circuit reviewed Mitchell’s asserted facts and observed that he had not committed a serious crime, did not represent a threat of serious bodily harm to the involved officers and was not resisting arrest. Nonetheless, “officers shot Mitchell with shotgun-propelled, lead-filled bean bags that shattered his eye socket.” The court concluded that if Mitchell’s allegations are true, “the officers who shot Mitchell violated his Fourth Amendment rights. Furthermore, because it was clearly established that the alleged conduct violated Mitchell’s Fourth Amendment rights, we must assume at this stage of the litigation that the officers … are not entitled to qualified immunity.” “...The court concluded that the lawsuit may proceed against the county and stated, “these allegations indicate a pattern of Morton County law enforcement officers using excessive force against the protestors.” The court observed that Mitchell claimed that Sheriff Kirchmeier knew about the unconstitutional conduct of subordinates and tacitly authorized the use of excessive force against peaceful protestors. The court noted that Kirchmeier allegedly defended his officers' unconstitutional “’use of force, and specifically the use of impact munitions,’ calling them ‘lawful tools to quell the [protestors’] advancement.’” [6] The court concluded “[d]efending the use of “impact munitions” and “water cannons” in these circumstances [displays knowledge of unconstitutional actions and] amounts to tacitly authorizing the use of excessive force.”
Canary Media: Experts say blending hydrogen into gas pipelines won’t work
3/29/22
“Green hydrogen could be a vital tool to limit greenhouse gas emissions from hard-to-decarbonize sectors like steelmaking, shipping and chemicals manufacturing. But trying to use it as a substitute for natural gas to heat buildings, or even to fuel power plants, could be a pipe dream that wastes precious time and money that would be better directed to more realistic and cost-effective options to reduce carbon,” Canary Media reports. “That’s the key takeaway from a new report by San Francisco–based think tank Energy Innovation that lays out the latest critique of U.S. utility plans to use hydrogen as a substitute for fossil gas in their pipelines. In the past two years, such utility efforts have been expanding, and they now include at least 26 separate pilot projects, many of them aimed at injecting hydrogen into existing gas pipelines. Many of the pilot projects aim to repurpose existing fossil gas pipeline networks to use hydrogen that is manufactured using methods that don’t increase greenhouse gas emissions… “Hydrogen is a very different molecule from methane, which makes up the majority of fossil gas. It’s composed of the smallest molecule in existence, which makes it more difficult to contain in pipelines, increasing the risk of leaks. It’s also known to weaken the strength of steel used for large-scale gas pipelines, and it can be ignited far more easily than methane can. All of this means that any widespread use of hydrogen would have to be accompanied by lengthy and costly safety studies, and it could require major retrofits and replacements of existing pipelines or entirely new appliances. At the same time, hydrogen carries only about one-third as much energy per unit of volume as does methane, which means that a 20 percent blend of hydrogen will only reduce the emissions impact of its use by 6 to 7 percent. Most utilities are blending at much lower levels than that right now, essentially eliminating the emissions impact altogether.”
WASHINGTON UPDATES
Press release: Chair Grijalva Blasts Fossil Fuel CEOs For Refusing to Testify at April 5 Natural Resources Committee Hearing
3/29/22
“Chair Raúl M. Grijalva (D-Ariz.) today issued the following statement after the chief executive officers of three oil companies—EOG Resources, Devon Energy Corporation, and Occidental Petroleum—refused to testify at a Natural Resources Committee hearing scheduled for Tuesday, April 5 at 1:00 pm Eastern time. The hearing would have examined the fossil fuel industry’s failure to help stabilize gas prices during the ongoing crisis in Ukraine despite their record profits. In absence of the CEO’s participation, the hearing will not go forward. “As rising gas prices started hurting Americans, fossil fuel industry trade groups and their allies in Congress wasted no time placing blame on the Biden administration and pushing for a drilling free-for-all. But when you look at oil companies’ record profits, these claims don’t add up,” Chair Grijalva said. “I invited these companies to come before the Committee and make their case, but apparently they don’t think it’s worth defending. Their silence tells us all we need to know—that cries for more drilling and looser regulations are nothing more than another age-old attempt to line their own pockets.” Devon, EOG, and Occidental are among the most significant oil and gas operators on public lands and waters. Together, they hold over 4,000 leases covering nearly 1.5 million acres of public land and over 2,800 approved and unused drilling permits. The three companies experienced record profits over the past year, totalling nearly $9 billion. According to a recent report, the top five executives at EOG received over $28 million in total compensation in 2021. A recent survey from the Federal Reserve Bank of Dallas shows that business strategy and investor pressure—not government regulations—are responsible for current trends in domestic energy production.”
E&E News: Oil industry report warns of revenue bleed without new leasing
By Heather Richards, 3/29/22
“A new report from the oil and gas industry warns of severe production declines in the Gulf of Mexico — and a billion-dollar bleed in federal revenues — if the Biden administration continues to delay offshore oil and gas leasing,” E&E News reports. “Commissioned by the American Petroleum Institute and National Ocean Industries Association (NOIA), the study also flags the upcoming sunset of the Interior Department’s five-year leasing program, a document required under the Outer Continental Shelf Act that lays out a schedule for offshore oil and gas lease auctions… “It’s fairly clear that there’s not going to be a leasing program in place come July 1,” Erik Milito, president of NOIA, told E&E. “The longer you go without a five-year program, the more significant the impacts are going to be on our economy, for Americans, for jobs, for energy affordability.” Not holding lease sales over the next five years would cut an average of $1.5 billion per year in revenue to the U.S. government, said the report prepared by Energy & Industrial Advisory Partners, which modeled the impacts of no new leasing until 2028. That loss would then jeopardize funds for programs supported by offshore oil dollars, like the Land and Water Conservation Fund that pays for maintenance and repairs on public lands, as well as eliminating millions of dollars for local governments and historic preservation budgets, the report notes.
STATE UPDATES
KUSI: Sen. Shannon Grove proposes bill to prioritize production of oil in California
3/28/22
“Sen. Shannon Grove (R-Bakersfield) has introduced a bill to the California State Legislature that would prohibit the import of crude oil into California from countries with demonstrated human rights abuses or with environmental standards that are lower than those in California,” KUSI reports. “Senate Bill 1319 would also require the Geologic Energy Management Division (CalGEM) to report to its website the measure of particulate matter that is released into the air from tanker ship emissions from oil imported into California. That measure is intended to highlight the air quality impact from the state’s dependence on foreign oil.”
Los Angeles Daily News: State bill calls for Aliso Canyon natural gas storage facility to close in 2027
ELIZABETH CHOU, 3/28/22
“Former Gov. Jerry Brown and current Gov. Gavin Newsom have expressed support for closing the Aliso Canyon natural gas storage facility, in the wake of the massive 2015 gas leak at the site,” the Los Angeles Daily News reports. “... Now, a state senator is hoping to lock in 2027 as the closure date, amid concerns that such promises are being ignored. State Senate Bill 1486, authored by state Sen. Henry Stern, comes as the California Public Utilities Commission is considering a proposal to postpone the closure by another eight years, to 2035… “The commission last year expanded the capacity of the facility, which had been operating at 50% capacity, alarming activists and others who have been pushing for permanently closing the facility. The commission ultimately approved an increase that would bring the storage capacity to 60%. The commission is “expanding the field at a time when they should be looking to shut it down,” Alexandra Nagy, California Director of Food & Water Watch, which supports putting in a hard deadline for closing the facility, told the Daily News… “The chemicals from the leak sickened nearby residents and forced many to temporarily relocate. It has also led to hundreds of lawsuits getting filed. Porter Ranch residents, who live adjacent to the SoCalGas property, have for years called for the gas storage facility to be shut down entirely. Many of them are also part of a $1.8 billion settlement offer with SoCalGas over the 2015 gas blowout. Plaintiffs in that case must decide by June 1 if they’ll settle. If less than 97% of them agree to settle, the case could go to trial.”
EXTRACTION
Financial Post: Ottawa to unveil emissions reduction plan — minus key detail on a cap for the oil and gas sector
Meghan Potkins, 3/29/22
“The federal government is set to unveil details of its plan to slash Canada’s greenhouse gas emissions over the next three decades on March 29, although without crucial details about how Ottawa plans to cap emissions from the country’s oil and gas sector,” the Financial Post reports. “Prime Minister Justin Trudeau has repeatedly promised a cap on oil and gas emissions as part of a strategy to reach net zero by 2050, with a near-term target of reducing emissions by between 40 and 45 per cent below 2005 levels by 2030 — a move that’s been described as key to Canada achieving its climate goals since oil and gas is the largest emitting sector in the country. But Natural Resources Minister Jonathan Wilkinson told reporters last week that while the plan will contain projections for each sector, including oil and gas, the cap itself won’t be decided until further consultations with industry and the provinces are complete. “The form and nature of that cap will be developed over the coming few months before it’s actually implemented either from a regulatory (or) a legislative perspective,” Wilkinson said.
Reuters: Energy Transfer to sell LNG to China's ENN
By Marcy de Luna, 3/29/22
“Energy Transfer LP (ET.N) said on Tuesday its liquefied natural gas (LNG) unit has entered agreements to supply a total of 2.7 million tonnes of LNG to ENN Natural Gas and ENN Energy Holdings Limited,” Reuters reports. “Gas companies have rushed to cash in on higher natural gas prices as sanctions on Russian fuel have shocked an already tight supply. The supply agreements are for a term of 20 years and first deliveries are expected to begin in 2026, the U.S. pipeline company added… “The number of U.S. proposed LNG projects to reach final investment decision (FID) is expected to get a push following demand from Europe to replace Russian gas over the next few years. There are currently 13 proposed U.S. liquefaction projects totaling 22 billion cubic feet per day (Bcf/d) that have received Department of Energy and Federal Energy Regulatory Commission approval, but have not reached FID. Atop the list of proposals likely to get financial approval this year are Venture Global's Plaquemines and Tellurian Inc.'s (TELL.A) Driftwood plant, both in Louisiana, and Cheniere Energy Inc.'s (LNG.A) Corpus Christi Stage 3 project in Texas, according to a recent report by Bank of America.”
Canadian Press: Alberta Appeal Court keeps $217 million oilpatch cleanup liability case alive
Bob Weber, 3/29/22
“A bankruptcy hearing that could determine whether more than $200 million in oilpatch environmental liabilities wind up on the public dime will have to go back to court,” the Canadian Press reports. “The Alberta Court of Appeal ruled Friday that the long-running bankruptcy of Sequoia Resources, which involves cleanup costs for thousands of oilpatch facilities, should return to the province’s Court of Queen’s Bench. Among other errors, the court said the original judge failed to account for the impact unreclaimed facilities have on the value of an energy company. “End-of-life obligations could be loosely thought of as asbestos in the walls of a house,” the Appeal Court justices wrote in their decision. “It will need to be rectified sooner or later, and someone will have to pay for it … until then, however, the house is worth less than a similar asbestos-free house.” The case began with a 2016 reorganization of Perpetual Energy, a Calgary-based energy company, that saw many money-losing properties with major environmental liabilities transferred to a now-bankrupt associated company, renamed Sequoia Resources.”
CLIMATE FINANCE
The Insurer: AIG moves “from laggard to leader” on climate commitments
3/29/22
“US insurance giant AIG unveiled a range of ESG commitments at the start of March which drew praise from environmental activists,” The Insurer reports.” The commitments included a series of pledges around coal underwriting and investments, with AIG stating it will phase out risks and investments for clients that derive 30 percent or more of their revenues from coal-fired power, thermal coal mines or oil sands by 2030 or sooner… “AIG said it will also no longer invest in or underwrite new operation insurance risks of coal-fired power plants, thermal coal mines or oil sands for those clients that derive 30 percent or more of their revenues from these industries, or generate more than 30 percent of their energy production from coal… “Hannah Saggau, insurance campaigner with activist group Public Citizen, told the Insurer AIG had “vaulted itself from a laggard in the industry to a leader in the US” with the move.”
OPINION
Duluth News Tribune: Our View: Enbridge's transparency lacking after breaches
Opinion by the News Tribune Editorial Board, 3/29/22
“With a construction project as major, as heavily scrutinized, and as closely watched and monitored as the Line 3 pipeline replacement last year, extreme, even over-the-top, care to do it right had to have been the expectation,” the Duluth News Tribune Editorial Board writes. “Nonetheless, as cautious as Enbridge, its contractors, and workers may have been, last week the Minnesota Department of Natural Resources announced it had completed an investigation into three incidents during pipeline construction in which groundwater aquifers were struck by digging equipment and ruptured, the resulting flooding “more severe than previously known,” as one headline in Duluth declared… “As concerning as the inadequate care not to dig too deep and rupture an aquifer is, a lack of transparency from Enbridge following the breaches may be even more troubling, especially to those who care about northern Minnesota’s clean-water supplies and who trusted Enbridge. The last of the three breaches, on the western edge of the Fond du Lac Reservation, was first discovered in September when workers removed materials that were being used to stabilize the pipeline trench. But the rupture wasn’t publicly acknowledged until last week, according to the Associated Press. That was six months of silence. The public was kept in the dark when it should have been immediately informed. Similarly, the first of the breaches, near the Clearbrook terminal in northwestern Minnesota, occurred in January 2021. But five months passed before the DNR learned about it and nearly a year lapsed before the uncontrolled flow was stopped, according to Minnesota Public Radio… “These types of occurrences probably shouldn’t happen at all, although the possibility of human error always needs to be taken into account. But when these breaches did happen, the appropriate authorities and the public — all of us who care about our supplies of clean water — should have been promptly notified. And we weren’t.”
Calgary Herald: Varcoe: Alberta's oilpatch faces daunting reality of tough new emissions targets
Chris Varcoe, 3/30/33
“Canadian pipeline companies are investing in renewable power, energy firms are eyeing massive hydrogen projects and oilsands operators have committed to net-zero emissions targets,” Chris Varcoe writes for the Calgary Herald. “These are tangible signs that Alberta companies are embracing green energy policies and transforming for a new future. Such steps are being taken as Ottawa introduces a new climate blueprint to lower Canadian greenhouse gas emissions, with an aggressive plan rolled out Tuesday that forecasts a 42 per cent reduction by the oil and gas sector by 2030… “Yet, one juvenile meme from the premier’s Twitter account on Monday undermines the message many Alberta businesses are trying to send out: They are already taking action and have plans to do much more. Not since the formation of Alberta’s energy war room or the Public Inquiry into Anti-Alberta Energy Campaigns have we seen such a pointless self-inflicted wound. Vivian Krause, whose research helped inspire the inquiry, called out Kenney over the meme, which shows Chris Rock getting slapped at the Oscars by actor Will Smith, with the words “reality” striking “green energy policies” cast over the image… “While the Canadian industry continues to make progress on emissions intensity, requiring an absolute cut of more than 40 per cent by 2030 will likely sideline larger projects in the future, such as new liquefied natural gas developments, Tamarack Valley Energy CEO Brian Schmid cautioned. “It is a death knell for big projects,” Schmidt told the Herald. “I think we are far better served to try and find solutions to produce the cleanest product we can.”
The Hill: US using Ukraine as cover to lock us into fossil fuels for years to come
Andreas Karelas is author of the book “Climate Courage: How Tackling Climate Change Can Build Community, Transform the Economy, and Bridge the Political Divide in America” published by Beacon Press, 3/29/22
“Last year, 90 percent of all the new electricity generating capacity built around the world was renewable energy. And that’s in spite of the fossil fuel industry receiving 70 percent of global energy subsidies,” Andreas Karelas writes for The Hill. “To put it another way, despite all the advantages of the entrenched, monolithic fossil fuel industry, energy markets are choosing to build clean energy over dirty energy nine times out of 10… “Given this state of affairs, the following will make you scratch your head: The Biden administration recently announced a new partnership with the European Union to help them end their reliance on Russian natural gas — by supplanting it with American natural gas. Rather than a Marshall-plan type effort to help Europe accelerate the clean energy transition and limit the impacts of the unfolding climate crisis, the Biden administration opted instead to use the Russian invasion of Ukraine to try and justify building new natural gas infrastructure that will lock us into fossil fuel use for years to come… “The announcement is basically a natural gas sandwich. Two slices of clean energy rhetoric bread around a walloping helping of handouts to the fossil fuel industry. I guess the nearly $375 million the oil and gas industry spends on lobbying the federal government annually is paying off… “Climate advocate Justin Guay summed up our collective sentiment neatly stating, “The climate community is yearning for Team Biden to step up to this moment. We need historical leadership that tells the world the only true path to security is getting off gas. Wars and crisis are not when we put climate concerns to the side — it’s when we double down.”