EXTRACTED: Daily News Clips 3/13/25

PIPELINE NEWS
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Pipeline Fighters Hub: Landowners From Eight States Visit Congress, Urge Repeal of 45Q Tax Credit for Carbon Capture
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Pipeline Fighters Hub: Summit Carbon Solutions Asks South Dakota PUC to “Suspend” CO2 Pipeline Permit Application After State Law Bans Eminent Domain
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South Dakota Public Broadcasting: Summit pauses CO2 pipeline application in South Dakota
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KELO: Summit asks PUC for more time on CO2 pipeline
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South Dakota Searchlight: Carbon pipeline company seeks pause in permitting schedule after SD adopts eminent domain ban
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Sioux Falls Argus Leader: Summit Carbon pauses pipeline permit application after SD eminent domain bill passes
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E&E News: CO2 pipeline developer seeks pause on South Dakota application
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Public News Service: MN ties to troubled carbon pipeline project come back into focus
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Hart Energy: Burgum: Feds ‘Will Step In’ to Build Marcellus-to-New England Pipeline
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North Dakota Monitor: Former Greenpeace leader disputes allegations by Dakota Access Pipeline developer
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WHYY: Upper Makefield residents press for answers on pipeline leak: ‘We had the wool pulled over our eyes’
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KCLU: Controversy over proposed Santa Barbara County oil pipeline and platforms restart focus of town hall
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Coastal View: Carpinteria joins the fight against oil transportation by pipeline
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Santa Barbara Independent: California State Senator Monique Limón Talks Sable Oil Pipeline Ahead of Thursday’s Public Meeting
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KBMT: Southeast Texans raise concerns over proposed crude oil pipeline
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Cadiz Record: Court OKs resolution supporting gas pipeline
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Pipeline & Gas Journal: Williams CEO: Pipeline Permitting Costs Twice the Price of Steel, Calls for ‘Common Sense’ Reform
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Reuters: TC Energy CEO says company remains bullish on US, in spite of trade tension
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Bloomberg: TC Energy’s Columbia Deal Appeal Tests Aiding and Abetting Law
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Colorado House Democrats: House Advances Pipeline Leak Detection Bill
WASHINGTON UPDATES
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The Hill: Trump admin unveils hit list of climate, pollution regulations
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E&E News: Capito warns of legal hurdles in EPA endangerment rollback
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Utility Dive: DOE will prioritize fossil fuels, but it still expects strong growth from storage, solar, Wright says
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Politico: API head doubts Congress will pass permitting reform in 2025
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Politico: House Republican support grows for keeping clean energy tax breaks
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Associated Press: Trump DOT chief rejects inclusion of environmental justice factors in infrastructure decisions
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Guardian: Trump’s ‘drill, baby, drill’ agenda could keep the world hooked on oil and gas
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Associated Press: The US agency that monitors weather will cut another 1,000 jobs, AP sources say
STATE UPDATES
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Politico: Alaska state development agency pitches strong-arming Japan to finance LNG project
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Inside Climate News: A New Bill Would Allow Duke Energy to Retreat From North Carolina’s Ambitious Climate Goals
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News & Observer: NC Senate fast-tracks plan to eliminate 2030 target for power companies to cut emissions
EXTRACTION
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Reuters: Canada could restrict its oil exports to US if Trump trade war escalates
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Canadian Press: Alberta government says premier in talks with potential overseas heavy oil buyer
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CBC: Oil and gas production can meet ‘historical highs’ under emissions cap: PBO
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E&E News: Worries lurk behind forecasts for natural gas boom
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Reuters: Conoco CEO says US oil production will plateau this decade
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Reuters: ConocoPhillips says US, Europe should coordinate on methane
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CNBC: Microsoft is open to using natural gas to power AI data centers to keep up with demand
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E&E News: Ethanol backer says ‘great partnership’ with oil boosts E15
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Associated Press: This ‘Dune’ isn’t fiction. It’s the longest conveyer belt in the US and moving sand in Texas
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Climate Cosmos: Arctic Permafrost Thaw Accelerates: New Models Predict 40% Faster Methane Release Than Expected
OPINION
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U.S. News: Trump’s Energy Policy Is ‘Drill, Baby, Drill.’ The Planet Can’t Survive This
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Colorado Politics: Colorado energy transparency only significant if violations spur action
PIPELINE NEWS
Pipeline Fighters Hub: Landowners From Eight States Visit Congress, Urge Repeal of 45Q Tax Credit for Carbon Capture
Mark Hefflinger, 3/12/25
“During the week of March 10-15, more than 50 landowners and advocates from 8 states traveled to Washington, DC to urge their members of Congress to cut the wasteful 45Q U.S. federal tax credit program that underpins the Carbon Capture and Storage (CCS) industry, and associated CO2 pipeline projects,” the Pipeline Fighters Hub reports. “The fly-in event comes just after a bipartisan bill was introduced in Congress last week to repeal the 45Q tax credit, by Reps. Scott Perry (R-Penn.) and Ro Khanna (D-Calif.). In addition to the D.C. fly-in, which featured landowners and advocates from Iowa, Minnesota, North Dakota, South Dakota, Indiana, Illinois, Louisiana and North Carolina, organizers are also scheduling in-person meetings In-District with their elected officials, or otherwise planning to attend town halls or other events to make their concerns heard when the lawmakers return home from Washington for March recess, scheduled March 17-21. The CCS Action Network hosted a “Meeting With Electeds Training”, featuring speakers including Bold Alliance attorney Paul Blackburn, and has provided the slide presentation as a resource.”
Pipeline Fighters Hub: Summit Carbon Solutions Asks South Dakota PUC to “Suspend” CO2 Pipeline Permit Application After State Law Bans Eminent Domain
3/12/25
“Summit Carbon Solutions, a corporation proposing a multi-state carbon dioxide pipeline to transport waste CO2 from ethanol plants and bury it in an underground waste dump, on Wednesday filed a motion asking the South Dakota Public Utilities Commission (SD PUC) to “suspend” its pending pipeline permit application with the agency indefinitely,” according to the Pipeline Fighters Hub. “The shocking move from Summit comes days after South Dakota enacted a ban on the use of eminent domain to seize land for carbon pipeline projects, such as Summit’s, and calls even further into question the ultimate viability of the risky multi-billion dollar project. “Today, Summit requested the South Dakota PUC suspend the scheduling order and indefinitely extend all deadlines. This is wise given Summit’s proposed route does not respect County rules, regulations, and ordinances, is not supported by even a simple majority of directly affected landowners, and therefore, cannot be constructed. If Summit can find a path through South Dakota, they are free to do so, but the current application should be returned and dismissed, to let the landowners who have been tormented for nearly four years get back to their lives,” said attorney Brian Jorde of Domina Law Group, who has represented South Dakota landowners with the South Dakota Easement Team at state-based regulatory agency proceedings, as well as against eminent domain threats from pipeline companies. “This request for extension is a clear sign that Summit knows they have lost the trust of South Dakota, and will be unable to proceed on their original timeline without being able to force surveys on unwilling landowners. As our new Governor said so well, that trust is hard to earn back again once it is lost,” said Chase Jensen, Senior Organizer with Dakota Rural Action. Emma Schmit, Bold Alliance’s Pipeline Fighters Director, stated, “Summit’s request for an indefinite extension of the permitting process is yet another victory for the thousands of people opposed to risky carbon pipeline schemes. In spite of years of aggressive lobbying and empty promises, it’s clear carbon pipeline companies cannot simply bowl over the landowners and communities impacted by unwanted carbon capture projects. This victory is a direct result of relentless public opposition and the tireless dedication South Dakotans have for defending their rights, their families, and their way of life.”
South Dakota Public Broadcasting: Summit pauses CO2 pipeline application in South Dakota
Josh Chilson, 3/12/25
“Summit Carbon Solutions is pausing its application for approval to build a CO2 pipeline across South Dakota,” South Dakota Public Broadcasting reports. “A spokesperson for the Iowa-based company said it needs more time to analyze the pipeline’s route for its Public Utilities Commission application after a newly passed law limited its ability to conduct surveys in the state… “Opponents of the project call Summit’s move a victory for landowners, saying it shows the company cannot build the pipeline without eminent domain. “If Summit can find a path through South Dakota, they are free to do so, but the current application should be returned and dismissed, to let the landowners who have been tormented for nearly four years get back to their lives,” attorney Brian Jorde, who has represented South Dakota landowners in legal disputes with Summit, told SDPB… “Opponents raised questions about safety and the efficacy of the project. However, it is the potential of Summit using eminent domain that has garnered the largest public push back. “This request for extension is a clear sign that Summit knows they have lost the trust of South Dakota, and will be unable to proceed on their original timeline without being able to force surveys on unwilling landowners. As our new governor said so well, that trust is hard to earn back again once it is lost,” Chase Jensen, Senior Organizer with Dakota Rural Action, told SDPB.”
KELO: Summit asks PUC for more time on CO2 pipeline
Rae Yost, 3/12/25
“Summit Carbon solutions has asked the South Dakota Public Utilities Commission to suspend the current schedule for its application on a carbon dioxide pipeline in the state,” KELO reports. “A Summit spokeswoman said Wednesday more time is needed to obtain surveys and easements after House Bill 1052 passed in the Legislature… “Opponents have said eminent domain should not apply to a private company and that CO2 is not a commodity. Other criticism raised has been safety concerns and an inflated economic impact. Brian Jorde, a lawyer who has worked with many landowners opposed to the use of eminent domain, said in a Wednesday news release that Summit’s request to the PUC was “wise given Summit’s proposed route does not respect (county) rules, regulations, and ordinances, is not supported by even a simple majority of directly affected landowners, and therefore, cannot be constructed.” Jorde said in the news release that the “current application should be returned and dismissed…” The same news release from Jorde questioned the viability of the project.”
South Dakota Searchlight: Carbon pipeline company seeks pause in permitting schedule after SD adopts eminent domain ban
Joshua Haiar, 3/12/25
“Summit Carbon Solutions wants the schedule of proceedings for its South Dakota permit application “paused for review and adjustment” after the state’s Legislature and governor approved a ban on the use of eminent domain for carbon dioxide pipelines,” the South Dakota Searchlight reports. “The company filed a motion Wednesday with the South Dakota Public Utilities Commission asking for a suspension of the scheduling order and an indefinite extension of the deadline for regulatory action on the application. The existing schedule includes a multiday evidentiary hearing in August and September… “With the passage of HB 1052, the Applicant’s ability to obtain survey permission has changed,” wrote Summit attorney Brett Koenecke. “The surveys which are necessarily required to inform the route decisions as to right of way will be significantly delayed.” “…Critics of the project are interpreting Summit’s motion as another victory for the opposition. “This request for extension is a clear sign that Summit knows they have lost the trust of South Dakota, and will be unable to proceed on their original timeline without being able to force surveys on unwilling landowners,” said Chase Jensen, of Dakota Rural Action, in a statement… “Summit did not immediately respond to South Dakota Searchlight’s requests for comment Wednesday.”
Sioux Falls Argus Leader: Summit Carbon pauses pipeline permit application after SD eminent domain bill passes
Dominik Dausch, 3/12/25
“Summit Carbon Solutions’ multibillion-dollar carbon sequestration pipeline is in stasis,” the Sioux Falls Argus Leader reports. “Summit Carbon, an Ames, Iowa-based carbon pipeline developer, filed a Wednesday motion with the South Dakota Public Utilities Commission to suspend its permit application and extend the regulator’s deadline to issue said permit “indefinitely.” “…The surveys which are necessarily required to inform the route decisions as to right of way will be significantly delayed.” “…In a Wednesday statement to the Argus Leader, the company said its request to change the permit schedule would allow staff more time to buy easements… “It is unclear how Summit Carbon will move forward with its plans in South Dakota, a state that would serve as a bridge between the developer’s North Dakota sequestration site and the 31 Iowa ethanol plants that may connect to the pipeline — 13 of which are facilities operated by POET, a Sioux Falls company that’s one of the largest biofuels producer in the world. Five POET-owned ethanol plants also are planned to connect to Summit Carbon’s South Dakota route. Joshua Shields, POET’s Senior Vice President of Corporate Affairs, told the Argus Leader in a request for comment that the state’s impending changes to its eminent domain law represents a “setback” for the industry.”
E&E News: CO2 pipeline developer seeks pause on South Dakota application
Carlos Anchondo, 3/13/25
“The developer of a major carbon dioxide pipeline system is asking South Dakota regulators to pause the clock on a key permit application in the state, a move quickly cheered by opponents,” E&E News reports. “In a filing Wednesday, attorneys for Summit Carbon Solutions said a new law has changed the company’s ability to do key survey work and current timelines are now “unrealistic.” South Dakota statute requires the South Dakota Public Utilities Commission to render a decision within 12 months of receiving an initial application. Summit, which submitted an application in mid-November to the agency, has requested a suspension in the schedule, given how the new law complicates the company’s property access for surveys. Last week, South Dakota Gov. Larry Rhoden (R) signed a bill that prohibits the use of eminent domain to build CO2 pipelines in South Dakota, disrupting plans by Iowa-based Summit to build almost 700 miles of pipeline across the state.”
Public News Service: MN ties to troubled carbon pipeline project come back into focus
Mike Moen, 3/13/25
“A Minnesota organization opposed to a Midwestern carbon pipeline project plans to file a request with state regulators Thursday, asking them to reconsider permit approval,” Public News Service reports. “They say upheaval in South Dakota raises new questions… “Maggie Schuppert, director of strategic initiatives for the environmental group CURE, told PNS it is one reason Minnesota’s Public Utilities Commission should take a second look. “They didn’t know South Dakota was going to pass this law, which again, sort of calls into question the entire project,” she told PNS… “In Minnesota, Schuppert told PNS they wouldn’t be surprised if regulators stick with their original decision. But she says they want their new arguments to go on record, in the likelihood Summit and other companies seek approval for additional routes in the state.”
Hart Energy: Burgum: Feds ‘Will Step In’ to Build Marcellus-to-New England Pipeline
Chris Mathews, 3/12/25
“The Trump administration wants a pipeline to carry Pennsylvania shale gas into northeastern states—and it’s willing to take federal action to get a project completed,” Hart Energy reports. “U.S. Interior Secretary Doug Burgum, formerly governor of North Dakota, said the administration is looking at all options to connect northeast Pennsylvania production with demand centers in New England. “If we just had another 124 miles of pipeline in New York, then we would have all of New England with lower electrical prices and they could be burning clean U.S. natural gas from ourselves,” Burgum said March 12 during the 2025 CERAWeek by S&P Global Conference.”
North Dakota Monitor: Former Greenpeace leader disputes allegations by Dakota Access Pipeline developer
Mary Steurer, 3/12/25
“A former executive director of Greenpeace’s U.S. affiliate on Wednesday refuted accusations from the developer of the Dakota Access Pipeline that the environmental group was a major force driving protests against the pipeline in 2016 and 2017,” the North Dakota Monitor reports. “…Annie Leonard, who led Greenpeace USA from 2014 to 2023, told jurors that Greenpeace only got involved in the protests because the Standing Rock Sioux Tribe asked… “Leonard said that at some point during the protests, a Navajo activist named Tom Goldtooth — a longtime friend of hers — asked if there was anything Greenpeace could do to help the cause. Leonard said that while Goldtooth was not a spokesperson for the protests, he helped relay messages from Standing Rock leaders. She said Goldtooth shared with her that the demonstration camps had nowhere for people to charge their phones. This made it difficult for organizers to communicate with one another and spread word about the protests, she said. According to Leonard, Goldtooth also said that Standing Rock wanted help keeping the protests peaceful. In response, Greenpeace sent a truck equipped with solar panels to the camps, Leonard said. It also set aside money to pay for Native organizers to go to the camps and teach people nonviolent protest strategies, including deescalation tactics, she said… “Greenpeace never tried to make its involvement in the demonstrations secret, though it also didn’t want to bring too much attention to itself, Leonard said. She said that since Greenpeace is a household name, it has the tendency to overshadow local organizers when it gets involved in a cause. “We didn’t want to make the story be about us,” she said.”
WHYY: Upper Makefield residents press for answers on pipeline leak: ‘We had the wool pulled over our eyes’
Emily Neil, 3/12/25
“Residents and elected officials continue to press Energy Transfer to shut down the Twin Oaks Pipeline, which leaked jet fuel and contaminated six private water wells in Upper Makefield Township at levels above the statewide drinking standard,” WHYY reports. “…Jerry Zacharatos, who lives a few hundred feet from the site of the leak, told WHYY his water is not contaminated, but he still worries about potential impacts for his three children ages 8 and younger. “It’s not like the East Palestine spill, which I know is horrible, like once that happened, you knew to stop consuming the water,” he told WHYY. “We had the wool pulled over our eyes and told that we could continue drinking the water for over a year and a half. And my kids, you know, they fill up their Stanley Cups, they drink it. My newborn, we bathed her in it. So that’s my main thing, is their health.” Bucks County District Attorney Jennifer Schorn has referred the incident to the state Attorney General’s Office, which is exploring prosecuting the leak as an environmental crime. Energy Transfer was held criminally responsible for damages related to the Mariner East pipeline construction… “Representatives from Energy Transfer, which operates the more-than-100-mile Sunoco pipeline, declined to respond to public questions at the fifth public meeting in Washington Crossing on Tuesday night, citing the fact that some residents have hired an attorney to take legal action against the company. Instead, company representatives said they would provide presentations at public meetings and meet one-on-one with residents while also releasing communications updates on the incident website.”
KCLU: Controversy over proposed Santa Barbara County oil pipeline and platforms restart focus of town hall
Lance Orozco, 3/12/25
“A town hall meeting is set to talk about controversial efforts to restart some idle oil platforms off the Santa Barbara County coast,” KCLU reports. “Sable Offshore Corporation wants to repair and restart the oil pipeline on the Gaviota coastline which ruptured in 2015, causing a 140,000-gallon oil spill… “A coalition of community groups and residents opposes the efforts, contending reactivating the aging facilities would set the stage for another environmental disaster. Opponents are bringing out some famous names to help in the fight. Jane Fonda and Julia Louis-Dreyfus are among those set to participate in a pre-town hall event… “Opponents say at the least, they want the state to do more review.”
Coastal View: Carpinteria joins the fight against oil transportation by pipeline
Liv Klein, 3/12/25
“On Monday, the Carpinteria City Council passed a resolution opposing the transportation of oil by pipeline,” Coastal View reports. “Back in 2015, a detrimental oil spill, the Refugio Beach Oil Spill, was caused by the rupture of a Plains Oil pipeline running along the Gaviota Coast. Over one hundred thousand gallons of crude oil invaded the beaches and coastline, resulting in harmful and fatal effects on marine life within the region… “Upon the council’s request, Carpinteria city staff put together a resolution stating that the city of Carpinteria disapproves of recommissioning the oil pipeline. Multiple members of the public showed their support for the resolution at Monday night’s meeting, including local residents, organizations and experts on the topic. “The Carpinteria Valley Association strongly supports this resolution,” CVA Vice President Jim Taylor told the council. “The pipeline has already been proven unsafe.” Gail Marshall, a former board member of Get Oil Out (GOO) — a Santa Barbara-based interest group dedicated to protecting the environment — shared her support for the resolution.”
Santa Barbara Independent: California State Senator Monique Limón Talks Sable Oil Pipeline Ahead of Thursday’s Public Meeting
Margaux Lovely, 3/12/25
“Ahead of Thursday’s public meeting with representatives from six state regulatory agencies, State Senator Monique Limón offered the Independent some insight into the trials and tribulations of Sable Offshore’s potential oil activities in the Santa Barbara Channel,” the Santa Barbara Independent reports. “With the possibility of Attorney General Rob Bonta intervening in the oil company’s legal and regulatory saga, Senator Limón wants to assure Santa Barbarans that she and other legislators are doing everything they can to keep the community safe. For starters, Limón sees the situation pretty bluntly. “The position that Sable has taken does not build trust.” “…You’re seeing a trend here.… There are many entities that haven’t been given the necessary information to make an informed decision that this is safe, the right approach, and the right thing to do,” she told the Independent. “This is why there are so many entities asking to put this on pause.” “…I think it’s going to be really difficult to reverse the actions that the company has taken to disregard regulatory concerns, elected leader concerns, and community concerns,” Limón told the Independent. “It doesn’t build any trust.” Senator Limón and Assemblymember Hart are hosting an informational meeting on Sable’s restart plans on Thursday, March 13, at 4 p.m. at La Cumbre Junior High School (2255 Modoc Rd.).”
KBMT: Southeast Texans raise concerns over proposed crude oil pipeline
Gabby Gaspard, Claydra Rhodes, 3/12/25
“A proposed crude oil pipeline running through the Sabine Lake has sparked debate among Southeast Texans, with concerns raised over potential environmental risks and the project’s ability to withstand natural disasters,” KBMT reports. “At a public meeting on March 12, the U.S. Maritime Administration heard from six citizens about the 37-mile pipeline project, which would carry crude oil from Energy Transfer’s Nederland terminal to approximately 100 miles off the coast of Johnson Bayou, Louisiana… “Despite reassurances, environmental advocates remain skeptical. John Beard Jr., founder and CEO of the Port Arthur Community Action Network and a member of the Save Sabine Lake Coalition, warned of potential risks to the lake and surrounding Gulf Coast communities. “It creates a situation that can potentially be very harmful to that lake, and a lot of people depend on it not just for recreation but for hunting and fishing and for making their livelihood,” Beard told KBMT. “And last but not least, that lake flows out into the Gulf of Mexico, so under hurricane conditions and other conditions, how will those things be mitigated? All of that should be and must be considered in deciding whether or not to put this pipeline in place.”
Cadiz Record: Court OKs resolution supporting gas pipeline
Tonya S. Grace, 3/13/25
“The Trigg County Fiscal Court has approved a resolution in favor of efforts to construct a natural gas pipeline that is intended to serve industry and residents in the Pennyrile region,” the Cadiz Record reports. “Magistrates voted in favor of the resolution during their March 3 court meeting after hearing from a representative of the Pennyrile Regional Energy Agency that will build the pipeline. Tim Thomas, speaking on behalf of the agency, said his organization was formed because there are unserved and underserved areas “relative to natural gas” in the region… “Thomas said the energy agency is really looking for large industries, whether they’re in the metal sector, chemical plants, essentially any entity needing a large supply of natural gas… “He noted that PREA received $30 million previously from the Kentucky State Legislature that is being used to pay for preliminary design and environmental studies for the pipeline. He said the project will cost anywhere from $120 million to $150 million, and officials hope to begin construction on the pipeline this summer.”
Pipeline & Gas Journal: Williams CEO: Pipeline Permitting Costs Twice the Price of Steel, Calls for ‘Common Sense’ Reform
Mary Holcomb, 3/12/25
“Williams Cos. CEO Alan Armstrong says permitting costs have become a bigger burden than potential tariffs, revealing that for one of the company’s projects, the cost of securing permits was twice the price of building the pipeline itself,” Pipeline & Gas Journal reports. “Speaking at CERAWeek by S&P Global on March 12, Armstrong noted that he would prefer a 25% tariff if it meant expediting the permitting process, emphasizing how regulatory hurdles are delaying critical infrastructure. “On one of our current projects, the permitting costs alone are twice as much as what we’re spending on the pipe itself,” Armstrong said. “And that’s if everything goes well—if there are no legal battles or delays. The risk of spending hundreds of millions of dollars on a project that could be halted due to regulatory challenges raises the cost of capital and, ultimately, costs for consumers.” Armstrong stressed that political and regulatory challenges—not resource scarcity—remain the biggest barrier to energy expansion… “There is so much value to be unlocked for our country if we fix this issue,” Armstrong said. “We need a permitting system that allows us to build efficiently and predictably, instead of being mired in endless bureaucracy. The way we’re going to succeed globally is by delivering low-cost solutions. And we can’t do that if we’re spending twice as much on permitting as we are on the actual infrastructure.” Beyond the rising costs, Armstrong emphasized that policy constraints are undermining the U.S.’s ability to remain competitive in global energy markets.”
Reuters: TC Energy CEO says company remains bullish on US, in spite of trade tension
Amanda Stephenson, 3/12/25
“The CEO of Canadian pipeline company TC Energy Corp. said it continues to favor the U.S. over Canada when it comes to capital investment, even as trade tensions between the two countries escalate,” Reuters reports. “I fundamentally believe that this is temporary,” François Poirier told Reuters of the volley of on-and-off-again tariff announcements made by U.S. President Donald Trump against Canada in recent weeks… “In a phone interview from Houston, where he was attending the annual CERAWeek energy conference, Poirier told Reuters volatility and uncertainty are the “enemy of investment.” But he told Reuters the current trade situation has not dampened TC Energy’s belief that the Trump administration’s pro-energy stance will make it easier for the company to build natural gas pipeline infrastructure in that country. “This is the most energy-literate incoming administration in the last 50 years,” Poirier told Reuters. “The message they’ve given to the private sector is ‘figure out a way to move faster, and we will remove obstacles that will allow you to do that.'”
Bloomberg: TC Energy’s Columbia Deal Appeal Tests Aiding and Abetting Law
Mike Leonard, 3/12/25
“TC Energy Corp.’s bid to undo a $199 million court loss appeared to hinge Wednesday on whether it walked away from a firm offer or a tentative deal before driving down the price of a $13 billion acquisition,” Bloomberg reports. “A lawyer for the energy giant squared off at Delaware’s top court against an attorney for the Columbia Pipeline Group Inc. ex-investors who successfully challenged its 2016 sale to the former TransCanada Corp. A Delaware Chancery Court judge ruled in 2023 that TransCanada was liable for pushing the price from $26 a share to $25.50 through threats to turn Columbia into “damaged… “
Colorado House Democrats: House Advances Pipeline Leak Detection Bill
3/12/25
”The House today on a preliminary vote advanced legislation to prevent and mitigate natural gas pipeline leaks and keep Coloradans safe. “We need to do more to keep our communities and environment safe from dangerous pipeline leaks,” said Rep. Tammy Story, D-Conifer. “The Pipeline Safety Program must work as intended, demonstrating that public safety is the highest priority. This includes standardizing the rules and regulations for the use of advanced leak detection technology, which when deployed is effective and efficient in detecting and locating leaks throughout the pipeline system across Colorado. Keeping communities safe from pipeline leaks is a top priority for me. This legislation mandates required rulemaking in statute since 2021 will be completed before the end of this year.” HB25-1280 would require the Public Utilities Commission (PUC) to adopt rules on natural gas pipeline advanced leak detection by November 1, 2025. This bill builds off of previous legislation (SB21-108) which required the Pipeline Safety Program to address various gas pipeline safety-related issues, including the use of advanced leak detection technology. The goal of HB25-1280 is to ensure the PUC adopts rules regarding the use of advanced leak detection technology to keep communities safe and protect the environment.”
WASHINGTON UPDATES
The Hill: Trump admin unveils hit list of climate, pollution regulations
Rachel Frazin, 3/12/25
“The Environmental Protection Agency (EPA) indicated Wednesday that it will slash a broad suite of rules and determinations that aim to cut pollution or mitigate climate change — including from cars and power plants,” The Hill reports. “…It will also reconsider the finding that climate change poses a threat to the public — which in turn lays regulatory groundwork for further climate action… “But, the EPA’s announcement that it will reconsider the rules marks a formal step toward repealing the regulations… “Today is the greatest day of deregulation our nation has seen,” EPA administrator Lee Zeldin said in a written statement. “We are driving a dagger straight into the heart of the climate change religion to drive down cost of living for American families, unleash American energy, bring auto jobs back to the U.S. and more,” he added. Environmental advocates, meanwhile, criticized the moves, saying they endanger public health. “Breaking faith with the American people and breaking 50 years of laws of the land, the Environmental Protection Agency today abandoned protecting human health and the environment,” Jackie Wong, senior vice president for climate and energy at Natural Resources Defense Council, told The Hill.”
E&E News: Capito warns of legal hurdles in EPA endangerment rollback
Nico Portuondo, Timothy Cama, 3/13/25
“The top Senate Republican overseeing EPA says the Trump administration’s move to roll back the scientific finding that undergirds climate change regulations will be difficult,” E&E News reports. “Sen. Shelley Moore Capito (R-W.Va.), chair of the Senate Environment and Public Works Committee, told E&E Administrator Lee Zeldin’s plan to challenge the endangerment finding — which gives the agency its authority to regulate greenhouse gases by finding they threaten public health — would be more complicated than a litany of other potential regulatory rollbacks the EPA chief announced Wednesday. “I think that one is more complicated, to be honest with you, because of the court rulings that led to that,” Capito told E&E. When asked whether the result of the 2007 Massachusetts v. EPA Supreme Court case would make it difficult for Zeldin to legally overturn the endangerment finding, Capito told E&E, “I think that’s why I said it’s more complicated.” Massachusetts v. EPA established that EPA had the authority to regulate greenhouse gas emissions because they are air pollutants under the Clean Air Act. That led to the EPA’s 2009 endangerment finding, which concluded that the emissions endanger public health and welfare and could be regulated under the Clean Air Act.”
Utility Dive: DOE will prioritize fossil fuels, but it still expects strong growth from storage, solar, Wright says
Diana DiGangi, 3/11/25
“U.S. Department of Energy Secretary Chris Wright said Monday that the Trump administration will focus on increasing domestic fossil fuel production, and he dismissed the Biden administration’s policy of focusing on renewable energy – though he said solar, storage and electric vehicles have their place in the Trump administration’s energy policy approach,” Utility Dive reports. “In a keynote address at S&P Global’s CERAWeek, Wright – the former CEO of Liberty Energy – singled out natural gas as particularly versatile and beneficial, in his view, saying, “there is simply no physical way that wind, solar and batteries could replace the myriad uses of natural gas.” The U.S. Energy Information Administration’s Short-Term Energy Outlook, released Tuesday, forecasts that wind, solar, hydropower and nuclear will continue to make up around 45% of the U.S. generation mix in 2025 and into 2026, with natural gas showing a slight decline from 42% in 2024 to 40% of the mix in 2025 and 2026… “In his keynote, Wright also said the Trump administration plans “to reverse the destructive mandates forcing everyone to buy EVs that have been wreaking havoc on our auto industry and forcing higher prices and reduced choices on consumers.” During a later press briefing, Wright encouraged businesses to “build EVs, innovate EVs, sell them. Consumers will buy them. We’re for all of that. We’re just not for reducing choice and taking American taxpayer money to subsidize wealthy people.”
Politico: API head doubts Congress will pass permitting reform in 2025
Ben Lefebvre, 3/11/25
“The head of the country’s largest oil and gas industry trade association said Tuesday he is pessimistic Congress will pass permitting reform legislation this year,” Politico reports. “Mike Sommers, chief executive of the American Petroleum Institute, said Congress is too partisan and lawmakers will have too much ‘bad blood’ from the current fight over budgets and resolutions to pass any legislation that would streamline the way the federal government processes permits for energy infrastructure… “Instead, it will be up to executive branch agencies to rewrite rules, Sommers said. “The best permitting reform we’re going to get is from the regulatory agencies, at least in the short term,” Sommers said from the stage of the CERAWeek energy conference in Houston.”
Politico: House Republican support grows for keeping clean energy tax breaks
Josh Siegel and James Bikales, 3/10/25
“A growing number of House Republicans are urging the party to preserve the clean energy tax credits in Democrats’ climate law — and warning they may oppose the party’s budget bill if those incentives get axed,” Politico reports. “…Thus far, the IRA credits receiving the most public support from Republicans are those supporting biofuels — which a group of House Republicans successfully defended in 2023 — and the subsidy for carbon capture, which is backed by the fossil fuel industry. A bipartisan group of lawmakers including Ways and Means member Carol Miller (R-W.Va.) introduced a bill last week to expand that credit, known as 45Q, to cover methane captured from mines… “Tax incentives like the tech-neutral clean energy credits under 45Y, 45E, and the 45Q carbon sequestration credit and the 45X advanced manufacturing credit aim to strengthen manufacturing capability and reduce the engineering, procurement and construction risk that have plagued major energy projects,” Rep. Mariannette Miller-Meeks (R-Iowa), who chairs the Conservative Climate Caucus and signed the letter, said in a hearing last week.”
Associated Press: Trump DOT chief rejects inclusion of environmental justice factors in infrastructure decisions
Alexa St. John, 3/10/25
“Transportation Secretary Sean Duffy on Monday rescinded Biden-era memos that he said called on state agencies to factor a “social justice and environmental agenda” into infrastructure project decisions,” the Associated Press reports. “Former President Joe Biden’s administration issued two memos — in 2021 and 2023 — about using bipartisan infrastructure law funding and including “disadvantaged and under-represented groups in the planning, project selection, and design process” for updates to the nation’s roads, highways, bridges, transportation hubs and other key infrastructure. The memos said to make these updates while also keeping in mind environmental impacts and a changing climate. Duffy’s office said in a statement that the memos “added meritless and costly burdens related to greenhouse gas emissions and equity initiatives.” “The previous administration flouted Congress in an attempt to push a radical social and environmental agenda on the American people,” Duffy added. “This was an act of federal overreach. It stops now.” “…It feels like we’re moving backward in our efforts to ensure that all communities benefit equitably from infrastructure investments,” Roishetta Ozane, who founded the mutual aid and environmental justice organization the Vessel Project of Louisiana, told AP of Duffy’s edict.”
Guardian: Trump’s ‘drill, baby, drill’ agenda could keep the world hooked on oil and gas
Oliver Milman and Dharna Noor, 3/12/25
“Donald Trump’s repeated mantra of ‘drill, baby, drill’ demands that more oil and gas be extracted in the United States, but the president has set his sights on an even broader goal: keeping the world hooked on planet-heating fossil fuels for as long as possible,” the Guardian reports. “In deals being formulated with countries such as Japan and Ukraine, Trump is using US leverage in tariffs and military aid to bolster the flow of oil and gas around the world. In Africa, his administration has even touted the resurrection of coal, the dirtiest of all fossil fuels, to bring energy to the continent. “We’ve had years of western countries shamelessly saying: “Don’t develop coal, coal is bad,” said Chris Wright, the US energy secretary, last week. Such an attitude has been “paternalistic” and counterproductive for Africa, he added. “That’s just nonsense, 100% nonsense,” Wright said. “Coal transformed our world and made it better.”
Associated Press: The US agency that monitors weather will cut another 1,000 jobs, AP sources say
Seth Borenstein, 3/12/25
“The Trump administration is starting another round of job cuts — this one more than 1,000 — at the nation’s weather, ocean and fisheries agency, four people familiar with the matter tell The Associated Press. The National Oceanic and Atmospheric Administration on Tuesday began plans to lay off 10% of its current workforce, people inside and outside the agency told AP, with some of them requesting anonymity due to fear of retribution. The numbers were presented to NOAA employees and managers were asked to submit names of positions for layoffs to agency headquarters, which will then go to NOAA’s parent agency, the Department of Commerce, on Wednesday, the people told AP.”
STATE UPDATES
Politico: Alaska state development agency pitches strong-arming Japan to finance LNG project
Ben Lefebvre, Zack Colman, 3/11/25
“The Alaska state development agency is seeking to press Japan into investing in a massive natural gas export project by tying it to the Asian nation’s decades-old security agreement with the United States,” Politico reports. “The Alaska Industrial Development and Export Authority has promised backing for the Alaska LNG project that has for years struggled to attract the tens of billions of dollars in financing needed to build the 800-mile pipeline and gas liquefaction plant for the Alaska LNG project that would allow North Slope gas to be exported to Japan and other Asian customers. But the high cost and difficulty building the project has kept it from proceeding since it was first proposed more than a decade ago. But in its latest presentation to Alaska’s Senate Finance Committee dated Feb. 17, the authority said President Donald Trump’s aggressive trade tactics had changed the economic picture… “We are now in a completely ‘transactional’ trade world. ‘If X, then Y,’” the presentation said. “For Japan, the ‘X’ is a defense security agreement with the United States that does not change, protection from China, and avoiding U.S. trade tariffs. If Japan wants ‘X’ then it must give ‘Y.’ What is ‘Y’? Y is new Japanese investment in the United States which Prime Minister [Shigeru] Ishiba said would be $1 trillion dollars. Also, increased LNG purchases from the U.S., and a joint venture linked to Alaskan oil and gas.”
Inside Climate News: A New Bill Would Allow Duke Energy to Retreat From North Carolina’s Ambitious Climate Goals
Lisa Sorg, 3/11/25
“State Sen. Paul Newton introduced Senate Bill 261 on Tuesday with the gusto of a car salesman: “I’m here to offer you an opportunity to save North Carolina billions of dollars,” the Cabarrus County Republican said as he convened a meeting of the Senate Agriculture, Energy and Environment Committee,” Inside Climate News reports. “The savings, Newton said, would come from the elimination of Duke Energy’s interim carbon reduction goal: 70 percent by 2030 based on 2005 levels. The benchmark is enshrined in state law, and the utility has already said it can’t meet the requirement… “If the bill becomes law, Duke Energy could emit greater amounts of greenhouse gases by building more natural gas plants and relying on coal for longer… “Newton, a former Duke Energy executive, called the interim goal for reducing emissions by 2030 “shortsighted” and “arbitrary,” and was “as sacrosanct as the ultimate goal” of carbon neutrality by 2050… “Despite those climate trends, Newton said his bill, by extending Duke’s deadlines for emissions reductions, would ultimately save North Carolina ratepayers $4 billion—and that axing the interim goal would save $13 billion. He did not explain how those savings figures were calculated.”
News & Observer: NC Senate fast-tracks plan to eliminate 2030 target for power companies to cut emissions
Luciana Perez, Uribe Guinassi, 3/12/25
“…His latest bill would eliminate a 2030 target date for reducing greenhouse gas emissions from power companies,” the News & Observer reports. “The Energy Security and Affordability Act was filed Monday and moved quickly ahead, receiving a hearing Tuesday morning in the Agriculture, Energy, and Environment Committee… “North Carolinians shouldn’t be saddled with the increased costs created by arbitrary benchmarks,” Berger said in a news release. “Instead, we should be focused on ensuring our energy sources will meet carbon reduction requirements while remaining reliable and affordable. That’s exactly what this bill does.” “… Sponsors of the bill say it gives electric utilities — such as Duke Energy — more flexibility in meeting goals for reducing emissions of carbon dioxide, while saving North Carolinians money in the long run… “Critics — including Democrats who spoke against the bill on Tuesday and environmental groups — argue it could delay emissions reductions and increase costs by allowing utilities to charge for unfinished or canceled projects, short-cutting procedures of the N.C. Utilities Commission (which regulates the state’s utilities) to scrutinize utility companies.”
EXTRACTION
Reuters: Canada could restrict its oil exports to US if Trump trade war escalates
Jarrett Renshaw and Arathy Somasekhar, 3/11/25
“Canada could impose non-tariff measures such as restricting its oil exports to the United States or levying export duties on products if a trade dispute with the U.S. escalates further, Canada’s energy minister Jonathan Wilkinson said on Tuesday,” Reuters reports. “When we are talking about non-tariff retaliation, it could be about restricting supply, it could be putting our own export duties on products. It could be energy and minerals, it could be broader than that,” Wilkinson said in an interview with Reuters. He also raised the possibility of using non-tariff measures on critical minerals, which could force the U.S. to rely even more heavily on China… “Any restrictions on Canada’s oil exports to the United States would hurt Canadian producers as Canada is limited in its options to send oil to other markets… “Wilkinson told Reuters Canada is considering imposing tariffs on U.S. ethanol as part of a second tranche of trade penalties if Trump continues to escalate the trade war… “U.S. ethanol exports to Canada hit record highs in recent months to help Canada meet its clean fuel program. It is cheaper than Canadian ethanol, Wilkinson told Reuters, due to subsidies in the U.S. Renewable Fuel Standard.”
Canadian Press: Alberta government says premier in talks with potential overseas heavy oil buyer
Lauren Krugel, 3/11/25
“The Alberta government says Premier Danielle Smith has been in talks with a multinational oil and petrochemical player about selling two million barrels per month of province-owned heavy oil,” the Canadian Press reports. “It said in a news release that there was a meeting on Monday, but it did not identify the company or say what part of the world it is based in… “The move comes as Canada’s trade relationship with the United States — the biggest buyer of Canadian oil exports — deteriorates amid a confusing flurry of tariff announcements in recent weeks from President Donald Trump.”
CBC: Oil and gas production can meet ‘historical highs’ under emissions cap: PBO
David Thurton, 3/12/25
“Even with a national oil and gas emissions cap, Canada’s fossil fuel sector could boost production by 11 per cent by 2032, according to an independent analysis,” the CBC reports. “The Parliamentary Budget Office (PBO) released a new analysis on Wednesday showing the federal government’s oil and gas emissions cap would not affect the sector’s current production levels — but it does raise questions about whether it would limit future growth… “The cap would allow the oilsands to add about 500,000 barrels a day, which would increase production by 15 per cent above 2022 levels. Natural gas producers can also add trillions of cubic feet, representing a 12 per cent increase, according to the PBO… “In a statement, a spokesperson for Environment and Climate Change Minister Steven Guilbeault disputed that federal cap could result in a future production cut… Alberta’s premier called the report’s findings “scathing.” “The evidence is clear: the federal government’s proposed emissions cap is unconstitutional, bad for the economy and bad for Canadians. We urge the next elected prime minister to abandon this extreme and ideological cap,” Premier Danielle Smith told CBC.”
E&E News: Worries lurk behind forecasts for natural gas boom
Shelby Webb, Jason Plautz, 3/13/25
“Energy executives are proclaiming a new reality this week as they meet in this longtime energy capital: Natural gas is back,” E&E News reports. “Fossil fuel companies — and some electric companies — said at the annual CERAWeek by S&P Global conference that gas is critical for feeding a predicted spike in U.S. and global demand for electricity and energy. And, natural gas companies said, the fuel is the best way to power a changing world — echoing Energy Secretary Chris Wright’s praise for resources that come out of the ground. But industry leaders also pointed to concerns that may not be solved anytime soon, from rising material costs because of U.S. tariffs to delays from permitting and court challenges. There’s also the matter of higher natural gas prices — a trend that could boost industry profits and draw the attention of consumers as it reaches their energy bills. “There’s a recognition within the industry that the energy transition is not going to be using natural gas just as a bridge fuel,” Michael Smith, founder and CEO of Freeport LNG, told E&E. “It’s the baseload fuel that is necessary for us to create the electrons necessary for [artificial intelligence] and for 7 billion people who don’t have, as Wright said, our lifestyle and want a piece of our pie.”
Reuters: Conoco CEO says US oil production will plateau this decade
3/11/25
“ConocoPhillips CEO Ryan Lance said on Tuesday at the CERAWeek energy conference in Houston that U.S. oil production will plateau later this decade and will stay on the plateau for some time,” Reuters reports.
Reuters: ConocoPhillips says US, Europe should coordinate on methane
3/11/25
“ConocoPhillips CEO Ryan Lance said on Tuesday that the United States and Europe should coordinate their regulations on methane, a powerful greenhouse gas,” Reuters reports. ”’We can’t have the European Union and the U.S. trying to do something different, because they’re interpreting the rules completely different,” he said at the CERAWeek energy conference in Houston. “Europe’s trying to drive a different end game than what the U.S. is trying to drive. So that creates a lot of problems.” “…Coordinating the regulations is important in part because the U.S. has become a large supplier of liquefied natural gas to Europe.”
CNBC: Microsoft is open to using natural gas to power AI data centers to keep up with demand
Spencer Kimball, 3/11/25
“Microsoft is open to deploying natural gas with carbon capture technology to power artificial intelligence data centers, the technology company’s vice president of energy told CNBC. “That absolutely would not be off the table,” Bobby Hollis told CNBC. But the executive told CNBC Microsoft would consider natural gas with carbon capture only if the project is “commercially viable and cost competitive.” “…We’ve always been cognizant that fossil will not disappear as fast as we all would hope,” Hollis told CNBC. “That being said, we knew natural gas is very much the near-term solve that we’re seeing, especially for AI deployments.” Exxon Mobil and Chevron announced last December that they are entering the data center space with plans to develop natural gas plants with carbon capture technology.”
E&E News: Ethanol backer says ‘great partnership’ with oil boosts E15
Marc Heller, 3/12/25
“A previously unlikely alliance of the oil and biofuel industries may finally make higher-ethanol fuel available year-round, a leading advocate in Congress said Tuesday,” E&E News reports. “Rep. Adrian Smith (R-Neb.) told reporters he’s grown more confident that legislation to lift season restrictions on E15 — which is 15 percent ethanol, 85 percent gasoline — can pass Congress, once backers find a measure it can ride on. Smith said the liquid fuels industries have a “great partnership” that’s formed in recent years, a reference to their shared worries about the rise of electric vehicles. Petroleum groups have dropped much of their most vocal opposition to E15, which can’t legally be sold in summer across most of the country. “We want to be ready,” said Smith, who nearly scored the E15 provision’s inclusion in a stopgap spending bill late last year, only to see it removed in final negotiations. “Certainly we were at the end of last year.”
Associated Press: This ‘Dune’ isn’t fiction. It’s the longest conveyer belt in the US and moving sand in Texas
Julio Cortez, Nadia Lathan, 3/11/25
“It’s longer than the width of Rhode Island, snakes across the oil fields of the southwest U.S. and crawls at 10 mph – too slow for a truck and too long for a train. It’s a new sight: the longest conveyer belt in America,” the Associated Press reports. “Atlas Energy Solutions, a Texas-based oil field company, has installed a 42-mile long (67 kilometers) conveyer belt to transport millions of tons of sand for hydraulic fracturing. The belt the company named “The Dune Express” runs from tiny Kermit, Texas, and across state borders into Lea County, New Mexico… “CEO John Turner told AP massive trucks moving sand and other industrial goods are a common site in the oil-rich Permian Basin and pose a danger to other drivers… “The belt cuts through a large oil patch where environmentalists have long raised concerns about the industry disturbing local habitats, including those of the sagebrush lizard, which was listed as an endangered species last year by the U.S. Fish and Wildlife Service. “In addition to that, we know that the sand will expedite further drilling nearby,” Luke Metzger, executive director of Environment Texas, told AP.”
Climate Cosmos: Arctic Permafrost Thaw Accelerates: New Models Predict 40% Faster Methane Release Than Expected
John Dyson, M.Sc. Atmospheric Sciences, 3/12/25
“Permafrost is a unique and vital component of the Earth’s ecosystem, predominantly found in the frigid polar regions, particularly the Arctic,” according to Climate Cosmos. “This layer of soil remains frozen year-round and acts as a massive reservoir of organic carbon. When permafrost thaws, the trapped carbon is released as greenhouse gases, primarily methane and carbon dioxide, which are significant contributors to global warming. The stability of permafrost is crucial because it helps maintain the Earth’s temperature balance. However, as global temperatures rise due to human activities, the integrity of permafrost is increasingly threatened. This disruption in the natural balance could have far-reaching environmental consequences, affecting not just the Arctic but the entire planet.”
OPINION
U.S. News: Trump’s Energy Policy Is ‘Drill, Baby, Drill.’ The Planet Can’t Survive This
Hank Johnson, a U.S. congressman from Georgia, is a senior member of the House Judiciary and Transportation & Infrastructure committees and a longtime advocate for the environment and clean energy; Michael Shank is an adjunct professor at New York University’s Center for Global Affairs and a visiting professor at George Mason University’s Carter School for Peace and Conflict Resolution, 3/11/25
“On Monday, Trump’s new energy secretary, Chris Wright, a former fracking executive, told a packed conference of oil and gas executives in Houston that global warming is simply a ‘side effect of building the modern world’ and promised a ‘180-degree pivot’ from previous administrations’ efforts to invest in clean, renewable energy,” Rep. Hank Johnson (D-GA-04) and Michael Shank write for U.S. News. “As a member of Congress from a region hard hit by destructive weather fueled by climate change and an expert on low-carbon energy alternatives, we want American voters to understand how the Trump administration is endangering our safety, health and property by turning its back on established science. More than a decade ago, the Pentagon outlined the many threats that climate change poses to our national security, from bringing climate migrants to our borders to fueling conflicts over natural resources and weather-related disaster and disease… “We know what’s causing climate change, and we know how to stop it, but fossil fuel companies are funding climate deniers and spreading misinformation at the expense of ordinary Americans.. “It’s time for every corporate polluter to be held accountable in court. If federal officials are derelict in their duty to protect us, then governors, legislators, pressure groups and citizens must take up the slack. The planet won’t survive four more years of climate-denying policies.”
Colorado Politics: Colorado energy transparency only significant if violations spur action
Paula Noonan owns Colorado Capitol Watch, the state’s premier legislature tracking platform, 3/13/25
“That is, in blue-state Colorado, as Trump attacks federal agencies protecting our safety and welfare with insufficient pushback from the minority party, our state agencies led by a Democratic governor will have to show their mettle,” Paula Noonan writes for Colorado Politics. “This situation pressures state environmental protection departments, as our quality of life depends on our natural attractions. Front Range air quality is not an attraction that’s advertised in our Visit Colorado marketing campaigns… “Many environmental groups have argued the ECMC has been dilatory at best in implementing adequate pollution controls over oil and gas extraction. One of ECMC’s most important missions is regulating wells that leak methane into the atmosphere, which contributes both to ozone pollution and global warming. Environmentalists state programs to manage leaks are insufficient. Orphan wells frequently leak, but ECMC’s program to seal these wells is woefully underfunded, risking the state’s budget when it’s already broke… “Questions for the legislature and Gov. Jared Polis remain, given our current circumstances: will the APCD under the Colorado Public Health and Environment department and ECMC under Natural Resources step up their compliance actions to put enough pressure on Suncor, as the state’s only refinery, and the many oil and gas producers to clean up their emissions to help the state clean up its air? Fines for violations could offset our budget deficit.”