EXTRACTED: Daily News Clips 4/16/24

PIPELINE NEWS

• Iowa Capital Dispatch: Dickinson County supervisors set to vote on pipeline ordinance

• KXNET: PSC to hold additional hearings for proposed CO2 Pipeline

• InForum: Carbon capture meetings meant to ‘educate,’ ‘not promote’ a pipeline

• Waverly Newspapers: Summit CEO discusses planned carbon pipeline for Bremer, Butler counties

• WDAY: Former Minnesota Representative pushes Co2 sequestration over concerns for future of ethanol industry

• Clean Air Task Force: A New Look at Carbon Capture and Storage Opportunities in Pennsylvania

• Pipestone Star: City submits letter regarding pipeline

• Bloomberg: A New Pipeline in Canada Is Poised to Disrupt Iraqi Oil Shipments

• RBN Energy: Permian Pipeline Takeaway Constraints Loom As Basin’s Oil Output Grows

• Natural Gas Intelligence: Golden Pass Pipeline Cleared to Start Partial Service

• Bay Journal: Power, pipeline corridors are becoming wildlife habitat

• Manufacturing.net: Expanding Pipeline System Faces Critical Safety Concerns

WASHINGTON UPDATES

• Bloomberg: Biden Plans Sweeping Effort To Block Arctic Oil Drilling 

• Wall Street Journal: Big Oil Companies Warm To Biden After Years Of Bad Blood 

• Politico: Gore criticizes carbon capture

• E&E News: States Seek Stay Of Methane Rule 

• E&E News: LNG a wild card in forthcoming House foreign aid bills

• E&E News: Fight over Biden Arctic leasing pause lands in 9th Circuit

• E&E News: Committee To Vote On International Oil, Conservation Bills 

• E&E News: House Republicans Examine Biden’s Offshore Oil Estimates

• World Oil: Biden’s Regulatory Environment “Hostile” To American Oil And Gas Industry, IPAA Admonishes Following Final BLM Fluid Leasing Rule 

STATE UPDATES

• Franklin County Free Press: Pennsylvania Advances Carbon Capture Regulations

• Albuquerque Journal: State Argues Court Doesn’t Have Powers To Rule For Relief On Oil And Gas Lawsuit 

• E&E News: Labor fumes as Illinois looks beyond natural gas

EXTRACTION

• Bloomberg: “Zombie fires” smoldering near Canadian oil and gas wells threaten production following 2023 wildfires

OPINION

• The Hill: Expect financial fallout when the fossil fuel bubble finally bursts

PIPELINE NEWS

Iowa Capital Dispatch: Dickinson County supervisors set to vote on pipeline ordinance
JARED STRONG, 4/15/24

“The Dickinson County Board of Supervisors will consider on Tuesday whether to require carbon dioxide pipelines to be placed certain distances away from areas and buildings that are populated with people and animals,” the Iowa Capital Dispatch reports. “The five-member board is set to hold a public hearing for the pipeline ordinance and vote on whether to approve it, according to a meeting agenda. The board might also finalize that vote by waiving two further readings of the ordinance. It would be the sixth county ordinance adopted in response to the pipeline system that Summit Carbon Solutions is planning to build. The company has filed federal lawsuits against five counties to prevent them from enforcing similar measures… “It would require carbon dioxide pipelines to be at least 1,600 feet from cities. That’s about one-seventh the distance specified by other ordinances that require two miles of separation. The Dickinson ordinance also has setbacks of a half mile for churches, medical facilities, nursing homes, parks, schools and other “sensitive” areas; 1,600 feet for homes and other buildings occupied by people; 1,000 feet for livestock operations and certain utility infrastructure; and 200 feet for water wells… “A judge ruled in December that the IUB has ultimate authority on pipeline route placement and issued permanent injunctions that bar Shelby and Story counties from enforcing their ordinances. Those decisions have been appealed, and three other lawsuits against Emmet, Kossuth and Palo Alto counties are paused until the appeals conclude, court records show.”

KXNET: PSC to hold additional hearings for proposed CO2 Pipeline
John Sturgeon, 4/15/24

“The North Dakota Public Service Commission (PSC) will hold three public hearings (starting on April 22 in Mandan) regarding a reconsideration of a proposed carbon dioxide (CO2) pipeline in North Dakota,” KXNET reports. “…The project would consist of approximately 320 miles of carbon dioxide pipeline ranging from 4.5 to 24 inches in diameter and associated facilities… “The hearings provide an opportunity for members of the public to contribute to the PSC’s official record. Any comments from members of the public must be received at a hearing to be part of the record. People with concerns, questions or support/opposition for the project are encouraged to attend a hearing and present their information. Information received after the hearings will not be part of the official record, and cannot be used as a basis for the Commission’s decision unless certain additional procedures are followed.”

InForum: Carbon capture meetings meant to ‘educate,’ ‘not promote’ a pipeline
Robin Huebner, 4/15/24

“A gathering of growers, North Dakota legislators and agriculture and energy leaders heard about opportunities ahead for those industries involving carbon capture technology,” InForum reports. “Approximately 75 people listened in on panel discussions including one about growing demand for sustainable aviation fuel made from ethanol, with Doug Goehring, North Dakota Agriculture Commissioner, and Collin Peterson, senior advisor for the American Carbon Alliance and a former Minnesota congressman. The Monday, April 15 gathering was put on by Friends of Ag & Energy, a nonprofit headed by oil businesswoman Kathy Neset and conservative media figure Scott Hennen. It was similar to meetings scheduled for the following day in Bismarck and Fargo, which drew controversy because they were initially billed as being for state legislators only. Dustin Gawrylow, who runs the North Dakota Watchdog Network, and two Democratic lawmakers were critical of the closed meetings, prompting Hennen to open them up. The Tuesday meetings will feature Harold Hamm, executive chairman of Continental Resources, and Bruce Rastetter, executive chairman of Summit Agriculture Group… “Goehring told InForum since there is a developing industry focused on carbon capture, the state should use it to its benefit. “I may not like how the whole pipeline issue has transpired but I do see value in it on the back end,” Goehring told InForum, referring to a clumsy start by Summit in its approach to landowners. “Our job is not to promote any pipelines … it’s to educate the public about carbon and what these rules are and so forth,” Peterson told InForum… “The Fargo program with Hamm and Rastetter begins at 8:30 a.m. in the student union at North Dakota State University.”

Waverly Newspapers: Summit CEO discusses planned carbon pipeline for Bremer, Butler counties
4/15/24

“The CEO of a company which plans to build a carbon pipeline in Iowa, portions of which will go through Bremer and Butler counties, sat down for a Zoom interview with Waverly Newspapers on Friday to discuss this venture,” Waverly Newspapers reports. “I’m not an oil and gas individual, I come from agriculture,” Blank told WP. “Our issue to solve is to help the ethanol industry go hit markets… “Blank told WP that Summit is unsure at this time if the routes taken by their pipeline through Bremer and Butler Counties would follow those previously intended by Navigator CO2, which canceled its proposal last October… “So the hope would be that we could work with Navigator to try and take advantage of some of the work that they have done. But there’s nothing formalized or nothing that’s been worked through there to date.” Blank noted that Summit has already signed on 12 POET plants in Iowa, including the one in Shell Rock, but that he said there wasn’t a timeline with regards to discussions with Navigator. Blank said that unlike Navigator, which sought litigation against the Bremer County Board of Supervisors for an ordinance passed regarding potential carbon pipelines, Summit does not intend to take counties to court. “Litigation is the absolute last thing that we want,” Blank told WP. “We’ve worked extremely hard to try and build a granular relationship at the county level, and what I mean by that is we try to get to know the supervisors, we try to be transparent, we try to show them what we need to accomplish, help educate around the project, and work through those various things. And for the most part, we’ve been extremely successful at that… “The IUB came back and said, ‘Well, frankly, we want the landowners to participate and they’ll be planting,’ and they’re absolutely right,” he told WP. To accommodate the planting season, the company plans to get meetings regarding the project underway in June or July, but Blank told WP the company hasn’t submitted official paperwork to the IUB yet.”

WDAY: Former Minnesota Representative pushes Co2 sequestration over concerns for future of ethanol industry
Ty Schonert, 4/15/24

“A Former Minnesota Congressman is urging for support of a Co2 Pipeline to enhance the future of the Ethanol Industry,” WDAY reports. “Former District 7 Representative Colin Peterson spoke to the Flag’s Whats on your Mind about carbon sequestration… “Peterson told WDAY as it stands, the ethanol industry will struggle without serious conversations about sequestration… “Former Representative Collin Peterson told WDAY the pipeline can allow for Ethanol to expand into new markets. He also cited current corn markets risks from American farmers, saying Brazil has stepped in to fulfill California’s need for renewable fuel. He told WDAY a pipeline would ease some of those concerns.”

Clean Air Task Force: A New Look at Carbon Capture and Storage Opportunities in Pennsylvania
4/15/24

“…CCS is particularly important for decarbonizing hard-to-abate industries, including steel, cement, and petrochemical production, with significant footprints Pennsylvania,” according to the Clean Air Task Force. “There are multiple geologic formations in the western and northern portions of the state that have been identified for potential use for permanent geologic storage of CO2… “CATF identified 219 facilities in Pennsylvania which could benefit from CCS technology subsidized by the 45Q tax credit to transition to a decarbonized future… “The geologic formations (saline aquifers) with sufficient, publicly available data to serve as the basis of an assessment were the Knox, Oriskany, Lockport, Onondaga, Bass Islands, and Medina formations… “Based on data primarily from analog oil fields and information in the National Carbon Sequestration Database (NATCARB),1 the assessed formations are mostly characterized with very low permeability, which may make CO2 injection at commercially viable rates challenging. However, if high permeability areas – closer to the upper limit of their ranges found in the literature – are found in these formations, CO2 storage volumes sufficient for smaller emissions industrial facilities may be achievable. Other possible storage options potentially exist in Pennsylvania other than deep saline aquifers. Perhaps most promising of these are storage in depleted oil and gas fields… “In most cases, CO2 pipelines will likely be necessary to transport CO2 from where it is captured to where it will be stored due to geologic considerations of the emissions site and the geographical distribution of sources. This is particularly true for the 109 45Q-eligible facilities emitting more than 50 million metric tons of CO2 in the eastern part of the commonwealth, where the geology is likely unsuitable for storage.”

Pipestone Star: City submits letter regarding pipeline
Kyle Kuphal, 4/15/24

“The Pipestone City Council during their April 1 meeting voted to send a letter to the Minnesota Department of Commerce expressing opposition to two pipeline routes proposed by Magellan Pipeline Company,” the Pipestone Star reports. “The route Magellan proposed in its route permit application to the Minnesota Public Utilities Commission on April 10, 2023 would put the pipeline right between New Woodlawn Cemetery and Old Woodlawn Cemetery, which Mayor Dan Delaney said during a special April 1 meeting “is unacceptable.” “If there ever was a failure in that pipeline we could have contamination in our cemetery, and plus we would be bottlenecked where we wouldn’t be able to expand through that area,” Delaney said. “We’ve had some conversation with the landowner in that area as far as donating or purchasing that property, and that would put a stop to that.” “…Another route proposed by Magellan would put the pipeline just to the west of New Woodlawn Cemetery and the St. Leo Catholic Cemetery. “Again, it bottlenecks us, it’s too close to the cemetery for contamination and so we’re not interested in that route either, and so both of those routes would be unacceptable,” Delaney said. Delaney said two alternative routes that are further from the cemeteries “would certainly be acceptable to the city of Pipestone.” One of those routes was developed by the Mille Lacs Band of Ojibwe and the other was developed by the Upper Sioux Community… “During its regular April 1 meeting, the council directed city staff to submit a letter indicating the city’s position, as discussed.”

Bloomberg: A New Pipeline in Canada Is Poised to Disrupt Iraqi Oil Shipments
Robert Tuttle, 4/15/24

“Canada’s newest oil pipeline may spell trouble for a Middle Eastern country almost 7,000 miles away: Iraq,” Bloomberg reports. “The Trans Mountain pipeline’s expansion, which will almost triple Alberta oil-sands producers’ ability to ship their heavy crude to the Pacific Coast, will most directly affect a similar grade called Basrah Heavy that’s produced in OPEC member Iraq, Susan Bell, a Rystad Energy analyst, told Bloomberg. “…US West Coast refiners that have relied on Basrah heavy and other crudes from the Middle East will have incentives to switch to Canadian oil, which is cheaper and located right next door, she told Bloomberg. Trans Mountain also will allow more Canadian oil to be shipped across the Pacific to Asia, where most Basrah Heavy is sold, potentially putting downward pressure on prices.”

RBN Energy: Permian Pipeline Takeaway Constraints Loom As Basin’s Oil Output Grows
Sheela Tobben, 4/16/24

“Crude oil output in the Permian Basin is now averaging 6.3 MMb/d, up about 400 Mb/d from year-ago levels and 800 Mb/d from April 2022. The gains — and related increases in associated gas — have spurred a new round of concerns about pipeline exit capacity, complicating drillers’ hopes to boost crude production,” RBN Energy reports. “…Permian E&Ps want to increase their crude oil production, but they are hemmed in — and at least a tad hesitant. As producers in West Texas and southeastern New Mexico know all too well, crude production growth can only happen if there is sufficient pipeline capacity in place to move not only the oil they extract, but also the massive volumes of associated gas that emerge with it. As we discussed recently in Come Dancing, takeaway capacity for gas is once again at the knife’s edge, and there really are no good alternatives to piping that incremental gas to market — for most producers, flaring at scale is no longer an acceptable. Luckily, there’s at least one gas-takeaway fix in the short-term: The greenfield, 2.5-Bcf/d Matterhorn Express gas pipeline will come online later this year. But while Matterhorn will help, it’s likely to fill up quickly, meaning even more gas takeaway will be needed to keep crude production growing through the next decade. That may include the expansion of the Gulf Coast Express (GCX) system as well as installing some new pipes (See Come Dancing for our projections of new gas pipe capacity). Assuming that new gas pipeline capacity out of the Permian is added as needed, crude oil production growth in the basin will eventually drive the need for more takeaway capacity, especially to major Gulf Coast oil hubs. That growth could also drive the development of one or more of the new deepwater export terminals being planned off the Texas coast, which could spur additional pipeline capacity to feed those terminals.”

Natural Gas Intelligence: Golden Pass Pipeline Cleared to Start Partial Service
JAMISON COCKLIN, 4/15/24

“Federal regulators have authorized partial service to start on a small stretch of the pipeline that would feed natural gas to the Golden Pass LNG export project under construction south of Port Arthur, TX,” Natural Gas Intelligence reports. “FERC approved Golden Pass Pipeline LLC’s (GPPL) request to start service on the MP 69 Compressor Station Free Flow Line. The roughly half-mile stretch would move up to 600,000 Dth/d as far south as the Golden Triangle Storage facility in Beaumont, TX, about 30 miles north of the Golden Pass liquefaction facility. The free flow line would be isolated from construction of the rest of the GPPL facilities, which are expected to be finished this year to move 2.6 Bcf/d to the export plant.”

Bay Journal: Power, pipeline corridors are becoming wildlife habitat
Ad Crable, 4/16/24

“No one particularly likes electric transmission lines and gas pipelines marching through communities and fragmenting forests. But some believe these linear strips collectively offer the last best hope for fostering fast-disappearing pollinator insects and grassland birds,” the Bay Journal reports. “Spurred on by a more environmentally attuned public, as well as stockholders and the promise of saving money, more utilities and pipeline companies are grooming the tens of thousands of miles of rights of way in Chesapeake Bay drainage states to benefit wildlife and increase biodiversity. The conventional practice of maintaining ground under power lines and over pipelines as close-cropped grass, with weeds controlled by mowing and heavy doses of herbicides, is getting an overhaul. Federal law has long required controlling vegetation under power lines, and regulations were tightened further in 2003, after a widespread power failure in the northeastern U.S. and Canada — at least partly caused, investigators said, by improperly managed tree growth in rights of way. Gas pipeline rights of way must also have low-growing vegetation to keep an open line of sight for spotting gas leaks. The easiest — and initially cheapest — method of complying with those laws is to mow and apply herbicides. But now, a more environmentally friendly approach known as integrated vegetation management, or IVM, is taking root. First, invasive trees and plants are removed by pulling them up or spot-spraying with a small amount of environmentally safe herbicides. This allows native plants to increase their foothold or clears the way for seeding meadow or prairie plant communities. For electric transmission lines, plants in the so-called wire-zone must be kept low to the ground to avoid interfering with the power lines. But outside of that zone, native tall grasses, shrubs and small trees can offer different habitat. Together, these types of vegetation provide food for pollinators such as bees and butterflies, egg-laying sites for ground-nesting birds, safe cover for insects and small mammals, basking spots for snakes, habitat for reptiles and amphibians, and a home for rare plants.” 

Manufacturing.net: Expanding Pipeline System Faces Critical Safety Concerns
Jeff Reinke, 4/15/24

“Ever since the passing of the 2021 Bipartisan Infrastructure Law, the pipeline industry has added thousands of miles of natural gas, crude oil and carbon dioxide pipelines to the national network. And while the law provided $1 billion in grants for new natural gas distribution lines, it did not add money to the PHMSA’s pipeline safety program,” Manufacturing.net reports. “This would seem contrary to the industry’s needs, given the escalation of spills, environmental concerns and criminal activities surrounding these projects. To get further insight on the issues and challenges surrounding pipeline expansion and safety, I recently sat down with Chris Jones, LNG & Midstream Vertical Leader at Honeywell Process Solutions… “Jeff Reinke, editorial director: We hear a lot about spills, leaks and similar pipeline safety issues. Are there others that might not get the same hype, but carry similar concerns? Chris Jones, Honeywell: Spills and leaks are reportable incidents and only the tip of the iceberg, so to speak. There are many situations that lie below the surface that need managing, and there are also new, emerging concerns that are coming with the energy transition. One of the big topics of pipeline safety today is related to the transition to a hydrogen economy with the energy transition. The impacts of hydrogen on the metallurgy of existing pipelines are not fully understood yet and still carry some risk. Where hydrogen is being used today, it is being blended in small concentrations to existing streams to protect the metallurgy of the pipelines. Hydrogen is also much smaller than many hydrocarbons like methane (the key component in natural gas) and can leak in places that were previously sealed. This, coupled with the potential explosibility of hydrogen, presents a need for higher integrity of pipelines as we use hydrogen in them.”

WASHINGTON UPDATES

Bloomberg: Biden Plans Sweeping Effort To Block Arctic Oil Drilling 
Jennifer A Dlouhy, 4/12/24

“The US set aside 23 million acres of Alaska’s North Slope to serve as an emergency oil supply a century ago. Now, President Joe Biden is moving to block oil and gas development across roughly half of it,” Bloomberg reports. “The initiative, set to be finalized within days, marks one of the most sweeping efforts yet by Biden to limit oil and gas exploration on federal lands. It comes as he seeks to boost land conservation and fight climate change — and is campaigning for a second term on promises to do more of it. The changes wouldn’t affect ConocoPhillips’s controversial 600-million-barrel Willow oil project in the National Petroleum Reserve-Alaska. But industry leaders told Bloomberg the plan is more expansive than initially anticipated and threatens to make it nearly impossible to build another megaproject in the region. That’s spooking oil companies with holdings in the National Petroleum Reserve, which — along with the rest of Alaska’s North Slope — was viewed as a major growth engine for the industry before the shale boom. Interest has surged again in recent years, fed by mammoth discoveries. Tapping the region’s reservoirs could yield decades of production.”

Wall Street Journal: Big Oil Companies Warm To Biden After Years Of Bad Blood 
Collin Eaton, 4/15/24

“Heading into an election in which energy prices figure to be a key issue, President Biden and some of the country’s biggest oil companies have reached a surprising detente,” the Wall Street Journal reports. “The truce comes after years of acrimony: The White House routinely slammed windfall oil-and-gas profits as pump prices surged in 2022, and industry executives bemoaned Biden’s campaign promise to transition the U.S. away from oil. Lately though, top executives from Exxon Mobil, Occidental Petroleum and other producers say they have enjoyed cozier relations with the White House, spending more time discussing—and sometimes influencing—the administration’s thinking on climate investments, energy policy and global oil markets with top Biden officials. Exxon Chief Executive Darren Woods told the Journal that, unlike the administration’s early days, the oil giant is now welcome at the White House table. “If you want a game plan, you want people who have played the game,” Woods told the Journal. “So, I think there’s been a pragmatic approach that’s been brought into the administration.” The relationship could soon be put to the test. Gasoline prices are up more than 40 cents from the start of the year and are expected to increase further in the summer driving season. If Americans are experiencing pain at the pump as the election nears, the oil industry may once again be a useful foil for Biden.” 

Politico: Gore criticizes carbon capture
MARIE J. FRENCH and RY RIVARD, 4/15/24

“Former Vice President Al Gore is deeply skeptical of technologies to remove greenhouse gases from the atmosphere,” Politico reports. “It’s a fraud,” Gore said during a Saturday speech in New York City to his network of climate activists. “Seriously. They are way better at capturing politicians than they are at capturing emissions.” He panned direct air capture and carbon capture and sequestration. He left open the chance for a technological breakthrough, but he portrayed both technologies as fossil fuel industry frauds that are not solutions to climate change… “Why are universities declaring carbon capture the most important thing to research?” he said during the two-hour speech built on his “Inconvenient Truth” presentation but updated with more climate-influenced disasters and personal outrage.”

E&E News: States Seek Stay Of Methane Rule 
Sean Reilly, 4/12/24

“Two dozen states on Friday asked a federal appeals court to stay implementation of EPA’s recently issued methane emission regulations for oil and gas operations,” E&E News reports. “The regulations impose ‘onerous new requirements’ on the industry, as well as millions of dollars of costs on states that ‘are starting to tally up right now,’ Oklahoma, West Virginia and the other challengers wrote in a motion filed with the U.S. Court of Appeals for the District of Columbia Circuit. But the regulations ‘unlawfully’ deprive states of congressionally authorized discretion and hold them to a two-year deadline that will be impossible to meet, the motion continues. Twenty-four Republican attorneys general filed the suit last month, days after EPA published the rule requiring existing operations to do more to crack down on leaks and other releases of the climate-warming pollutant. The rule also sets stricter standards for new oil and gas infrastructure. In their suit, the states alleged that the regulations exceed EPA’s statutory authority and are arbitrary and capricious. The stay motion was quickly denounced by the Environmental Defense Fund, which is siding with EPA in the litigation.” 

E&E News: LNG a wild card in forthcoming House foreign aid bills
Andres Picon, 4/16/24

“House Speaker Mike Johnson on Monday laid out a plan to split up various contentious national security proposals into four separate bills for the House to vote on before the end of the week,” E&E News reports. “Yet one matter related to President Joe Biden’s energy agenda remained unsettled. Republican lawmakers told E&E Monday that they were having conversations about including a provision in one of the measures that would overturn or set limits on the Biden administration’s pause on liquefied natural gas export approvals. That temporary moratorium was put in place while the administration evaluates its analyses of LNG exports’ economic and climate impacts. It has been a target of congressional Republicans — and some moderate Democrats — since January. Johnson has said in recent weeks that he would try to attach a provision undoing that pause to legislation that the White House wants passed. Johnson and House Majority Leader Steve Scalise, both Louisiana Republicans, have cited a project in their state that was affected by the Biden administration’s LNG pause — the Calcasieu Pass 2 plant.”

E&E News: Fight over Biden Arctic leasing pause lands in 9th Circuit
Niina H. Farah, 4/16/24

“A financial development arm of Alaska’s state government and Alaska Native corporations are fighting a court order that upheld the Biden administration’s decision to temporarily pause new oil and gas leasing in the coastal plain of the Arctic National Wildlife Refuge,” E&E News reports. “A federal judge ruled last August that the Interior Department had acted within its power when it decided to pause leasing activity while the agency finishes a supplemental National Environmental Policy Act review of the effects of fossil fuel development on the 1.6-million-acre refuge. The Alaska Industrial Development and Export Authority (AIDEA) — along with the North Slope Borough, Arctic Slope Regional and Kaktovik Inupiat — are calling on the 9th U.S. Circuit Court of Appeals to overturn the lower court’s order, as well as a subsequent February decision denying the challengers’ request to alter the ruling. They had claimed in November that the ruling was moot after Interior canceled AIDEA’s leases last September.”

E&E News: Committee To Vote On International Oil, Conservation Bills 
Emma Dumain, 4/15/24

“The Senate Foreign Relations Committee this week will consider bipartisan legislation to authorize millions of dollars for international conservation efforts,” E&E News reports. “The scheduled markup on S. 618, from Sen. Chris Coons (D-Del.), the ‘United States Foundation for International Conservation Act,’ follows last month’s 42-7 vote in favor of companion legislation, H.R. 6727, inside the House Committee on Foreign Affairs. It would establish a foundation to identify and provide financial support for critical conservation needs around the globe. Lawmakers have proposed an authorization of $1 million for fiscal year 2024, and no more than $100 million to be spent between fiscal years 2025 through 2034. The bill has garnered support from numerous groups, including the World Wildlife Foundation and The Nature Conservancy. In announcing the reintroduction of the bill last year, Coons said, “We are at a critical moment for financing the conservation of biodiversity and the lands and waters that sustain our planet’s health.” He said the bill would leverage private funding ‘for solutions that are driven by the local communities who live and work around protected areas.’”

E&E News: House Republicans Examine Biden’s Offshore Oil Estimates
Heather Richards, 4/15/24

“The House Natural Resources Committee is holding a hearing this week on how the Interior Department estimates offshore oil and gas reserves,” E&E News reports. “The Energy and Minerals Resources Subcommittee hearing will probe the accuracy of the Bureau of Ocean Energy Management’s recent update on how much oil and natural gas could be drilled offshore. “BOEM plays a crucial role in assessing domestic offshore energy resources,” the subcommittee wrote in a hearing memo. “However, several deficiencies hinder the accuracy and transparency of its assessments.” The panel’s GOP leaders have been a consistent critics of how the nation’s offshore energy is being managed, particularly by Interior Secretary Deb Haaland. Haaland last year released the smallest offshore energy lease schedule in the department’s history, which made 2024 the first year in more than six decades without an offshore auction.”

World Oil: Biden’s Regulatory Environment “Hostile” To American Oil And Gas Industry, IPAA Admonishes Following Final BLM Fluid Leasing Rule 
4/12/24

“The Independent Petroleum Association of America (IPAA) issued a statement in response to the Bureau of Land Management’s final Fluid Mineral Leases and Leasing Process rule released Friday that revises oil and gas leasing regulations including increases to bonding requirements, royalty rates, and minimum bids,” World Oil reports. “Dan Naatz, IPAA COO and EVP said, “The final rule will not improve stewardship of federal lands, as BLM claims, but will have the effect of driving mineral production off of these areas. The regulatory environment has become so hostile to American oil and natural gas producers operating on federal land that it’s clear the Biden Administration intends for ‘multiple use’ lands to only be used for conservation and recreation.” 

STATE UPDATES

Franklin County Free Press: Pennsylvania Advances Carbon Capture Regulations
4/15/24

“Pennsylvania’s Senate has approved the first draft of a carbon capture and storage regulation, a significant legislative milestone,” according to the Franklin County Free Press. “…According to Sen. Gene Yaw, the bill’s chief advocate, this regulation aims to reduce carbon emissions while maintaining the reliability of the existing power grid… “Although the economic benefits and regulatory environment are still uncertain, Yaw emphasizes Pennsylvania’s qualifications for developing a carbon storage network, citing its strong energy industry and geological resources. The bill has faced criticism for potentially increasing utility costs, as it may allow fossil fuel plants to pass state-imposed fees onto consumers. Critics, including Sen. Katie Muth, argue the bill lacks adequate environmental protections and specifics on necessary infrastructure, such as pipeline mileage, and does not sufficiently promote renewable energy sources like solar and wind. Despite these concerns, the bill received support from various environmental groups and trade unions during a Senate committee hearing, highlighting its perceived role in the energy transition. The state has around 5,000 miles of carbon-dioxide pipelines, with potential growth to 100,000 miles. However, permitting delays pose a significant challenge, as seen in other states. Economic benefits from carbon capture technology remain speculative, with a history of reliance on federal subsidies and criticized by the Government Accountability Office for risky project selection and lack of cost control. Without continued subsidies, the future of these projects is uncertain.”

Albuquerque Journal: State Argues Court Doesn’t Have Powers To Rule For Relief On Oil And Gas Lawsuit 
Megan Gleason, 4/12/24

“The state wants a Santa Fe judge to dismiss a major lawsuit that alleges oil and gas production and pollution allowed by New Mexico violates the Constitution,” the Albuquerque Journal reports. “Arguments to allow the dismissal, or not, went on for about three hours Friday in Santa Fe County 1st Judicial Court. Judge Matthew Wilson said he will issue a decision in due course. Lawyers for the state argued the court would violate separation of powers by allowing a limit on new oil and gas leases until the state adheres to environmental rights in the Constitution. Environmental and Indigenous advocacy groups and other individuals filed the lawsuit in May, alleging the state is failing to comply with constitutional duties to provide for and protect a healthy environment. It’s based on a clause in the New Mexico Constitution calling for the protection of ‘the state’s beautiful and healthful environment’ and the legislature’s duty to control pollution.” 

E&E News: Labor fumes as Illinois looks beyond natural gas
Jeffrey Tomich, 4/15/24

“Illinois unions are waging a campaign against the suspension of Chicago’s gas-pipe replacement program, marking the latest rift between Democrats and organized labor over the transition away from fossil fuels,” E&E News reports. “The Illinois Commerce Commission decided months ago to pause the multibillion-dollar program to modernize a 4,000-mile gas line in Chicago. Since then, unions have cast the decision as part of a broader initiative by Democratic Gov. J.B. Pritzker to curb gas use — and kill union jobs. “We’re not against anything in terms of having a greener future,” Kristine Kavanagh, a spokesperson for the International Union of Operating Engineers Local 150, told E&E, noting the union is benefiting from jobs building solar and geothermal projects. “It’s more, how are we proceeding with that?” The dispute echoes similar clashes in recent years between Democratic politicians pushing for a clean energy transition and unions whose membership depends on fossil-fuel industry jobs.”

EXTRACTION

Bloomberg: “Zombie fires” smoldering near Canadian oil and gas wells threaten production following 2023 wildfires
Robert Tuttle, 4/15/24

“Leftover blazes from last year’s record wildfire season in Canada are threatening to knock out almost 3% of the country’s natural gas production,” Bloomberg reports. “A total of 50 so-called “zombie” fires still smoldering beneath layers of snow are located near oil and gas wells and other production facilities, according to government data analyzed by Bloomberg News. Those sites yield natural gas equivalent to about 80,000 bpd of oil in Canada’s energy heartland of Alberta alone, in addition to almost 14,000 bpd of crude. Companies most at risk of disruptions include Tourmaline Oil Corp., the country’s biggest gas driller, as well as oil-sands giant Cenovus Energy Inc. and Paramount Resources Ltd. Smaller operators could also be affected, including closely held Westbrick Energy Ltd… “Canada could be facing another catastrophic fire season this year as dangerously dry conditions combine with higher-than-normal temperatures buoyed by the El Niño weather pattern, according to a government forecast… “The leftover fires burn into organic matter in the earth including into peat, which smolders easily and is difficult to extinguish. The blazes from 2023 aren’t generally as much of a threat as new conflagrations that emerge, but the large number of carryover fires this year is a problem, Alberta Wildfire spokeswoman Josee St-Onge told Bloomberg.

OPINION

The Hill: Expect financial fallout when the fossil fuel bubble finally bursts
Durwood Zaelke is president of the Institute for Governance and Sustainable Development and an adjunct professor at the University of California, Santa Barbara’s Bren School of Environmental Science and Management. Stacy A. Swann is founder and CEO of Resilient Earth Capital, 4/16/24

“Climate change — and the lack of timely, consistent action to address it — is driving the world toward a new financial crisis. Indeed, senior regulators are increasingly warning that this will cause a collapse similar to the 2008 Great Recession,” Durwood Zaelke and Stacy A. Swann write for The Hill. “The head of the European Environment Agency recently warned that the European Union is at a “higher and higher” risk of systemic financial shock as the planet warms up. This follows similar alerts from U.S. Treasury Secretary Janet Yellen, President of the European Central Bank Christine Lagarde and Mark Carney, former governor of the Bank of England — as well as from financial experts at the London School of Economics’ Grantham Institute. The danger is of a major “Minsky Moment” — a sudden and catastrophic plunge in asset values following a period of growth and stability. It takes its name from the economist Hyman Minsky, who understood that market optimism with inadequate regulation could push key assets like fossil fuels into a bubble of unjustified valuations. When these are corrected, investors would be stranded with insufficient returns, as we saw in 2008. The global financial sector will eventually face such a moment as its underlying assets — from all sectors, not just carbon-intensive ones — face both physical risks from climate impacts and transition risks as economies adjust to stronger climate constraints and as governments take more muscular action to speed the transition to clean energy needed to keep the planet safe from the most catastrophic impacts of climate change… “Carney also understood that investors play an outsized role in addressing climate change because they decide whether their capital will help or hurt the cause. They must be informed about climate-related financial risks and overinflated valuations that fail to account for climate change… “Science-informed investors who race for the top should do everything they can to capture these opportunities and create market signals along the way for all industries. This will help protect investors and taxpayers in a time of volatility, accelerate the needed economic and energy transitions, and give us a better chance to restabilize the climate and financial systems before it’s too late.”