EXTRACTED: Daily News Clips 3/28/24

PIPELINE NEWS

• Cardinal News: Southwest Virginia landowners again appeal Mountain Valley Pipeline case to U.S. Supreme Court

• Bloomberg: Landowners Seek Mountain Valley Pipeline Suit High Court Review

• E&E News: Pipeline protestor disrupts Haaland at Michigan forum

• New York Times: A Great Lakes Pipeline Tangles Politics in Two Battleground States

• South Dakota Public Broadcasting: Garretson editor offers his views on the pipeline compromise

• Bloomberg: Canadian Oil Flows to LA as Trans Mountain Start Nears

• Canadian Press: Emissions cap could hurt Trans Mountain pipeline’s sale price: Calgary Chamber

• Common Dreams: ‘Troublemakers’ Block Amazon HQ Over Plan to Link Data Centers With Gas Pipeline

• Pipestone Star: Concerns expressed about pipeline reroute project

• J.D. Supra: FERC Issues Notice of Inquiry to Update Rules on Allocating Interstate Pipeline Capacity

WASHINGTON UPDATES

• Politico: The ‘all of the above’ energy success that’s causing Biden headaches

• E&E News: EPA takes first step toward a rule for existing gas plants

• InsideEPA: Court Says Interior Must Explain How GHGs Factor Into Oil & Gas Leasing 

• E&E News: Biden’s climate playbook: Propose strong rules, then soften them

• E&E News: Congress’ bid to overhaul permitting faces deadline as key lawmakers eye exits

• E&E News: Interior methane rule: Climate solution or lawsuit magnet?

• Politico: WV Senators Blast Methane Fee

• E&E News: Interior cracks down on methane releases from federal drilling

• U.S. Bureau of Land Management: Interior Department Finalizes Rule to Reduce Oil and Gas Waste on Public and Tribal Lands

STATE UPDATES

• Inside Climate News: New York State Legislature Votes to Ban CO2 Fracking, Closing a Decade-Old Loophole in State Law

• Colorado Public Radio: Why Colorado’s oil and gas industry filed a ballot proposal to ban oil and gas drilling

• Colorado Sun: Colorado lawmakers may seek funds from former oil and gas owners as number of abandoned wells grows to over 1,000

• Energy News Network: Louisiana energy company plans to float above climate damage — literally

EXTRACTION

• Inside Climate News: Oil and Gas Executives Blast ‘LNG Pause,’ Call Natural Gas a ‘Destination Fuel’

• Common Dreams: Revolving Door Spins as Ex-Fossil Fuel Regulator Joins Carbon Capture Firm

• AgWeb: Tax Credits and Carbon Capture: How Ethanol Plants Offset Costs

• Agence France-Presse: Climate: Carbon capture tech is booming, and confusing

• Chevron: Laying the foundation to realize carbon capture’s potential

CLIMATE FINANCE

• Reuters: Big Oil’s climate planning not good enough, investor group says

OPINION

• Northern Iowan: The battle for Iowa’s land

• Ouachita Citizen: No taxes as roadblocks to carbon capture tech
  

PIPELINE NEWS

Cardinal News: Southwest Virginia landowners again appeal Mountain Valley Pipeline case to U.S. Supreme Court
Matt Busse, 3/27/24

“Six Southwest Virginia landowners are once again asking the U.S. Supreme Court to hear their case related to the Mountain Valley Pipeline,” Cardinal News reports. “Since 2020, the six have argued that Congress violated the constitutional separation of powers when it delegated the legislative power of eminent domain to the executive branch by way of the Federal Energy Regulatory Commission, which regulates interstate pipeline construction. In 2017, FERC authorized developers to take property from the six landowners for the 303-mile natural gas project… “Mia Yugo, an attorney with Roanoke-based Yugo Collins representing the landowners, told Cardinal News that the Supreme Court “has been very clear” that challenges to a federal agency’s power — such as the landowners’ challenge to FERC’s power to grant eminent domain authority to the pipeline developers — must be filed in district court. “The D.C. Circuit’s decision to reinstate a vacated opinion is perplexing and defies controlling Supreme Court precedent,” Yugo said Tuesday when the latest appeal was filed… “Even if the justices do agree to hear the landowners’ latest plea, the Mountain Valley Pipeline could be finished first… “Still, Yugo told Cardinal News, “Landowners should get their day in court, even if it’s four years overdue.”

Bloomberg: Landowners Seek Mountain Valley Pipeline Suit High Court Review
Shayna Greene, 3/27/24

“Virginia landowners are asking the US Supreme Court to hear their case challenging the Mountain Valley Pipeline LLC’s use of their land,” Bloomberg reports. “The case “presents a challenge to the constitutional authority of an unelected agency wielding illegitimate power to take private land from American citizens,” the petition said. The US Court of Appeals for the D.C. Circuit in February affirmed a federal district court’s decision to dismiss the lawsuit for lack of jurisdiction. The high court in December declined to temporarily stop work on the portion of the pipeline going through the properties.

E&E News: Pipeline protestor disrupts Haaland at Michigan forum
Jennifer Yachnin, 3/27/24

“Political furor over a contested oil pipeline grabbed the spotlight Tuesday as Interior Secretary Deb Haaland spoke at a University of Michigan event on the “climate crisis and environmental justice,” E&E News reports. “Haaland came to Ann Arbor, Michigan, with a speech touting the Interior Department’s work on offshore wind development, land and water conservation, drought response in the Colorado River Basin, and outreach to tribal nations. But immediately after taking the podium, and throughout much of her remarks, she contended with a lone protester — off camera during a livestream of the event — who raised questions about the future of the Line 5 pipeline owned by Canada-based Enbridge. The protester, who apologized to Haaland even as she preempted her speech, urged the secretary to push President Joe Biden to revoke an Eisenhower-era presidential permit issued for the international pipeline.”

New York Times: A Great Lakes Pipeline Tangles Politics in Two Battleground States
Rebecca Halleck and Dionne Searcey, 3/27/24

“An icy crust on the Straits of Mackinac is melting into slush atop a shimmering, narrow waterway prized for its beauty and its role in supporting the local economy. Snaking along the bottom of the heavily trafficked Straits, which connect Lake Huron to Lake Michigan, is a four-mile section of an oil and gas pipeline known as Line 5 at the center of a debate about whether it belongs there at all,” the New York Times reports. “The fight over Line 5 in both Michigan and Wisconsin, where another section of the pipeline crosses the Bad River Reservation, could have sweeping implications for the power of states to regulate fossil fuels, for tribal sovereignty and for U.S.-Canada relations. Some or all of these issues are bound to surface in the upcoming presidential election. Both Wisconsin and Michigan are battleground states. And in either place the debate over Line 5 could complicate election-year politics, particularly as candidates compete to eke out any advantage with voters they can find, whether on environmental issues, fossil fuel reliance or jobs. The politics of Line 5 can get tangled. In Michigan, for example, unions and environmental groups, both reliably left-leaning constituents, are split on the pipeline. Organized labor supports it for the jobs and economic benefits it brings. But environmentalists in Michigan as well as Wisconsin next door want to shut down Line 5 because of the potential for spills… “While the big campaign issues in Michigan include the auto industry’s shift to electric vehicles, as opposed to Line 5, the pipeline controversy could be increasingly difficult for candidates to avoid… “In addition to union support for the pipeline, many in the business community back its continued operation. “A lot of people cloak their opposition in how they want to protect the Great Lakes and really want to get rid of fossil fuels,” Jim Holcomb, president of the Michigan Chamber of Commerce, told the Times. “If it went away, it would be detrimental to Michigan’s economy.” Groups like the Sierra Club cite the potential for damage from possible oil spills from Line 5, particularly the risks to the Great Lakes.”

South Dakota Public Broadcasting: Garretson editor offers his views on the pipeline compromise
Lori Walsh, Ellen Koester, Ari Jungemann, 3/27/24

“Garrick Moritz is publisher of the Garretson Gazette and steps in as our Dakota Political Junkie today,” South Dakota Public Broadcasting reports. “We look at the 2024 legislative session and the ongoing debate over carbon capture pipelines. He dives into the concerns he’s hearing in his community over the Legislature’s compromise bill, Senate Bill 201.”

Bloomberg: Canadian Oil Flows to LA as Trans Mountain Start Nears
Robert Tuttle, 3/27/24

“Canadian crude shipments to Los Angeles are surging, a possible preview of how an expanded pipeline that’s nearing startup may redraw flows along the Pacific Coast,” Bloomberg reports. “Three tankers carrying a total of 1.74 million barrels have sailed from Vancouver to the biggest US West Coast city in March, the most in at least four years, according Vortexa tanker data… “Marathon’s ramp-up of Canadian crude imports could be a sign of things to come once the Trans Mountain pipeline’s expansion — which will nearly triple the capacity of the line running from Alberta to the Pacific Coast to 890,000 barrels a day — starts operating in the second quarter… “While the first two cargoes off the expanded system — also known as TMX — are expected to go to China, some analysts argue that US West Coast refineries may become the preferred market due to the proximity and the relatively small Aframax tankers that are able to access Vancouver.”

Canadian Press: Emissions cap could hurt Trans Mountain pipeline’s sale price: Calgary Chamber
Amanda Stephenson, 3/27/24

“The Calgary Chamber of Commerce is warning Ottawa that its proposed cap on emissions from the oil and gas sector could compromise the valuation and sale of the Trans Mountain pipeline,” the Canadian Press reports. “The business group made the argument Wednesday in an open letter urging the federal government to reconsider proceeding with the promised cap, which the government has said it intends to finalize in mid-2024. “If there is a risk that (Trans Mountain) might not be able to rely on a steady and predictable flow of oil from the oil sands production, it will result in a lower valuation by investors and a lower price received when the asset is sold,” states the letter, which was signed by Calgary Chamber of Commerce president Deborah Yedlin as well as a number of other Alberta-based business groups and oil-and-gas sector leaders… “The government has said that under its proposed plan, the oil and gas industry will have to cut emissions by more than one-third by 2030 or buy offset credits… “Rather than support investment, the emissions cap would create uncertainty, unfavourable economic conditions and a punitive regulatory environment, all of which would strand investment and innovation in decarbonization projects,” the Calgary Chamber said Wednesday… “The sale of the Trans Mountain pipeline will be one of the largest commercial transactions in Canadian history. The government is already in talks with Indigenous groups along the pipeline’s route who may be interested in purchasing a stake in the asset, and is expected to later consider commercial offers for the remaining stake.”

Common Dreams: ‘Troublemakers’ Block Amazon HQ Over Plan to Link Data Centers With Gas Pipeline
BRETT WILKINS, 3/27/24

“A recently formed group of climate activists on Wednesday shut down entrances to Amazon’s downtown Seattle headquarters to protest the tech titan’s plans to link some of its data centers with an upgraded fracked gas pipeline,” Common Dreams reports. “Members of the Troublemakers—who describe themselves as “an ever-growing community of people who are committed to taking action for life on Earth”—blockaded the doors to the Day 1 Building on 7th Ave. in opposition to Amazon Web Services’ (AWS) plan to connect three data centers near Boardman, Oregon to TC Energy’s Gas Transmission Northwest (GTN) XPress Project… “The decision to use fracked gas from the GTN XPress adds to Amazon’s carbon emissions problems,” the Troublemakers said in a statement. “Amazon’s 2022 carbon emissions totaled 71.27 million metric tons, marking an 18% rise from 2020 and a 40% surge since 2019, the year Amazon unveiled its Climate Pledge. This alarming trend is in stark contrast to the global imperative to halve emissions by 2030.” “…We see Amazon’s greenwashing every time we pass by Climate Pledge Arena,” Troublemaker Valerie Costa, who was referring to the home of the Seattle Kraken and Seattle Storm professional sports franchises, told Common Dreams. “Until Amazon drops its plan to buy fracked gas from GTN XPress, we’ll keep showing up. Every fossil fuel project in the [Pacific Northwest] will be met with fierce resistance.”

Pipestone Star: Concerns expressed about pipeline reroute project
Kyle Kuphal, 3/27/24

“A desire to keep a pipeline away from the pipestone and the area near the cemeteries northwest of Pipestone were two recurring themes during public information meetings held Tuesday, March 19 to take comments on a comparative environmental analysis (CEA) for the proposed Magellan pipeline reroute project,” the Pipestone Star reports. “Around 50 people attended the afternoon meeting, which lasted about two hours, and about 25 people attended the evening meeting, which lasted about an hour… “Among them was Chief Arvol Looking Horse, 19th generation keeper of the Sacred White Buffalo Calf Pipe, and spiritual leader of the Lakota, Dakota, and Nakota Oyate. He spoke of the history and significance of the pipestone and the need to protect it and the place from which it comes. “This is our sacred place — Pipestone, Minnesota,” Looking Horse said. American Indian Movement (AIM) Director Lisa Bellanger said the quarries are the womb of the pipe. She said AIM supported a minimum 5-mile buffer between the proposed petroleum product pipeline and pipestone quarries, something Looking Horse said he respected… “Pipestone Mayor Dan Delaney said during the public information meeting that the city of Pipestone “is strongly against” the two routes proposed by Magellan because they would go between and near the cemeteries northwest of Pipestone, two of which belong to the city and one that belongs to St. Leo Catholic Church. He said a pipeline in those areas could interfere with the future expansion of the cemeteries and that the cemeteries are sacred ground for anyone who has a loved one buried there.” “…Others who commented during the meetings raised concerns about whether all the tribes that should have been consulted about Magellan’s plans were, said they thought an environmental impact statement should be done and expressed concerns about artifacts in the area where the pipeline is proposed.”

J.D. Supra: FERC Issues Notice of Inquiry to Update Rules on Allocating Interstate Pipeline Capacity
Holland & Knight LLP, 3/27/24

“The Federal Energy Regulatory Commission (FERC) has issued a Notice of Inquiry (NOI) seeking additional information on the practices of interstate natural gas pipelines related to the packaging of noncontiguous and/or operationally unrelated segments of capacity in a single auction or open season,” according to J.D. Supra. “The NOI also requests comments regarding the aggregation of bids across those segments to determine the highest bids for the purpose of allocating capacity… “Specifically, FERC seeks comment on: additional information and data on interstate natural gas pipeline posting practices related to the packaging of noncontiguous and/or operationally unrelated segments of capacity in a single auction or open season, including the frequency of the inclusion of aggregated noncontiguous segments in capacity postings and the impacts of bid aggregations on pipeline rates relevant information that bears on whether the Commission should reconsider its policy… “In their Petition, several associations representing gas shippers and consumers alleged that the interstate natural gas pipeline practice of packaging high market value capacity with noncontiguous and/or operationally unrelated parcels of capacity with little or no market value had become increasingly commonplace in the market, producing unjust and unreasonable rates, distorted market pricing and reduced incentives for pipelines to build needed capacity and constituting illegal tying.”

WASHINGTON UPDATES

Politico: The ‘all of the above’ energy success that’s causing Biden headaches
BEN LEFEBVRE, 3/27/24

“President Joe Biden is presiding over a historic boom in U.S. energy production, with oil, natural gas and renewable power all setting records that would have seemed unfathomable two decades ago. And almost no one is happy about it,” Politico reports. “Republicans are angry about the hundreds of billions of dollars Biden is pouring into incentives for green energy, and his decision to place a temporary cap on the explosive growth of U.S. natural gas exports. Climate-minded Democrats and environmental advocates, meanwhile, say Biden’s approvals of pipelines and other fossil fuel projects violate his pledges to take on climate change — with some warning he’s demoralizing the young voters he needs to win reelection. All the same, the once-unimaginable milestones keep coming: The U.S. set an all-time record for crude oil production in 2023, outstripping what any country — even Saudi Arabia — has ever produced in one year. Its natural gas exports also lead the world, providing a growing fuel lifeline to Europe and Asia. Wind and solar have emerged as the nation’s fastest-growing source of power, and now contribute nearly 15 percent of the country’s electricity, up from nearly zero 20 years ago. This abundance, the result of technological advances in drilling, energy tax policy tweaks across multiple administrations, state-level renewable energy production targets and the falling prices of wind and solar energy, means Biden has gotten the closest to an “all of the above” energy economy since presidential candidates from both parties started using the phrase in the 2000s. But the result has hardly been an era of untroubled bliss for the president. Instead, he faces continued unhappiness among many voters about gasoline prices, which spiked to record highs two years ago. And his administration must make tough decisions about whether, and how, to rein in fossil fuels that drive climate change… “While climate advocates cheer these gains, they say any move by the administration that benefits fossil fuels violates Biden’s pledge to put the fight against climate change at the center of his energy policy. Oregon Sen. Jeff Merkley, one of the Senate’s strongest climate advocates, told Politico Biden’s embrace of “all of the above” energy policies is hurting him with young voters worried about climate change. “Our young folks are like: ‘You’re all going to be dead. You old folks are going to be dead, but we’re going to have to live with these stronger storms, bigger forest fires, more smoke, more rising sea levels,’” he told the POLITICO Energy podcast earlier this month.

E&E News: EPA takes first step toward a rule for existing gas plants
Jean Chemnick, 3/27/24

“EPA began taking public comment Tuesday on how it should regulate carbon dioxide from operating gas-fired power plants,” E&E News reports. “The agency’s “non-regulatory docket” offers a chance for state air regulators, private sector stakeholders and the public to weigh in before it writes a new climate rule for the existing gas fleet. Comments will be accepted through May 28. EPA is asking for comments on the kinds of carbon control technology that should be the new rule’s “best system of emissions reduction.” Other questions included whether the agency should allow trading between emission sources under the new rule and, if so, whether it should include safeguards to ensure trading doesn’t subject neighboring communities to added air pollution. States and utilities have favored trading and averaging provisions as a way to reduce regulatory costs. But communities near the plants have argued that those programs allow cleaner facilities in one region to make up for dirtier ones that are frequently near minority and poor populations.”

InsideEPA: Court Says Interior Must Explain How GHGs Factor Into Oil & Gas Leasing 
3/26/24

“A federal district court is agreeing with environmentalists that the Interior Department (DOI) must explain how greenhouse gas impacts factor into its decisions about oil and gas leasing, even as the court is signaling that officials should receive a high degree of deference in their reasoning,” InsideEPA reports. “Interior’s Bureau of Land Management (BLM) ‘did not adequately explain how it considered the environmental effects of GHG emissions that, in its own telling, carry a hefty price tag in terms of social costs,’ says a March 22 opinion in Wilderness Society, et al. v. DOI, et al. from Judge Christopher Cooper of the U.S. District Court for the District of Columbia. The case, along with a companion lawsuit that Cooper also considered known as Dakota Resource Council, et al. v. DOI, concerns the bureau’s National Environmental Policy Act (NEPA) analyses for six oil and gas drilling lease sales across the West. In Dakota, Cooper on March 22 approved BLM’s choice not to conduct a more rigorous NEPA review after saying it could not determine if the GHGs from the leasing are ‘significant.’ Such a finding would have required a more-stringent environmental impact statement (EIS) under NEPA.”

E&E News: Biden’s climate playbook: Propose strong rules, then soften them
Jean Chemnick, Benjamin Storrow, 3/28/24

“As the Biden administration’s climate rules near the finish line, a pattern is emerging: The final regulations are weaker than the initial proposals,” E&E News reports. “Last month, EPA removed existing natural gas plants from upcoming limits on power plant pollution. Soon after, the Securities and Exchange Commission softened a rule on climate-related financial disclosures. And automakers will have more time than anticipated to adopt electric vehicles under EPA’s final rule last week to strictly limit carbon emissions from cars and SUVs. Some see that trajectory — stronger proposals last year, weaker final rules this year — as a byproduct of President Joe Biden’s battle for reelection this November. But it also comes amid a four-year skirmish between White House policy staff bent on taking aggressive action and agency lawyers — many of them Obama administration veterans — determined to make climate policy that can secure industry buy-in and withstand the inevitable court challenges. “The Supreme Court is hovering over EPA like a hungry cat at a mouse hole,” Jeremy Symons, an EPA climate policy adviser in the Obama administration who is now a consultant, told E&E. “EPA knows that the most effective regulations are the ones that will hold up to scrutiny from a hyperactive Supreme Court majority that is actively searching for the weak link in every rule.” EPA is trying to outfit its “regulatory mice in Kevlar” to withstand judicial scrutiny, even if it means slower progress toward Biden’s climate targets, he told E&E. The debate reflects the delicate balancing act facing Biden. Push too hard and the president runs the risk of seeing his rules struck down in court and alienating moderate Democrats this fall. But scale back too much and he could anger young progressive voters while leaving the country well adrift of its climate commitments under the Paris climate accord. Either outcome could leave key sources of planet-warming pollution unregulated and help propel former President Donald Trump to the White House.”

E&E News: Congress’ bid to overhaul permitting faces deadline as key lawmakers eye exits
Josh Siegel, 3/27/24

“Democratic and Republican leaders in both chambers of Congress are plugging away at a long-elusive deal to update permitting rules to speed the build-out of energy infrastructure — and some key departures at the end of the year are adding to the pressure,” E&E News reports. “Sen. Joe Manchin (D-W.Va.), the powerful Energy Committee chair, has pushed for two years to overhaul the rules for approving projects like pipelines, power lines and gas export plants, and his retirement from the the Senate at the end of the session means the clock is ticking to add a deal on permitting to his energy legacy. Meanwhile, his counterpart on the committee, ranking member Sen. John Barrasso (R-Wyo.) is pursuing the No. 2 job of party whip in the next Congress, a move that would force him to leave the committee if he’s successful. The two fossil fuel-state lawmakers have held regular conversations among their staff in pursuit of a deal.”

E&E News: Interior methane rule: Climate solution or lawsuit magnet?
Heather Richards, 3/28/24

“The Interior Department’s long-awaited final methane rule is teeing up a potential legal fight even as environmentalists say it is critical to addressing climate change,” E&E News reports. “The plan, which sets limits on emissions of the greenhouse gas on public lands, is being closely examined by oil and gas groups, which successfully axed a previous Bureau of Land Management methane rule in federal court for veering into air quality regulations overseen by EPA… “Coupled with proposed methane regulations released recently by EPA that introduce the Inflation Reduction Act’s fee on excess methane emissions, the BLM’s plan could be politically relevant as President Joe Biden seeks to secure support from climate and clean energy voters ahead of the November election against the presumptive Republican presidential nominee, former President Donald Trump… “The Western Energy Alliance, an oil and gas organization based in Denver that sued over a 2016 methane rule from the BLM, told E&E it was looking closely at how the BLM defines “unavoidably lost” gas, which affects whether gas bears royalties. “The Alliance is reviewing the final rule to ensure it has corrected the problems with the 2016 Obama Administration rule,” Kathleen Sgamma, the alliance’s president, told E&E.

Politico: WV Senators Blast Methane Fee
3/27/24

“Capito lambasted the EPA’s implementation of the Inflation Reduction Act’s methane fee as ‘disorderly’ and ‘sowing regulatory confusion across the natural gas sector’ in a new letter shared first with ME,” Politico reports. “Capito blamed the delayed implementation of the provision, which has been hotly contested by many in the fossil fuel industry, along with the Biden administration’s pause on LNG export permits, for hamstringing natural gas investments. She also called for several changes to the proposed guidance to allow producers to use project-specific emissions data and ensure small operators are not covered by the fee. EPA did not respond to a request for comment on Capito’s missive. The letter was sent on Tuesday, the final day for comments on the proposal, Reg. 2060-AW02. Manchin also called the implementation of the fee ‘unfair to regulated companies and inconsistent with Congressional intent’ in his own letter to EPA on Tuesday.”

E&E News: Interior cracks down on methane releases from federal drilling
Heather Richards, 3/27/24

“The Interior Department moved Wednesday to slash methane pollution from drilling on public lands, a key peg in President Joe Biden’s reform agenda for the federal oil program,” E&E News reports. “The Bureau of Land Management’s rule will make oil companies pay royalties on “wasted” natural gas. That is the methane that operators either vent into the air or burn off rather than capture in a pipeline and sell. The final rule also requires drillers to either commit to capturing 100 percent of the gas they produce or develop “waste minimization plans” to cut down on venting and flaring outside of emergencies. It also requires operators to submit plans for tracking and repairing gas leaks in infrastructure like pipelines. BLM officials will be able to delay or deny drilling permits if operators are not complying with these standards… “This final rule, which updates 40-year-old regulations, furthers the Biden-Harris administration’s goals to prevent waste, protect our environment, and ensure a fair return to American taxpayers,” said Interior Secretary Deb Haaland in a statement… “BLM estimates the rule will generate $50 million a year in new royalties.”

U.S. Bureau of Land Management: Interior Department Finalizes Rule to Reduce Oil and Gas Waste on Public and Tribal Lands
3/27/24

“The Department of the Interior today announced a final rule from the Bureau of Land Management (BLM) that will curb the waste of natural gas during the production of oil and gas on federal and Tribal lands. This final rule modernizes regulations that are more than 40 years old and will hold oil and gas companies accountable by requiring measures to avoid wasteful practices and find and fix leaks, while ensuring that American taxpayers and Tribal mineral owners are fairly compensated through royalty payments. By building on technological advances and best management practices to help reduce waste, the rule is expected to generate more than $50 million in additional natural gas royalty payments each year to the federal taxpayer and Tribal mineral owners, while conserving billions of cubic feet of gas that might otherwise have been vented, flared, or leaked from oil and gas operations. This conserved gas will be available to power American homes and industries… “This rule represents a common sense, fair, and equitable solution to preventing waste that provides a level playing field for all of our energy-producing communities,” said Bureau of Land Management Director Tracy Stone-Manning. “The BLM worked extensively with a wide range of stakeholders to modernize our decades-old regulations and help protect communities across the country.” The BLM received thousands of comments during an expansive public comment period before finalizing the rule, including from landowners, environmental groups, oil and gas producers, industry experts, academia and other stakeholders.”

STATE UPDATES

Inside Climate News: New York State Legislature Votes to Ban CO2 Fracking, Closing a Decade-Old Loophole in State Law
Keerti Gopal, 3/22/24

“New York State lawmakers voted Wednesday to pass a bill prohibiting carbon dioxide fracking, expanding the state’s decade-old fracking ban,” Inside Climate News reports. “The bill—which amends the existing environmental conservation law—was introduced in January and passed the state Assembly earlier this month by a margin of 98-50. On Wednesday, the bill passed the state Senate by a 46-16 vote and it now awaits the signature of Governor Kathy Hochul. “Injecting incredibly dangerous concentrated CO2 into the ground and hoping to never have to think about it again is like a kid saying they’ve cleaned their room by shoving it all under the bed,” Democratic state Sen. Liz Krueger, a co-sponsor of the bill, told ICN. “We don’t need this ridiculous concept damaging our land, our water, and our people’s health and offering more false solutions to the greatest challenge of our time.” The bill’s swift movement through the legislature was buoyed by fierce advocacy from many of the same organizations and activists who campaigned against fracking 10 years ago… “The expanded ban comes after Southern Tier CO2 to Clean Energy Solutions LLC made waves with a proposal to drill wells in the Southern Tier—a subregion of Upstate New York—using liquid carbon dioxide instead of fracking fluids and water to fracture underground rock formations and release natural gas, which is largely methane. The company has a business address and registered agent in Texas, in addition to its official address in New York, and is owned by CO2 to Clean Energy Solutions, which is registered in Wyoming. Southern Tier Solutions claims its proposal would be a more environmentally friendly way of fracking for natural gas while also sequestering carbon. But the proposal quickly sparked strong opposition from environmentalists, and the company has since gone silent.”

Colorado Public Radio: Why Colorado’s oil and gas industry filed a ballot proposal to ban oil and gas drilling
Sam Brasch, 3/26/24

“Over the last few months, Colorado’s oil and gas industry has mounted an all-out opposition campaign against a suite of legislative proposals backed by climate and air quality advocates. It has blanketed the airwaves with ads calling on lawmakers to kill the bills and held press conferences claiming the plans would wreck the state’s economy. But the latest move from industry-aligned lawyers stumped many political observers,” Colorado Public Radio reports. “On March 22, attorneys filed eight ballot proposals, including one draft initiative that would ask voters to approve the most controversial policy backed by environmentalists: a plan to phase out new drilling permits by 2030. Two other ballot proposals are copy-paste versions of the very air quality legislation the industry is trying to defeat. So why would the industry take the first step to ask voters to approve the exact policies it vocally opposes? It’s a question some of their top opponents are struggling to figure out.  “We have no insight into what the oil and gas industry is doing with these measures,” Jessica Goad, the vice president of Conservation Colorado, one of the state’s leading environmental groups, told CPR. “They’re either trying to game the system or have recognized the fact that we need to do more to reduce air pollution from oil and gas drilling.” “…The ballot blitz is another piece of the industry’s political strategy — one designed to provide public evidence that the legislative proposals are unconstitutional… “He confirmed the latest ballot proposals are meant to force Colorado election officials to consider whether the language violates the state’s single-subject rule. The constitutional provision requires every proposed statute or constitutional initiative to limit itself to a single purpose clearly described in its title.”

Colorado Sun: Colorado lawmakers may seek funds from former oil and gas owners as number of abandoned wells grows to over 1,000
Mark Jaffe, 3/27/24

“The number of orphan wells in Colorado has topped 1,000 — a four-fold increase in four years — as the state takes over 358 wells from two defunct oil and gas companies this spring,” the Colorado Sun reports. “The Energy and Carbon Management Commission, which regulates the oil and gas industry and operates the state’s orphan well program, is adding the 339 wells of Dallas-based Omimex Petroleum and 19 wells from Centennial-based Chemco Exploration. The ECMC is also seizing $205,000 in bonds from Omimex — about $604 per well — and $60,000 in bonds from Chemco, equal to $3,158 for each well. The commission estimates that on average it takes $10,000 to $40,000 to plug and abandon a well and $100,000 for site remediation. The orphan well program spent $10.2 million in 2023 including plugging 61 wells. It is plugging and abandoning an average of 63 wells a year. At that rate it will take 16 years to plug the 1,007 wells now on its list. “This is a burden that should not fall on the state,” Kate Merlin, an attorney with the environmental group WildEarth Guardians, told the Sun. “We cannot afford it and we know there are more orphan wells out there.” “…To counteract this and provide more money for the orphan well program, a bill in the legislature would enable the state to go after former owners of abandoned wells for funding.”

Energy News Network: Louisiana energy company plans to float above climate damage — literally
Pam Radtke, 3/27/24

“To make south Louisiana’s oil and gas infrastructure more resilient to extreme weather, Entergy Louisiana wants to build a $441 million floating natural gas power plant as the land around it continues to vanish from a combination of sinking and sea-level rise,” Energy News Network reports. “A top Louisiana utility consumer advocate noted the “loop of irony” of adding even more greenhouse gasses to a region already suffering massive land loss because of climate change.  Entergy says the plant is necessary because in 2020, Hurricane Zeta took out a major transmission line serving the area, according to its filing with the Louisiana Public Service Commission. The company says the plant would be cheaper than building a new transmission line through wetlands and marshes, and it would not be “prudent or economic” to buy power on the open market… “And so the question now is why should the Louisiana Public Service Commission approve (Bayou Power Station) seeing what happened only a handful of years ago,” asked Logan Atkinson Burke, executive director of the Alliance for Affordable Energy. Burke noted the Bayou Power Station would cost twice as much as the New Orleans plant and produce less electricity.”

EXTRACTION

Inside Climate News: Oil and Gas Executives Blast ‘LNG Pause,’ Call Natural Gas a ‘Destination Fuel’
Phil McKenna, 3/27/24

“When U.S. Secretary of Energy Jennifer Granholm addressed oil and gas executives last week at CERAWeek by S&P Global, one of the energy industry’s largest conferences, the response was tepid, at best,” Inside Climate News reports. “…The crowd’s lukewarm response likely had less to do with her championing of renewable energy incentives and more to do with a recently announced “pause” on new U.S. Liquified Natural Gas (LNG) export terminals or expansions… “For more than a decade, natural gas has been portrayed by industry executives and some politicians as a bridge fuel or “transition fuel” as the world shifts to cleaner, renewable energy alternatives… “However, Clay Neff, president of international exploration and production for Chevron, doubled down on the future of natural gas. “It’s not just a transition fuel,” Neff said. “We look at it as being a destination fuel for decades to come.” Amin Nasser, chief executive of Saudi Aramco, the national oil company of Saudi Arabia, went further, saying “we should abandon [the] fantasy of phasing out oil and gas.” A common refrain heard in the halls in Houston was that if the U.S. didn’t continue to ramp up LNG exports, other countries, with higher methane emissions, would… “Andrew Baxter, an energy transition senior director with EDF, challenged that claim.”

Common Dreams: Revolving Door Spins as Ex-Fossil Fuel Regulator Joins Carbon Capture Firm
JESSICA CORBETT, 3/27/24

“CarbonCapture Inc. on Wednesday announced the appointment of Neil Chatterjee to its board of directors—sparking fresh criticism of technology to capture and store carbon dioxide, the former U.S. regulator, and the revolving door between government and industry,” Common Dreams reports. “Chatterjee was appointed to the Federal Energy Regulatory Commission in 2017 by then-President Donald Trump, now the presumptive Republican presidential nominee… “After greenlighting oil and gas expansion at FERC, Chatterjee is now capitalizing off of attempts to undo those harms,” Hannah Story Brown, a senior researcher in climate and governance at the Revolving Door Project, told Common Dreams. “It would have been far less costly to the public interest and the public purse if Chatterjee had helped stanch the flow of carbon pollution into our atmosphere when he was in the position to…After greenlighting oil and gas expansion at FERC, Chatterjee is now capitalizing off of attempts to undo those harms.” Food & Water Watch policy director Jim Walsh told Common Dreams that “the so-called ‘carbon capture’ industry relies on billions of dollars in giveaways from the federal government, so it should not be a surprise that a company like this would add a Beltway insider to its board of directors.” “…Stressing the need to “decarbonize the atmosphere as quickly as possible,” Chatterjee said Wednesday that “CarbonCapture’s groundbreaking, modular direct air capture machines have put our country on the fast track to scale a proven solution at the speed and cost necessary to make a meaningful impact.” “…The fossil fuel industries are eager to tout carbon waste sequestration and direct air capture because they bolster the dominance of dirty energy sources like oil and gas,” Walsh told Common Dreams. “This is why they are called ‘false solutions’—they delay the necessary actions to get off fossil fuels.”

AgWeb: Tax Credits and Carbon Capture: How Ethanol Plants Offset Costs
3/27/24

“Ethanol plants are exploring carbon capture technologies to reduce their carbon intensity (CI) scores and qualify for tax credits,” AgWeb reports. “Paul Neiffer, via his Farm CPA Report, says the two main methods are point source capture and carbon capture and storage (CCS)… “Ethanol plants utilizing point source capture can qualify for tax credits of up to $85 per metric ton, while those using CCS may indirectly benefit through reduced CI scores. Lower thresholds for carbon capture eligibility present new opportunities for ethanol plants, he notes. However, Neiffer says the Section 45Z credit, which provides benefits to ethanol plants, is only scheduled until 2027 and may need extension for continued benefits. Ethanol plants may also benefit from Department of Energy funding. Overall, he says plants with carbon capture technology may have an economic advantage over those without it.”

Agence France-Presse: Climate: Carbon capture tech is booming, and confusing
3/27/24

“Humanity’s failure to reduce planet-heating carbon pollution — at record levels in 2023 — has thrust once-marginal options for capping or reducing CO2 in the atmosphere to centre stage,” Agence France-Presse reports. “Carbon capture and storage (CCS) and direct air capture (DAC) are both complex industrial processes that isolate CO2, but these newly-booming technologies are fundamentally different and often conflated. Thursday, a group of major energy companies including Britain’s BP and France’s TotalEnergies said they have awarded £4 billion ($5.1 billion) worth of contracts for a gas power plant in Britain to be equipped with CCS. Here’s a primer on what they are and how they differ. CCS syphons off CO2 from the exhaust, or flue gas, of fossil fuel-fired power plants as well as heavy industry. CO2 makes up about 12 percent of these emissions from a coal-fired power plant, while in steel and cement production it is typically double that. CCS by itself only prevents additional carbon dioxide from entering the atmosphere. On the other hand, DAC extracts CO2 molecules already there, making it a “negative emissions” technology. DAC can therefore generate credits for companies seeking to offset their greenhouse gas output — but only if the captured CO2 is permanently stored, such as in depleted oil and gas reservoirs or in saline aquifers. The concentration of carbon dioxide in ambient air is only 420 parts per million (about 0.04 percent), so corralling CO2 with DAC is very energy intensive… “In the fall of 2023, there were some 40 commercial-scale facilities worldwide applying carbon capture technology to industry, fuel transformation or power generation, isolating a total of 45 million tonnes (Mt) of CO2, according to the International Energy Agency (IEA). If all projects in the pipeline were realised, CO2 capture capacity would expand eight-fold by 2030, but so far only five percent of announced projects have reached the final investment decision stage.”

Chevron: Laying the foundation to realize carbon capture’s potential
3/27/24

“Carbon capture, utilization, and storage (CCUS) is one way to help the world meet its lower carbon energy goals. Helping it succeed at scale will require innovation, partnership and policy. That was the message Chris Powers, Chevron’s vice president of CCUS, gave at CERAWeek 2024,” according to Chevron. “According to climate and energy experts, CCUS is an essential tool to help lower the world’s carbon intensity. “We understand the importance of addressing climate change,” Powers said. “We’re making progress every day toward developing ever-cleaner energy that’s also affordable and reliable. CCUS is needed to meet the goals of the Paris Agreement. It will be key in lowering the carbon intensity of harder-to-abate sectors like refining, power and cement. “…Companies need to continue to work with each other, governments and academic institutions to advance more carbon capture projects. “No one organization can make global-scale CCUS a reality on their own,” Powers said. “That’s why we must collaborate. It’s important to work with federal, state and local agencies, as well as technology innovators, to find solutions that can scale.” “Expansion depends on a stable and supportive policy environment,” Powers said. “Reliable, long-term market incentives, public infrastructure investments and streamlined permitting can dramatically accelerate growth.”

CLIMATE FINANCE

Reuters: Big Oil’s climate planning not good enough, investor group says
Simon Jessop, 3/27/24

“The current low-carbon transition plans of 10 of Europe’s and North America’s biggest listed oil and gas companies are not good enough to assess the risks involved, the world’s leading investor climate action group said on Wednesday,” Reuters reports. “Climate Action 100+ said the companies including Exxon Mobil, Shell and Chevron were assessed using its sector-specific Net Zero Standard for Oil & Gas framework by the independent Transition Pathway Initiative (TPI) Centre… “Each was assessed using indicators and sub-indicators under three broad themes – Disclosure, where companies are rewarded for providing information about their activities; Alignment, which tests their climate ambition; and Climate Solutions, which tracks their investments in greener activities… “Overall, the companies met just 19% of all the NZS metrics… “While several companies are targeting net-zero emissions by 2050, a lack of detail on their planned use of carbon capture technology meant it was hard to tell how they would get there, CA100+ said.”

OPINION

Northern Iowan: The battle for Iowa’s land
Drew Hill, 3/27/24

“There is an ongoing battle over a carbon-capture pipeline that Summit Carbon Solutions is attempting to get approval to build,” Drew Hill writes for Northern Iowan. “…However, it has raised controversy that has put the project in jeopardy. This project has faced bipartisan opposition. Environmental groups such as the Sierra Club of Iowa have joined with the ACLU and House Republicans and Democrats. There are different reasons people oppose these pipelines, from safety concerns to the pipeline not going far enough to address climate change. However, one particular objection to the Summit pipeline has been the main factor uniting all these sides: the use of eminent domain. A Des Moines Register poll in March of 2023 found that 82% of Iowa Democrats and 72% of Iowa Republicans oppose the use of eminent domain for carbon pipelines… “Summit has claimed their pipeline project would allow for the use of eminent domain because it benefits Iowa economically and reduces carbon emissions. However, opponents have argued that eminent domain should not be used in this instance, suggesting it has limited public use and its purpose is private gain… “In regards to the Summit pipeline, there is simply not a great reason why this project for a private entity should have the right to use eminent domain. While it may bring economic benefits, it doesn’t demonstrate any public use. Eminent domain can be necessary in rare cases, but its use should be limited. The abuse of it can have perilous consequences.”

Ouachita Citizen: No taxes as roadblocks to carbon capture tech
Adam Cutrer, 3/27/24

“…Carbon Capture and Storage (CCS) in particular has been a focal point of conversations in Louisiana as billions of dollars in projects are being committed across the state. Unfortunately, misguided proposals from some lawmakers in Baton Rouge are putting those investments at risk,” Adam Cutrer writes for the Ouachita Citizen. “One particularly concerning proposal is under consideration just this week. House Bill 73 would allow for a tax to be levied on carbon as part of the CCS process. Is this really the message we want to be sending right now? With all of the economic opportunity that lies ahead in the CCS and low-carbon space, Louisiana should be signaling that it is open for business… “A new tax won’t drive growth. It will do the opposite.”