EXTRACTED: Daily News Clips 9/8/22
PIPELINE NEWS
Politico: Pipeline fight heads to Washington
Courthouse News: Federal judge: Great Lakes pipeline may have to move
Roanoke Times: Stabilization plan approved for pipeline that passes through Jefferson National Forest
AgWeek: Landowners facing lawsuits over surveyor access for Summit Carbon pipeline in North Dakota, South Dakota
Iowa Capital Dispatch: Carbon pipeline company takes unwilling landowners to court
WCBU: A new carbon dioxide pipeline could run through Peoria and Tazewell counties
WGEM: Early discussions of possible Lee County pipeline
The Real Deal: Houston landlord sues Texas Supreme Court over pipeline
WASHINGTON UPDATES
E&E News: ‘We will get it done’: Senate Dems vow permitting success
Volts: What's up with Manchin's plan to reform energy permitting?
Associated Press: Climate damage from oil leases on US land gets second look
STATE UPDATES
Colorado Sun: Eagle County carries the torch for Colorado in last-ditch attempt to block Utah waxy-crude rail cars traversing Colorado River
EXTRACTION
E&E News: Why so many LNG terminals are adopting carbon capture
Geopolitical Monitor: Could Canadian Crude Improve European Energy Security?
Mongabay: Second oil company exits Arctic amid fierce Indigenous opposition, energy squeeze
CLIMATE FINANCE
Global Legal Chronicle: TC Energy’s $1.4 Billion Equity Offering
The Hill: Yellen will vow to ‘rid’ US from ‘dependence on fossil fuels’ in Detroit speech
The Hill: Fed vice chair says bank will launch pilot climate risk analysis next year
OPINION
Grand Island Independent: Guest Opinion: We must secure a market for homegrown energy
Calgary Herald: Varcoe: Canada 'falling behind' in race to attract carbon capture investments
Anchorage Daily News: OPINION: Exxon Valdez habitat restoration program must continue until it’s done
PIPELINE NEWS
Politico: Pipeline fight heads to Washington
ARIANNA SKIBELL, 9/7/22
“Congress is about to hear from hundreds of angry anti-pipeline activists,” Politico reports. “They are en route from across the country, with some coming from as far away as Alaska, to urge lawmakers on Thursday to nix the controversial Mountain Valley pipeline — and scrub it from a side deal Democratic lawmakers made to advance President Joe Biden's climate law. After holding out for months, Sen. Joe Manchin of West Virginia finally agreed to support the climate measure on the condition that Senate Democrats ease permitting requirements. The deal would help expedite energy infrastructure projects, including the construction of the Mountain Valley pipeline, which is slated to transport natural gas from West Virginia shale reserves to energy markets in mid-Atlantic states. The story of the Appalachian pipeline, which federal regulators first approved in 2017, epitomizes the upcoming congressional battle over Manchin's deal. For Manchin, the 304-mile project is a perfect example of an inefficient and burdensome process to build critical energy infrastructure. Mountain Valley has been mired in legal battles and permitting delays for years. But others maintain that the embattled pipeline highlights the need for more robust environmental reviews and tighter checks on government agencies… “Senate Democratic leaders said last month they intend to attach a permitting proposal to the spending bill that needs to pass before October to avert a government shutdown. While the details of the proposal have yet to be released, opponents of the Mountain Valley pipeline are livid. More than 80 groups sent a letter Wednesday to congressional leadership, urging them to jettison the plan to fast-track the pipeline from the overall permitting proposal. Over 1,000 people plan to attend a rally Thursday evening at the Capitol, and hundreds more are slated to take part in lobbying meetings on the Hill. While progressive Democratic members have vehemently opposed the permitting proposal, party leadership have said they intend to honor the deal.”
Courthouse News: Federal judge: Great Lakes pipeline may have to move
ANDY MONSERUD, 9/7/22
“A Wisconsin federal judge declined to shut down a controversial oil and gas pipeline that runs through one of the state’s Native American reservations on Wednesday, but didn’t rule out ordering fossil-fuel giant Enbridge Energy to reroute the pipeline,” Courthouse News reports. “Enbridge’s Line 5 pipeline currently stretches 645 miles from Superior, Wisconsin to Sarnia, Ontario. Twelve of those miles cross the Bad River Reservation, home to the Bad River Band of Lake Superior Chippewa. Wary of the pipeline’s environmental impacts, the Band let the easements allowing it to use that land expire in 2013, but Enbridge has continued operating it. The Band sued in 2019, accusing Enbridge of trespassing and violating the Band’s regulatory authority over its reservation, among other claims. On Wednesday afternoon U.S. District Judge William Conley issued an order agreeing that the continued pipeline operations constituted trespass and unjust enrichment, but declining to issue an injunction that would have shut the pipeline down immediately. Conley, a Barack Obama appointee to the Western District of Wisconsin, wrote that “an immediate shutdown of the pipeline would have significant public and foreign policy implications” but that he would consider input from Enbridge and the Band on the terms of a permanent injunction, requiring a reroute of the pipeline outside the reservation. Enbridge already has a reroute in the works, according to its website, and Conley’s order means the selection of a final route will likely involve both the court and the Band.”
Roanoke Times: Stabilization plan approved for pipeline that passes through Jefferson National Forest
Laurence Hammack, 9/7/22
“Work crews have been given clearance to stabilize sections of the unfinished Mountain Valley Pipeline that have been sitting in the Jefferson National Forest for the past four years,” the Roanoke Times reports. “The Federal Energy Regulatory Commission on Tuesday approved Mountain Valley’s proposal, which will use helicopters to fly in new wooden structures, known as cribbing, on which segments of the heavy pipe have been positioned. As the pipeline’s completion has been delayed, some of the cribbing has deteriorated, allowing at least two sections of pipe to slip off of their supports and slide a short distance down the steep slopes of Brush and Sinking Creek mountains. Crews will hike into the forest and reinforce the pipes’ supports without the use of heavy machinery. The stabilization plan was designed to prevent further erosion along a 125-foot wide right of way that has been cleared for the natural gas infrastructure… “In 2018, just a few months after construction began on the $6.6 billion project, a federal appeals court threw out a permit for the pipeline’s 3.5-mile route through the national forest, which also includes a small section of Monroe County, West Virginia. That permit and others were reissued, only to be struck down a second time by the 4th U.S. Circuit Court of Appeals. The court cited environmental concerns that include muddy runoff from work sites along the pipeline’s 303-mile path, which takes it north of Blacksburg and south of Roanoke. Construction is currently stalled — except for erosion and sedimentation control work — while Mountain Valley seeks a new round of permits. In comments submitted to FERC, some pipeline opponents have raised concerns about the integrity of the pipe, saying its protective coating has been weakened by years of exposure to the sun and other elements.”
AgWeek: Landowners facing lawsuits over surveyor access for Summit Carbon pipeline in North Dakota, South Dakota
Jeff Beach, 9/7/22
“Howard Malloy says he was asked politely on several occasions to allow a survey crew onto his land in North Dakota to look at a possible route for a carbon capture pipeline,” AgWeek reports. “He told AgWeek after talking with some neighbors about the Summit Carbon Solutions pipeline, he told that pipeline company, 'no' to voluntary access easement. "If you don't sign it, they sue you, so it's not that voluntary," Malloy told Agweek. Malloy is one of several landowners in North Dakota and South Dakota who have refused to let survey crews from Summit Carbon Solutions onto their property and are being sued by the company… “Malloy told AgWeek he was ready to negotiate with Summit on some protection for possible damages to his land when he was served with a lawsuit on Aug. 25. "Summit is pushing hard," Malloy told AgWeek. He and other landowners are pushing back. He has signed on with Domina Law Group, a firm in Omaha, Nebraska, representing landowners in all five states on the Summit route: Iowa, Minnesota, Nebraska, North Dakota and South Dakota. Those being sued by Summit have 21 days to respond, which attorney Brian Jorde said would be just days away. While the bigger issue on carbon pipelines is the potential use of eminent domain to gain right-of-way access, Jorde argues that "even the survey would be considered a taking" of private property and therefore unconstitutional… "The more people they sue the better because it gets people fired up," Jorde told AgWeek. Among those fired up in South Dakota is Dennis Wolf, who farms in McPherson County. He has been put off by what he told AgWeek are "bullying tactics" by Summit. His parents own the farmland Summit wants to access but he has power of attorney. Hey told AgWeek his father, who has Parkinson's disease and was unable to communicate, was served with paper in the nursing home in Eureka. He described the communication with Summit, including the threat of eminent domain, as being "theatening." "I don't like being threatened," he told AgWeek… “Based on those benefits, more than 300 South Dakota landowners have signed 500 voluntary easements with the company,” Jesse Harris, director of public affairs for Summit Carbon Solutions, told AgWeek… “But in McPherson County in northern South Dakota, Sheriff Dave Ackerman told AgWeek his office has been called about a half-a-dozen times by landowners wanting Summit survey crews to leave. Ackerman told AgWeek no arrests have been made but Summit has been notified that it needs landowner permission to enter private property. More landowners are posting "no trespassing" signs on their property, Ackerman told AgWeek.
Iowa Capital Dispatch: Carbon pipeline company takes unwilling landowners to court
JARED STRONG, 9/7/22
“Navigator CO2 Ventures, one of three companies that have proposed liquid carbon pipelines in Iowa, recently sued four sets of landowners to gain access to their properties to survey the land, according to court records,” the Iowa Capital Dispatch reports. “The company filed petitions in August for injunctive relief against landowners in Butler, Clay and Woodbury counties. The company claims the landowners have repeatedly refused to grant access to their properties and alleged physical threats toward the company’s land agents, whose surveys will help the company determine the path of the pipeline. “Get off my land before I let the dog go,” a spouse of one of the landowners allegedly told one of the agents, who interpreted the woman’s words as a physical threat, court records show… “In its petitions, Navigator cites Iowa law that says “a pipeline company may enter upon private land for the purpose of surveying and examining the land to determine direction or depth of a pipeline by giving ten days’ written notice.” “...The potential pipelines have drawn fierce resistance from landowners, county officials, conservationists and others, especially because of the potential use of eminent domain to build them despite landowners’ objections… “Andy Bates, a Navigator spokesperson, declined to comment on the court petitions and whether the company might file more. He also declined to reveal the percentage of the roughly 800-mile route for which the company has signed voluntary easements with landowners.”
WCBU: A new carbon dioxide pipeline could run through Peoria and Tazewell counties
Tim Shelley, 9/7/22
“Up to 12 million tons of carbon dioxide per year could be piped through Peoria and Tazewell counties en route to a central Illinois sequestration site if plans for a new pipeline move forward,” WCBU reports. “Wolf Carbon Solutions is planning the Mt. Simon Hub pipeline from Cedar Rapids, Iowa to Decatur, Illinois. ADM is the anchor tenant on the pipeline, but the pipeline would be open to any carbon emitters that want to tap into the system, Nick Noppinger, Wolf Carbon Solutions U.S. senior vice president of corporate development, told WCBU… "We are a company that places a big importance on voluntary easement and negotiation, negotiated settlements. We as a team have never exercised eminent domain or land condemnation in our collective careers. And we don't intend to do that with this with this project," he told WCBU… “Carbon dioxide pipelines aren't without risks. The nonpartisan Congressional Research Service notes high concentrations of CO2 can be harmful to human health, particularly because the gas is colorless and odorless, making it harder to detect. A 2020 CO2 pipeline rupture in Satartia, Miss. led to the hospitalization of 45 people and an evacuation of that community. In Iowa, Noppinger told WCBU the proposed pipeline corridor is contained within a two-mile wide corridor. That's both to accommodate landowner feedback and to avoid population centers. "We have designed our pipeline route to really avoid any high concentration areas, subdivisions, places of importance, like a hospital or a church or, you know, a house. We're not putting our pipeline right next to homes," Noppinger told WCBU.
WGEM: Early discussions of possible Lee County pipeline
Shaqaille McCamick, 9/7/22
“Early discussions have begun regarding a CO2 and ammonia pipeline being put in Lee County,” WGEM reports. “During this week’s Board of Supervisors meeting in Fort Madison, supervisor Garry Seyb spoke about the benefits and potential negative feedback that could come with running a pipeline through the county… “We’ve had a lot of farmers be very passionate when it comes to the pipelines in Lee County and they look to us to be able to do something and express their desires at the Iowa Utility Board,” Seyb told WGEM. “While we can express our thoughts and our constituents’ views as a whole in a letter, in the end, it’s a letter, it’s a letter to the Iowa Utilities Board.” “...The supervisors did say they will continue the discussion of possibly looking at ordinances with the county at their next board of supervisors meeting next Monday.”
The Real Deal: Houston landlord sues Texas Supreme Court over pipeline
Karn Dhingra, 9/7/22
Property rights are almost sacred in Texas. More often than not, landowners will win in the Lone Star State’s courts — though the state’s Republican supreme court isn’t above ruling in favor of bigger economic players in land disputes versus smaller landowners,” The Real Deal reports. “Just ask Houston landlord Bernard Morello, who is suing the Texas Supreme Court and three of its justices in federal court. Morello claims Texas Supreme Court Chief Justice Nathan Hecht and Justices Jeff Boyd and Brett Busby violated his due process and property rights under the 5th and 14th amendments of the U.S. Constitution for accepting direct and indirect campaign donations from the parent company of an oil pipeline company, which they then ruled in favor of in a suit involving Morello’s company White Lion Holdings LLC… “Now, in a suit filed in the U.S. District Southern District of Texas, Morello, who is representing himself, claims the three elected Texas Supreme Court judges should have recused themselves from that case because they took thousands of dollars in direct and indirect campaign contributions from Enterprise Products Partners. Morello is seeking the nullification of the Texas Supreme Court’s decision because he can’t develop his land as an industrial site now that Seaway can run its pipelines through the property… “In his lawsuit, Morello cited thousands of dollars donated to the judges’ reelection campaigns from lawyers at the firms of Winstead, Norton Fulbright Rose, which represented Enterprise Products and Seaway against Morello, along with donations from Enterprise’s and Winstead’s political action committees.”
WASHINGTON UPDATES
E&E News: ‘We will get it done’: Senate Dems vow permitting success
Nick Sobczyk, Jeremy Dillon, 9/8/22
“Senate Democrats are on a collision course with their House counterparts over permitting reform, as Senate leaders said Wednesday they still plan to advance the permitting bill by attaching it to a stopgap government funding measure,” E&E News reports. “That announcement sets up a political fight with House progressives and Republicans wary of giving Democrats another legislative win — though Senate Republicans seem to be softening their stance. Senate Majority Leader Chuck Schumer (D-N.Y.) and Senate Energy and Natural Resources Chair Joe Manchin (D-W.Va.) both reiterated Wednesday that they intend for the permitting measure, which would speed environmental reviews on energy projects, to hitch a ride on the funding measure, known as a continuing resolution (CR)... “Permitting reform is part of the IRA, and we will get it done,” Schumer told reporters Wednesday. House progressives, however, say they don’t owe Manchin anything on the permitting measure, setting up a showdown at the end of the month. Even if leadership can secure 60 votes in the Senate, dozens of House Democrats have already come out against it, potentially derailing the combined permitting-stopgap spending bill in the lower chamber. Progressive groups are planning to protest the permitting effort outside the Capitol on Thursday afternoon… “Republicans, meanwhile, appear to be softening on permitting reform, with several saying this week that they are at least nominally open to the idea. “I’m certainly open-minded to it,” Sen. Mitt Romney (R-Utah) told E&E. When Manchin and Schumer first announced the permitting deal, Republicans took a hard line, threatening to sink the permitting bill as revenge for Manchin voting for the party-line Inflation Reduction Act… “But that stance is showing cracks, as Republicans begrudgingly accepted that some reforms are better than none, especially on a longtime GOP priority.” “...Republicans have also been calling in recent days for a clean CR, which could undermine Schumer’s attempts to add permitting to the stopgap bill. “On the merits, usually permitting reform is something that Republicans would support,” Sen. John Cornyn (R-Texas) told reporters Wednesday. But, Cornyn added, “I know our leadership wants to keep the CR as clean as possible.”
Volts: What's up with Manchin's plan to reform energy permitting?
David Roberts, 9/7/22
“As part of his price for agreeing to pass the Democrats’ Inflation Reduction Act, Senator Joe Manchin extracted a promise from Senate Majority Leader Chuck Schumer to pass a "sidecar deal” addressing the issue of permitting reform,” Volts reports. “It is legendarily difficult to build anything in the US — including renewable energy, of which there is a terawatt or more waiting in interconnection queues. The fossil fuel industry and the renewable energy industry are both frustrated at their inability to build and there is growing sentiment that environmental laws like the National Environmental Policy Act (NEPA) are part of the problem. Consequently, there is at least some bipartisan interest in reforming the process through which new projects are permitted. The question facing climate hawks is whether the specifics of the permitting-reform deal will benefit one industry more than the other. The deal was negotiated entirely in private between the two senators, and so far the only glimpse of its contents has been a draft of the legislation released a few weeks ago, so the final contents are not yet certain. What is certain is that, because it addresses regulatory reform, it cannot pass through reconciliation. That means it needs 60 votes in the Senate, including 10 Republicans, as well as the bulk of the progressives in the House. It is unclear exactly what kind of deal could please both constituencies, or if any could. Many environmental groups worry that the deal is currently weighted in favor of fossil fuels, including Earthjustice, which characterizes the deal as a fossil fuel giveaway that will constrain the ability of vulnerable communities to give feedback on projects that threaten them. I called the president of Earthjustice, Abigail Dillen, to talk through her reservations about the sidecar deal, her larger take on permitting reform, and her thoughts on how to build the renewable energy needed to address climate change.”
Associated Press: Climate damage from oil leases on US land gets second look
MATTHEW BROWN, 9/6/22
“The Biden administration reached a legal settlement Tuesday that requires the government to reexamine potential climate damages from oil and gas leases put up for sale under the Trump administration on government land in Montana and North Dakota,” the Associated Press reports. “Similar deals have been reached in recent weeks for lease sales covering thousands of square miles public lands under the Trump and Obama administrations in Colorado, Montana, New Mexico, Utah and Wyoming… “About a quarter of U.S. fossil fuels comes from federal lands and waters, making them important for industry and also a prime target for climate activists who want to shut down leasing. The state of Wyoming and American Petroleum Institute opposed attempts to revisit previously sold leases. They argued that leasing decisions were final after 90 days and any changes now could financially harm companies. WildEarth Guardians, Sierra Club and other groups had sued over the sales. They’re hopeful President Joe Biden’s administration will curb drilling on the leased parcels after climate damages and other future potential pollution are considered. “Our hope is that they’re not just rubber stamping drilling permits, that they recognize they are legally vulnerable,” Jeremy Nichols with Wild Earth Guardians told AP… “The latest ruling came Friday, when U.S. District Judge Scott Skavdahl sided with Biden in lawsuits brought by the state of Wyoming and industry. Skavdahl said Interior Secretary Deb Haaland was justified in postponing onshore oil and gas sales last March because of concerns about climate impacts and other environmental problems. However, at least some of the parcels of land at issue were sold while the case was pending. That came after a federal judge in Louisiana in a separate case said the leasing suspension was invalid and ordered sales to resume.”
STATE UPDATES
Colorado Sun: Eagle County carries the torch for Colorado in last-ditch attempt to block Utah waxy-crude rail cars traversing Colorado River
Jason Blevins, 9/7/22
“Eagle County has fired its first volley in a last-ditch battle to block plans for millions of gallons of crude oil a week rolling along rails next to the Colorado River,” the Colorado Sun reports. “The county joins several environmental groups appealing the Surface Transportation Board’s 2020 approval of an 88-mile stretch of new railroad in Utah connecting the state’s oil fields in Uinta Basin with the national rail network. The decision set the stage for 65,000 to 350,000 barrels of Uinta Basin waxy crude to roll through Colorado every day in 100-tanker-long trains, stretching 10,000 feet, as they cover a route running mostly along the Colorado River. Eagle County and several environmental groups are asking the U.S. Court of Appeals in Washington, D.C., to overturn the transportation’s board approval, noting the board’s “uninformed decision-making” in its environmental review of the project and “increased risk of environmental harm” from increased oil production and processing. “The railway not only increases ignition risks for dangerous disasters such as wildfires, it also will lead to the exploitation and burning of fossil fuels contributing to climate change, which will expose Eagle County and its residents to increased threats from extreme heat, extreme drought, and extreme weather, including fire- and flash flood-triggering thunderstorms,” reads a declaration by Eagle County Manager Jeff Shroll in the county’s opening brief filed this month. “In other words, the railway could both be lighting the match and fanning the flames for future impacts on Eagle County.” “...Environmental groups have worked to disrupt the Uinta Basin Railway plan. In July, officials with the Forest Service rejected the groups’ objections to the new railroad traversing about 12 miles of roadless area in Utah’s Ashley National Forest. The Forest Service’s dismissal of objections to that stretch was a final regulatory hurdle for the Uinta Basin Railway.”
EXTRACTION
E&E News: Why so many LNG terminals are adopting carbon capture
Jean Chemnick, 9/8/22
“Liquefied natural gas companies are increasingly investing in carbon capture and storage to limit their emissions and bolster their climate credentials, despite the absence of a regulatory requirement for them to do so,” E&E News reports. “They are voluntarily embracing the still sparsely deployed technology as a way to stay ahead of regulations at home and abroad and to maintain a social license to operate in a world that is increasingly anxious to contain emissions. U.S. LNG exporters such as Cheniere Energy Inc., NextDecade Corp. and Sempra Energy have announced plans in the last few years to use CCS to capture a share of their carbon emissions associated with liquefaction and transport of gas. Those efforts contrast with potential mandates on other industries. A Supreme Court decision this summer and the historic climate legislation passed last month have conspired to boost the likelihood that other sectors, like electric power, will soon face Clean Air Act regulations based on CCS. Cheniere spokesperson Eben Burnham-Snyder said in an email to E&E News that the company sees CCS as “a promising technology to support our climate strategies to reduce the greenhouse gas footprint of our product.” He added that the climate spending bill known as the Inflation Reduction Act, which expanded the 45Q tax incentive for capturing and storing carbon, “considerably improves the economics of CCS and likely accelerates the implementation of these solutions.” The LNG industry’s embrace of CCS is remarkable in light of the costs associated with the technology and the fact LNG isn’t likely to face mandates to use it any time soon. The International Energy Agency estimates the cost of CCS at a generic facility between $175 and $400 per ton, though that would now be partially offset by the 45Q tax credit of $85 per ton.”
Geopolitical Monitor: Could Canadian Crude Improve European Energy Security?
Larry Hughes, 9/7/22
“In 2021, Canada produced 4.74 million barrels of crude oil a day (mmbbl/d), making it the world’s fourth largest producer of crude oil. Projections suggest that by 2030, Canada will have increased its production to between 5.79 and 6.18 mmbbl/d,” Geopolitical Monitor reports. “Canada’s expected rise in production would appear to have come at a fortuitous moment, as the sanctions placed on Russian crude oil in response to its invasion of Ukraine are impacting energy security around the world… “Shipping crude oil and NGLs from Canada to Europe via the U.S. Gulf Coast is hampered by transportation constraints and costs. If Canadian crude oil replaced U.S. crude oil, the U.S. crude oil could be shipped to Europe. Exports from Montreal are another possible route. However, the volume of crude that can be shipped is limited by pipeline capacity from western Canada to Montreal. Potential routes exist, notably from Churchill, Manitoba or Saint John, New Brunswick, but the crude would need to be shipped by rail to the ports and the ports are presently not equipped to export crude oil. Although Canada is expected to increase its production of crude oil, the lack of infrastructure and the cost of shipping by pipeline or rail to tidewater are impediments for Canadian crude oil reaching Europe. Despite its crude oil resources, its focus on exports to the United States means Canadian crude oil (like its natural gas) is unable to help maintain or improve European energy security.”
Mongabay: Second oil company exits Arctic amid fierce Indigenous opposition, energy squeeze
Laurel Sutherland, 9/7/22
“Knik Arm Services is the second oil company to cancel its oil and gas lease for a tract of land in the largest wildlife reserve in America, the Arctic National Wildlife Refuge, following fierce opposition by the Indigenous Gwich’in committee and environmental groups,” Mongabay reports. “The Biden administration is intent on continuing Trump-era policies by supporting oil drilling in Alaska’s northern slope amid rising energy costs in the country – despite the president’s campaign promises to ban new oil and gas leases. Land in the refuge will still be available for lease to oil and gas companies in 2024, the U.S. Bureau of Land Management told Mongabay... “The Gwich’in people of northern Alaska were disappointed when the Democratic-held U.S. Congress did not include a provision in the Inflation Reduction Act to protect the Arctic National Wildlife Refuge (ANWR) – an area the Trump administration officially opened to future drilling in 2017. However, for decades now, the Gwich’in Steering Committee has taken the protection of the Arctic’s Coastal Plain into their own hands and mounted a fierce opposition against oil drilling in the region – resulting in the exit of the second oil company last month. “These exits clearly demonstrate that companies recognize what we have known all along: drilling in the Arctic Refuge is not worth the economic risk and liability that results from development on sacred lands without the consent of Indigenous peoples,” said the Gwich’in Steering Committee in a press statement.
CLIMATE FINANCE
Global Legal Chronicle: TC Energy’s $1.4 Billion Equity Offering
Laura Testa, 9/8/22
“Calgary-based TC Energy Corporation executed an public offering of common shares pursuant to which TC Energy sold 28.4 million common shares for $49.70 (C$63.50) per share, representing gross proceeds of approximately $1.4 billion (C$1.8 billion),” Global Legal Chronicle reports. “TC Energy intends to the use the proceeds of the offering, together with other financing sources and cash on hand, to fund costs associated with the construction of the Southeast Gateway Pipeline, a $4.5 billion, 1.3 billion cubic feet-per-day, 715-kilometer offshore natural gas pipeline in the southeast region of Mexico. RBC Dominion Securities Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., TD Securities Inc., National Bank Financial Inc., Citigroup Global Markets Canada Inc., Deutsche Bank Securities Inc., HSBC Securities (Canada) Inc., Barclays Capital Canada Inc., Merrill Lynch Canada Inc., Mizuho Securities Canada Inc., Truist Securities, Inc., Wells Fargo Securities Canada, Ltd. and ATB Capital Markets Inc. acted as underwriters for the offering.”
The Hill: Yellen will vow to ‘rid’ US from ‘dependence on fossil fuels’ in Detroit speech
TOBIAS BURNS, 9/7/22
“Treasury Secretary Janet Yellen will call out the fossil fuel industry in a Thursday speech on the Biden administration’s economic agenda to be delivered in Detroit, Mich., where oil and gas companies have long held influence in the U.S. auto manufacturing sector,” The Hill reports. “The visit to Detroit comes on the heels of the Democrats’ passage of the Inflation Reduction Act (IRA), which includes $14.2 billion worth of subsidies for electric vehicles meant to wean the auto industry off of gasoline in an effort to reduce U.S. transportation emissions that are contributing to a rise in global temperatures. “We will rid ourselves from our current dependence on fossil fuels,” Yellen’s prepared remarks say. “Our plan — powered by the Inflation Reduction Act — represents the largest investment in fighting climate change in our country’s history. It will put us well on our way toward a future where we depend on the wind, sun, and other clean sources for our energy,” her remarks continue. Yellen’s speech will also emphasize the role that private capital can play in addressing climate change, putting her generally in line with the economic, social and corporate governance (ESG) movement. The ESG movement in the financial sector pursues environmental and social equality objectives through divestment practices and getting board members with particular political views elected to company boards.”
The Hill: Fed vice chair says bank will launch pilot climate risk analysis next year
SYLVAN LANE, 9/7/22
“The Federal Reserve’s top regulatory watchdog said Wednesday the bank will test out ways next year to help financial firms figure out the risks they face from climate change and climate-related events,” The Hill reports. “Fed Vice Chair of Supervision Michael Barr said in a Wednesday speech the bank will launch a pilot exercise next year for the major banks it supervises to help get a better sense of the risks climate change poses to the financial system. The exercise would likely require firms to explain how several different climate-related financial shocks would affect their books and ability to serve customers. “The Federal Reserve is working to understand how climate change may pose risks to individual banks and to the financial system,” Barr said in a Wednesday speech at the Brookings Institution, a nonpartisan think tank. Barr’s remarks were his first since being confirmed to the Fed in July as the bank’s top regulatory official. As vice chair of supervision, Barr spearheads the Fed’s oversight of major financial firms, including the Fed’s annual stress testing of the largest U.S. banks… “Since President Biden’s election in 2020, the Fed has moved toward studying the various ways climate change and a global shift away from fossil fuel energy could affect the financial system.”
OPINION
Grand Island Independent: Guest Opinion: We must secure a market for homegrown energy
Sen. Curt Friesen represents District 34 — which includes a portion of Grand Island and parts of the surrounding area — in the Nebraska Legislature, 9/7/22
“For years, there has been talk of carbon sequestration being a key to the future of farming,” Sen. Curt Friesen writes in the Grand Island Independent. “Then, about this time last year, Summit Carbon Solutions announced its intention to partner with 32 Midwest ethanol plants to sequester their carbon permanently, and years of conversation and speculation suddenly became reality. With something so important to the future of the family farm and our rural economy, I took the time to understand the why behind the enormous task and the company presenting it. Summit Carbon's goal is to empower the agriculture and ethanol industries on which our state’s economy heavily relies… “Ethanol plants that do not participate in a carbon sequestration project, whether Summit or another, risk less demand for their product and a lower price. Everyone involved in agriculture and the farm economy will have to get comfortable with this new reality because as the market changes we have no choice but to adapt… “The University of Nebraska recently released a study showing the overall annual economic benefit of the ethanol industry to Nebraska is over $4.5 billion… “However, despite the tremendous benefit to Nebraska’s economy, the ethanol industry, and our family farmers, there is opposition. Groups like the Sierra Club and BOLD Nebraska believe the use of ethanol extends reliance on fossil fuels and contributes to climate change. Not surprisingly, they also oppose carbon sequestration projects and the pipelines needed to support them. These groups want to see the end of ethanol, and frankly, American agriculture as we know it. Fortunately, the facts about the value of ethanol and opportunity presented by carbon sequestration are a strong counter to the negativity and misinformation from opponents. The Summit Carbon Solutions project and others like it are key to ethanol’s future and the future of agriculture. Carbon sequestration is an innovation that can propel agriculture forward for decades to come and is one of the reasons I am optimistic about the future of the family farm.”
Calgary Herald: Varcoe: Canada 'falling behind' in race to attract carbon capture investments
Chris Varcoe, 9/7/22
“There’s a race going on to attract billions of dollars of investment across the global energy sector into carbon capture and storage projects,” Chris Varcoe writes for the Calgary Herald. “Canadian oilsands producers continue to work on a foundational $14-billion carbon capture and storage project in northern Alberta and are looking for federal and provincial governments to provide more assistance — and more clarity — as the U.S. cranks up its incentives for such developments. Outside the oilsands, conventional petroleum producers are also eyeing the potential of carbon capture, utilization and storage (CCUS) technology to decarbonize. However, a report by BMO Capital Markets warns that Canada is “falling behind” in CCUS policy following changes last month in the United States designed to attract investments into such big-ticket initiatives. “The U.S. … policy advancement further underscores the need for substantially more robust incentives in Canada to bolster its global competitiveness in the decarbonization race,” says the report. “The Canadian Investment Tax Credit (ITC) announced this spring falls far short and there remains the need for additional funding support from provinces, and/or better assurances around the value of future (offset) credits to improve project returns.” “...The new policy increases the U.S. government’s existing tax credit for such initiatives to $85 for each tonne of stored CO2, up from $50… “It has changed the competitive landscape between Canada and the U.S,” Mark Cameron, vice-president of external relations for the Pathways Alliance oilsands group, told the Herald. “For Canada to have a level playing field, there would have to be additional support.” “...For Alberta and the oilsands sector, carbon capture technology is viewed as essential to ensuring the industry decarbonizes as Canada strives to reach its net-zero goals by 2050. It’s also vital to unlocking new investment that ensures lower-carbon production, royalties and jobs tied to the sector continue for decades.”
Anchorage Daily News: OPINION: Exxon Valdez habitat restoration program must continue until it’s done
Rick Steiner is a marine conservation biologist in Anchorage, 9/6/22
“The 1989 Exxon Valdez oil spill (EVOS) was one of the most environmentally damaging industrial disasters in world history, and today the coastal ecosystem impacted by the spill remains far from recovered,” Rick Stiener writes for Anchorage Daily News. “After over 30 years and more than $1 billion spent, it is clear that the EVOS restoration program has failed to achieve its goal: “the recovery of all injured resources and services, sustained by healthy, productive ecosystems to maintain naturally occurring diversity.” The government’s 2014 status of injury update – still the official status today - lists 12 of the 32 monitored resources and services injured by the spill as either “recovering” (e.g., not fully recovered), or “not recovering.” “...And there are thousands of gallons of toxic Exxon Valdez oil in beach sediments of Prince William Sound (PWS)... “And now, the trustee council for the spill under the Biden and Dunleavy administrations just announced its proposal, to be considered at its upcoming Oct. 5 meeting, to simply throw in the towel, end its 30-year habitat protection program altogether, and dole out the remaining funds to politically popular economic development projects with little to no effect on environmental recovery… “The sad truth is that the environment injured by the Exxon Valdez spill will never return to its pre-spill condition, or to the condition it would have been in absent the spill. The best, and least, we can do is to protect the injured ecosystem from additional harm, allowing it to heal to the maximum extent possible on its own. After Exxon Valdez, this was, and remains, our singular scientific, political and moral imperative… “We owe it to the millions of innocent beings killed, injured, and that continue to be injured by the Exxon Valdez oil spill to do everything we can to help the ecosystem heal.”