EXTRACTED: Daily News Clips 7/12/22
PIPELINE NEWS
Journal Courier: Environmental activists voice concerns about proposed CO2 pipeline to Morgan commissioners
Facebook: Iowa Carbon Pipeline Resistance Coalition: No CO2 Pipelines in Iowa! IUB! See Our Power!
S&P Global: Biden administration delays methane gathering line rules for some pipelines
St. Louis Post-Dispatch: Spire criticized for destroying documents about controversial St. Louis pipeline
WVLT: How will the Loudon Co. Colonial Pipeline spill affect the community?
WASHINGTON UPDATES
Washington Post: Democrats see hope for spending deal with Manchin as Congress returns
E&E News: Republicans maneuver to thwart reconciliation
STATE UPDATES
PBS: Discovery of methane leaks in California community is just ‘the tip of the iceberg,’ advocates worry
EXTRACTION
The Conversation: Methane emissions reach unexpected new highs. Is climate change causing a runaway effect?
E&E News: Rate of Arctic warming faster than previously thought
Canadian Press: Suncor cancels investor update in wake of CEO's resignation
OilPrice.com: Suncor Reveals Detailed Plan To Increase Oil Production While Reducing Emissions
New York Times: Oil companies oppose a windfall tax in Britain despite record profits.
Bloomberg: Natural Gas Is Gaining Ground, and the US Has Plenty of It
CLIMATE FINANCE
Quartz: Warren Buffett’s big bets on oil are betraying the climate
E&E News: European Central Bank says climate could cost lenders $71B
Pensions & Investments: Climate change knocking, but not all managers home
OPINION
Greene County News: D. Tronchetti – Farmers, landowners should fear IUB
Des Moines Register: Letters: Reynolds ignores land owners on pipelines
Post Independent: PI Editorial: Proposed hot crude rail project too risky for our communities, environment
Globe and Mail: Banks open coffers for energy companies with robust ESG strategies
PIPELINE NEWS
Journal Courier: Environmental activists voice concerns about proposed CO2 pipeline to Morgan commissioners
Ben Singson, 7/12/22
“Two members of an Illinois group opposed to carbon dioxide pipelines being constructed in the state urged Morgan County commissioners to weigh the consequences of allowing a carbon dioxide to be built through the county,” the Journal Courier reports. “During Monday morning's county commission meeting, Lan and Pamela Richart of the Coalition to Stop CO2 Pipelines gave a presentation on the Heartland Greenway pipeline being proposed by Navigator CO2 Pipelines… “Whether you ultimately accept this project or reject it, our message, really, is do this from a fully informed position," Lan Richart said. At 1,300 miles long and 24 inches diameter, the Heartland Greenway would be longer than any existing carbon dioxide pipeline in the United States and larger than all but one in existence, Lan Richart said. That size could lead to logistical issues when trying to maintain it, which could lead to a gas leak similar to the one in Satartia, Mississippi, in February 2020, he said. More than 175 homes in the county and all the homes in northern Bethel and Chapin would be within 1 mile of the pipeline's projected route through Illinois, Lan Richart said, noting that about 16 of those homes would be 150 yards or closer to the pipeline… “Pamela Richart asked commissioners to put a one-year moratorium on the pipeline to allow time to work on an ordinance that would protect residents via community education and emergency planning. She also asked that they change the county's public utility permit applications to include carbon dioxide pipelines, because road crossings for construction projects are not subject to eminent domain. She suggested that the application require measures including routine inspections and documentations of soil stability… “Alec Messina, a consultant assisting Navigator with permitting and government relations, was at the meeting. He said that, while the questions raised by the coalition were important, the presentation and others like it tend to "pick and choose" their information. Messina cited as an example a video by Norwegian classification society DNV that was played during the meeting and demonstrated a test carbon dioxide pipeline rupture. He said the video depicted a detonation rather than a typical rupture and was not representative of most pipeline failures.”
Facebook: Iowa Carbon Pipeline Resistance Coalition: No CO2 Pipelines in Iowa! IUB! See Our Power!
7/12/22
“Join the Iowa Carbon Pipeline Resistance Coalition for a rally at the Iowa Utilities Board (IUB) monthly board meeting. We won’t stand by as corporations endanger our land, our communities, and our climate by abusing eminent domain. CO2 pipelines pose a multitude of threats to all Iowans. From destroying farmland to the threat of asphyxiation if a pipeline leaks, Iowans are carrying all the risks, while Wall Street and the fossil fuel industry make off with the reward. As the Iowa Utilities Board prepares to handle permit requests for three hazardous carbon pipelines, it’s crucial that they know 80% of Iowans oppose using eminent domain for carbon pipelines. It’s time Iowa’s decision-makers learn that we will not accept greedy corporate interests being put before their needs. Let's show the Iowa Utilities Board how powerful we are when we stand together!”
S&P Global: Biden administration delays methane gathering line rules for some pipelines
Tom Tiernan, 7/11/22
“The Pipeline and Hazardous Materials Safety Administration on July 9 backed off strict enforcement of its rule regulating natural gas gathering lines, a key prong in the Biden administration's effort to control methane leakage, through an agreement with industry groups to delay imposition for certain pipelines by a year,” S&P Global reports. “PHMSA reached an agreement with the American Petroleum Institute and GPA Midstream, which challenged the Nov. 15, 2021, final rule in court, and concluded that delaying enforcement on mid-sized gathering pipelines for an additional year would give the industry the time and resources needed to bring larger gathering lines into compliance by May 16, 2023. Under the agreement, announced in the Federal Register July 9, operators would have until May 17, 2024, to achieve compliance for mid-sized pipelines, or those with outside diameters between 8.625 inches and 12.75 inches… “The notice of PHMSA's "limited enforcement discretion" on the mid-sized, "Type C," gathering lines marks the second such enforcement discretion announced by the agency in the past few months. PHMSA, in early May, promised to limit enforcement of new controls on methane leakage at newly constructed "incidental" lines located within 10 miles of the end of gas gathering systems as a means to ensure the regulations do not discourage midstream operators from undertaking safety enhancements or repairing existing facilities… “A safety advocacy group, Pipeline Safety Trust, has pushed for the regulation of gathering lines for many years. The group noted that PHMSA's calculation of 425,000 miles of gathering pipelines in the nation is a rough estimate, as operators have never had to report on gathering pipelines and it is not known exactly how many miles of such facilities are in the ground. Besides the safety aspect, Pipeline Safety Trust in a May statement said several studies identify gathering pipelines as a significant source of methane leaks.”
St. Louis Post-Dispatch: Spire criticized for destroying documents about controversial St. Louis pipeline
Bryce Gray, 7/9/22
“Spire is facing more scrutiny over its controversial natural gas pipeline after the utility destroyed documents related to the project’s bidding process,” the St. Louis Post-Dispatch reports. “The move drew fresh criticism from Missouri utility regulators, who also said Spire's process to procure fuel lacked transparency, and that the St. Louis-based utility did not select the cheapest option when it chose to buy from its own affiliate. The Spire STL Pipeline has been ensnared in legal trouble for the past year after failing to properly demonstrate it was needed. Some consumer advocates called the destruction of the proposals “suspicious” and perhaps unprecedented. John Coffman, an attorney for the Consumers Council of Missouri who monitors utility issues, said he had never heard of a utility destroying proposals before. “They have to show that it’s cheaper,” Coffman told the Dispatch. “We don’t know what the fair market value is because they destroyed the evidence.” Spire, though, says the destruction of documents was driven by the terms of confidentiality agreements reached with other companies, and noted that pertinent information was eventually provided to regulators. Moreover, the utility pointed to an accompanying report that found the company acted in a “reasonable and prudent” way in its decision-making surrounding the pipeline… “Debates about the pipeline continue to simmer on two fronts, at different levels of government. Nationally, for instance, federal regulators are weighing the long-term fate of the project, which is currently operating on a temporary permit issued after its original approval was revoked in court… “PSC staff wrote that Spire’s documentation about gas supply contracts “was neither transparent nor did it explain why the Company chose a particular supply price. ... In this instance the price selected turned out to be higher than the alternative price offered.” Staff also voiced concern about Spire’s destruction of proposals tied to the pipeline. Staff initially concluded that no documentation existed, but after continually pressing for the information, Spire finally provided some relevant documents earlier this year, the PSC said… “Spire is due to file a response to the PSC by Monday. Responses from other parties are due a week later.”
WVLT: How will the Loudon Co. Colonial Pipeline spill affect the community?
Camruinn Morgan-Rumsey, 7/11/22
“WVLT News spoke to officials with the Colonial Pipeline Company Monday, asking for the latest information on how a Loudon County spill will affect those living nearby and the environment,” WVLT reports. “The spill was caused by a valve failure and spilled more than 24,000 gallons of gas on July 4. Workers were able to quickly repair the pipe and get it running again, but the company is still focusing on cleanup… “For people who live nearby, what do they need to know? Colonial has been working closely with nearby residents in coordination with our response partners. To remain transparent and to keep the community updated on the project we have created a special projects page: www.Sugarlimb.ColonialResponse.com, where we will continue to post updates as the situation develops. We see you all are saying no health advisories, but could there be problems that emerge later? Protecting the community and the environment are Colonial’s top priorities. Since we were notified of the release, Colonial has been constantly monitoring water and air quality around the site to ensure the safety of the public and response personnel. What does this mean for the environment? As a proactive measure, Colonial has installed several underflow dams and deployed multiple booms in Hubbard Branch. With an overabundance of caution, Colonial is also monitoring the Tennessee River as part of the response process. Surface and well water sampling is underway and will continue after storm events. These are precautionary measures, and we continue to monitor the situation closely as we work with local and state resources.”
WASHINGTON UPDATES
Washington Post: Democrats see hope for spending deal with Manchin as Congress returns
Tony Romm, 7/10/22
“Senate Democrats are redoubling their efforts to finalize a new spending package that could lower health-care costs and combat climate change, hoping to hammer out a long-elusive deal with Sen. Joe Manchin III (D-W.Va.) and bring it to the chamber floor later this month,” the Washington Post reports. “A new sense of optimism — and urgency — has set in among party lawmakers nearly seven months after their last attempt to pass a sweeping bill ended in stunning defeat. Piece by piece, Democratic leaders in recent days have started reconstructing their economic ambitions as they race to deliver on a staple element of President Biden’s agenda before the midterm elections in November. So far, top Democrats have worked out with Manchin new agreements that would cut drug costs for seniors, improve the financial health of Medicare and close a tax loophole that benefits the wealthy. They even have advanced talks around addressing the challenges posed by a faster-warming planet, raising the prospect that they can secure a limited initiative to penalize methane emissions… “Manchin is expected to have his next private meeting with Senate Majority Leader Charles E. Schumer (D-N.Y.) early in the week, two people familiar with the matter, who spoke on the condition of anonymity to describe the deliberations, told the Post. They are set to discuss climate as Democrats try to bring one of their thorniest fights with the moderate West Virginian to an end. Plenty remains unresolved, including the fate of a key program that lowers insurance costs for millions of Americans, raising the prospect that the latest round of talks could collapse much as they did before. Adding to the challenge, Republicans have intensified their opposition in recent days, hoping to apply enough political pressure on Manchin that he walks away from the talks again. “To my friend Joe Manchin from West Virginia, whose vote is going to be necessary for this, I would remind him Joe Biden’s popularity in that state is as low as it is in Wyoming, only 17 percent,” Sen. John Barrasso (R-Wyo.), leader of the Senate Republican Conference, said during an interview on “Fox News Sunday.” He added that Manchin “shouldn’t walk the plank for Joe Biden” politically. Even if Manchin and members of his party manage to strike a deal, it is guaranteed to be far smaller than Democrats’ original, roughly $2 trillion package, known as the Build Back Better Act, which the senator scuttled last year. The cuts might have been unthinkable earlier in the debate, but many Democrats have come to acknowledge them as the costs of compromise — and feel more hopeful than ever that there is now a pathway to achieve it.”
E&E News: Republicans maneuver to thwart reconciliation
Nick Sobczyk, 7/12/22
“Republicans are trying to hobble negotiations between Senate Majority Leader Chuck Schumer and West Virginia Democrat Joe Manchin, as the pair inch toward cementing a climate and social spending bill,” E&E News reports. “Speaking on the Senate floor yesterday, Minority Leader Mitch McConnell (R-Ky.) intensified his threat to derail conference talks on a separate bipartisan innovation and economic competitiveness bill should Democrats move forward with a partisan reconciliation package. He singled out Manchin’s home state, listing potential negative impacts for West Virginia from Medicare tax hikes and the proposed fee on methane emissions. McConnell called the methane fee “a giant new tax specifically on natural gas.” “This is what Democrats want to do in states like West Virginia? Giant tax hikes on small businesses and fossil fuels?” McConnell said. “It’s like they aren’t content watching recessionary warning signs, and they’re trying to make absolutely sure that we get a recession.”
STATE UPDATES
PBS: Discovery of methane leaks in California community is just ‘the tip of the iceberg,’ advocates worry
7/8/22
“Two years ago, Angie Bradford and her husband moved into their newly built home on Morningstar Avenue in a subdivision located in a sprawling, suburban area of East Bakersfield,” PBS reports. “…But now their home is for sale, having moved out last month after a series of medical issues. At first they blamed their fatigue, headaches and stomachaches on the general air pollution in Bakersfield. That was before they got a knock on their door from a canvasser with an environmental nonprofit with news that methane gas was leaking from nearby oil wells. At least 30 wells belonging to five different companies were found to have been leaking the gas in recent weeks, according to the Geologic Energy Management Division of the California Department of Conservation, known as CalGEM. The wells closest to the Bradford home belong to Sunray Petroleum, Inc. The state agency did not disclose data from their readings, but initial reports of the leak said some wells were releasing methane at a concentration of 50,000 parts per million – a level that can be explosive, environmental groups say. In an emailed statement, the agency added that it “has previously engaged or taken enforcement action against” all of the companies with leaky wells. Though the neighborhood is built over land that is connected to Kern County’s oil industry, Bradford told PBS she was never told about any problems that could arise before she and her husband purchased their home.”
EXTRACTION
The Conversation: Methane emissions reach unexpected new highs. Is climate change causing a runaway effect?
Simon Redfern, 7/11/22
“Simon Redfern at Nanyang Technological University, Singapore summarises his co-authored study that says methane emissions are four times more sensitive to climate change than that estimated in the latest IPCC report, which was only published in February 2022,” The Conversation reports. “The study follows the observation that, despite the pandemic stalling the world economy, methane emissions have reached new highs. Not because methane emissions have risen but because natural methane removal has decreased, says Redfern. It seems climate change is causing a runaway effect. Wildfires, more common as the world warms, may be slowing down how methane is removed from the atmosphere. Plumes of carbon monoxide from wildfires are using up hydroxyl oxidising agents in the air, leaving less to react with and remove methane… “Our study suggests increasing methane emissions may be due to unexpected and complex linkages. For example, wildfires, which are becoming more common as the world warms, may increase atmospheric methane – not necessarily by adding more, but by slowing down how it is removed from the atmosphere… “These results are shocking, as they highlight one way the effects of climate change on the Earth system have been underestimated. The world cannot ignore the worrying sensitivity of methane emissions to increasing global temperatures given the strength of methane as a greenhouse gas.”
E&E News: Rate of Arctic warming faster than previously thought
Chelsea Harvey, 7/11/22
“For years scientists have known the Arctic is among the most rapidly warming regions of the planet, with temperatures rising significantly faster than the global average. Now they say it may be heating up even faster than previous research suggested,” E&E News reports. “Several recent studies indicate the Arctic is now warming around four times as fast as the rest of the globe. It’s a substantial update: Until recently, scientific papers and news reports alike have typically stated the Arctic is warming at two to three times the global average… “A new study, published in the journal Geophysical Research Letters, is one of the latest to weigh in. Prior to the start of the 21st century, the study suggests, the Arctic was indeed warming two to three times as fast as the rest of the planet. But the warming rate has increased over the last 50 years, and it’s reached four times the global average in recent decades. What’s more, the study finds, Arctic warming hasn’t always increased smoothly over time. It’s jumped sharply a couple times over the last few decades — once around 1986 and again around 1999. There’s probably no single cause for these jumps, the researchers say. It’s likely a combination of different climate-related feedback processes. The research suggests that the earlier jump is likely driven primarily by human-caused climate change. The second jump may have been driven more so by natural fluctuations. Still, that jump comes on top of the steady background warming caused by greenhouse gas emissions. The study, led by Petr Chylek of Los Alamos National Laboratory, examined temperature data from the year 1960 onward. It focused on the geographic circle north of 65 degrees latitude, just slightly wider than the area typically referred to as the “Arctic Circle.” When looking at the last two decades alone, the study finds, the rate of warming appears to have hit four times the global average. The findings “stand in contrast to the widely-held conventional wisdom … that the Arctic is ‘only’ warming around twice as fast as the global mean,” the researchers state.
Canadian Press: Suncor cancels investor update in wake of CEO's resignation
7/11/22
“Suncor Energy Inc. has cancelled its planned investor update about oilsands operations and safety in the wake of last week’s resignation of chief executive Mark Little,” the Canadian Press reports. “The Calgary-based energy giant had scheduled the update, which was to take place Wednesday, months ago in response to investor concerns about operational performance and workplace safety. The company had pledged to provide an update on what it’s doing to improve safety and operations at its oilsands facilities. Last Thursday, however, Suncor suffered another workplace death, this time of a contractor at its Base Mine near Fort McMurray, Alta. One day later, the company announced Little would immediately step down. In a news release, board chair Michael Wilson cited “the critical need for change” due to Suncor having “fallen short” of its own safety and operational standards. Earlier this spring, Suncor found itself in the crosshairs of well-known U.S.-based activist investor Elliot Investment Management, which wrote a letter calling for an overhaul of Suncor’s board and management. Elliot highlighted Suncor’s safety track record, as well as other operational challenges and the company’s lagging share price. Elliot declined to comment Monday on the latest developments at Suncor. But Eight Capital analyst Phil Skolnick, who downgraded Suncor’s stock to a “Sell” rating on Monday, said in a note that Suncor requires “real changes,” not just a new CEO. He pointed out that the at least 12 deaths that have occurred at Suncor sites since 2014 is “something that we have never seen in the 25 years of covering the sector.” “The issue isn’t a one-person situation,” Skolnick wrote. “This is about the corporate culture where accidental deaths have plagued the company even prior to Mr. Little’s tenure as CEO (which) began in 2019.” In addition to last week’s workplace death, Suncor’s tarnished safety record includes the death of a contractor in a truck crash at the company’s Base Mine site in January, as well as an incident in 2021 involving a bulldozer colliding with a pickup truck at the Fort Hills oilsand mine. That incident resulted in the deaths of two contract workers.”
OilPrice.com: Suncor Reveals Detailed Plan To Increase Oil Production While Reducing Emissions
7/11/22
“Canadian Suncor, once closely associated with the country's notoriously dirty oil sands, has big plans to go green,” OilPrice.com reports. “The company is aiming to reduce its annual emissions by 10 megatonnes by 2030 and reach net-zero by 2050. Using new technology and carbon credits, Suncor is looking to ramp up production while still meeting its net-zero goals… “Suncor’s Scope 3 emissions only include upstream production only. There is also downstream production, which includes everything down to the gas pump. The whole process from exploration to the pump only equates to 20-30% of the overall carbon emissions, with up to 80% of the GHG emissions coming from the pump to the tailpipe. Suncor has also forecasted to increase its oil production up to 800 thousand barrels/day through 2025… “To reach its ambitious net zero 2050 target, Suncor plans to reduce emissions through two major strategies: A big part of this strategy is to invest in Carbon Capture Use and Storage (CCUS) projects. It involves capturing and sequestering CO2 from point sources or directly sucking it from the air. Most energy forecasts consider CCUS technology as key to achieving the Paris Agreement goals. In fact, it’s also a critical component of Suncor’s net zero efforts. The oil firm is a major player in the energy sector’s Pathway Alliance (Canada’s oil sands producers group) proposed carbon sequestration hub. It will include a carbon transportation line that connects over 20 oil sands facilities in northern Alberta to a carbon sequestration hub.”
New York Times: Oil companies oppose a windfall tax in Britain despite record profits.
Jenny Gross, 7/11/22
“With Britain engulfed in a political crisis and Boris Johnson’s administration winding down, oil industry executives are urging the government to make changes to a windfall tax measure aimed at curbing the ballooning profits of oil and gas companies,” the New York Times reports. “The measure had been announced as a way to help raise about 15 billion pounds, or $17.9 billion, to support low-income households with rapidly rising energy bills. Members of Parliament are scheduled to discuss the bill on Monday. In the United States, a group of Democrats are pushing President Biden to enact a similar policy, but it would face big hurdles in Congress. Oil and gas companies say charging them a 25 percent tax on profits could deter future investment at a critical time for Britain, which is facing surging energy prices, the DealBook newsletter reports. “Many of the financial institutions that lend money to our industry see a government that is sending very mixed signals,” Mike Tholen, the sustainability director of Offshore Energies UK, an industry body, told the Times. Mr. Tholen, who is seeking a meeting with the new chancellor of the Exchequer, Nadhim Zahawi, to discuss possible changes, told the Times the tax would do nothing to lower gas prices. Some academics say warnings from the oil industry are exaggerated. Arun Advani, a research fellow at the Institute for Fiscal Studies, told the Times that the argument from some companies that the tax would cut into their ability to invest in future sources of renewable energy did not hold up because these extra profits were unexpected.”
Bloomberg: Natural Gas Is Gaining Ground, and the US Has Plenty of It
Justin Fox, 7/11/22
“Natural gas still trails oil and coal in the amount of energy generated worldwide, but it’s been gaining on both. As Europe struggles to break free from its dependence on Russian gas after the invasion of Ukraine, gas has become perhaps the most geopolitically important fuel of the moment,” Bloomberg reports. “This puts the world’s biggest natural gas producer, the US, in an interesting position. Gas production here has risen about 80% since 2006, as hydraulic fracturing (aka fracking) has enabled drillers in Pennsylvania, Texas, and elsewhere to extract vast quantities of gas and oil from shale deposits. At first almost all the increased gas supply went to electricity generation, with gas supplanting coal in 2016 as the country’s top power source. But that year also saw the completion of the first of several facilities, most along the Gulf Coast, that liquefy natural gas and pump it into waiting ships for export. Now about 16% of production is going abroad, most by LNG tanker, and so far this year the US has been neck and neck with Qatar for the title of world’s top LNG exporter. These exports could be a godsend for Europe, and they’re certainly good for the oil and gas industry. For US consumers, there’s a bit of a catch, though. Because it’s relatively hard to transport, natural gas has tended to be priced very differently in different parts of the world. Since the fracking boom began, US prices have been well below the global average. The rise of LNG exports introduces a new set of customers who are used to paying lots more, which means US gas users will pay more, too.”
CLIMATE FINANCE
Quartz: Warren Buffett’s big bets on oil are betraying the climate
Samanth Subramanian, 7/11/22
“Warren Buffett made his billions by being a contrarian investor. “Be fearful when others are greedy, and greedy when others are fearful,” one Buffett dogma runs; “detach yourself from the crowd,” he said elsewhere. But his recent bets on oil companies are contrarian in a new way, doubling down on fossil fuels when the rest of the world is trying to divest from it,” Quartz reports. “By the end of 2021, more than 1,400 institutions (pdf), with $39.2 trillion in assets under management, had committed to selling some or all of their stakes in fossil fuels. Buffet, though, is doing the opposite. His investment company, Berkshire Hathaway, became Chevron’s fourth-largest equity stakeholder in April, the value of its investment jumping to $25.9 billion, from $4.5 billion in Dec. 2021. Berkshire has simultaneously been buying up shares in Occidental Petroleum. After first buying $10 billion in preferred Occidental shares in 2019, Buffett repeatedly topped up his stake this year, becoming the company’s largest shareholder with nearly 19% of it. And according to at least one analyst, Berkshire may want to purchase all of Occidental. Buffett has no deep affinity with oil and gas, or indeed with any other sector. He is, as the phrase goes, a “value investor,” picking stocks only because he thinks they’re trading for less than they’re worth. But he has a long history of investing in fossil fuels—in PetroChina, for instance, or in the natural gas pipeline business… “But one thing that will hasten the great energy transition is for investors like Buffett to starve oil and gas companies of capital—even if the oil and gas company in question is Occidental, one of the more conscientious majors around… “But Buffett doesn’t have a track record of being that kind of activist investor. In March, for the second year in a row, Berkshire’s record on climate was given the lowest possible score by the Climate Action 100+ group, alongside Saudi Aramco. The company has also long rebuffed shareholder calls to divulge its climate risk. Buffett’s pursuit of oil profits at a time of massive climate change is at odds with his generous philanthropy. But it also presents an unfortunate model to other investors who find themselves on the fence about divesting from fossil fuels, and who may decide, after watching the otherwise-progressive Buffett and his recent bets, to land on the side of dirty energy.”
E&E News: European Central Bank says climate could cost lenders $71B
Avery Ellfeldt, 7/11/22
“Major European banks face more than $70 billion in losses if they don’t “sharpen their focus” on the fallout that could occur if global leaders wait too long to curb planet-warming emissions,” E&E News reports. “That was the conclusion of the European Central Bank’s landmark effort this year to gauge the ability of lenders to assess their own climate-fueled threats and withstand a spectrum of various climate change scenarios. The results of the ECB’s first-ever “climate stress test” were released Friday, and they found that banks have a long way to go to ensure they’re sufficiently incorporating global warming into their risk assessment tools. “Euro area banks must urgently step up efforts to measure and manage climate risk, closing the current data gaps and adopting good practices that are already present in the sector,” Andrea Enria, who chairs the ECB’s supervisory board, told E&E.”
Pensions & Investments: Climate change knocking, but not all managers home
ARLEEN JACOBIUS, 7/7/22
“Some of the most in demand regions in the U.S. for real estate investment, most notably the Sun Belt, are also getting clobbered by the floods, extreme heat and other ravages of climate change — potentially impacting returns,” Pensions & Investments reports. “It's a worldwide challenge that is threatening to chisel away at expected returns across real asset sectors, from housing and office to retail. Some real estate managers are starting to exit properties early or decline to invest in real estate with relative good near-term return potential but at substantial climate risk… “The three states most vulnerable to extreme weather are all in the Sun Belt: Texas, Louisiana and Florida, NOAA said. There’s been “an unmistakable move” of people to the Sun Belt, which increased demand for real estate in the region, especially apartments, Jacques Gordon, Chicago-based global head of research and strategy at LaSalle Investment Management, told P&I. At the same time, the Sun Belt is among the regions that are most at risk due to climate change… “Long-term investors like LaSalle have to pay attention to the impact of climate change, he said. If property owners can no longer insure buildings, if cooling buildings gets too expensive, in a decade or less, those properties could become stranded assets, Mr. Gordon told P&I. Managers that are proactive are investing in properties located in areas with infrastructure in place to help protect properties from rising sea levels, extreme heat and volatile weather, the LaSalle report said. For example, some managers are installing heating and cooling units on rooftops, rather than basements prone to flooding, the report said. Those risks, however, haven’t dissuaded people and investors from migrating to areas that are most at risk from climate change, Urban Land Institute’s Emerging Trends in Real Estate 2022 report shows.”
OPINION
Greene County News: D. Tronchetti – Farmers, landowners should fear IUB
Dan Tronchetti, Paton, IA, 7/6/22
“Every farmer and landowner should be very afraid of the Iowa Utilities Board,” Dan Tronchetti writes in the Greene County News. “On March 9, 2022, Governor Kim Reynolds gave a speech in which she said, “As long as I am governor, Iowa is going to be a state where you can live your life freely, where you don’t have to wake up in the morning and worry about the next thing that the government is going to do to you, your business, or your children.” Apparently that does not apply to landowners if a private company wants to build a pipeline for private profit. The Iowa Utilities Board stretched the laws of Iowa, to give Dakota Access Pipeline the power of eminent domain in 2016. Even though the pipeline did not collect any crude oil in Iowa or deliver any crude oil to refineries in Iowa, the Iowa Utilities Board invented the term “aggregate economic benefit” to justify giving the Dakota Access Pipeline the power of eminent domain. The Iowa Utilities Board opened Pandora’s Box by giving a private company the power of eminent domain. Summit Carbon Solutions, Navigator, and ADM-Wolf have all started the process to obtain construction permits and the power of eminent domain from the Iowa Utilities Board. These are all private companies seeking private profits. If the Iowa Utilities Board gives these companies the power of eminent domain, there will be a flood of pipeline permit applications and no farmer or landowner will be safe from the Iowa Utilities Board. The Iowa Utilities Board will be taking private property from one private citizen and giving it to another private citizen whenever it believes the latter would put it to better use. I am a farmer and landowner in the path of the Summit Carbon Solutions Hazardous Liquid CO2 pipeline. The Hazardous Liquid CO2 pipelines have unique safety concerns… “Helping the ethanol industry and saving the planet are false flags and public relations spin… “Over 90 percent of the CO2 collected in the United States is used for enhanced oil recovery. Enhanced oil recovery is the “politically correct” term for fracking. Summit Carbon Solutions plans to gather CO2 from ethanol plants in the Midwest, pump it to North Dakota, and sell it to oil companies to be used for fracking. That oil will then be refined to burn in cars, trucks, and other engines that will produce CO2 and other noxious gases. Summit Carbon Solutions will deny that they are planning to sell CO2 to oil companies for enhanced oil recovery… “There are many reasons to be concerned about the construction of Hazardous Liquid CO2 pipelines across Iowa. Every Farmer and Landowner should be worried about what Iowa will look like if the Iowa Utilities Board continues to grant the power of eminent domain to private companies seeking private profits.”
Des Moines Register: Letters: Reynolds ignores land owners on pipelines
Kathy Carter, Rockford, 7/7/22
“Gov. Kim Reynolds' campaign team reached out to me about joining her at Clear Lake's July 4 parade. I declined. Why? I am adamantly opposed to the proposed CO2 pipelines,” Kathy Carter writes in the Des Moines Register. “As a directly affected landowner, I resent the fact that she is being heavily influenced by the promoters of the pipelines: Summit Carbon Solutions, Navigator, and ADM/Wolf. I resent that she has refused repeated requests to meet with these landowner constituents. She has received over tens of thousands of dollars in contributions from Bruce Rastetter, the CEO of Summit Ag and Summit Carbon Solutions. Last year, Rastetter hired former Gov. Terry Branstad as Summit's "senior policy adviser." Branstad appointed two of the three current members of the Iowa Utilities Board, and Reynolds appointed the third member (whose daughter is Reynolds' executive assistant). Those three members of the Utilities Board will decide if Summit receives a permit to proceed with this ill-conceived CO2 pipeline. If one pipeline is given a permit, the others will also, with more to come. If permitted, hundreds of landowners face losing land by eminent domain. Reynolds appointed herself chair of the Carbon Sequestration Task Force. Also on this task force: Justin Kirchhoff, president, Summit Ag Investors; and Jill Sanchez, manager of investor relations, John Deere (John Deere is one of the big investors in the pipeline project). Jeffrey Boeyink is a Summit lobbyist, and was a chief of staff for Reynolds. Jake Ketzner is Summit's vice president of governmental and public affairs and also has been a chief of staff for Reynolds. Conflicts of interest, payoffs, undue influence, questionable ethics. All reasons why I refused to walk with Reynolds "team".
Cedar Rapids Gazette: Iowa must step up on climate change
Gazette Editorial, 7/9/22
“The U.S. Supreme Court recently dealt a serious blow to federal efforts to combat climate change, curbing the power of the Environmental Protection Agency to pursue rules cutting greenhouse gas emissions,” the Cedar Rapids Gazette Editorial Board writes. “It’s thrown the question of regulatory authority to a gridlocked Congress, where Republicans and a few Democrats have erected roadblocks to climate action, even as scientists warn time is running out to avoid the worst consequences of global warming. The ruling leaves few avenues for agency experts and the president to pursue efforts to lessen the damage… “In 2021, Gov. Kim Reynolds appointed a carbon sequestration task force that was dominated with members representing agricultural interests and included no members from environmental groups that have studied broader climate issues. Not surprisingly, the task force’s deliberations centered on ways farmers and agribusiness could profit from sequestering carbon and trading carbon credits. Some of the ideas have merit, but a far broader approach is needed. Now, the state is considering carbon capture pipelines, which would sequester carbon generated by ethanol plants and pump it into underground storage in other states. The private projects will need billions of dollars in federal tax credits and permission from the Iowa Utilities Board to seize land through eminent domain from unwilling landowners. One project, the Summit pipeline, includes backers with political ties to the governor. The projects strike us more as an expensive, invasive efforts to market the ethanol industry as the nation turns to greener energy sources than as an effective climate change strategy.”
Post Independent: PI Editorial: Proposed hot crude rail project too risky for our communities, environment
Post Independent Editorial Board, 7/11/22
“The challenge of commerce is often simply getting something from point A to point B. It’s often a simple enough thing that we don’t even think about it with depth. We ship packages, we buy groceries and goods driven hundreds — sometimes thousands of miles — before reaching our city, and we don’t bat an eye,” the Post Independent Editorial Board writes. “But what if that something to be delivered is a substance with the potential to devastate not just the environment, but the major water source for much of the American Southwest? Something like that deserves a lot of scrutiny — and that is what’s happening with a rail proposal that would see thousands of barrels of hot crude oil shipped daily through Garfield County along the Colorado River and up over the mountains before it could reach refineries along the Gulf Coast… “The proposed route, however, goes right through Garfield County and along the Colorado River. And while hazardous freight is shipped by train and truck along a similar route already, the UBR proposal could see as many as three to 10 oil trains, up to 110 cars long each, with the capacity to carry about 642 barrels of oil, sharing tracks with other freight trains, Amtrak service and the new Rocky Mountaineer tourist train. The proposed scale inherently brings considerable risk, which is why the city of Glenwood Springs wrote to Sens. Michael Bennet and John Hickenlooper opposing the project. As Mayor Jonathan Godes told Aspen Journalism, “It would be a massive cleanup” if one car, let alone a whole train, were to leak into the Colorado River… “That’s not to say it’s a done deal — the proposal is already facing one lawsuit in Utah, one in federal district court and another filed by Eagle County with the Federal Surface Transportation Board. But the proposal has a lot of backing in Utah politics, and thinking it will go away on its own would be naive… “For us at least, it seems common sense to see the UBR project as too risky for our communities and our region.”
Globe and Mail: Banks open coffers for energy companies with robust ESG strategies
Andrew Willis, 7/5/22
“Grant Fagerheim is evangelical on the potential of carbon capture technology to help the energy industry do its part in combating climate change,” Andrew Willis writes for the Globe and Mail. “The founder and chief executive of oil and gas producer Whitecap Resources Inc. runs two of the oil patch’s pioneering carbon capture projects. The Calgary-based company’s facilities in Saskatchewan and Alberta have stored the equivalent of a year’s worth of CO2 emissions from eight million cars since it began operations in 1984. At industry events and sessions with politicians, Whitecap’s chief executive promotes sequestering carbon deep beneath the Prairies as a key component in Canada’s energy strategy… “Last week, two of the country’s biggest banks showed they share the faith. National Bank of Canada and Toronto-Dominion Bank lent Whitecap $1.1-billion to help pay for its planned $1.9-billion acquisition of XTO Energy Canada, which is jointly owned by Imperial Oil Ltd. and parent Exxon Mobile Corp… “The takeover demonstrated that banks remain willing to open the vault to fund growth at energy companies with robust environmental goals. Oil and gas plays that lack the cash or commitment to keep pace in the increasingly expensive ESG arms race are more likely to be snapped up by larger rivals… “Whitecap’s carbon capture, usage and storage (CCUS) expertise isn’t the only reason National Bank and TD are willing to lend… “The only way banks square their environmental pledge with new loans to oil producers is to back companies such as Whitecap. When Mr. Fagerheim calls for additional investment in CCUS, by industry and government, he’s winning backers among bankers.”